lean management basics
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© 2013 ICOPE - All rights reserved.
LEAN MANAGEMENTBASICS
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OVERVIEW ON LEAN MANAGEMENT
What is Lean
Why to use Lean
Where to use Lean
When to use Lean5S
8 Wastes
Standard work
Visual Management
INTRODUCTION TO THE PROGRAM – PART 2
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LEAN MANAGEMENT
IMPROVE PHASE – PART 6
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WHAT IS LEAN MANAGEMENT
LEAN Management:
It is a customer focussed waste elimination method that makes the process and
there by organization lean (eliminating Fat)
In a Lean company, employees always look to improve their skills and improve the
processes. Products and Services are driven in right amounts, to right location, at
the right time and in the right condition.
Lean Thinking
The Goal of Lean Thinking is the creation of a continuous stream which delivers
customer value with the least waste of resources within the shortest possible time.
The Building blocks of Lean Management are 5s, 8 Wastes, Visual Management
and Standardised work
IMPROVE PHASE – PART 6
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LEAN MANAGEMENT LEAN Management
IMPROVE PHASE – PART 6
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WHY LEAN
IMPROVE PHASE – PART 6
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WHY TO USE LEAN – BENEFITS
Individual • Develops Leadership thinking • Improved decision making skills• Ability to use problem solving
tools and techniques• A better You as an Individual /
Manager
Organizational • Improved quality of product or
service• Reduced process cycle time• Development of staff skills• Common language throughout
the organisation
INTRODUCTION TO THE PROGRAM – PART 2
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WHERE TO USE LEAN
IMPROVE PHASE – PART 6
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WHERE TO USE LEAN
TYPE OF INDUSTRIES Manufacturing
Telecom Banking & Insurance
Healthcare
Education
Hospitality Airlines
Construction
Software
Space Research & Military Any industry where (internal/external) CUSTOMER is involved
TYPE OF FUNCTION Customer Service
Production Administration
Sales & Marketing Finance
Research & Development
OperationsTraining & Development
Human Resource Management
IT
Quality Any function where (internal/external) CUSTOMER is
involved
INTRODUCTION TO THE PROGRAM – PART 2
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WHEN TO USE LEAN
IMPROVE PHASE – PART 6
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WHEN TO USE LEAN
LEAN SIX SIGMA
DO IT YOURSEL
F
ASK EXPERT
IMPA
CT
CAUSES
KNOWN UNKNOWN
LOW
HIGH
INTRODUCTION TO THE PROGRAM – PART 2
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5S
IMPROVE PHASE – PART 6
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5S
What is 5S: 5S is a methodology which helps us to better organise our workplace in order to improve safety/controls and productivity5S is the foundation on which to build a leaner organisation
Where 5S is used?At any work station or work place. Traditionally used on the shop floor, but equally relevant in office environments, service, on-site works and even computer file storage.
IMPROVE PHASE – PART 6
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5S – Cycle 5S Cycle:
IMPROVE PHASE – PART 6
Sort• Seri
Straighten • Seiton
Shine• Seiso
Standardise • Seiketsu
Sustain • Shitsuke
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5S
IMPROVE PHASE – PART 6
5S Description
Sort
• Remove all items from the work area • Identify all items required to add value at the workstation • Eliminate duplicates, infrequently used items, and trash• Identify these items as waste or not critical with red tags• Store red tag items in a dedicated Red Item’s Area
Straighten
• Take the equipment required in the workstation area and organize it based on frequency and point of use
• Assign locations for all equipment, WIP (Work In Progress), and raw materials and include minimum / maximum levels to be held
• Consider ease of reach, identification and proximity to work surface
Shine
• It’s all about cleaning. Clean the floors, walls and equipment• Ensure all items are restored to their designated place• Cleaning becomes part of daily tasks and responsibilities • Clear schedules and standards are developed and worked to• Ideas to reduce the need to clean are generated and actioned
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5S
IMPROVE PHASE – PART 6
5S Description
Standardize
• Standardize maintains the result of the prior three steps• Define standardized work, cleaning and organizational procedures for the prior 3 S’s• Document the desired state of operations with pictures, short instructions of 5S
procedures and target KPIs• Clarifies who is responsible for each operation
Sustain
• Sustain aims to make the new standards and procedures, the new habit – “The way we do things around here”
• Habits initially take time and effort to develop and maintain - cultural change• Sustain, holds the other 4S together and embeds them into the culture• Without a strong emphasis on Sustain, the new standards will lapse and there will be
slippage back to the ‘old ways’
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5S 5S Table
IMPROVE PHASE – PART 6
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5S - BENEFITS
IMPROVE PHASE – PART 6
5S
Improved Safety
Improved Productivity
Reduces Waste
Foundation to Lean
Organization
Involves Employees in improvement
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8 WASTES
IMPROVE PHASE – PART 6
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WASTE
VSM Key Terms:
Waste: Any activity that consumes time and resources like manpower, machinery, money etc., and does not contribute in meeting the customer requirements.
Types of Wastes: There are 3 types of wastes
ANALYSE PHASE – PART 5
MUDA: WASTE
MURA: UNEVENNESS
MURI: OVERBURDEN
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TYPES OF WASTES
VSM Key Terms:Types of Wastes:
MUDA: Any activity in the process that does not add value. MUDA is not creating value for the customer. In short: WASTE
MURA: Any variation leading to unbalanced situations. In short: UNEVENNESS, inconsistent, irregular. Mura exists when workflow is out of balance and workload is inconsistent and not incompliance with the standard.
MURI: Any activity asking unreasonable stress or effort from personnel, material or equipment. In short: OVERBURDENMuri means: a too heavy mental- or physical burden. For machinery Muri means: expecting a machine to do more than it is capable of or has been designed to do.
ANALYSE PHASE – PART 5
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8 - DEADLY WASTES
Types of Muda (Wastes):
Muda is again classified in to 8 types as follows.
The popular acronym for the 8 wastes - DOWNTIME
Defects
Over Production
Waiting
Not using employee creativity
Transportation
Inventory
Motion
Extra Processing
ANALYSE PHASE – PART 5
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8 - DEADLY WASTES
ANALYSE PHASE – PART 5
Waste Type Description
Defects Any product or process not meeting the customer requirement
Over Production Making something before it is truly needed
Waiting Time when work-in-process is waiting for the next step in production
Not using employee creativity Not effectively using the collective talents, skills and knowledge of all employees and suppliers
Transportation Unnecessary movement of raw materials, work-in-process or finished goods
Inventory Product (raw materials, work-in-process, or finished goods) quantities that go beyond supporting the immediate need
Motion Unnecessary movement of people
Extra Processing More processing than is needed to produce what the customer requires
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8 WASTES - BENEFITS
IMPROVE PHASE – PART 6
8W
Reduces Time
Improved Productivity
Reduces Waste
Improves Customer
Satisfaction
Involves Employees in improvement
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VISUAL MANAGEMENT
IMPROVE PHASE – PART 6
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VISUAL MANAGEMENT What is Visual Management Visual management is a method of creating an information-rich environment by the use of visual signals, symbols and objectsIt helps anybody in the workplace to know what the current status is and what to do next
Where to use Visual ManagementIn any workplace where working to a standard is keyUse it in teams, to create shared understanding and build teamwork
How to use Visual Management: Understand elements of the workplace & process that are keyConsider methods to make standards clear and easily understoodUse it in teams, to create shared understanding and build teamwork.Build participation through shared informationConveying Information - Work environment, safety, operations, storage, quality, equipment…Visual Displays - what, where, when, who and howVisual Controls – for controlling the process (e.g. action triggers)
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VISUAL MANAGEMENT - GUIDELINES
IMPROVE PHASE – PART 6
Visual Management Step Description
Understand the standard process
• Identify key characteristics of the standard process
Consider Visual Displays
• Consider methods which communicate important information, but do not control the process.
• Consider what, when who, when and how.• Involve the team• Select clear simple visual displays
Consider Visual Controls
• Consider building visual controls into the process to ensure that activities are performed according to standard
• Consider what, when who, when and how• Involve the team• Select clear simple visual controls
Implement Visual Management
• Brief and action the team to implement the agreed visual management
Maintain & Review• Continually monitor any visual displays and controls• Update all displays at agreed intervals• Review effectiveness and amend accordingly
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VISUAL MANAGEMENT - EXAMPLES Examples:
IMPROVE PHASE – PART 6
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VISUAL MANAGEMENT - BENEFITS
IMPROVE PHASE – PART 6
Visual Management
Creates a standard work environment
Improved Productivity
Simple & Low cost
Can be understood &
adopted quickly
Involves Employees in improvement
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STANDARD WORK
CONTROL PHASE – PART 7
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STANDARD WORK
CONTROL PHASE – PART 7
What is Standard Work
A simple written description of the safest, highest quality, and most efficient way
known to perform a particular task, (i.e. a checklist to lead someone through the
task).
It describes the only acceptable way to do the process.
Expected to be continually improved
Includes the amount of time allotted to hand-off the task to the next step of the
process.
Focuses on the process, not the equipment or materials
Reduces variation, increases consistency
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STANDARD WORK - STEPS
CONTROL PHASE – PART 7
Steps for Creating Standard Work1. Define the extent of the task for which you are creating standard work (e.g. starts at… ends
at…)
2. Determine the appropriate standard work requirementsName of process
Author
Revision date
Task name
Work sequence (i.e checklist, procedure)
Time allotted for task – next task in sequence
3. Gather best practices
4. Create the standard work document
5. Train the supervisor on the standard work
6. Train the employees to do the standard work
7. Run the process and observe the results
8. Make adjustments and modifications to the standard work
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STANDARD WORK – DOs & DON’Ts
CONTROL PHASE – PART 7
DON’Ts:
• Put standard work in a desk drawer
• Change processes without changing standard work
• Make standard work difficult to change
• Give up on standard work – it can be tough, but it’s very important
DO: • Keep standard work simple• Make it accessible• Include all information on one, easy-to-
read document• Create one standard work document for
each part of the process• Always look for ways to improve the
process.
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STANDARD WORK – TEMPLATE
CONTROL PHASE – PART 7
• Template Owner Approved By Revision Date
ProcessStart Point End Point Task
Process steps
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STANDARD WORK - BENEFITS
IMPROVE PHASE – PART 6
Visual Management
Creates a standard work environment
Reduced time for processing
Less people dependent
Can be understood &
adopted quickly
Reduces Variation
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Thank you . . .
IMPROVE PHASE – PART 6
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