“Without the Cost of Waste …” Learn to Manage your Business “Without the Cost of Waste …” Here’s some simple Waste Elimination Tips applicable to every process. www.freeleansite.com

Dissatisfaction / Constant Turnover Tip of the Some waste you can not see until you dig! COPQ = MUDA = WASTE = MONEY !! Start digging. Dissatisfaction / Constant Turnover

Principles of Effective Process Management Safety First Waste elimination Responsiveness to change Right things, right place, right time Effective relationships within the value chain Continual improvement Optimal first delivered unit quality Some principles of Lean Thinking -- with Waste Elimination as one of the guiding principles

Fundamental Concept of Lean Thinking Waste Elimination Waste: 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 or service Waste = Money Down the Drain This is the GOAL that drives us to proactive continual improvement everyday.

Types of Waste Defects Over-Production Waiting Not necessary – excessive processing, mass inspection, alignments, adjustments Transportation Inventory Motion Employees Underutilized Easy way to remember: DOWNTIME Ask the session participants for any other types of waste they can think of.

Causes of Waste Layout (Distance) Long Setup Time Lack of Reliable Processes Lack of Preventive Maintenance Inconsistent Work Methods Lack of Training Lack of Discipline Inconsistent Performance Measures Ineffective Production Planning or Scheduling Lack of Workplace Organization Poor Supplier Quality or Reliability Again, ask for the participants to add to the list

Tips to Eliminate Waste: Waste of Defects Rework, Repair, or Scrap Cost of Material, Labor, and Equipment Usage Cost of Returns, Customer Dissatisfaction Tips to Eliminate Waste: Mistake Proofing Reduce Batch Size Implement Work Cells Initial Process Capability Build Quality Into Process / Not Inspecting It In Anytime the product or service deviates from the established Value Stream, the costs grow uncontrollably because they are now outside normal process controls.

Waste of Over-Production To Produce More Than Required To Produce Before Required Tips to Eliminate Waste: Develop Continuous Process Flow Produce Only What the Customer Wants - When the Customer Wants It Eliminate Batching & Queue Processes Waste by Over-Production can lead to Flow, Pull and Takt Time discussions.

Tips to Eliminate Waste: Waste of Waiting Time Employee Waits for Machine, Tools, Material, Maintenance, Supervisor, Etc. Machine Waits for Maintenance, Operator, Material, Tooling, Changeovers, Etc. Tips to Eliminate Waste: Balance Flows Utilizing Work Cells Planning and Scheduling Set-Up Time Reduction One of the guiding principles of the Toyota Production System: Nowhere in the Toyota Production System is there a statement claiming that it is necessary to improve machine’s operating rates, only that machines must be ready for operation when needed. In other words, it is essential to have enough capacity to operate under conditions of increased demand. This is quite different from the conventional concept of machine efficiency.

Waste of Not-necessary - Excess Processing Poor Design of Parts; Alignments Poor Maintenance of Equipment; Extra Adjustments Poor Instructions and Training; and re-training Mass Inspection – Sorting - Reworking Parts Tips to Eliminate Waste: Modifying Equipment or Dies Modifying Design of Parts Cleaning Area (5S) and Maintenance Equipment T.P.M. Total Productive Maintenance Implementing Work Cells Advance Product Quality Planning or Advanced Quality Systems (AQS) can address problems/ issues prior to them being launched with the product or service. Standardized Work & Work Instructions, coupled with Education and Training are needed. Total Productive Maintenance deals with the issues of both Predictive and Preventive Maintenance.

Waste of Transportation Double or Triple Handling Long Distance Moving of Materials and Tools Tips to Eliminate Waste: Move Operations Close Together (Work Cells) Combine Jobs Standardize Part Handling When thought about with a clear head, this is common sense. (Which is uncommon these days…)

Tips to Eliminate Waste: Waste of Inventories Excessive Raw Materials Excessive Finishing Goods Excessive Work in Progress Excessive Supplies Requires Extra Handling, Space, Paperwork Tips to Eliminate Waste: Dispose of ALL Obsolete Material Only Produce Items Required by Next Operation - (Line Balance) Reduce Purchasing Items in Large Lots Manufacture in Smallest Lot Possible (GOAL: 1Piece) Ask the group the question, “Why do we carry inventories?” Allow them to brainstorm the answers to this question, and then ask what it would take to eliminate a few of these reasons why we carry inventories. More times then not, the group will come up with exactly what is required to begin eliminating excessive inventories. You can also label the “Rocks” of the “Hidden Factory” with the answers of the above question. Then show the boat floating on the water above all of these problems. This graphically shows that we historically carry inventory so we will not have to deal with the “Hidden Factory” problems in our processes.

Tips to Eliminate Waste: Waste of Motion Walking to and From for Tools, Parts, Material, and Equipment Searching for Tools, Parts, and Material Long Set-up Times Tips to Eliminate Waste: Good Housekeeping (5S) Cellular Layout Combining Operations Reducing Changeover/ Set-up Time Stress the importance of 5S implementation. This is perhaps the first step anyone should take when implementing “Lean” since it allows you to organize your work area(s) prior to implementing more sophisticated “Lean” concepts.

Waste of Employees Underutilized People Not Cross Trained Lack of Communication No System to Generate Ideas or Input People Have No Responsibility or Accountability Tips to Eliminate Waste: Develop Work Teams Along Process Flows Utilize People for Continuous Improvement Empower People to Be Responsible for Their Areas It is important to stress the need for direction and vision to support empowered teams. Empowering Teams does not equate to cutting them loose to find their own way. Cross-Functional utilization takes a much larger role as we mature.

Examples of Waste Accumulating Inventory Waiting for Material to Work On Machine Breakdown Looking for Tools Defects Rework Parts Shortage Temporary Storage Counting Parts Ask the group to add to this list. This keeps them involved and not just being talked to.

Examples of Waste (continued) Carrying Heavy Work-piece Watching the Machine Run Entering the Inventory Count Into the Computer Transferring Parts Over a Long Distance Over-Production and Double Handling Inspection

“Lean” Thinking requires … Processes that... Optimize the flow of products and services between stations /sites Provide seamless and timely information flow Are defined and controllable throughout the Value chain Tools that... Provide enabling technologies (such as CATIA, SPC, Workstations, Intranet, etc) to all employees Are low cost and flexible (reduce quantity of fixed tooling) Describes the requirements of Lean

“Lean” Thinking requires … Human Resources that... Provide a properly trained and informed workforce Provide career & skill development programs for each employee Broaden job descriptions to develop a “flexible” workforce Capital Resources and plans that... Minimize space utilization and distance traveled Optimize asset utilization and consumption Focus on variability reduction Describes the requirements of Lean

Continuous Improvement is about the Continual Elimination of Waste! Fundamental Concept Continuous Improvement is about the Continual Elimination of Waste! End with Q & A Session and ACTION !!

“Without the Cost of Waste …” Learn to Manage your Business “Without the Cost of Waste …” Here’s some simple Waste Elimination Tips applicable to every process. www.freeleansite.com