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A training presentation issued by …

A training presentation issued by
System2win.com,for continues
improvement in management.


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  • Transcript

    • 1. Lean & Kaizen Training For rapid process improvement Terms of use for this free training program
    • 2. PowerPoint web viewing tips
      • View as a Slide Show
          • (Animations only work when viewed as a Slide Show)
      • Use your left mouse button to move forward
      • Use your right mouse button to return to a previous slide or to outline mode
      • Use Outline mode to jump between slides
      • Tip: You can search for keywords in the Outline. (Click anywhere in the outline, then Control-F)
    • 3. The many names for Systems Improvement
      • Kaizen
      • Lean Thinking
      • Flow
      • Continuous Improvement
      • Just In Time
      • Theory of Constraints
      • Quality Circles
      • Six Sigma
      • Total Quality Management
      • Total Productive Maintenance
      • Quick Replenishment
      • Re-engineering
      • And did we mention…
      • Systems Improvement?
    • 4. 90% of the teachings are the same
    • 5. What is Kaizen?
      • Continuous improvement
      • Kai = to break apart, to change
      • Zen = to study, to improve
    • 6. What is a Kaizen Event?
      • An intensive burst of process improvement!
    • 7. Continuous? Or Burst?
      • In the western world, the word “Kaizen” has become short-hand for “Kaizen Event”
      • So “Kaizen” is not really a synonym for “continuous improvement” after all!
    • 8. The biggest change of all…
      • All Systems Improvement teachings emphasize ways of thinking – not just sets of practices
      • Every employee is hired to use their mind – not just their body
    • 9. The biggest change of all
      • Ultimate objective of all continuous improvement is Human development
      • The real power is when everyone is applying “lean thinking” to their work every day
      • When everyone is giving birth to miraculous new ideas every day
    • 10. The biggest change of all – Employee Empowerment
    • 11. World Class Benchmarks
    • 12. World Class Benchmarks
      • Quality improvement – 50% per year. (helped by new product introductions)
      • Productivity improvement – 2% per month
      • Over 10% of total process time is value-adding activities – compared to 5% for most companies
      • Continuous improvement culture
      • Total employee involvement, with sharing of authority, accountability, and reward
    • 13. How do they do that?
    • 14. The second biggest change of all – Management Style
    • 15. The Second Biggest Change of All Visual Scorecards, teams, goal-oriented Reports, supervision, blame-oriented Control Prevention Detection & correction Quality Proactive Reactive Maintenance Pull, flow, small lot Push, batch, big lot Production Actual demand Forecasts Scheduling Teams Individuals Employees Simple, product focused Complex, functional departments Organization World Class Traditional
    • 16. The second biggest change of all Management Style
    • 17. Formula for Change
      • Change = V x D x A
      • V = Vision
      • D = Dissatisfaction
      • A = Action (quick first steps)
      • The degree of change is the result of multiplying all factors.
      • If any factor is zero, change won’t happen
    • 18. Process Improvement Mandate
      • Process Boundaries
      • Why does this need to be improved?
      • Improvement targets
      • Empowerment Boundaries
      • Participants
      • Session dates, times, and places
    • 19. Empowerment Boundaries
      • Where do you think we might find a template for our executives to use to define Kaizen Team Empowerment Boundaries?
      • Within our Portal!
    • 20. Everything
          • Takes time
          • Costs money
    • 21. Costs of Inventory
      • Cost to borrow money
      • Insurance
      • Space
      • Loss due to damage and obsolescence
      • Cost to count it (over and over)
      • Cost to move it (over and over)
    • 22. The accountants have it wrong
      • Inventory is not an asset
      • Inventory is a liability
      • Goal = minimize inventory
    • 23. All work is either
      • Value Add
        • Transforms material or information to meet the true desires of an external customer
      • Non-Value Add
        • C ontrol
        • I nformation
        • A dministration
        • O ther
    • 24. Which of these activities add value?
      • Looking for parts
      • Building products
      • Inspecting
      • Testing
      • Rework
      • Delivering services
      • Packaging
      • Shipping
      • Searching for info
      • Filling out forms
      • Entering data
      • Answering customer questions
      • Stocking shelves
      • Training
      • Selling
    • 25. Low hanging fruit
      • Where do you think you will find the “low hanging fruit” when you begin your improvement efforts?
      • By reducing the 5% of value-add activities?
      • By reducing the 95% of non-value-add activities
    • 26. The # 1 Fundamental Principle of Process Improvement
      • Anything that does not add value is waste, and must be reduced or eliminated
    • 27. Reduce and Eliminate Waste
      • Reduce
      • “Necessary Non-Value Add” activities that really are needed for control – until the process can be further simplified
      • Eliminate
      • “Unnecessary Non-Value Add” activities
    • 28. The Seven Types of Muda As defined by Taiicho Ohno (Toyota executive, 1912-1990)
      • Defects
      • Overproduction of goods not demanded by actual customers
      • Inventories awaiting further processing or consumption
      • Unnecessary processing
      • Unnecessary movement of employees
      • Unnecessary transport of goods
      • Waiting for an upstream process to deliver
    • 29. And a few more types of waste
      • Unsafe or unergonomic work conditions
      • Working to the wrong metrics
      • Missing or misinformation
      • Underutilized human potential - skills, talents, and ideas
    • 30. Goal = Get ever closer to zero
      • Zero waste
      • Zero defects
      • Zero scrap
      • Zero rework
      • Zero receiving rejections
      • Zero downtime
      • Zero inventory
      • Zero handling
      • Zero paperwork
      • Zero mistakes
      • Zero absenteeism
      • Did we mention…
      • Zero waste?
    • 31. Goal = Get ever closer to zero process times
      • Setups
      • Sales quotes
      • Delivery date promising
      • Sales order delivery
      • Production process time
      • Purchase order lead times
      • Outsourcing
      • Engineering changes
      • Time to market
      • Returns
      • Repairs
      • Data collection
      • Data analysis
      • Period end close
    • 32. Lego Game A game to “learn to see waste”
      • Every Lean Consultant has a favorite Lego game to help people “learn to see waste”.
      • Newcomers to Lean teachings almost always have several “aha” experiences before the game is over.
    • 33. 1. 5S Steps to reduce or eliminate waste
      • Organize the workplace
    • 34. Organize the Workplace
    • 35. 5S – to organize the workplace 5S is a routine way of life. Root causes are routinely identified and dealt with. Sustain (Shitsuke) Routine cleaning becomes a way of life. Preventative maintenance is routinely performed. Standardize (Seiketsu) Do an initial spring cleaning. Maybe some painting, and Brillo pad scouring. Sweep & Shine (Seiso) Everything has a place; everything is in its place. Visual Scoreboard and other visual controls. Set in order (Seiton) Unneeded items are identified and removed. Only needed parts, tools, & instructions remain. Sort (Seiri)
    • 36. 5S Sort, Set, Sweep, Standardize, Sustain
    • 37. 2. Arrange for flow Steps to reduce or eliminate waste
      • Organize the workplace (5S)
      • Arrange everything to “flow”
    • 38. What is “flow”?
      • A process where a "target object" moves quickly from value-adding activity to value-adding activity without interruptions for any of the 7 types of muda
    • 39. A “target object” might be…
      • A physical item moving through production or distribution
      • A design spec for developing a new product
      • An approval process (for anything that needs approval)
      • Any other "target object" that you can conceive that receives value by going through a process
    • 40. Why flow? Vastly improved process efficiency
      • "Flow" processes routinely outperform "batch & queue" processes by staggering margins, with common numbers like:
      • 20-40% increase in productivity
      • 70-90% lead time improvement
      • 40-60% reduction in floor space
      • 50-90% reduction of WIP
      • 40-70% quality improvement
    • 41. Why flow? Improved employee morale
      • In the classic research book Flow: The Psychology of Optimal Experience , Csikzentmihalyi studies thousands of self-described "optimal experiences" at work and play, and summarizes the characteristics of an optimal work experience
    • 42. What are your self-described “optimal experiences”?
    • 43. Flow – Optimal Experiences
      • The worker sees and understands the whole process and how the parts fit together
      • The worker has high degree of control and involvement
      • The task requires full attention - it is neither boring nor overwhelming
      • There are few or no interruptions
      • There is immediate feedback
    • 44. The flow of flow
      • In your own mind, compare the "flow of flow" to the "flow of batch & queue"
      • Is it any wonder that employees in a flow environment report a much higher degree of job satisfaction?
      • In addition, flow usually also provides:
      • Improved communication between direct work force and management / staff
      • Improved safety
    • 45. Why flow? Improved supplier relations
      • Don't you wish that your customers would:
      • Provide you with long-term visibility of their level-loaded production schedule
      • Commit to a long-term partnership with you
      • Offer their Kaizen Team to teach your people how to achieve the best-of-class results that they have already field-tested and proven within their own company?
    • 46. Why flow? The number one reason…
      • All of that is great, but what is the number one reason for wanting to achieve flow?
      • Flow enables pull
      • (remember this answer for later)
    • 47. Why arrange everything around product lines?
      • To reduce many types of waste
      • Uninterrupted work flow
      • The better the flow – the lower the WIP (Work In Process)
      • The lower the WIP – the faster the throughput
      • Fewer set-ups and change-overs
      • Fewer mistakes
      • Less rework and obsolescence
      • Dedicated support people that know your challenges, and are available when needed
    • 48. Production Environments that embrace flow
      • Continuous Flow (non-discrete products)
      • Repetitive (assembly lines)
      • Lean (work cells)
      Click here for a comparison of production environments that embrace flow
    • 49. Functional Department Layout (Spaghetti Diagram)
    • 50. Work Cell Layout
    • 51. Why are work cells the “holy grail”?
    • 52. Why are work cells the “holy grail”?
      • Production lines still need to deal with sales forecasting, batch sizes, and finished goods inventories.
      • The work cell can accommodate a batch size of one. And it can be employed in work environments that have traditionally been organized in batch & queue departments - which have the most opportunity for improvement.
    • 53. What if our process includes a “monument”?
    • 54. What’s a “monument”?
      • A “monument” is anything (but usually a large piece of equipment) that is so huge or expensive that it requires large batches, and/or must be shared by the production processes for several product lines
    • 55. What if our process includes a “monument”?
      • Ideal option is often to replace the monument with equipment capable of producing in small lot sizes
      • But the world isn’t always ideal, is it?
    • 56. What if our process includes a “monument”? (Decouple the process)
    • 57. Inventory is bad
      • Inventory is terrible
      • Inventory is a liability
      • We want zero inventory
      • Inventory is to be minimized
      • Reduce inventory
      • Inventory is bad, bad, bad…
    • 58. What do you think is (by far) the number one reason for lean initiative failures ?
      • Reducing inventory too much too soon
    • 59. Lower the water level slowly
    • 60. Lower the water level slowly
      • Why?
      • Batch & queue is more tolerant of quality problems, machine breakdowns, and other problems that stop production Click here for more quality effects of flow vs. batch & queue
      • It takes intensive problem elimination efforts before a process is ready to withstand the harsh penalties of andon line-stopping
      • The "rocks beneath the water of inventory” should be slowly and carefully revealed, so that each new rock can be removed as it surfaces
    • 61. What does jidoka mean?
      • Everything stops whenever anything goes wrong
    • 62. What are andon lights?
      • Lights that looks like a traffic light – located on the shop floor. Anyone can turn on a light at any time.
      • Red light – stops production
      • Yellow light – need inventory
      • Blue light – have a question
    • 63. Key enablers of flow
      • Total Quality Maintenance
        • When there is any quality problem anywhere, the whole process stops
      • Total Productive Maintenance
        • When any machine is down, the whole process stops
      • Minimize “internal” setups
        • When a machine is down, the whole process stops
      • Reliable suppliers
        • When a delivery is late or rejected, the whole process stops More key enablers of flow
    • 64. When does batch & queue make sense?
      • Temporarily while your people are unable to stop problems that stop flow
      • Permanently for…
      • Prototypes
      • Non-mission critical processes that simply aren't worth the effort to convert to flow
    • 65. Your competitors are going to buy you up and pay for you by liquidating your own excess inventories if you continue to use batch & queue for...
      • Production of product lines with any kind of volume
      • New product design cycles that allow your competitors to consistently "beat you to market"
      • Sales order processing & fulfillment processes that are inefficient enough to annoy and anger your customers
    • 66. 3. Standardize Work Steps to reduce or eliminate waste
      • Organize the workplace (5S)
      • Arrange everything to “flow”
      • Standardize work
    • 67. The USA Principle
      • U nderstand
      • Simplify
      • Then… (and only then)
      • A utomate
    • 68. Standard Work
      • Definition
      • Standardization of best work practices - as the work is actually routinely done. (in real life)
      • Purpose
      • To make operations repeatable, ensuring consistently high productivity, and reduced variability of output
    • 69. To get started with defining Standard Work, start by…
      • Review the Standard Operating Procedures, routings, and other process documentation? (wrong)
      • Observe and document the way things are actually being done
    • 70. Components of Standard Work
      • Work layout & sequence
      • Standard WIP
      • Takt time and cycle time
    • 71. What’s the difference between?
      • Process lead time
      • Cycle time
      • Takt time
    • 72. Process Lead Time – time required to complete the whole race
      • Examples: Time to produce an item, complete an engineering design process, complete an approval process, process and ship a sales order...
    • 73. Cycle Time – what comes out the end of the pipe
      • The average time between completion of two discrete units of production.
      • For example, the cycle time of motors assembled at a rate of 120 per hour would be 30 seconds per unit
    • 74. Takt Time – planning drumbeat
    • 75. Takt Time – planning drumbeat
      • Process Lead Time and Cycle Time are measures of the average time that it actually takes to do something
      • Takt time is used for planning
      • Takt time can be thought of as “planned cycle time” (planned average time between completion of two discrete units of production coming out the end of the pipe)
    • 76. Takt Time Calculation
      • What is the formula for calculating the “drumbeat planning” Takt Time? (planned average time between completion of two discrete units of production)
      • The available production time (per day) divided by the rate of customer demand (per day)
    • 77. Takt Time
      • The “drum beat” pace of planned production, set by:
      • Forecast?
      • Capacity?
      • Efficiency targets?
      • Utilization targets?
      • Material availability?
      • The rate of customer demand?
    • 78. Takt Time – driven by the rate of customer demand
    • 79. Maximize Throughput Not Output
      • Output
        • The dollar value of items produced
      • Throughput
        • The dollar value of items produced that have been sold
    • 80. Output The dollar value of items produced
    • 81. Throughput The dollar value of items produced - that have been sold
    • 82. Operational Takt Time
      • Takt Time = Rate of Customer Demand
      • Operational Takt Time = Takt Time adjusted for Sales & Operations Planning
        • E.g. Seasonality
        • Planned downtime
        • New product introduction ramp-up
        • Etc.
        • Click here for summary of Time Definitions
    • 83. Target Cycle Time
      • When doing Staff Load Balancing for a process that is divided between several staff positions, it is common to need to add Wait time to the Standard Work for some staff positions in order for each sub-job to be synchronized to the same Target Cycle Time.
      • Target Cycle Time must be less than or equal to (and is usually equal to) Operational Takt Time.
    • 84. Takt Time, Operational Takt Time, and Target Cycle Time
      • In many environments, Takt Time, Operational Takt Time, and Target Cycle Time are all the same, and the single term "Takt Time" can be used.
      • In other environments, the differences can become important.
    • 85. Takt Time – planning drumbeat
      • We’re workin’ to da takt time… to da takt time…
      • Workin’ to da takt time… Uh huh…
      • We’re workin’ to da takt time… to da takt time…
      • Workin’ to da takt time… Oh yeah…
    • 86. Balanced Scorecards
      • There should be clear relationships between
      • Strategic Measures Scorecard
      • Departmental Measures Scorecards
      • Process Measures Scorecards
      • (Perhaps open your Balanced Scorecard template and click on the hyperlink to Training and Ideas for Creating Measures Scorecards)
    • 87. Information Feedback Time
      • Definition:
        • The time it takes to receive feedback regarding key measures of a process.
      • Information Feedback Time is one of the "process time prints" that is an important part of any process improvement effort.
    • 88. Process Measures Scorecards
      • should be posted where people can see them while working on the process
    • 89. Visual Systems
      • Wherever possible – implement visual systems that…
      • Are easily found where needed
      • Are easy to understand
      • Are quick to understand
      • Provide (only) the most meaningful feedback
    • 90. Visual Systems
    • 91. Major Goal – Error Free Processing
      • Use Cause & Effect Analysis to identify and eliminate all root causes for errors
      • Ask why? Why? Why? Why? Why?
      • Poke Yoke = error proofing
      • What are some examples of poke yoke?
    • 92. Error Free Processing
    • 93. Process Design Tools
      • Value Stream Map
      • Flow chart
      • Functional Flow Chart
      • Process Design Matrix
      • Organization Chart
      • Brainstorming/Affinity
      • Root Cause Analysis
      • Spaghetti Diagram
      • Time Observation Worksheet
      • Standard Work Instructions, Chart, & Analysis
      • Staff and Machine Load Balancing
      Instructions for each of these tools can be found within each of your Systems2w i n Templates
    • 94. Process Design Objectives
      • Many of your Systems2win templates contain a link to a checklist of Process Design Objectives
      • (Perhaps open your Process Design Matrix template, and review the list of Process Design Objectives now)
    • 95. Job Design & Change Management Tools
      • Jobs Design Spec
      • Change Management Worksheet
      • Force Field Map
      • Organization Chart
      • 5S Schedule
      • Standard Work Chart
      • Standard Work Audit Checklist
      Instructions for each of these tools can be found within each of your Systems2win Templates
    • 96. Software Design Tools
      • In the design process, three things can happen
      • Don’t change
      • Change process
      • Change software
      • Software Design Tools
      • Customization Spec
      • Upgrade Spec
      • Integration Spec
      • Data Conversion Spec
      • Software Fit Analysis (New software purchase spec)
      Instructions for each of these tools can be found within each of your Systems2win Templates
    • 97. Process Documentation Tools
      • Any design tools, plus…
      • Standard Work Instructions
      • Standard Operating Procedure
      • Training video
      • User-defined on-line help (within a software application)
    • 98. Training Program Development Tools
      • Any design or documentation tools, plus…
      • Training Program Development Spec
      • Training Plan
      • Training Evaluations
      • Training Outline
        • (perhaps with Instructor Notes)
      • Training slides & handouts
        • (perhaps with Instructor Notes)
      • Training database sample data
      • Cross-Training Matrix
      Instructions for each Training Program Development tool can be found within each of your Systems2win Templates
    • 99. 4. Small batches Steps to reduce or eliminate waste
      • Organize the workplace (5S)
      • Arrange everything to “flow”
      • Standardize work
      • Make small batches
    • 100. Why are small batches better?
      • Shorter lead times
      • Less inventory – and obsolescence
      • More flexibility – to meet demand variability
      • Higher quality – with lower scrap & rework
      • Less floor space – in production and storage
      • Lower cost? (be sure to consider ALL factors)
    • 101. What is needed for small batch sizes?
      • Short setups
    • 102. What are the two primary measures used to reduce Lean batch sizes?
      • Internal Setup Time
      • Every Part Every Interval
    • 103. What is “internal setup time”?
      • The time from last good part to first good part
      • Your mission is to minimize internal setup time
      • Common Goal = SMED (Single Minute Exchange of Dies)
    • 104. Every Part Every Interval answers what questions?
      • When can we get it?
      • How small can our batch sizes be?
      • If we got an order tomorrow for one of everything we make – when could we deliver the whole order?
    • 105. Every Part Every Interval - Calculation
      • Time Available for Changeovers = Working hours per month for pacemaker operation minus calculated total cycle time for all items going through pacemaker operation (e.g. 320 working hrs – 280 cycle hours = 40 hours)
      • Number of Intervals Per Month = Time Available for Changeovers divided by number of products or product families times Changeover Time per changeover (e.g. 40 hours / 20 products x 1 hr per CO = 2)
      • EPE Interval = Number of working days per month divided by the Number of Intervals per Month (e.g. 20 working days / 2 Intervals per Month = Every Part Every 10 days)
    • 106. How to improve your EPE Interval?
      • Increase working shifts
      • Decrease batch sizes
    • 107. Steps to reduce or eliminate waste
      • Organize the workplace (5S)
      • Arrange everything to “flow”
      • Standardize work
      • Make small batches
      • What do you think is next?
      • (hint: what was the #1 reason for wanting flow?)
    • 108. Pull
    • 109. 5. Pull systems Steps to reduce or eliminate waste
      • Organize the workplace (5S)
      • Arrange everything to “flow”
      • Standardize work
      • Make small batches
      • Introduce pull systems (self-correcting control)
    • 110. Pull - make only what the customer orders
      • "Pull" is the biggest pay-off for re-designing your process to flow with small batch sizes.
    • 111. Benefits of pull
      • Little or no waste doing things that no one will ever pay for
      • Little or no finished goods inventory
      • Little or no reliance on sales forecast
      • Radically short lead times for radically customized deliverables
      • An arsenal of weapons to annihilate your competitors: Lower costs, lower lead times, higher quality...
    • 112. Key Enablers of Pull
      • Level Schedule
      • Level Selling
      • Locate near customers
      • Supplier partnerships
      More info about Key Enablers of Pull
    • 113. Kanban
      • In Japanese, kanban is the word for "card", because a kanban is often a 3x5 card attached to a parts container. When the container is emptied, (because the parts have been used to fulfill actual customer orders), the container is delivered to the upstream operation, and the kanban card provides the information needed to fill the container.
    • 114. Types of kanbans
      • A kanban can be any visual signal authorizing upstream production or delivery
      • Materials kanbans
        • authorize replenishment of materials
      • Production kanbans
        • authorize upstream production
      • Electronic kanbans
        • can be used to trigger replenishment by off-site suppliers
    • 115. Pull, Pull, Pull
    • 116. Steps to reduce or eliminate waste
      • Organize the workplace (5S)
      • Arrange everything to “flow”
      • Standardize work
      • Make small batches
      • Introduce pull systems (self-correcting control)
      • (what do you think is next?)
    • 117. 6. Tiny batches Steps to reduce or eliminate waste
      • Organize the workplace (5S)
      • Arrange everything to “flow”
      • Standardize work
      • Make small batches
      • Introduce pull systems (self-correcting control)
      • Make tiny batches (ideal lot size is 1)
    • 118. What is needed for tiny batch sizes?
      • Short setups
    • 119. Steps to reduce or eliminate waste
      • Organize the workplace (5S)
      • Arrange everything to “flow”
      • Standardize work
      • Make small batches
      • Introduce pull systems (self-correcting control)
      • Make tiny batches (ideal lot size is 1)
      • (What do you think is next?)
    • 120. Never Stop Continuous Imprvmenting (untangling the knots)
    • 121. 7. Never stop continuous improvement Steps to reduce or eliminate waste
      • Organize the workplace (5S)
      • Arrange everything to “flow”
      • Standardize work
      • Make small batches
      • Introduce pull systems (self-correcting control)
      • Make tiny batches (ideal lot size is 1)
      • Never stop continuous improvement
    • 122. And that concludes our presentation…
    • 123. What can you do to help?
    • 124. Kaizen Team Roles
      • Where do you think we might find a document explaining Kaizen Team Roles?
      • Within our Portal!
    • 125. Prepare for Resistance
    • 126. Prepare for Resistance
      • Resistance to change is natural
      • Stability = security, control, status
      • Provide assurance that jobs are not at risk
      • Communicate openly and often
      • Involve everyone that is affected
      • Focus on positive payoffs of change
      • “ If someone doesn’t get upset, we’re not really trying to change anything”
    • 127. Ground Rules
      • Where do you think we might find our company’s Ground Rules for Working Together?
      • Within our Portal!
    • 128. Kaizen Principles
      • Let the mandate guide you
      • No rank among Team Members
      • No excuses or blaming – focus on solutions
      • Open your eyes, ears, and mind
      • BBQ sacred cows
      • Ask “Why?” until root cause is uncovered
      • Creativity before capital
      • Avoid analysis paralysis – try it & adjust
    • 129. BBQ Sacred Cows Example: If your Consultant for Continuous Improvement is still using handwritten Lean & Kaizen tools – raise your eyebrows and ask them to tell you again about how everyone else is supposed to be open to ideas for Continuous Improvement…
    • 130. Let’s do it! Let’s get out there and improve some processes!
    • 131. We’d love to hear your feedback
      • Systems2win is all about Continuous Improvement
      • We would love to hear your feedback for how you think we might make our offerings even more valuable
      • Click here to learn how to get a fully editable version of this PowerPoint presentation