1. IT-465 Introduction to Lean part Two

2. IT-465 Lean Manufacturing2 Introduction Waste Walks and Spaghetti Charts Outcomes Understand what a waste walk is and why it is important Understand spaghetti diagrams and why they are helpful

3. IT-465 Lean Manufacturing3 Waste Walks A useful tool used to identify potential improvements Typically performed by teams Use a standardized form Start with training on Lean concepts and what “wastes” are vs. activities that “add value” After waste walk, combine ideas into a working list – use an affinity diagram or simply combine like ideas and do “weighting” of the ideas

4. IT-465 Lean Manufacturing4 Waste Walks

5. IT-465 Lean Manufacturing5 Waste Walks

6. IT-465 Lean Manufacturing6 Waste Walks

7. IT-465 Lean Manufacturing7 Waste Walks

8. IT-465 Lean Manufacturing8 Waste Walks

9. IT-465 Lean Manufacturing9 Spaghetti Diagram

10. IT-465 Lean Manufacturing10 Spaghetti Diagram

11. IT-465 Lean Manufacturing11 Spaghetti Diagram

12. IT-465 Lean Manufacturing12 Spaghetti Diagram

13. IT-465 Lean Manufacturing13 Waste Walk Tips 1.Start with training 2.Select “big hitter” process to observe 3.Use teams to perform waste walk: A skilled facilitator Management from the area “Subject matter experts” on the process Members from other areas 4.Use a standardized form to collect data 5.Carefully record the wastes 6.Combine like ideas together 7.Use multi-voting or weighting to prioritize 8.Decide on the forum for action

14. IT-465 Lean Manufacturing14 Spaghetti Diagram Tips 1.Start with training 2.Select “big hitter” process to observe 3.Be the “thing” – record all touches and distance traveled between them 4.Secure a to-scale layout of the workspace 5.Draw your spaghetti diagram 6.Engage in brainstorming and prioritization of ideas 7.Decide on the forum for action

15. IT-465 Lean Manufacturing15 Summary Waste walks and spaghetti diagrams Useful tools in the LSS lexicon Best accomplished in facilitated team activities Most kaizen activities and Value Stream Mapping activities will include elements of waste walks and spaghetti diagrams Use carefully collected observations and data collected to build a business case for change

16. IT-465 Lean Manufacturing16 Hoshin Planning Hoshin (or Hoshin Kanri) A structured, team based planning process Addresses three basic business questions: What is our business? What will it be? What should it be? Best English translation is “Policy Deployment”

17. IT-465 Lean Manufacturing17 Hoshin Universal Business Planning Objectives Objectives of effective planning Understand customer needs (present and future) Balance daily management with strategic objectives Evaluate resource constraints Establish performance measures Develop detailed implementation plans Identify ownership and accountability Conduct regular reviews of progress Continually improve the process of planning

18. IT-465 Lean Manufacturing18 Elements of Hoshin - Deming Wheel Plan Examine present status Identify improvement areas Establish performance measures Understand the root cause(s) of current performance Identify solution alternatives Select and schedule solution

19. IT-465 Lean Manufacturing19 Elements of Hoshin - Deming Wheel Do Conduct training on the new solution(s) Implement scheduled action(s)

20. IT-465 Lean Manufacturing20 Elements of Hoshin - Deming Wheel Check Compare actual results to expected results Understand the root cause(s) of all deviators from expected results Some scholars have dubbed this step “Study” to clarify this is not a “check the box” activity, but a careful study of what has happened

21. IT-465 Lean Manufacturing21 Elements of Hoshin - Deming Wheel Act Resolve immediate issues Document and standardize all gains Conduct training on all new processes Reflect on lessons learned Go back to Plan step (to repeat the cycle)

22. IT-465 Lean Manufacturing22 Origins of Hoshin MBO in the 1950’s Hoshin also owes its roots to Management by Objectives by Peter Drucker in his book, The Practice of Management Although it has its foundation in Western management theory, Japanese applied the idea in creative ways to make it work

23. IT-465 Lean Manufacturing23 Practice of Hoshin

24. IT-465 Lean Manufacturing24 Practice of Hoshin Elements of a complete Hoshin Plan: Business Fundamentals Plan – documents daily work Long-Range Plan – documents how the company expects to operate in the future Annual Plan – documents key activities that must be accomplished this year to achieve Long-Range Plan Review Tables – compare actual results to expected results and document changes Abnormality Tables – document “out of the ordinary” occurences and facilitate the root cause

25. IT-465 Lean Manufacturing25 Practice of Hoshin – Deployment 1.Mission Statement 2.Vision Statement 3.Three to five “balanced” objectives for the year 4.Set goals at each level going downward 5.Initial Hoshin (Policy Deployment) Plans at each level 6.Identify Process Performance Measures (PPM’s) for each objective at all levels Deliverables of the process Business Fundamental Plans Breakthrough Plans (long-range) Periodic Review

26. IT-465 Lean Manufacturing26 Organizational Assessment Lean Assessment Purpose –Identifies potential opportunities for improvement at a high level –Provides understanding of the process before change Objective –A methodical evaluation that documents the “Current state” of the business considering Lean deployment and what can be expected directionally in the future under certain assumptions

27. IT-465 Lean Manufacturing27 Conducting the Lean Assessment Preparation Get training Hire experienced staff Hire a consultant Secure templates for self-assessment

28. IT-465 Lean Manufacturing28 Deliverables Typical Steps Meeting with key, controlling stakeholders Determine project scope Conduct interviews with staff to gather answers to specific questions

29. IT-465 Lean Manufacturing29 Benchmarking Key attributes Strategic and operational planning 5S observations IT systems Human Resource Development Current accounting practices Operational performance Sales and marketing

30. IT-465 Lean Manufacturing30 Documentation Prepares summary and detailed reports of findings for: Specific areas for initial improvement, reasons, and possible solutions Estimate amount of internal and external resources needed High-level plan recommendations Final Deliverables Report of findings Meeting with key stakeholders for review and discussion Re-cap of review meeting, assignments and deadlines for implementation

31. IT-465 Lean Manufacturing31 Things Needed to Proceed Initially, less is more A minimally intrusive up-front assessment that focuses on culture, skills, and change readiness Get stakeholder buy-in for change Structure initial efforts to include: –Full-scale investigation –Benchmarking

32. IT-465 Lean Manufacturing32 Summary Lean assessments are highly recommended Follow a structured approach Leverage “experience” Document lessons learned Establish a clear high-level strategic and tactical plan