Welcome to ACME Corporation!

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Welcometo ACME Corporation!
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Lean 100 An Introduction to Lean
Thinking Month 200X
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Jay WatsonLean Advocate
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Learning Objectives
Know Share Company Mission/ Charter Introduce Lean Enterprise concepts Provide reference materials Show Through a small-group exercise, demonstrate waste inherent in a process Share sampling of improvement tools
Do Develop and adopt one (or more) idea(s) for improvement Review Re-cap key concepts of Lean Thinking
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Strategy

• The company's business strategy is based on
  four principles clear market focus, product line
  breadth, technical excellence and cost
  efficiency.
• First, we focus our business on customers whose
  applications can be best served by smaller space
  and rocket systems, which have grown to be an
  important part of the 100 billion global space
  industry.
• Second, we develop and manufacture a complete set
  of advanced lightweight satellites and comparable
  launch vehicles that are responsive to our
  customers' needs.
• Third, we emphasize creative yet thorough design
  and engineering along with meticulous purchasing,
  production, and testing, to assure the highest
  safety and reliability for our space products.
• And finally, we rely on a strong company culture
  and disciplined management systems that stress
  cost consciousness and efficient use of
  resources.

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Adding Value in everything we do
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Credo

• SpaceCo is committed to providing
  High-Reliability
• Space and Defense Systems to Our Customers.
• We will
  achieve this through
• Maintaining a highly skilled and motivated team.
• Establishing and reviewing Product Quality
  Metrics.
• Continuously Evaluating and Improving our
  Processes.
• Endeavoring to meet and exceed Our Customers
  requirements and expectations.

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Deployment

• Mission
• Implement Lean Enterprise across all SpaceCo
  divisions using -
• comprehensive training
• standardized rewards and recognition
• teamwork
• so that Waste and Cost are reduced and
  Quality, Profit and Customer Satisfaction are
  increased.
• Vision
• A Corporate Culture where Continuous Improvement
  is a part of every Employees workday.

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History of Lean Thinking
Pre-industrial - Circa 1890 Mass Production circa 1930 Lean Manufacturing - circa 1980
Craftsmen perform all aspects of task Self-taught or apprenticeship training Employees contribute minimally to total product Training for limited skills Management makes decisions Clusters of employees working in teams Extensive, continuing training
Customized, non-standard products Variation in quality Standardized, focused on volume not quality Focus on internal/ external customer
Independence, discretion Variety of skills Responsibility Limited skills and knowledge Repetitive, mind-numbing work Little discretion, simplified tasks Some discretion, group effectiveness, empowerment, team accountability, work cells
People
Product
Work Environment
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Reduced Lead Time

• One of the most noteworthy accomplishments in
  keeping the price of Ford products low is the
  gradual shortening of the production cycle.
• The longer an article is in the process of
  manufacture and the more it is moved about, the
  greater is its ultimate cost.
• 
  Henry Ford,

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Reduced Lead Time

• One of the most noteworthy accomplishments in
  keeping the price of Ford products low is the
  gradual shortening of the production cycle.
• The longer an article is in the process of
  manufacture and the more it is moved about, the
  greater is its ultimate cost.
• 
  Henry Ford, 1926

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Lean Is Market Driven

• Every morning in Africa, a gazelle wakes up. It
  knows it must run faster than the fastest lion or
  it will be killed. Every morning a lion wakes
  up. It knows it must outrun the slowest gazelle
  or it will starve to death.

It doesnt matter whether you are a lion or a
gazelle when the sun comes up, you had better
be running.
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Defining Lean

• Lean is
• A systematic approach to identifying and
  eliminating waste (non-value-added activities)
  through continuous improvement by flowing the
  product at the pull of the customer in pursuit of
  perfection.
• The MEP Lean Network

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Defining Lean Thinking

• Lean Thinking is
• A way to specify value, line-up value creating
  actions in the best sequence, conduct these
  activities without interruption whenever someone
  requests them,
• and
• perform them more and more effectively.
• Lean Thinking
• Womack and Jones

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What Is Waste?

• Waste is anything other than the minimum amount
  of equipment, materials, parts, space, and
  workers time which are absolutely essential to
  add value to the product.
• Shoichiro Toyoda President, Toyota Motors
• (1 car company in the world w/ sales
  surpassing GM 4/25/2007)

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Demonstration

• Lets have some fun !
• (First trial)

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Definition of Value-Added Work Content

• Value-Added
• Any activity done right the first time - that
  increases the market, form, or function of the
  product or service.
• (These are things the customer is willing to pay
  for.)

• Non-Value-Added
• Any activity that does not add market form or
  function or is not necessary.
• (These activities should be eliminated,
  simplified, reduced, or integrated.)

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Lean Eliminating Waste and Wasteful Practices
Value-Added

• Non-Value-Added
• Overproduction
• Waiting
• Transportation
• Non-value-added processing
• Excess inventory
• Defects
• Excess motion
• Underutilized people

Typically 95 of all lead time is non-value-added.
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Demonstration

• Lets have some MORE fun !
• (second Trial)

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Eight Wastes
Overproduction
motion
Inventory
Transportation
Waiting
defects
Underutilized People
Non-Value-Added Processing
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Waste of Defects

• Inspection and repair of material in inventory
• Causes of defects
• Complex product design
• Poor Root Cause Analysis
• Poor Supplier Management
• Customer needs not understood
• Weak process control
• Constant overtime
• Misuse of priority system
• Deficient planned maintenance
• Inadequate education, training, or work
  instructions

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Processing Waste

• Effort that adds no value to the product or
  service from the customers viewpoint
• Causes of processing waste
• Product changes without process changes
• Just-in-case logic
• True customer requirements not clearly defined
• Over-processing to accommodate downtime
• Lack of communication
• Redundant approvals
• Extra copies or excessive paperwork

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Waiting Waste

• Idle time created when waiting for
• Material
• Paperwork
• Approvals
• Causes of waiting waste
• Unbalanced workload
• Unplanned maintenance
• Disorganized work areas
• Long process setup times
• Misuses of automation
• Upstream quality problems
• Unleveled scheduling

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Waste of Human Resources

• The waste of not using peoples mental, creative,
  and physical abilities
• Causes of people waste
• Old guard thinking, politics, the business
  culture
• Poor hiring practices
• Poor personnel assignments
• Fire fighting strategy
• Low or no investment in training
• Low pay, high turnover strategy

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Motion Waste

• Any movement of people or machines that does not
  add value to the product or service
• Causes of motion waste
• Unfavorable facility or cell layout
• Poor workplace organization and housekeeping
• Inconsistent work methods
• Trying to look busy while waiting

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Waste of Transportation

• Transporting parts and materials around the plant
• Causes of transportation waste
• Poor plant layout
• Poor understanding of the process flow for
  production
• Large batch sizes, long lead times, and large
  storage areas

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Waste of Inventory

• Any supply in excess of a one-piece flow through
  your process
• Causes of excess inventory
• Need for buffer against inefficiencies and
  unexpected problems
• Product complexity
• Unreliable shipments by suppliers
• Minimum buy requirements
• Functional vs. Team goals
• Reward system
• Unleveled scheduling
• Unbalanced workload
• Misunderstood communications
• Poor market forecast

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Waste of Overproduction

• Making more than is required by the next process
• Making earlier than is required by the next
  process
• Making faster than is required by the next
  process
• Causes of overproduction
• Over-engineering
• Redundant inspections
• Unbalanced workload
• Un-level scheduling
• Long process setup
• Just-in-case logic
• Misuse of automation

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Push versus Pull Systems

• Push System
• Resources are provided to the consumer based on
  forecasts or schedules
• Pull System is a flexible and simple method of
  controlling or balancing the flow of resources
• Eliminating waste of handling, storage,
  expediting, obsolescence, repair, rework,
  facilities, equipment, excess inventory
  (work-in-process and finished goods)

• Pull System
• A method of controlling the flow of resources by
  replacing only what has been consumed
• Pull System consists of
• Production based on actual
• consumption
• Small lots
• Low inventories
• Management by sight
• Better communication

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How to uncover Waste
Ask what? What is the operation doing? Ask
why? Why is the operation necessary? Ask why at
least 5 times to lead you to the root
cause Everything that is not work is waste Once
you know the function, you can identify as waste
anything that does not execute that
function Draft an improvement plan Ask how?
?
?
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How to uncover Waste
?
?
Map and Analyze Process steps
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How to uncover Waste
?
Id Waste Organize the workplace 5S is a
good start
?
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How to uncover Waste
?
Through Teamwork attack root causes
Accountability
Standardize Mistake-proof Processes. Monitor
Results!
?
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Why Change?

• The dogmas of the quiet past are inadequate to
  the stormy present. The occasion is piled high
  with difficulty, and we must rise with the
  occasion. As our case is new, so we must think
  anew, and act anew.
• Abraham Lincoln
• The definition of insanity is doing the same
  thing over and over and expecting different
  results.
• Albert Einstein

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Funny Thing About Continuous Improvement

• Old Adage
• If you always do what you always did, youll
  always get what you always got.
• Competitive Corollary
• If the other guy gets better, youre going to
  get less.
• With regard to Continuous Improvement
• The Skys the Limit !!
• 
  Jay Watson

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Building Blocks of The Lean Enterprise
Continuous Improvement
Teamwork
Rewards / Recognition
Training
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Building Blocks of The Lean Enterprise
Continuous Improvement
Value Stream Mapping
Teamwork
Rewards / Recognition
Training
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Building Blocks of The Lean Enterprise
Continuous Improvement
Cellular / Flow
Pull / Kanban
TPM
Quick Changeover
Quality at Source
POUS
Standardized Work
Batch Reduction
Layout
Value Stream Mapping
5S System
Teams
Visual Management
Teamwork
Rewards / Recognition
Training
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Lean Enterprise Practices

• Continuous Improvement (CI) philosophy
• Teams
• With rotation of highly specified job skills
• Using a disciplined problemsolving process
• Cross-trained and multi-skilled employees
• Who can work many operations within a cell and
  operations in different cells (or capacities)
• Process quality, not inspection
• Use of participatory decision-making
• Facilitator-led, team-based problem-solving,
  suggestion systems, etc.

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Barriers to Improvement

• If we all know we need to improve, the question
  becomes why dont we?

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Traditional Culture

• Leader makes all decisions Team Members follow
  with little input
• Process Improvement ideas are devised by the
  Leader and carried out by the Team Members
• Culture will succeed when the Team Members are
  inexperienced or when immediate decisions are
  critical (Peace Officers, Military)
• Process Improvement ideas are only as good as the
  single person who makes them
• Little vested interest from Team Members

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Evolving Culture

• More experienced Team members and more
  enlightened Leadership
• Teams surface their ideas for Leaders final
  approval
• Better Continuous Improvement ideas are devised
  because of the increased participation and slight
  shift in ownership
• Employee Satisfaction increases
• Leadership begins to shift from Tactical to
  Strategic decision making

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Evolved Culture

• Leader sets boundaries based on Company fiscal
  plans and objectives
• Self Directed work teams manage all Tactical
  issues
• Leader removes barriers and monitors performance
  while teams develop solutions and meet objectives
• Building Consensus over following orders

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Management May Need to Change

• New Leadership Style
• Managers must
• Earn trust
• Promote and reward participation
• Provide skill training and systems that allow
  successful completion of work
• The Managers Evolving Role
• Imposing Solutions to Managing Performance
• Tactical to Strategic
• From controlling information to sharing ideas
• From criticizing the mistakes to rewarding the
  almost rights
• From bureaucratic decision-making to
  workerdriven continuous improvement

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Associates May Need to Change

• Employees must be willing to
• Learn new skills
• Participate in teams and surface ideas
• Make decisions, take risks, and make mistakes
• Share the responsibility for implementing changes
• Support continuous improvement

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Lets Build Quality at Every Step

• Design for manufacture/ assembly
• Complex designs cause defects
• End-product knowledge (NOAC)
• Will my output satisfy my customer?
• Standardized Work (SW)
• Eliminate Tribal knowledge (Rig something up) /
  A single point of failure leads to poor quality
  and unreliable legacy
• Communication
• Timely feedback to associates and vendors when
  quality problems are detected
• Mistake Proofing
• Low-cost, highly reliable innovations that will
  detect abnormal situations before they occur, or
  if they occur, will stop the Operation

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Implementation Strategy

• Awareness of and active promotion of Continuous
  Improvement a Safer, Better, Faster mindset
• Training (OTJ and OYO)
• Development (Self-directed)
• Focused Improvement Events (Kaizen)
• Team participation (Projects)
• Culture Change (Continuous Improvement Mentality)
• Long Term Planning
• Benchmarking
• Promotion of Success (Betterment of Organization)

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Implementation Success Factors

• Unyielding leadership
• Strategic vision, based on Lean Enterprise as
  part of company strategy
• Observation of outside successes and failures
• Ability to question everything
• Deep commitment to excellence

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From the CEO

• I ask everyone to get
  involved in this initiative.
• Lean principles will give us a
  powerful
• framework to continuously
  evaluate and
• improve our design, production,
  procurement
• and other essential processes,
  providing us with a new
• tool to meet our commitments to the companys
  customers.
• I am looking to each of you for ideas and support
  of the
• lean enterprise initiative.
• Together, we will continue to boost SpaceCo to
  heights that
• are beyond our competitors reach.

Thurston Howell III
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Reference Information

• Lean Website
• www.freeleansite.com
• Training
• Projects
• Examples
• Articles
• Newsletters
• Presentations
• Events in summary
• 5S program
• Tools and Forms
• Seminars
• Industry Links
• Contacts

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Learning Objectives
Know Introduce Lean Enterprise concepts Provide reference materials Show Demonstrate waste inherent in a process
Do Develop an idea for improvement Review Re-cap key concepts
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Learning Objectives
Know Introduce Lean Enterprise concepts Provide reference materials Show Demonstrate waste inherent in a process
Do Develop an idea for improvement Review Re-cap key concepts
Thank you ! Any questions ??
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Lean 100 An Introduction to Lean
Thinking Month 200X