by Ian Glenday of Lean Enterprise Academy and Rick Sather or Kimberley Clark presented at the 1st Lean Service Summit on 23rd June 2004

1. Lean Enterprise Academy 2005
Ian Glenday and Rick Sather
Lean Enterprise Academy 2005
Breaking Through
To Flow

2. Lean Enterprise Academy 2005
What is
LEAN?

3. Lean Enterprise Academy 2005
LEAN =
• Creating flow in the value stream
• Eliminating waste (=muda)

4. Lean Enterprise Academy 2005
Toyota Lean Model

5. Lean Enterprise Academy 2005
Production Levelling or
Heijunka
mixed sequence one
piece flow matched to
market pull
through
TAKT time
= PERFECT FLOW

6. Lean Enterprise Academy 2005
Production Levelling or
Heijunka
= Foundation of Lean
Therefore essential to being
a truly Lean Enterprise
BUT HOW TO DO IT ?

7. Lean Enterprise Academy 2005
• Final step in the process, not how Toyota started
• What you see is different to how it was achieved
• Need to know the “secret” of how it was done

8. Lean Enterprise Academy 2005
Supply Chain Logic Issue
Buffer Tank

9. Lean Enterprise Academy 2005
Supply Chain Logic Issue
Result:
• A different plan every time

10. Lean Enterprise Academy 2005
Supply Chain Logic Issue
Consequences:
• Increased fixed costs
• Increased communication
• Increased risk
High chance something
will go wrong resulting in:

11. Lean Enterprise Academy 2005

12. Lean Enterprise Academy 2005
Does your businesses
ever make
short term plan changes?

13. Lean Enterprise Academy 2005
What impact do short term plan changes
have on:
- People
- Continuous improvement
- Customer service
- Efficiencies & costs

14. Lean Enterprise Academy 2005
Supply Chain Logic Issue
Different
plans
Things
go wrong
More
waste
More
Change-overs
Finish Good
shortages
Unplanned
changes
Loss of
capacity

15. Lean Enterprise Academy 2005
Current supply chain logic:
• Creates peaks & troughs
Also responsible for creating:
• Different plans
• Short term plan changes
Yet still the fundamental supply chainYet still the fundamental supply chain
logic used in many (most?)logic used in many (most?)
companiescompanies
Summary

16. Lean Enterprise Academy 2005
• Real buffer tank
• Same logic as:
– SPC
– SQC
Alternative logic

17. Lean Enterprise Academy 2005
• Continuously produce all products
• Not see level in buffer tank
Implications?
Clearly RIDICULOUS !
Alternative logic

18. Lean Enterprise Academy 2005
PARADIGM
What today seems impossible to do
but
if it could be done
would fundamentally change what you do.

19. Lean Enterprise Academy 2005
PARADIGM SHIFT
A change from one of thinking to another.
It’s a revolution, a transformation,
a sort of metamorphosis.
It doesn’t just happen but is driven by
agents of change.

20. Lean Enterprise Academy 2005
• Understanding levelled production
– Steps of heijunka

21. Lean Enterprise Academy 2005
Steps for implementing Heijunka
- starting point
Monthly Production
• One batch per
month per product
• Min. change overs
• Max. batch sizes

22. Lean Enterprise Academy 2005
Steps for implementing Heijunka
- step 1 Twice Monthly Production
• Halve batch sizes
• Identical sequence
• Two cycles
• Every Product
Every Cycle

23. Lean Enterprise Academy 2005
Steps for implementing Heijunka
- step 2 Weekly Production
• Halve batch sizes
• Identical sequence
• Every Product
Every Week

24. Lean Enterprise Academy 2005
Steps for implementing Heijunka
- step 3 Daily Production
• One batch per day
• Identical sequence
• Every product
every day

25. Lean Enterprise Academy 2005
Steps for implementing Heijunka
- step 3 Daily Production
• One batch per day
• Identical sequence
• Every product
every day
Continuous production of all products

26. Lean Enterprise Academy 2005
SUSPEND YOUR SCEPTICISM !!
• That’s all very well for Toyota
• Wonderful in theory but not practical
• It would never work in our business
• Every Product Every Cycle – ridiculous
when we make over a thousand SKU’s

27. Lean Enterprise Academy 2005
Steps for implementing Heijunka
Remaining
steps of heijunka

28. Lean Enterprise Academy 2005
Steps for implementing Heijunka
- step 4 Fixed Volume Production
• Daily multiple
batches of same
product at a fixed
size
• Fixed sequence
broken

29. Lean Enterprise Academy 2005
Steps for implementing Heijunka
- step 5 Synchronised Production
• Batch sizes of one =
One piece flow
• Mixed stream
• Synchronised to
market pull through
takt time

30. Lean Enterprise Academy 2005
mixed sequence one piece flow matched to
market pull through TAKT time
However:
Every Product Every Cycle
=
Supporting structure
to achieve it
Objective of Levelled Production is:
Summary

31. Lean Enterprise Academy 2005
EVERY PRODUCT
EVERY CYCLE
- Counter-intuitive
- In conflict with “traditional”
views of efficiency

32. Lean Enterprise Academy 2005
ECONOMIES
OF
REPETITION
Making the apparently impossible
POSSIBLE !

33. Lean Enterprise Academy 2005
Economies of Repetition
• Repetitive Flexible Supply game
• Happens in actual implementation
• Reason why EPEC has to be EVERY
• Three separate aspects

34. Lean Enterprise Academy 2005
Economies of Repetition
• Learning Curve
• Routines
• Clear objective
– Stimulate skills & inventiveness
– Clear goals are motivating
– “Just do better” is de-motivating

35. Lean Enterprise Academy 2005
Consequences & Benefits
Economies of repetition
• Higher efficiencies
• Better product quality
• Less waste
• Greater teamwork
• Clearer responsibilities
• Less fixed costs
EPEC
• Routine JIT deliveries
• Lower stocks
• Creating mtl flows easier
• Reduced lead-time
• Better TPM
• Greater flexibility
• Increase customer
service

36. Lean Enterprise Academy 2005
Economies of Repetition
Faster
EPEC
- Learning curve
- Routines
- Clear objectives
Economies
of
Repetition
Natural
Continuous
improvement
Above
Expectation
results

37. Lean Enterprise Academy 2005
Economies of Repetition
fine in theory, but………
can’t do Every Product Every Cycle
with current plant & equipment
therefore…….
won’t get Economies of Repetition !

38. Lean Enterprise Academy 2005
Getting started with
Every Product Every Cycle
and
Levelled Production