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THE SEVEN CLASSES OF WASTE n What is “Waste”? n Value for Whom? n Find and Eliminate Waste…. S.

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Presentation on theme: "THE SEVEN CLASSES OF WASTE n What is “Waste”? n Value for Whom? n Find and Eliminate Waste…. S."— Presentation transcript:

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2 THE SEVEN CLASSES OF WASTE n What is “Waste”? n Value for Whom? n Find and Eliminate Waste…. S

3 #1 Excess Production Examples: ________________________ ____________________________ Examples: ________________________ ____________________________ Excess production hides problems and creates : Excess production hides problems and creates : n Extra inventory, handling, equipment usage, space, quality problem issues, etc. Production should be determined by the customer, not “false targets” such as utilization. Production should be determined by the customer, not “false targets” such as utilization.

4 #2 Waiting or Watching n Causes: n Waiting for Materials n Waiting for Equipment/Tools n Waiting for Repairs/Service n Waiting for Large Lots to Finish n Watching Unreliable Processes n Watching for Problems n Effects  Wastes Time

5 #3 Conveyance or Transportation n Causes: n Poor Layouts (Long distances between process operations) n Large Production Lots n Batch Processes n Poor Scheduling n Effects  Wastes Time

6 #4 Processing Itself n Causes: n Poorly Maintained Equipment n Improper/ Poor Tooling n Excess Checking/Stopping n Improper Materials n Errors in Processing/Setup n Poor/no Work Instructions n Effects  Wastes Time

7 #5 Inventory n Causes: n Long Setups n Large Batch Sizes n “Mindset” of Comfort n Reliance on “MRP” to reorder n Batch Processing n Effects  Wastes Time & Hides Real Problems (quality, scheduling, suppliers, maintenance, attendance, etc.)

8 #6 Motion n Causes: n Poor Layouts & Facilities n Poor Work Place Designs n “Lost: Items/Searching n Lack of Needed Tooling & Equipment n Effects  Wastes Time

9 #7 Producing Failures n Causes: n Poor Training n Poor Manufacturing Instructions n Poor Equipment & Tooling n Poor Materials n ________________________________ n Effects  Wastes Time

10 How to Identify and Target Waste with Kaizen You can’t eliminate what you don’t see.

11 Add Value? Supplier Internal or External Work Station Process Customer Internal or External PROCESS MODEL

12 CUSTOMER FOCUS EACH PROCESS HAS ITS OWN SUPPLIER AND CUSTOMER. n Ultimate or external customer. n 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 IMMEDIATE CUSTOMERS: WHAT ARE YOUR CUSTOMER’S NEEDS, REQUIREMENTS, AND EXPECTATIONS:

14 MANAGING UPSTREAM Effective 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 Flow Use Visual process mapping/charting techniques: n Process Charts for Products n Flow Charts for Systems n Functional Deployment Map for Actions and Functions n Value Stream Maps (VSM) for Materials and Information Define and understand your processes to identify and eliminate waste.

16 PROCESS CHARTS Aid in: n Visualizing and understanding the process n Identifying specific operations for improvement n Understanding effects of changes in one step on others Purposes: n Reduce operator/material movement n Order activities properly n Balance work of operator and machine n eliminate unnecessary idle time and all forms of waste

17 I. Process Chart *details all work done by or on one product SymbolAction ClassificationPredominant Result Operation Transportation Inspection Delay Storage Produces or Accomplishes Moves Verifies Interferes Keeps

18 Operation 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). CastingSheet Steel Storage Bolts 3 Tons Turnings 0.3 Tons 3.3 Tons Turn 4 Tons Scrap 2 Tons Offal 1 Ton Drill 7 Tons 3 Tons 9 Tons Blank 9 Tons Trim 10.5 Tons Assemble/ Inspect Form

19 Horizontal line indicates material feeding into process Vertical line indicates steps of process arranged in chronological sequence A.

20 B. Horizontal lines give way when lines cross Material in-feed line Process sequence line

21 C. Typical process diagram Symbol and Number Time/PlaceDescription Paint Test2 4

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

24 F. Material returned for rework 1 3

25 G. Material flow with yield, loss or scrap tons/day Scrap 14

26 H. Complex charts aided by arrows, curved corners

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: n Eliminated? n Simplified? n Changed in sequence? n Combined? n Standardized?

28 FLOWCHARTS A 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. 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. Begin Step 1 Decision 1 YesNo Step 2End Etc.

29 FLOWCHART USE n To better understand and agree on what the process is in terms of actions and decision points n To determine how the process currently works n To determine how the process should work n To 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 SYMBOLS Depict time consuming steps in a process. Examples: Inspect a product, machine a part, record the results, etc. Activity or Task Depict questions/checks and show alternative outcomes depending on the result. Examples: Is the part nonconforming? If yes, do one thing. If no, do another. Decision No False Reject Fail Yes 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. Flow Depict transfer of flow to a location or show the identity of a location. A

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35 Functional Deployment Map

36 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. Value Stream Mapping (VSM) Example from Quality Digest March 2006, pg 41-46

37 Step one: Meeting n Set up a meeting between the management team and value-stream process owners n State 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. n 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 n Train the VSM team for two purposes. n 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. n Second, the team must work from a standard set of definitions and icons when drawing the VSM. n The team then assigns two to four of its members to construct the current-state map.

39 Step three: Data Collection n 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) n Data on each activity within the value stream should be collected and can include: n Cycle times n Changeover or setup times n Number of people involved n Quantity of units processed n Quantity of changeovers for a given time period n Downtime n Batch sizes n Number of items waiting

40 Step four: Map Construction n The current-state map can be constructed after each activity has been observed and the data have been collected. n Label each activity in a process box, with the data for that activity listed below it. n Use arrows to show the flow of the product n Use triangles between the process boxes to depict inventory levels of work in process before each activity. n 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. n The current-state map can be constructed…. n 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. n Calculate the process time for the value stream by adding the times along the upper teeth of the saw tooth diagram. n Calculate the total lead time by adding all the times on the upper teeth and the lower gaps together. n Calculate the percent of the total lead time represented by the process time.

42 Customers begin arriving at 7 a.m. for 9 a.m. opening Customers sit down and wait for their number to be called between each station Customer Receive queuing ticket *C/T=2 min 500 cust/day 2 examiners Processed for written exam C/T=6 min 80 cust/day 1 examiner Take test on com- puter testing station C/T=15 to 60 min 12 computers Computerized testing in English only I 3 to 8 people I 5 to 10 people I 100 to 200 people Legend * C/T = Cycle time ** = Inventory I ** 2 min 90 min20 min0 min15 min 6 min20 min Figure 1: Driver’s License Issuance: Current-State Map

43 Customers shuffle back and forth through service center: no flow Total processing time = 34.5 minutes Total lead time = minutes Score test and receive passing documentation CT=2 min for comp C/T=5 min for foreign language 1 examiner 40% failure rate Complete appli- cation, sign and enter in system C/T=2.5 min 450 cust/day 4 examiners 5% rejected for lack of documentation Capture photo and receive money C/T=1.5 min 450 cust/day 2 cameras 4 printers 2 examiners I 100 to 200 people I 5 to 10 people I 60 to 120 people Legend * C/T = Cycle time ** = Inventory I 2 min 15 min75 min45 min 2.5 min1.5 min 10 min.5 min Pick up driver’s license C/T=.5 min 425 cust/day 2 examiners 5% scrap rate I 3 to 5 people Figure 1: Driver’s License Issuance: Current-State Map

44 Step five: Review n Once the current-state map is completed, call a meeting of the managers and process owners to review the map and validate the information. n The data on the map are open for questions, and a consensus must be reached before going any further. n 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 n Use brainstorming to target improvement initiatives to eliminate and reduce bottlenecks and lead times. n Use an Affinity Diagram, Interrelationship Digraph, or Tree Diagram as appropriate. n 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.] n Use an effect/cost approach to prioritize the improvement plan.

46 Step six: Set Targets …. Cont. n T he team brainstormed the following improvement initiatives: n A creative staffing plan that allows for extended hours to eliminate a deluge at the beginning of the day. n Written instructions in multiple languages detailing exactly the forms and documentation needed for each service a customer may need. n Redesign the application forms for easier understanding and create a desk with template examples where customers can fill out their own paperwork. n Create online practice exams in multiple languages. n To decrease the failure rate, charge for a second test attempt. n A computer-based testing in multiple languages, eliminating paper and pencil testing and manual scoring. n One more camera at the photo station to keep up with demand. n A a first-in, first-out line for photos and license receipt to prevent customers from sitting and returning to the process. n Redesign the layout of service centers to eliminate confusion and create a continuous flow of customers. n 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 n Data in the future-state map are derived from targets that will evolve as a result of implementing the improvements. n In most cases, the future-state map will look similar to the current-state map, with the addition of improved metrics. n 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 Extend service hours Open at 7:30 a.m. Receive queuing ticket and handout specific to service requested C/T=2 min 500 cust/day 2 examiners Fill out appropriate applications and forms C/T=6 min Self-service Processed for written exam C/T=3 min 80 cust/day 1 examiner I 1 to 2 people I 10 to 20 people 2 min 10 min 0 min6 min 3 min 0 min 20 min Take test on computer testing station C/T=15 to 60 min 12 computers Tests offered on computer in many languages 8 min Redesign layout for service centers to create flow from beginning to end Customer I 3 to 5 people Figure 2: Driver’s License Issuance: Future-State Map

49 Develop online practice tests and charge for tests after one failure Total processing time = 36.5 minutes Total lead time = 84.5 minutes Score test and receive passing documentation C/T=2 min 1 examiner <5% failure rate Sign application and enter in system C/T=1.5 min 450 cust/day 4 examiners <1% rejected for lack of documentation Capture photo and receive money C/T=1.5 min 425 cust/day 3 cameras 4 printers 3 examiners I 10 to 15 people I 3 to 5 people 2 min 8 min 6 min8 min 1.5 min 10 min.5 min Take test on computer testing station C/T=.5 min 425 cust/day 2 examiners 5% scrap rate Create a help desk for any customers with special needs or problems that cannot be resolved in a timely fashion I 3 to 5 people I 10 to 15 people Fifo Line Figure 2: Driver’s License Issuance: Future-State Map

50 Step seven: Draw the Future… cont. n This future state accomplished two goals of VSM and lean techniques. n 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. n 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. n Clearly there are many more options to further improve the future-state map.

51 Step eight: Formalize the Improvement n Establish a detailed implementation plan that includes: n The area where the improvement will occur, n A description of the improvement, n A quantifiable and measurable goal, n The people responsible for the improvement n Targeted start and completion dates. n The sequence of tasks n Set a target that’s achievable and measurable.

52 n VSM is a powerful tool that can help an organization learn how a process looks from its customers’ perspective. n The tool can be used to depict the activities within any business process, from shop floor activities to administrative tasks in the front office. n 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. n 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. VSM Comments


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