Continuous Improvement, LEAN, 5S, 5 Why's

1. Continuous Improvement Operations
Mr. Sredharran Sampath

2. Lean Systems

3. SWOT Analysis: Identifying improvement strategies
Strengths Opportunities
Weaknesses Threats

4. What does your client know? Indicators
• Information and assumptions
effect choices.
• How did you know?
the best price?
target market?
Indicators:
• Increased wages $11-$15
• Square & POS Systems
• Millennials -Baby boomers
• Health insurance costs
• Local construction (bridge)
Adaptation by A. Shapiro

5. What does your client know? Indicators

6. Definitions
• Value - A capability provided to a customer at the right time at an
appropriate price, as defined in each case by the customer. Features
of the product or service, availability, cost and performance are
dimensions of value.
• Waste - Any activity that consumes resources but creates no value
(waste).
6

7. YKK
• https://www.youtube.com/watch?v=MmSe-kIabNg

8. Lean Is A Journey
• The Journey never ends
• Toyota estimates it is only 50% waste-free
• Where can we begin? Where can we improve?
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9. Quality
Doesn’t happenby
Accident, It has
tobe Planned

10. Lean
An introduction to Lean principles, methodology, tools and terminology

11. Agenda
•Lean overview
•Lean principles
•Lean concepts
and tools
•Your role
•Next steps
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12. Learning Objectives
• Start “thinking Lean”
• Understand the Lean methodology of PDSA / PDCA
• Basic knowledge on Lean tools for removing waste and
enhancing customer value
• Understand your Lean role
• Begin to apply Lean in your work
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13. What is Lean?
• A time-tested method and set of tools to help us improve “how” we
produce our products and services.
• Lean is also a mindset, where we ask each day “How can we make our
services better for customers?”
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14. Lean helps us Understand:
1. What adds value to our customers
2. How work gets done
3. How we can identify root causes of problems
4. What an “ideal” process looks like
5. How we can improve performance
6. Whether process changes were successful
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15. Lean is about Simplifying our Work
• Eliminate tasks that do not add value
• Make things easy and intuitive for customers and staff
• Automate repetitive tasks
• Leverage staff talent
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16.  MUDA (Waste)
 MURI
(Strain / Over burden)
 MURA (Unevenness)
Eliminating 3 M

17. MUDA
Process-1 V
W W W W
Product
Process-2 V Process-3 V Process-4 V
Input
V:Value added product/services
W:Wasteful product / practices/services that does not add value
MUDA is theWaste, work that does not add any value to the product
Muda means wastefulness, uselessness and futility, which is
contradicting value addition.

18. Muri is the overburden on equipment, facilities &
people caused by mura and muda.
 This is in some respects on the opposite end of the spectrum
of muda.
 Muri is pushing a machine or person beyond natural limits.
 Overburdening people results in safety and quality problems.
 Overburdening equipment causes breakdowns and defects
MURI

20. Identifying MURI
MURI =Physical Strain, Overbourden
Placing of excessive demands on
🞮People
🞮M/Cs, Production equipment.
Muri is caused by the respect of unsuited standards
Bend to work?
Push hard?
Lift weight?
Repeat tiring action?
Wasteful walk?

22. How Do We Define Value-added?
• Customer is willing to
pay for it
• Actually transforms a
product or service
• Done correctly the
first time
• Consumes resources
without creating value
for the customer
• Low percent of the time
work is complete and
accurate
• Requires extra time,
effort, or resources
Value-added vs. Non Value-added
22

23. Lean is About Removing “Waste”
Value
Added
• Task time is typically 10% of total process time (lead time).
• Less than 30% of the tasks in a process add value from the
customer’s perspective
Value
Added
Value
Added
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24. Value Addition - Example
• Lead Time – Time interval between Placing or requesting an order and the
delivery against it.
• For example, you ask your IT department for a software installation by
morning 8 am, IT says it will be done by the end of the day.
• For instance, it gets installed by say 12.30 pm.
• So Lead Time – 12.30pm – 8 am = 3.30 hours
If one can assume 3.30 hours is the maximum or minimum time, then you
decide to make it as a benchmark.
Idea is to keep working on it, to reduce it further so that if one can do it / any
one does it, it is the same. For example 3 hours if X does it or Y does
it(includes any issues natural or man made).

25. Lean is NOT…
• Not an acronym (LEAN)
• Not a diet
• Not a solution to personnel or performance issues
• Not an initiative to reduce headcount – it’s about improving service
• Not a silver bullet or quick fix
• Not a replacement for Six Sigma – it is complementary
• Not a “manufacturing thing”
Lean does NOT require special expertise
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26. Why Focus on Process?
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27. Process Understanding
• Segregate all your processes into two major areas
1. Non Academic(Admin, Operations, IT, Quality, Transport,
Admissions, Facilities, HR, Finance, Accounts)
2. Academic
Once the processes are segregated, functions wise you fix the
respective Processes in each function with the functional staff.
For each process, fix the process owner after all the staff in that
function is aware of all the processes. (Easy for everyone to know the
overall process, as well as owners will be responsible for the process
they are the one’s to be accountable).

28. Example – Accounts Function
• If it is Accounts – Accounts Receivable (owner1)
• Accounts Payable(owner2)
• Accounts Head – will explain both the owner 1 and owner 2 about the
overall process in accounts and since the owners are aware of each
process, one can substitute each other in the absence of the other.
• Accounts Head will understand the process from the AAZ perspective
and will be the POC(Point of Contact) between the AAZ and the
Customer.

29. Why Lean?
• 3M – Minnesota Mining & Manufacturing
Company. 3M’s (innovative) population is getting
older
• Increasing customer expectations
• Pressure for greater accountability and
transparency
• Tight and shrinking budgets
• Shrinking workforce and increasing need for a
more skilled workforce.
Lean helps us improve quality, reduce costs, increase customer
and employee satisfaction, & capture knowledge
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30. • Continuous improvement originated in 1920s
with Walter Shewart and Bell Laboratories
• Early founders: Joseph Juran and W. Edwards
Deming
• Refined by and attributed to Toyota Motor
Corporation in early 1960s (Toyota Production
System)
• Now successfully adopted across all
organizations and sectors
• Enterprise Lean (now MNCI) launched in 2007
History of Lean
30

31. Lean Principles
Customer Focus
Data driven decisions
Respect
Results
Accountability
Excellence
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32. Principle 1: Customer Focus
Accurate
- What I want
Cost
Right price or
resource
investment
Timely
- When I want
Accessible
- How I want
(Easy to use)
Treatment
- Feel my needs
are understood
and that I am
treated fairly and
with respect
Effective
- Service
achieves
desired results
Better, faster, cheaper…
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33. Principle 2: Data Driven Decisions
• Verify anecdotes and feelings with data!
• Complaints that a process doesn’t work or is too slow?
• Gather data to confirm!
• Difficulty deciding which solution will work best?
• Test, make decision based on data!
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34. Principle 3: Respect
“A bad process
will beat
a good person
every time”
- W. Edwards Deming
It’s about the Process
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35. Principle 4: Results
Set SMART goals and measure results
• Specific
• Measurable
• Attainable (challenging, but within reach)
• Relevant (aligned with your strategic priorities)
• Time-bound
Example: Reduce the time it takes to pack a meal box from
<current time> to <target time> by <date>.
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36. Principle 5: Accountability
• Think and act in a
manner needed to
achieve results
• Hold others responsible
for following through on
commitments
• Communicate progress
• Capture learning
Project P D S A Results
1. Hiring G R G G
2. Contracts Y G
3.
Permitting
G
4. Safety R G R
• Green = on schedule,
• Yellow= slightly behind schedule
• Red = significantly behind schedule
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37. Principle 6: Excellence
Incremental
(local improvement)
Systematic
(evolutionary)
Revolutionary
(breakthrough)
Improving
what exists
Distinctly
different/better
Radically new &
different/better
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38. Lean Concepts and Tools
• PDSA / PDCA
• 7 Wastes
• 5S
• Standard Work
• Visual Management
• Kaizen (Kaizen Event)
• Problem solving
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39. Logs to Lumber – Seamless Operations
• https://www.youtube.com/watch?v=NvbgwdTGoyo

40. TOYOTA LEAN
• https://www.youtube.com/watch?v=F5vtCRFRAK0

41. PDSA – The Methodology
• Hold event
• Implement
Action Plan
• Monitor
progress and
results – 30, 60,
90-day reviews
• Define project
(Project
Charter)
• Adopt/Adjust/
Abandon &
sustain
improvement
Act Plan
Do
Study
Following the PDSA methodology ensures knowledge creation
and continuous improvement
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42. 7 Wastes
1. Defects
2. Overproduction
3. Waiting
4. Non-utilized staff talent
5. Transportation
6. Inventory
7. Motion
8. Extra processing
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43. 7 Wastes: Defects
The effort involved in
inspecting for and
fixing defects (errors
and mistakes).
43

44. 7 Wastes: Overproduction
Producing more
products or services
than the customer
needs or wants.
44

45. 7 Wastes: Waiting
When people, parts,
systems, or facilities wait for
a prior step in the process
to be completed.
Waiting is typically 90% of
process time.
Goal is smooth and
continuous flow between
each process step
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46. 7 Wastes: Non-utilized Talent
Staff hired to do X and
spending time on Y
Don’t let your employees’
skills go to waste!
Remove process barriers
so that staff can do the
work they were hired for
and want to do!
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47. 7 Wastes: Transportation
Transportation of
products,
equipment,
materials or
people without
adding value.
47

48. 7 Wastes: Inventory
Unnecessary storage of
materials.
48

49. 7 Wastes: Motion
Movement of people that
does not add value to a
product or service and may
create health and safety
issues.
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50. 7 Wastes: Extra Processing
Producing a higher
quality product or
service than what is
required by the
customer, and using
elaborate or expensive
equipment when more
simple options exist.
JOB ROTATION
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51. Improvement Strategies
Eliminate non-
value added tasks
Combine tasks or
functions
Concurrent
processing
Co-locate work
Shift roles and
responsibilities
Eliminate or
reduce batching
Automate Solve Problems
Handoffs and batching are common barriers to process flow
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52. 5S
1. Sort - Seiri
2. Set In Order - Seiton
3. Shine - Seiso
4. Standardize - Seiketsu
5. Sustain - Shitsuke
6th “S” for “Safety”
A simple method for creating a clean, safe, orderly,
high performance work environment.
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53. Before
53

54. 1S – Sort - Seiri
“When in doubt,
move it out.”
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55. 2S – Set in Order (Straighten) - Seiton
“A place for
everything, and
everything in its
place.”
A visual management
strategy!
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56. 3S – Shine - Seiso
“The best cleaning
is to not need
cleaning.”
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57. “See and recognize
what needs to be
done.”
4S – Standardize - Seiketsu
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58. 5S – Sustain - Shitsuke
“Effective, ongoing
application of 5S”
The most difficult
step!
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59. After
59

60. 5S Tips
• Keep it fun – consider
friendly competition
• Leverage teamwork
• Take before and after
photos
• Rotate maintaining
shared areas among
staff
• Provide positive
reinforcements
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61. Poka Yoke – Error Proofing
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62. Visual Management
A communication device that tells, at a glance, how
work should be done.
• Where items belong
• How many items
• Standard procedure
• Work-in-process (WIP)
There is only one place to put each item.
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63. Kaizen
A Kaizen Event is a facilitated,
small-scope improvement
activity that engages the
creativity of employees to
reduce waste in a work
process. A Kaizen Event
typically lasts 3-5 days.
63

64. KAIZEN – Japanese Productivity Magic
• https://www.youtube.com/watch?v=fcBXtwGexNc

65. Standard Work
The safest, highest quality,
and most efficient way to
perform a task or process.
• Focuses on helping the
employee be successful
• Reduces variation and increases
consistency
• Improvements cannot be
sustained without it
“Where there is no standard, there can be no Kaizen.”
Taiichi Ohno, Vice-President Toyota Motor Company
65

66. Small Changes in Every Process
The Japanese concepts of change and improvement differ from
Western ideas on these topics. In a Western firm, change typically
refers to “radical” change. If a business process or a strategy is
changed, we prefer to see a real difference compared to the original
situation. A company turnaround or an entirely new strategy are
considered significant changes.
Small changes, such as moving a desk from one part of the room to
another to improve communication between employees, or other
similar activities, are not considered very influential on overall
corporate success.

67. Small Changes in Every Process
Even small changes, such as moving a desk, are considered important
because the changes will improve the situation in the long run. Since
Japan is a group-oriented society, any change, adaptation, or
improvement must be discussed with a large number of people.
Important decisions can never be made by just one person.
However, group discussions often do not lead to radical ideas, as too
many people are involved and too many viewpoints must be
considered—the more people involved, the more mass oriented the
decision becomes.

68. Small Changes in Every Process
Radical changes such as drastic downsizing or adopting a strategy are
very difficult to implement in a Japanese firm. Radical decisions are
therefore very rare, and improvements in the Japanese workplace are
often very subtle and would not be considered very significant from a
Western perspective. Gemba Kaizen and Teian Kaizen

69. Kaizen Can Be Applied Anytime and
Everywhere
The first step to a kaizen-oriented enterprise is a corporate culture that
motivates employees and rewards them for improving work and
business processes. Kaizen is a process-oriented approach rather than a
result oriented one. Kaizen is not just the task of a special group within
a company; employees of all levels, from the CEO down, participate in
kaizen activities.
When the kaizen philosophy is applied, every single organizational
member is responsible for the improvement processes. Another
feature of kaizen is that every process, not only a manufacturing or a
service process, can be improved, which means that kaizen can also be
applied in nonmanagerial situations.

70. Genchi Genbutsu (Go and See)
Genchi genbutsu, a Japanese term translated into English as “go and see for
yourself,” has revolutionized Japanese firms and their business practices.
This phrase enforces a simple but effective policy where employers immerse
themselves in their company’s daily operations by experiencing a production
site or business section for themselves. Genchi genbutsu is used to train
young employees who are entering the company right after graduating from
a university to let them experience the work and learn it from scratch.
Many Japanese companies have a strong focus on stability and prefer their
workforce to remain constant for many years, sometimes even a lifetime.

71. Problem Solving
“If I were given one hour to
save the world, I would
spend 59 minutes defining
the problem and
one minute solving it.”
- Albert Einstein
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72. Problem Solving
Defining the “wrong” problem wastes considerable time
looking in the wrong direction for solution.
Symptoms: You
see it, people talk
about it; it is
visible!
Root Cause: The one
to address. It is often
hidden. You need to
find it!
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73. 5 Whys – RCA(Root Cause Analysis) – Quality Tool
• 5 Whys is a SIMPLE but
POWERFUL technique for
uncovering the root cause of
a problem when you lack
data regarding why the
problem is occurring.
• If we don’t solve problems at
the level of the root cause,
we risk the same problem
resurfacing in the future.
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74. 5 Why’s Origination
• The 5 Whys method is part of the Toyota
Production System and an essential
approach to problem-solving.
• Developed by Sakichi Toyoda, a Japanese
inventor, and industrialist, the
technique became an integral part of the
Lean philosophy.
• "The basis of Toyota’s scientific
approach is to ask why five times
whenever we find a problem … By repeating
why five times, the nature of the problem
as well as its solution becomes clear.“
Taiichi Ohno

75. 5 Why Example in a office
The Problem: The office van will not start.
Why #1: The battery is dead.
Why #2: The alternator is not functioning.
Why #3: The alternator belt has broken.
Why #4: The alternator belt was well beyond its useful
service life and not replaced.
Why #5: The vehicle was not maintained according to the
recommended service schedule.
Why#6: Why the vehicle was not maintained as per the
schedule.
Why#7: The Transportation Supervisor was on leave.
Why#8: What about the alternative.
Why#9: We do not have an alternate to substitute
supervisor.
Solution is to appoint another spare resource to step in

76. Example 2
The Problem: A staff is failing their exam.
Supervisor: (Why #1) Why is the staff failing their
exam?
Team Leader : Because he didn’t pass the test.
Supervisor: (Why #2) Why didn’t he pass the test?
Team Leader : Because she chose many common wrong
answers.
Supervisor: (Why #3) Why did he choose many common
wrong answers?
Team Leader : Because she’s trying to repeat a
procedure without understanding it.

77. Example 2 Contd.,
Supervisor: (Why #4) Why is she only trying to repeat a
procedure without understanding it?
Team Leader : Because he doesn’t have conceptual
understanding.
Supervisor: (Why #5) Why doesn’t she have conceptual
understanding?
Team Leader : Because we didn’t have enough time so we
skipped that section.
Solution (ROOT CAUSE) : Either appoint a trainer who
could specifically spend time on weak staff coaching /
free the team leader from other responsibilities to
spend more time coaching the weak staff.

78. Example 2 – Alternative Scenario
Supervisor: (Why #4) Why is he only trying to repeat a
procedure without understanding it?
Team Leader : Because he doesn’t have conceptual
understanding.
Supervisor: (Why #5) Why doesn’t she have conceptual
understanding?
Team Leader : Because the staff had reported high level
of absenteeism due to health reasons.
Solution (ROOT CAUSE) : Either appoint a trainer who
could specifically spend time on this staff coaching /
provide additional time for the staff away from normal
hours of work, so that the understanding is good for the
staff.

79. In the Official scenario
The Problem: The TEAM Fails To Deliver A Project On Time:
Let’s dig deeper by asking five whys.
1. Why Didn’t They Deliver The Project On Time?
• Because minor bugs in the computer system were not fixed until the
deadline.
2. Why Were The Bugs Not Fixed On The Agreed Time?
• Because the staff were still working on some newly added features,
which they were not familiar with.
3. Why Were The staff Still Working On The Newly Added
Features?
• Because one of the new staff wasn’t aware of the standard
procedures.

80. In the Official scenario
The Problem: The TEAM Fails To Deliver A Project On Time:
4. Why Was The New Staff Unaware Of The Standard
Procedures?
• Because they were not initiated or trained properly.
5. Why Was He Not Initiated Or Trained Properly?
• Because the Management believes that new staff do not require in-
depth training. They believe that staff should be learning as they are
working.
• SOLUTION(ROOT CAUSE)From the above five whys example, it’s
clear that the management boss should pay more attention to
training new staff. Asking such five whys(even one million WHY’s) in
any situation will yield solid answers.

81. To Create a Lean Culture…
We need to move from viewing Lean as:
Additional work or
Project specific work
How we do our work
every day
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82. Are You Challenging Yourself?
If you don’t fall once in a while…
you’re not trying hard enough to
improve.
A Good Organization learns when
they fail, whereas a Great
Organization learns even when
they are doing successful
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83. Managements’ Role
• Model the way
• Challenge the status quo
• Set goals and performance targets
• Align work and dedicate resources
• Engage and empower staff
• Remove barriers
• Build a problem solving culture
• Reward/Recognize high performers
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84. Action You can Take
• Try a tool you learned today!
• 5S your desk, network drive, or common work area
• Create standard work
• Learn more about Lean practices and tools
• Ask your customers what they want
• Think about your goals and how to collect data to start
measuring where you are now (so that you can show
improvement!)
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