lean basics and deployment - · pdf filelean basics and deployment tom burkett, ceo bentley...

LEAN BASICS AND DEPLOYMENT

www.altexsolutionsgroup.com

Tom Burkett, CEO Bentley Stires, [email protected] [email protected]: (251) 504‐4125 Telephone: (979) 220‐2853

Introduction

• Who we are.• Why we think Lean and Lean Six Sigma (LSS) are great methodologies as cornerstones to a full continuous improvement deployment.

• How do you think a better understanding of Lean principles would improve your organization?

Guiding Thoughts

• Lean is about the process .• Lean is about team.• Lean is about involvement.• Lean is about commitment.• Lean is not exclusive to manufacturing.

Today’s Agenda

• Introduction to Lean.• Hearing and understanding the voice of the customer.

• Process Mapping.• Understanding variation in your process.

– A very “basic” introduction to Six Sigma.

• Identifying the forms of waste

Today’s Agenda (cont.)

• Value stream mapping• Overview of Basic Lean Tools• Project Selection and Prioritization• Implementing a lean program in your organization

Today’s Agenda (cont.)

• Additional Topics (time permitting)– Variation and Six Sigma– DMAIC Roadmap

Lean Knowledge Test

• Let’s check our knowledge of Lean.1. I have very limited understanding of lean.2. I know and use a few of the lean tools.3. I understand some of the principles and try to

apply across my area of responsibility.4. I encourage lean thinking by my employees.5. Sit down. I should be teaching this stuff!

Origins of Lean

Just in Time

Dr. Deming

History of Lean

• Henry Ford

History of Lean

• Based on Taylor’s theory of scientific management, Henry Ford’s vision was to “build a car for the multitude”.

• Highly efficient for the time.• In 1926 a Model T came off the assembly line every 93 minutes.

• Highly inflexible.

History of Lean

• Henry was not too concerned with worker satisfaction.

• Thought money was their only source of satisfaction on the job.

• Concerned primarily with how to speed up the production line.

History of Lean

• Kiichiro Toyoda

History of Lean

• Mr. Toyoda, as a young engineer, developed an attachment for a loom that stopped the machine whenever yarn broke.

History of Lean

• In 1934 Toyoda bought a Chevrolet and had his engineers take apart and put back together.

• In 1935 built first gasoline vehicle using parts from Chevy, Chrysler, and some unique ones built in Japan.

• Toyota Automobiles were born.– Spelling changed for marketing purposes.

Toyota Production System

• Absolute elimination of waste.• Worker satisfaction in areas other than pay.• Continual striving for process improvement in every area of the business. (Kaizen).

Lean Six Sigma (LSS)

• Six Sigma and Lean were “married” probably some time in the late 1980’s or early 1990’s by Michael George and colleagues.

• It has been around since with no signs of going away!

Lean Six Sigma

• Six Sigma = Quality• Lean = Speed and Flexibility

Goals of Lean

• Highest quality• In the shortest time• At the lowest cost• With maximum flexibility

Goals of Six Sigma

• Reduce variation in the process• Improve quality to a level where there are fewer than 3.4 defects per million opportunities.

Basic Theory of Six Sigma

• If we concentrate on reducing variation in a process then we have a more uniform and predictable output.

Basic Theory of Lean

• If we place more effort on reducing waste in our process, then flow time will improve.

Benefits of Lean

• Improved quality and fewer defects.• Reduced inventory.• Requires less space.• Enhances flexibility.• Makes future improvements simpler.• Safer work environment.• Improved employee morale.

Principles of Lean

Principles of Lean

• Identify customers and specify value• Identify and map the value stream• Create flow by eliminating waste• Develop a pull system• Pursue perfection

Process Mapping

• A process map is a visual representation of the process capturing all the relevant steps.

Types of Process Maps

• Process Flow Chart• Swim Lane• SIPOC• Value Stream• Future State

Benefits of a Process Map

• Process maps help facilitate a greater understanding of a process by identifying:

– Bottlenecks.– Redundancies.– Waste.– Key process inputs and outputs.– Key decision points and criteria.– Roles and responsibilities

Process Mapping

Process Map Example

Steps in Process Mapping

• Assemble team of people familiar with the process.

• Choose the appropriate process map type.• List all process steps on the map.• Ensure enough details to capture all relevant activity.

Process Mapping

• Determine the boundaries of the process.– Clearly define starting and stopping points.– Agree on the level of detail necessary to clearly understand the process and identify problem areas.

– Include any sub or parallel activities.

Process Mapping

• Determine the steps in the process.• Brainstorm and list all major activities, inputs and outputs, from the beginning to the end.

• Use post it notes so you can move around when necessary.

Process Mapping

• Sequence the steps.– Arrange in the order of the process.– Once again make sure you capture the sub and parallel activities.

Process Mapping

• Test the map for completeness.– Are all steps captured?– Make sure every path takes you either back or forward to another step.

Remember

• “You cannot improve a process until everyone agrees on what the process is”.

Mapping Tools (Manual)

• Knowledgeable team.• Kraft paper.• Post it notes.• Markers.• Flip charts.• Most importantly!

Most Important Process

Mapping Tool

Identifying Value and Customers

• Who are your customers?• What are they willing to pay for?• Which activities are value added and which ones do not add value to the process.

Voice of Customer

• VOC

Voice of the Customer

• Typical?

Who are Your Customers

• Internal?• External?

Voice of Customer

• Only customers define “quality”.

Voice of Customer

• Complaints• Returns• Cancellations• Referrals• What other customer voices do you hear?

Voice of Customer

• Ask the right questions.• Ask in the right way.• Understand the answers.

Translating Voice of Customer

• Translate into Critical Customer Requirements (CCR’s).

• Convert the (CCR’s) into Key Process Output Variables (KPOV’s).

• How do we do this?

Critical Customer Requirement

• VOC Input.“We do not like your product”.

• What might be the key customer issue?• What might be the critical customer requirement?

Key Process Output Variables

• S• M• A• R• T


• Specific• M• A• R• T


• S• Measurable• A• R• T


• S• M• Attainable• R• T


• S• M• A• Relevant• T


• S• M• A• R• Time Sensitive


• Specific• Measurable• Attainable• Relevant• Time Sensitive

Value Stream Mapping


• What is the “value stream”?


• Why map the value stream?

Identifying and mapping the value stream.

• “If you don’t know where you are going, any road will take you there.”

• Analyzing the value stream is the first step in determining where you are going.

• “Either you manage the process…or it manages you. You do have a choice!”


• Identify which steps add value for the customer.

• Identify those steps that are “necessary” for the business to function.

• Identify non value added steps.

Customer Value Added

• What you do that the customer is willing to pay for. (CVA).

Business Value Added

• What must be done as a necessary part of functioning in your environment. (BVA).

Non Value Added

• What steps add neither value to the customer or the organization. (NVA).

Goals for (CVA), (BVA), (NVA)

• Eliminate (NVA).• Eliminate or greatly reduce (BVA).• Reduce and optimize (CVA).

Eliminating Waste

• Most steps in the value stream do not add value to the process.

• Eliminating waste ensures a smoother flow to the customer.

Forms of Waste

• Tim Wood

Forms of Waste

• T• I• M• W• O• O• D

Forms of Waste

• Transportation• I• M• W• O• O• D

Forms of Waste

• T• Inventory• M• W• O• O• D

Forms of Waste

• T• I• Motion• W• O• O• D

Forms of Waste

• T• I• M• Waiting• O• O• D

Forms of Waste

• T• I• M• W• Over processing• O• D

Forms of Waste

• T• I• M• W• O• Overproducing• D

Forms of Waste

• T• I• M• W• O• O• Defects

Forms of Waste

• Tim was recently given a middle initial.

• “P”

Forms of Waste

• People

Forms of Waste

• Transportation• Inventory• Motion• Waiting• Over processing• Over producing• Defects• + People

Hidden Factory

• Rework!

Hidden Factory

Pull Systems

Pull Systems

• A not so effective pull system.

Pull Systems

• A more effective pull system.

Developing a Pull System

• Truly understand what the customer wants.• Develop a system to provide their product or service to them at the rate they want – no faster or slower.

Pull System Benefits

• Simplifies communication.• Reduces inventory.• Shortens and controls lead time.• Reduces work in process.• Reduces cycle time• Increases customer satisfaction.

Pull System Elements

• Movement based on next operation’s need.• Balanced lines by using kanban’s.

Pull Systems

• Kanban

Pull Systems

• Kanban signals.

Pursue Perfection

• Creating flow allows waste to become more visible therefore easier to eliminate.

• Pull systems reduce process cycle time allowing greater flexibility.

Project Selection

• Analyze the Process and/or Value Stream Map to find opportunities for improvement.

• Number and list all the opportunities.

Project Selection

• Set up a graph with benefit as the “Y” axis and effort the “X” axis.

• As objectively as possible, and by team discussion, write each number in the area of the graph that closely approximates the benefit and effort intersection.

Additional Lean Tools

• 5S• Mistake Proofing• Kaizen• DMAIC

5S

• What is 5S?

5S

• A process to create and maintain a well organized and efficient workplace.

• A systematic way to improve.• Enables anyone to recognize out of control activities.

• 5S allows one to see the process.

5S

• Sort.• Set in order.• Shine.• Standardize.• Sustain.

5S

• Sort (Seiri).– Separate necessary items from those not needed at the workplace.

5S

• Set in order (Seiton).– Arrange necessary items so they can be found and used quickly and efficiently.

5S

• Shine (Seiso).– Clean and establish a routine for maintaining the cleanliness and orderliness of the area.

5S

• Standardize (Seiketsu).– Ensure procedures are in place so activities will be done the same way no matter who is performing the duties. Create a safe work environment.

5S

• Sustain (Shitsuki).– Use visual tools to ensure organization and improvements are maintained.

5S Benefits

• Improve productivity.• Eliminate non‐value added (NVA) activities.• Instill a continuous improvement attitude and mindset.

• Lay a foundation for lean thinking.

Poka Yoke

• Mistake Proofing.

Poka Yoke

• Mistake proofing.

Kaizen

• Literally.

Kaizen

• Kaizen is a Japanese word for continuous improvement. It is a philosophy, not just a process.

• It most often is a series of ongoing improvements by teams focusing on eliminating all forms of waste from the operation.

Kaizen

• Will typically follow the DMAIC process but in a much more accelerated manner.

• Very action oriented.• After preparation, the Kaizen event itself will usually be one week or less.

• Requires limited capital investment.

DMAIC Process in Lean

DMAIC

Lean Deployment

• Find the motivation for improvement.• Recognize the “burning platform”.• Identify and assign resources.• Teach the methodology.• Prioritize activities.• Establish ownership.• Take baseline measurements.• Manage the program.

Burning Platform

• Clearly understand, admit, and communicate why you as an organization need to undertake a continuous improvement program.

Identify and Assign Resources

• Appoint a Deployment Champion.• Identify potential Lean Leaders.• If necessary, select an outside partner to assist in deployment planning and training activities.

Total Involvement

• Show absolute commitment from the top.• Assign Deployment Champion.• Determine support needs (internal and external).

• Involve staff at every level.• Look for opportunities for early successes.

Training

• Lean Fundamentals.• Process and Value Stream Mapping.• Lean Six Sigma Green Belt.• Lean Six Sigma Black Belt.

Successful Deployment

• Commitment is critical!• Managers must “walk the walk” as well as “talk the talk”!

• Celebrate success. And you will have success!

Lean Culture

• A lean culture creates a climate where every asset and every action adds value for the end customer.

Lean Maturity Levels

• Maturity Levels

Tom and Bentley’s Lean Soapbox

• Lean is nothing more than “organized common sense”.

• Benefits far exceed any expenditures.• Lack of work or needing to employ more people is no excuse for operating inefficiently.(Can always 5S the area).

• Lean deployment does not have to be an all or nothing proposition.

Additional Topics

• Variation and Six Sigma• DMAIC Process in Lean Projects• Process Cycle Time and Little’s Law

Contact Us

www.altexsolutionsgroup.comTom Burkett, Chief Executive Officer Bentley Stires, Chief Operating [email protected] [email protected]: (251) 504‐4125 Telephone: (979) 220‐2853

Additional Topics

• Variation and Six Sigma• DMAIC Process in Lean Projects• Process Cycle Time and Little’s Law

Variation and Six Sigma

• Even though we use averages (mean) all the time when analyzing data, does it really tell us much?

• Let’s consider two buckets of water – one ice water; and one near boiling.

Variation

• Now think about putting one foot in each bucket.

• On the average we should feel pretty good.• See why studying variation might be helpful.

Variation

• “Managing an organization by means of the monthly financial report is like trying to drive a car by watching the yellow line in the rear view mirror.”

Myron Tribus, MIT

Variation

• Let’s talk some about variation as it relates to lean thinking and quality.

• We’re going to step very gently into the swimming pool of statistics.

• Not to worry. We will not venture into the deep end.

• For that, my apologies to the math geeks.

Variation

Variation is how the data groups around the mean. Remember the old “bell curve”.

Variation

Types of Variation

• Common cause. • Special cause.

Common Cause Variation

• Common cause variation is fluctuation caused by unknown factors resulting in a steady but random distribution of output around the average of the data. It is a measure of the process potential.

Common Cause Variation

• All data are normal! Or at least 95 percent. (trust me on this one).

• Fluctuations (variation from the mean) will occur randomly but predictably.

Special Cause Variation

• Special cause variation is a shift in output caused by a specific factor or process input parameters. It can be accounted for directly and potentially removed and is a measure of process control.

• Examples include material defects, operator training, machine break downs, etc.

• This is the variation we work to reduce.

Six Sigma (6 )

• Six Sigma

Six Sigma (6 )

• Six Sigma concentrates on minimizing variation in the process (quality).

• Lean concentrates on moving the mean (speed).

Lean and Six Sigma

DMAIC Process in Lean

DMAIC

Define Phase

• Purpose

– To reach a clear understanding between all affected parties ‐ sponsor, team leader, team members, and other stakeholders on the scope, goals, financial, and performance targets for the project.

– To present a compelling reason why the project should be undertaken.

Define Steps / Activities

• Identify the voice of the customer.• Define gaps between actual performance and performance standards.

• Develop a clear understanding of the problem.• Create a plan for addressing the project or lean event.

• Select a team.

Define Tools

• Project charter • High level process map / SIPOC chart• VOC analysis• Written project plan including resource requirements, scope (very important), communication plan (RACI chart), expected results

Measure Phase

• Purpose

– To completely and thoroughly understand the current state of the process and collect reliable data on process speed, quality, and costs to use in uncovering the underlying problems in the process.

Measure Steps / Activities

• Create and validate value stream map• Identify outputs, inputs, process variables• Create a data collection plan including operational definitions

• Collect baseline data• Articulate the process by updating the value stream map with accurate data

• Calculate process lead time (Little’s Law)

Measure Tools

• Value Stream Map• Operational Definitions• Data Collection Plan• Statistical Sampling• Histograms• Process Capability Analysis

Analyze Phase

• Purpose

– To accurately pinpoint the root causes affecting the key input and output variables throughout the process; and to study those cause and effect relationships.

Analyze Steps / Activities

• Identify customer value added (CVA), business value added (BVA), and non‐value added (NVA) steps in the process.

• Analyze the process flow to determine bottlenecks, constraints, and other Issues (defects, rework, maintenance issues, etc.) that inhibit flow.

Analyze Steps / Activities (cont.)

• Analyze the data collected in measure.• Generate theories to explain potential causes.• Narrow the search.• Collect additional data to verify root causes.• Prioritize root causes.

Analyze Tools

• Brainstorming• Cause and Effect Analysis• Fishbone Diagrams• Takt Time Analysis• Statistical Tools

Analyze Tools

• Fishbone diagram.

Analyze Tools

• Takt Time

Improve Phase

• Purpose

– To use the results of our work in the analyze phase to develop alternative solutions to the problem. Using lean tools we test and confirm the cause and effect relationships to create an optimal solution.

Improve Steps / Activities

• Develop potential solutions.• Evaluate and optimize the best solutions.• Create a future state map.• Develop and run a pilot.• Confirm project goals were met.• Develop an implementation plan.

Improve Tools

• Solution Selection Matrix• Value Stream Map (Future State)• Takt Boards• Statistical Charts and Graphs• Kanban• Poka Yoke

Control Phase

• Purpose

– To officially finalize project completion and hand off the newly improved process to process owner, with definitive and understandable procedures for maintaining the gains.

Control Steps / Activities

• Develop documentation to sustain full‐scale implementation.

• Launch the implementation with realistic transition plan.

• Develop mistake proofing (Poka Yoke) techniques.

• Develop triggers for future corrective action.

Control Steps / Activities (cont.)

• Create training plans.• Develop standard operating procedures (SOP’s).

• Develop control plans for process owner.

Control Tools

• Mistake Proofing (Poka Yoke)• Standard Operating Procedures (SOP’s)• Process Control Plans• Visual Process Control Tools (Charts and Graphs)

• Written Training Plans• Team Feedback Session

Control Tools

• Other examples?

Process Cycle Time

• Little’s Law

– Process cycle time (PCT) is a function of the number of units in work in process (WIP) and the rate at which those units exit the process (ER).

– PCT = WIP / ER

Process Cycle Time

• Ride at Disney World.– WIP?– Exit rate?– PCT?

Contact Us

www.altexsolutionsgroup.comTom Burkett, Chief Executive Officer Bentley Stires, Chief Operating [email protected] [email protected]: (251) 504‐4125 Telephone: (979) 220‐2853

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