WASTE REDUCTION AND PRODUCTIVITY IMPROVEMENT SAMPLE DAY 1

You are not paid to work hard You are not paid to work hard. In fact, you are not paid for effort at all. You are paid for results. It's not what you do; it's what you get done.“ ----Larry Winget : Personal success and business author and speaker SAMPLE

EVERY BUSINESS HAS TWO SOURCES OF CASH FLOW Cash is the lifeblood of your business. To boost profits, you will want to earn more or lose less. Every business has two sources of cash flow: External customers give you money for your products and services. Internal processes that leak cash like a rusty bucket. —25% to 40% of your expenses. SAMPLE

EVERY BUSINESS PROCESS HAS THREE BIG LEAKS Big Leak #3—Variation SAMPLE Big Leak #1—Delays: The delays between the steps in your process cost you time and money that dampen your productivity and profitability. Big Leak #2—Defects: The defects, mistakes and errors that have to be fixed or scrapped. Fixing mistakes that shouldn’t have been made in the first place consumes time and money that could be better spent serving customers and boosting the bottom line. Big Leak #3—Variation: The small to large differences from piece-to-piece, day-to-day, month-to-month of your products and services.

Every Business Has Two Improvement Focuses 1) (2) SAMPLE Big Leak #1—Delays: The delays between the steps in your process cost you time and money that dampen your productivity and profitability. Big Leak #2—Defects: The defects, mistakes and errors that have to be fixed or scrapped. Fixing mistakes that shouldn’t have been made in the first place consumes time and money that could be better spent serving customers and boosting the bottom line. Big Leak #3—Variation: The small to large differences from piece-to-piece, day-to-day, month-to-month of your products and services.

LEAN Thinking Identify waste ( as defined by the customer ) and….. Determine appropriate and effective ways to remove waste from the system. SAMPLE 6

Types of Work – Identifying Waste Value Adding (VA): SAMPLE Incidental Work (NVA), Waste 7

SAMPLE Waste Elimination Value Add Waste Lean Six Sigma Traditional Focus Work Longer-Harder-Faster Add People or Equipment SAMPLE Lean Six Sigma Improve the Value Stream to Eliminate Waste Value Add Waste LEAD TIME 8

To produce sooner, faster or in greater quantities The 7 Wastes Overproduction Waiting Inventory Transportation Motion Excessive Processing Defects 1 6 7 5 4 3 2 To produce sooner, faster or in greater quantities than customer demand. Raw material, work in progress or finished goods which is not having value added to it. People or parts that wait for a work cycle to be completed. Unnecessary movement of people, parts or machines within a process. Unnecessary movement of people or parts between processes. Non right first time. Repetition or correction of a process. Processing beyond the standard required by the customer. is the Japanese word for WASTE. MUDA Seek it out and get rid! An 8th waste is the wasted potential of people SAMPLE 9

TOOLS FOR WASTE REDUCTION AND PRODUCTIVITY IMPROVEMENT SAMPLE

Setup Reduction (SMED) SAMPLE

Poka Yoke SAMPLE

One-Piece Flow SAMPLE

Total Productive Maintenance (TPM) SAMPLE

Pull System SAMPLE