lean management basics

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LEAN MANAGEMENTBASICS


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


LEAN MANAGEMENT

IMPROVE PHASE – PART 6


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



LEAN MANAGEMENT LEAN Management



WHY LEAN



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



WHERE TO USE LEAN



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



WHEN TO USE LEAN



WHEN TO USE LEAN

LEAN SIX SIGMA

DO IT YOURSEL

F

ASK EXPERT

IMPA

CT

CAUSES

KNOWN UNKNOWN

LOW

HIGH



5S



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.



5S – Cycle 5S Cycle:


Sort• Seri

Straighten • Seiton

Shine• Seiso

Standardise • Seiketsu

Sustain • Shitsuke


5S


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


5S


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’


5S 5S Table



5S - BENEFITS


5S

Improved Safety

Improved Productivity

Reduces Waste

Foundation to Lean

Organization

Involves Employees in improvement


8 WASTES



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


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.



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



8 - DEADLY WASTES


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


8 WASTES - BENEFITS


8W

Reduces Time


Reduces Waste

Improves Customer

Satisfaction



VISUAL MANAGEMENT



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)


http://upload.wikimedia.org/wikipedia/commons/a/aa/Norwegian-road-sign-120.0.svg


VISUAL MANAGEMENT - GUIDELINES


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


VISUAL MANAGEMENT - EXAMPLES Examples:



VISUAL MANAGEMENT - BENEFITS


Visual Management

Creates a standard work environment


Simple & Low cost

Can be understood &

adopted quickly



STANDARD WORK

CONTROL PHASE – PART 7


STANDARD WORK


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


STANDARD WORK - STEPS


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


STANDARD WORK – DOs & DON’Ts


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.


STANDARD WORK – TEMPLATE


• Template Owner Approved By Revision Date

ProcessStart Point End Point Task

Process steps


STANDARD WORK - BENEFITS


Visual Management

Creates a standard work environment

Reduced time for processing

Less people dependent

Can be understood &

adopted quickly

Reduces Variation


Thank you . . .


lean management basics

Leadership & Management