Lean practice an effort worthwhile


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Lean practice is not a lightweight version of Six Sigma but it cannot exist without it. Understand that Lean Practice is complex in execution if success is to be achieved.

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  • Runner – a product or service having sufficient volume and familiarity to justify dedicated resources and standard processes Repeater – a product or service at intermediate volume and regularity which is handled by reconfiguring existing resources and processes Stranger – a product or service which is required intermittently and at low volume but still profitable or necessary to satisfy customers which is disruptive to resources and processes
  • Six Rights (Peter Hines): Right product, place, time, quantity, quality, cost Principle 4 is important to service management – in happens naturally or should in simultaneous production and consumption 99% of a product becomes waste within 6 weeks of sale
  • 25 themes – and more? What classification – input, process, output, policy, etc
  • A more rigorous approach
  • WORMPIT (variant on Ohno) : Waiting, Over-production, Rework, Motion, Processing, Inventory, Transport Other wastes: making wrong product, untapped human potential, excessive information/communication, time, systems, natural resources, knowledge Six Sigma techniques should be used: Measles chart Fishbone Lead and takt time calculations Box and whisker Frequency plots Confidence intervals Correlation Regression and trends Failure mode and effect analysis (FMEA)
  • Waste: anything other than the minimum amount of equipment, material, parts, space and human resource which are absolutely essential to add value to the product [or service]
  • More Peter Senge: The easy way out usually leans back in Cause and effect are not closely related in time and space Small changes can produce big results - but the areas of highest leverage are often the least obvious You can have your cake and eat it – but not all at once Dividing an elephant in half does not produce two small elephants There is no blame
  • Lean practice an effort worthwhile

    1. 1. A process is lean when it delivers products and services that the customer wants at an acceptable price to value ratio Lean this way This presentation is a run-through of what makes Lean Practice important for modern business
    2. 2. Essential Lean Practice Lean Principles Approach Making change Formula for success <ul><li>Meet customer needs </li></ul><ul><li>Design and operate flexible processes </li></ul><ul><li>Make value flow visibly </li></ul><ul><li>Operate to smoothed pull demand </li></ul><ul><li>Head to simplicity and perfection </li></ul><ul><li>Reap benefits for the business </li></ul><ul><li>Customise Lean Practice </li></ul><ul><li>Adopt a flow approach </li></ul><ul><li>Use simple methods first </li></ul><ul><li>Attempt Six Sigma analysis </li></ul><ul><li>See the Big Picture </li></ul><ul><li>Address social system change levers </li></ul><ul><li>Apply programme/project controls </li></ul><ul><li>Use change methods liberally </li></ul><ul><li>Recognise service differences </li></ul>
    3. 3. What’s stopping your business being the best?
    4. 4. Lean formula Load Capacity Gap Value demand Failure demand Runner Repeater Stranger Work Waste Value adding Necessary non-value adding Non-value adding Positive Underload – not greater than 80% Negative Overload – Muri Actions and feedback loops <ul><li>Reduce failure demand </li></ul><ul><li>Reduce wastes </li></ul><ul><li>Spread load </li></ul><ul><li>Reduce variation </li></ul><ul><li>Use slack capacity to improve efficiency </li></ul><ul><li>Price to value ratio impact </li></ul>+ + +
    5. 5. Waste not - want a lot Human system Natural, unrecognised waste Push down, pop up Treat the whole, not the parts Not just tools and techniques Self discipline Practice and training Fat reduction Mistakes are opportunities Being green Fast Flexible Fit for purpose Adaptable in performance Lean is continuous learning Lean fitness Applying lean is not just driving out waste Value added Not inventory Not delays or poor communication Not waste Customer willing to pay for ...
    6. 6. Lean Principles
    7. 7. Journey to where Everything is Right Lean Principles <ul><li>Specify value from the customer's viewpoint </li></ul><ul><li>Design and operate processes to be flexible by identifying the value stream </li></ul><ul><li>Make value flow – avoid batches and queues, never delay a value-adding step by non-value adding </li></ul><ul><li>Operate only when needed in response to short pull demand from customer – no inventory or idle resources </li></ul><ul><li>Head to perfection – simplicity, defect free, delivering exactly what the customer wants, when, at a fair price with minimum waste </li></ul><ul><li>And there will be benefit for the business as well in increased productivity and lower cost </li></ul>
    8. 8. Lean themes Customer Beginning and end Purpose Big Picture and end game Simplicity Anything else is dangerous Waste Endemic – it’s everybody’s problem Process Design for horizontal movement Regularity No surprises in operations Flow Continuous movement from start to end Evenness Level activity – or sink in killer wave Pull Synchronise to the customer beat Prevent Prevention is better than rework Time Reduce cycle time to make and deliver Improve Use continuous improvement relentlessly Partnership Apply win-win in all areas Gemba Facts from the frontline Investigate Question and listen in the stream Variation Reduce variation, anticipate change Overburden Protect from overloading Think small Process models from the smallest component Trust Platform for sharing and action Knowledge Build explicit and implicit understanding Humility No one has all the answers Visibility Make operations transparent and visible Postpone Retain flexibility as long as possible Network Opportunities for value added in the stream Participation Involve all stakeholders, share data
    9. 9. Lean Approach Options
    10. 10. Lean Enterprise House Right process gives right results Value from developing people Organisational learning Challenge, Gemba Process mapping, value stream mapping PDCA, FAIR Kaizen 7 wastes JIT Pareto Teamwork 5 whys 5S Systems thinking Policy Deployment Your way
    11. 11. Intuitive Lean Simple and effective approaches PDCA FAIR Plan Do Check Act Focus Align Integrate Respond A3 problem solving <ul><li>Current condition </li></ul><ul><li>Goal </li></ul><ul><li>Root cause analysis </li></ul><ul><li>Countermeasures </li></ul><ul><li>Confirmation </li></ul><ul><li>Follow-up </li></ul>
    12. 12. Flow Question Framework Create Can we produce what the customer wants when it is needed? Can we deliver what the customer wants and prepare for the next according to real demand? Maintain Organise Measure Can we keep the flow going so that it does not stop? Can we maintain a predictable flow rate in order to achieve planned performance? Are we organised to support flow through the whole process chain? Can we deal with variation? Can we react quickly to resolve problems and recover? Do we measure to promote actions which support flow? Do we know what it needed at each point in the process chain to achieve the overall goal? Are we developing the right resources and skills? VISION REWARD CUSTOMER NEEDS SATISFACTION DESIGN DELIVER
    13. 13. Lean Techniques Techniques can be sophisticated 7 wastes - TIMWOOD <ul><li>Transport </li></ul><ul><li>Inventory </li></ul><ul><li>Motion </li></ul><ul><li>Waiting </li></ul><ul><li>Over-production </li></ul><ul><li>Over-processing </li></ul><ul><li>Defects </li></ul>5S <ul><li>Sort </li></ul><ul><li>Simplify (straighten) </li></ul><ul><li>Scan (sweep, shine, scrub) </li></ul><ul><li>Standardise (stabilise, secure) </li></ul><ul><li>Sustain </li></ul><ul><li>[Safety] </li></ul>Process analysis <ul><li>Mapping </li></ul><ul><li>Process times </li></ul><ul><li>Process cycle efficiency </li></ul>
    14. 14. Those Japanese and other words Muda Waste: the one to concentrate on Muri and mura cause waste Where else does it come from? Human systems Muri Over-burden: near capacity resources do not work optimally Mura Unevenness: fast uninterrupted flow not possible with uneven demand – queues and lead time build up Could the root cause of everything but probably it’s circular Gemba See for yourself what is happening in the workplace Heijunka Level to schedule – the secret weapon SMED Single (digit) Minute Exchange of Die – true for service too Pokayoke Failsafing and mistake proofing Genchi Genbutsu Facts for correct decisions and consensus from the source Hansei Relentless reflection Kaizen Continuous improvement TRIZ Theory of Inventive Problem Solving Jidoka - Andon Automation with human intelligence with signalling to stop process
    15. 15. Making change
    16. 16. Methods and skills Levers in the social system <ul><li>Today’s problems come from yesterday’s solutions </li></ul><ul><li>Behaviour grows better before it gets worse </li></ul><ul><li>The cure can be worse than the disease </li></ul><ul><li>Faster is slower </li></ul><ul><li>The areas of highest leverage are often the least obvious </li></ul>Programme and project management <ul><li>Business case – link to corporate objectives </li></ul><ul><li>Governance – who is in charge? </li></ul><ul><li>Plan, agree, monitor and re-plan </li></ul><ul><li>Managing issues and risks </li></ul>Business change <ul><li>Kotter </li></ul><ul><li>Lewin: Unfreeze, Alter, Re-freeze </li></ul><ul><li>4Cs: commitment, communication, co-production, consistency </li></ul><ul><li>Nudging behaviour in the direction of Lean </li></ul><ul><li>Benefit realisation: need for long-term measurement of progress </li></ul>
    17. 17. Service dimensions Service characteristics <ul><li>Invisibility </li></ul><ul><li>Intangibility </li></ul><ul><li>Simultaneous production and consumption </li></ul><ul><li>Consumer involvement </li></ul><ul><li>Complexity and variability </li></ul><ul><li>Measurement difficulty </li></ul>Lean for better service <ul><li>Making sure there is a customer </li></ul><ul><li>There is no inventory – just inactivity </li></ul><ul><li>Services come in types which behave differently </li></ul><ul><li>Adapt techniques for the service industry </li></ul><ul><li>Do not forget soft areas </li></ul>
    18. 18. Where is Six Sigma in Lean Practice? Is it possible to have Lean without Six Sigma? <ul><li>No </li></ul><ul><li>Unless the Lean project is light touch </li></ul>Same infrastructure <ul><li>Management awareness </li></ul><ul><li>Communication </li></ul><ul><li>Governance </li></ul><ul><li>Skills and resources </li></ul><ul><li>Coaching, support and training </li></ul>Oversight <ul><li>Unique initiatives </li></ul><ul><li>Programme management </li></ul><ul><li>Project management </li></ul><ul><li>Especially monitoring, control and reporting </li></ul>Shared approach and techniques <ul><li>Use Six Sigma DMAIC or DFSS </li></ul><ul><li>Descriptive data analysis </li></ul><ul><li>Statistical analysis e.g. hypothesis testing </li></ul>
    19. 19. A good read The Lean Toolbox: The Essential Guide to Lean Transformation by John Bicheno and Matthias Holweg PICSIE Books 4 th Edition 2009