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2 Agenda History of Lean Lean Principles Wastes and tools Value Stream approach Case – Lean in Mexico Where to find more
3 Lean Six Sigma (00’s) Just in Time (‘80s) Lean Manufacturing (‘90s) (Kanbans, Pull systems, Visual management) (“Machine that changed the world”,“Lean Thinking”, Value Stream Mapping) Total Quality Management (’80s) BPR (‘90s) Deming/Juran(‘50s) Ohno(’60/‘70s) (culture change/benchmarking,Baldridge/EFQM, ISO9000) (SPC,QualityCircles, Kaizen) (down-sizing, “to be“processes, process owners) Motorola –Six Sigma (‘80s) (Allied Signal) (14 points,statisticalquality) (ToyotaProductionSystem) GE (‘80s – ‘90s) Intensity of Change Kotter etc. Transformation & Leadership Six Sigma(applied method for growth and productivity) Customer Partnering(GE Toolkit, QMI, Customer CAP Change Acceleration Process – CAP (Change method and tools) Process Improvement (NPI, Supply Chain, Suppliers) Best Practices(benchmarking, across and outside of GE, ending NIH) Work-out (Kaizen type, cross functional teams, boundarylessness, values) StrategyNo 1 or No 2 in each business. Fix, close or sell Lean & Six Sigma is based on over 50 years of improvement thinking and experience
4 Value Stream Value Flow Perfection Pull Lean Principles Map all of the steps… value added & non-value added… that bring a product or service to the customer Define value from the customers perspective and express value in terms of a specific product or service The complete elimination of waste so all activities create value for the customer by breakthrough and continuous improvement projects The continuous flow of products, services and information from end to end through the process Nothing is done by the upstream process until the downstream customer signals the need, actual demand pulls product/service through the value stream
5 Lean Basis of action Constancy of Purpose – the leadership drive the change accondingly with the long term goals Respect for People – every individual is a unique set of experiences and improvement ideas may come from anyone Proactive Behavior – looking for improvement opportunities every day Voice of the Customer – listen to the customer consistently ensure the focus on the right thing System Thinking – understanding the whole value stream enables creating smooth flow of value
6 The goal of Lean is to flow more value to the customer for less resource by eliminating waste and reducing end-to-end time Before Lean project A service value stream: e.g. processing an application Customer Requirement‘as fast as possible’‘no mistakes’ ‘easy transaction’ lead time (LT) day 1 day 30 After Lean project Value demand better handled Failure demand removed processing an application lead time (LT) day 1 day 8 Where the gains come from Small Adds value to the customer Small to medium No value; needs to be done Large No value; no need to be done The bottom line: better customer service costs less not more!
7 The 7 Wastes: The “Flu Virus” of the Office Environment Tip: T I M W O O D Additional toxic effects:
In Lean terms, waste is anything that adds costs or time without adding value. The ultimate Lean target is the total elimination of waste
8 Lean Tools A3 Thinking Value Stream Mapping Quality at Source Standardised Work 5S: Sort; Set-in-order; Shine; Standardise; Sustain Visual Control & Management Cellular/Team Concepts Levelling, Management Timeframe and Takt Time
9 Each Value Stream is launched with the following workshop program Mobilisation Assess Phase Test Cell Phase Impl. 1d 1d 4d 3d 2d 2w 4w 2w 2w RO RO RO RO RO Prepare Test Cell Prepare Roll out Run Test Cell W0 – Kick off Mobilisation Workshop 2 Workshop 3 Workshop 4 Workshop 1 Analyze TC RO Report Out to Stakeholders
10 Roles and Responsibilities Value Stream Sponsor, Lean Champion and Stakeholders To drive the realisation of Lean by:
Identifying and mobilising value-streams and opportunities therein
Appointing suitable Value Stream Managers and mentoring them
Steering value streams through Assessment, Implementation and Ongoing Management to realise benefits