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Demystifying Lean: Going to Gemba
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This presentation debunks many of the mythologies surrounding the philosohpies and methodologies of Lean. Starting with the fundamental premise that value is defined by the customer, the presentation reviews the principles of Lean in the context of the 21st century economy, and what this means to you and your organization. Connect your organization’s day-to-day activities with Lean concepts and “learn to see” in ways that fundantally transform how you lead, manage, and work.
Advisor, Coach & Master Black Belt at Sigma Consulting Resources, LLC
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Demystifying Lean: Going to Gemba
- Demystifying Lean Muda 無駄 Muri 無理 Mura 斑 (Waste) (Overburden) (Unevenness) { Going to Gemba 現場 Scott Leek Sigma Consulting Resources, LLC LeanUXDenver, September 20, 2012 © 2012 Sigma Consulting Resources, LLC. All rights reserved.
- People agree more about where Lean came from than how to define it… unfortunately both are wrong History of Lean © 2012 Sigma Consulting Resources, LLC. All rights reserved.
- The origin of Lean is the “Toyota Production System” The term Lean was first used in the article "Triumph of the Lean Production System” (Krafcik) Popularized in the book The Machine That Changed the World History of Lean © 2012 Sigma Consulting Resources, LLC. All rights reserved.
- The Japanese did not invent Lean as much as they perfected it, at least to a level… Preceded by a long history of human endeavor to be responsible Shepherds of Earth’s resources History of Lean © 2012 Sigma Consulting Resources, LLC. All rights reserved.
- Caveman (Prehistoric) • Frequently starved • Minor injury or infection often fatal • Had enough of nothing • Knew the value of everything • Wasted virtually nothing Contributor’s to Lean © 2012 Sigma Consulting Resources, LLC. All rights reserved.
- Benjamin Franklin (January 17, 1706 – April 17, 1790) • Popularized a common sense approach to waste reduction in Poor Richard's Almanac • Recognized the waste related to unnecessary inventory in The Way to Wealth • Cited by Henry Ford as an influence in his business practices Contributor’s to Lean © 2012 Sigma Consulting Resources, LLC. All rights reserved.
- Frederick Winslow Taylor (March 20, 1856 – March 21, 1915) • Father of Scientific Management 1. Base work methods on a scientific study of the tasks 2. Select, train, and develop employees rather than leaving them to train themselves 3. Provide detailed work instruction and supervision 4. Divide work between managers applying scientific management principles to planning the work and workers to perform the tasks Contributor’s to Lean © 2012 Sigma Consulting Resources, LLC. All rights reserved.
- Henry Ford (July 30, 1863 – April 7, 1947) • Founder of the Ford Motor Company • Invented the assembly line and mass production • Implemented an early version of what became known as Just-in- Time • Doubled employee wages to reduce turnover and allow employees to afford his automobiles Contributor’s to Lean © 2012 Sigma Consulting Resources, LLC. All rights reserved.
- Taiichi Ohno (February 29, 1912 – May 28, 1990) • Father of the Toyota Production System • Recognized the scheduling of work should not be driven by sales or production targets but by actual sales (takt time, flow, pull) Contributor’s to Lean © 2012 Sigma Consulting Resources, LLC. All rights reserved.
- Shigeo Shingo (1909 - 1990) • A leading expert on manufacturing practices and the Toyota Production System • Shingo Prize recognizes world- class, lean organizations • Invented the tools of Poka- yoke (mistake proofing) and SMED (single-minute exchange of die) Contributor’s to Lean © 2012 Sigma Consulting Resources, LLC. All rights reserved.
- People doing work… enabled to do the right thing. (Prehistoric – Present) Contributor’s to Lean © 2012 Sigma Consulting Resources, LLC. All rights reserved.
- Doing more with less What Lean IS NOT! © 2012 Sigma Consulting Resources, LLC. All rights reserved.
- Incessant measurement (time & motion studies) What Lean IS NOT! © 2012 Sigma Consulting Resources, LLC. All rights reserved.
- Crowding people & equipment What Lean IS NOT! © 2012 Sigma Consulting Resources, LLC. All rights reserved.
- Efficiency above all else What Lean IS NOT! © 2012 Sigma Consulting Resources, LLC. All rights reserved.
- Complicated & mysterious What Lean IS NOT! © 2012 Sigma Consulting Resources, LLC. All rights reserved.
- Defining value from the customer’s perspective What Lean IS! © 2012 Sigma Consulting Resources, LLC. All rights reserved.
- Defining value from the customer’s perspective What Lean IS! © 2012 Sigma Consulting Resources, LLC. All rights reserved.
- Value Centered Design* Continuous improvement of Enterprise Objectives value by eliminating waste Offering Return on Investment Delivery and creating flow Product Service Value Process Channel Return on Experience Content Fulfillment Customer Experience What Lean IS! * Adopted from Harry Nieber at http://blogs.infosupport.com/value-centered-design/ © 2012 Sigma Consulting Resources, LLC. All rights reserved.
- Create Reduce Flow Waste Symbiotic relationship between waste and flow Reduce Create Waste Flow What Lean IS! * Adopted from Harry Nieber at http://blogs.infosupport.com/value-centered-design/ © 2012 Sigma Consulting Resources, LLC. All rights reserved.
- Using the customer’s definition of value, all waste is eliminated from the Value Stream MUDA Lean & Waste © 2012 Sigma Consulting Resources, LLC. All rights reserved.
- Transportation Each time a product or person is moved there is a cost and risk (damage, loss, spoilage, delay, et cetera) Waste (Muda 無駄) “The Flying Cadillac” © 2012 Sigma Consulting Resources, LLC. All rights reserved.
- Inventory Represents a capital outlay that is not producing income and comes in the form of raw material, work-in- progress, or finished goods Waste (Muda 無駄) © 2012 Sigma Consulting Resources, LLC. All rights reserved.
- Motion Results in damage to equipment (wear and tear) or people (repetitive stress injuries) who are in the process of producing the product or service Waste (Muda 無駄) © 2012 Sigma Consulting Resources, LLC. All rights reserved.
- Waiting Items waiting to be worked on (WIP) or people waiting Waste (Muda 無駄) © 2012 Sigma Consulting Resources, LLC. All rights reserved.
- Overproduction Producing more than is needed in a given time Waste (Muda 無駄) © 2012 Sigma Consulting Resources, LLC. All rights reserved.
- Over-processing Completing more work than is required Waste (Muda 無駄) © 2012 Sigma Consulting Resources, LLC. All rights reserved.
- Defects Products or services not meeting requirements, necessitates reworking, disposal, adjustment, or concession Waste (Muda 無駄) © 2012 Sigma Consulting Resources, LLC. All rights reserved.
- Transportation Inventory Motion Waiting Overproduction Over-processing Defects The Seven Wastes (Muda 無駄) © 2012 Sigma Consulting Resources, LLC. All rights reserved.
- Create Reduce Flow Waste Symbiotic relationship between waste and flow Reduce Create Waste Flow What Lean IS! * Adopted from Harry Nieber at http://blogs.infosupport.com/value-centered-design/ © 2012 Sigma Consulting Resources, LLC. All rights reserved.
- Synchronizing the pace of the process to the pace of customer demand Creating Flow (Muri 無理 Mura 斑) © 2012 Sigma Consulting Resources, LLC. All rights reserved.
- Takt Time Pace required to match customer demand Available Time ÷ Demand Drumbeat Creating Flow (Muri 無理 Mura 斑) © 2012 Sigma Consulting Resources, LLC. All rights reserved.
- Point Efficiency Processes operated to optimize individual performance Guarantees sub-optimization and waste in the system Creating Flow (Muri 無理 Mura 斑) © 2012 Sigma Consulting Resources, LLC. All rights reserved.
- System Efficiency Processes operated to work together to the drumbeat of Takt Time Minimizes waste and optimizes value defined by the customer Creating Flow (Muri 無理 Mura 斑) © 2012 Sigma Consulting Resources, LLC. All rights reserved.
- Some Tools for Creating Flow 5S Standard Work, Work Balancing & Pull Work Cells Batch Size Reduction Change-over/setup Time Reduction Overall Equipment Effectiveness Kaizen/Rapid Improvement Events Creating Flow (Muri 無理 Mura 斑) © 2012 Sigma Consulting Resources, LLC. All rights reserved.
- Now What? { Some things you might do* * Spear, Steven J., “Learning to Lead at Toyota,” Harvard Business Review, May 2004. © 2012 Sigma Consulting Resources, LLC. All rights reserved.
- “There is no substitute for direct observation” The place for direct observation is: Where work is done Wherever there is a customer experience Going to Gemba (現場) The knowledge needed for improvement is seldom found in a conference room Taking Action © 2012 Sigma Consulting Resources, LLC. All rights reserved.
- “Proposed changes should be structured as an experiment” Use of the Scientific Method A hypothesis, a plan to test the hypothesis, objective criteria and data to accept, reject or modify the hypothesis, action The value of knowledge is judged based on its ability to correctly predict, an increased ability to predict increases the degree of belief (confidence) in the knowledge Taking Action © 2012 Sigma Consulting Resources, LLC. All rights reserved.
- “Workers and managers should experiment as frequently as possible” Quick simple experiments Sequential building of knowledge Advances knowledge but manages risk Encourages more (appropriate) risk taking Taking Action © 2012 Sigma Consulting Resources, LLC. All rights reserved.
- Busy and effective are not synonymous Tools and techniques are means, not ends Reduce waste and improve flow Improve flow and reduce waste Define simple measures to evaluate results Value is defined by the customer, not you Continual improvement and respect Demystifying Lean © 2012 Sigma Consulting Resources, LLC. All rights reserved.
- Questions © 2012 Sigma Consulting Resources, LLC. All rights reserved.
Editor's Notes
- Many different definitions of Lean, some focus on tools and techniques, some focus on waste and cost reduction, and some have nothing at all to do with Lean.
- How profound…if you sell 100 a day you should make 100 a day.
- This sounds simple and straightforward. It impacts the entire span, and every aspect of the value stream, from supply chain performance to customer satisfaction and shareholder value.How is value defined? Three criteria are used: 1) The thing being processed is changed, 2) The customer is willing to pay, and 3) Done right the first time.So the first one is straight-forward and works with products or services. Whether assembling a mobile device or providing weather forecasts, inputs are processed into outcomes.The second criteria, the customer is willing to pay seems simple, but can be tricky when you start asking for customers.JUST BECAUSE CUSTOMERS SAY THEY WANT SOMETHING DOES NOT MEAN THEY VALUE IT!I encountered a Facilities Manger experienced in process improvement. He shared an experience he had with his customers….people who worked in the buildings. After receiving several survey forms indicating that the customers would be delighted with scented candles. Now this seems absurd but I have seen people do stranger things than grant a customer request for scented candles and thankfully the Manager did the prudent thing and dug a bit deeper…..further questioning indicated that the customers really wanted to cover up the musky odor and improve the lighting.JUST BECAUSE CUSTOMERS SAY THEY WANT SOMETHING DOES NOT MEAN THEY VALUE IT!The second criteria, the customer is willing to pay seems simple, can also be tricky…..….especially if you don’t ask.JUST BECAUSE CUSTOMERS DO NOT SAY THEY WANT SOMETHING DOES NOT MEAN THEY DO NOT VALUE IT!Consider the watch making industry in the late 1960’s. Swiss watch companies owned the market 80% market share. The world's first prototype analog quartz wristwatches were revealed in 1967: the Beta 1 revealed by the Centre Electronique Horloger (CEH) in Neuchâtel Switzerland, and the prototype of the Astron revealed by Seiko in Japan. The Swiss walked away from the concept rejecting it as the future of watch making…. Quartz wristwatches have dominated the watch market since the 1980s. Because they are more accurate than the best mechanical timepieces, and the elimination of all moving parts makes them more rugged and eliminates the need for maintenance.The Swiss failed to define value from the customer’s perspective.JUST BECAUSE CUSTOMERS DO NOT SAY THEY WANT SOMETHING DOES NOT MEAN THEY DO NOT VALUE IT!But simply asking customers to define value, or asking them about their requirements or needs is not enough…more often than not customers do not know the best way to match their needs or define value. How many customers told Apple they needed an iPhone?WE MUST DO MORE THAN ASK CUSTOMERS, WE HAVE TO GO TO GEMBA
- JUST BECAUSE CUSTOMERS SAY THEY WANT SOMETHING DOES NOT MEAN THEY VALUE IT!I encountered a Facilities Manger experienced in process improvement. He shared an experience he had with his customers….people who worked in the buildings. After receiving several survey forms indicating that the customers would be delighted with scented candles. Now this seems absurd but I have seen people do stranger things than grant a customer request for scented candles and thankfully the Manager did the prudent thing and dug a bit deeper…..further questioning indicated that the customers really wanted to cover up the musky odor and improve the lighting.JUST BECAUSE CUSTOMERS SAY THEY WANT SOMETHING DOES NOT MEAN THEY VALUE IT!The second criteria, the customer is willing to pay seems simple, can also be tricky…..….especially if you don’t ask.JUST BECAUSE CUSTOMERS DO NOT SAY THEY WANT SOMETHING DOES NOT MEAN THEY DO NOT VALUE IT!Consider the watch making industry in the late 1960’s. Swiss watch companies owned the market 80% market share. The world's first prototype analog quartz wristwatches were revealed in 1967: the Beta 1 revealed by the Centre Electronique Horloger (CEH) in Neuchâtel Switzerland, and the prototype of the Astron revealed by Seiko in Japan. The Swiss walked away from the concept rejecting it as the future of watch making…. Quartz wristwatches have dominated the watch market since the 1980s. Because they are more accurate than the best mechanical timepieces, and the elimination of all moving parts makes them more rugged and eliminates the need for maintenance.The Swiss failed to define value from the customer’s perspective.JUST BECAUSE CUSTOMERS DO NOT SAY THEY WANT SOMETHING DOES NOT MEAN THEY DO NOT VALUE IT!But simply asking customers to define value, or asking them about their requirements or needs is not enough…more often than not customers do not know the best way to match their needs or define value. How many customers told Apple they needed an iPhone?WE MUST DO MORE THAN ASK CUSTOMERS, WE HAVE TO GO TO GEMBA
- This starts with Value Centered Design. Value centered design focuses on defining value, from offering to delivery, between the customer experience and the enterprise objectives. The space from Offering to Delivery is often called the value stream.I worked with a large company involved in technology. They developed and designed new product/service offering in a new market space. As part of the design and development process teams conducted surveys of customers.Now because of the culture and history of the organization about how things are engineered, how things are designed, what is important and what is not in a design, part of the product/service solution included backup power subsystems. To justify this customers were asked if they would like to have this feature in the final design…customers, being who they are of course agreed that the feature would be great…but customers will always take a feature….if it is FREE! There was no other justification for including this feature other than the customer survey.Seems harmless….right? Not so much. The backup power system requires maintenance over time…to the aggregate tune of tens of millions of dollars a year….oh and it sounds an alarm that annoys the customer until it it serviced….all for a feature customers are not willing to pay for!
- This starts with Value Centered Design. Value centered design focuses on defining value, from offering to delivery, between the customer experience and the enterprise objectives. The space from Offering to Delivery is often called the value stream.
- Value Stream is often modeled with the VSM
- Think of the time people spend commuting to work, going from one building to another on a campus, traveling across the country or the globe…oh by the way this doesn’t include the time you were not moving….that is waiting.Consider General Motors introduction of the 1987 Cadillac Allante…aka “The Flying Cadillac.” The body of the Allanté was designed and built in Italy by Pininfarina (of Ferrari fame). The completed bodies were shipped 3,300 miles (5,300 km) from Italy in specially equipped Boeing 747s, 56 at a time, to Cadillac's Detroit/Hamtramck Assembly plant. The bodies were then mated to the chassis. Leading to the moniker of the world’s longest assembly line.
- J&J CEO reduction inventory example. Must eliminate or mitigate need for inventory.Worked at a shipyard…we used to kid them that two most visible made made things from space are the great wall of china and the inventory in the shipyard.
- Difficulty avoided in using the mouse, ease enabled for using keyboard shortcuts.
- Waiting for inputs, files, planes. Waiting on the network, the toll booth, ON THE PHONE. Just like inventory there are a lot of things that can happen while waiting…and most of them are not good. Software is a prime example….wait too long and the customer changes the requirements.Sometimes these things are not always obvious. Some waiting is caused by downtime. Many years ago I used to work with a chemical plat, spent 7 years working there, statistical methods, DOE.They produced commodity chemicals….the customers highest priority need or value was availability…no matter how much they produced they could sell it. There was a clear intersection of customer and producer value…more capacity. The plant required a six week period annually for shutdown maintenance, training, et cetera. This time could be viewed as waiting. By shifting focus from trying to squeeze and optimize more yield out of the operating process, we created a significant increase in capacity by reducing the time devoted to routine mantinenace during shutdown.
- Puerto Rico and tablet production.
- Remember that waste is expenditure without value (as defined by the customer). Years ago I had a client in the business of designing, building, and testing satellites in both the commercial and non-commercial space. Very few designs were ever built more than once, consequently testing, testing at every step in the process and testing redundancy were the watchwords of the industry. They had two basic types of tests: tests of the design and tests of the manufacturing process and product. Testing was viewed as a normal part of the process, and in fact customers were willing, for obvious reasons, to pay for virtually any reasonably justified test.So ingrained was this thought process that when they had an occasion to build two identically designed and produced vehicles the cost of design testing was built into the project budget and not questioned, not even by the customer. Not until other budget realities forced this program to find ways to save money. It turns out conducting the design tests on the second vehicle was over-processing…to the tune of nearly $30 million.Over-processing the toast was not only a waste of and in itself, but also created the additional waste of Defects.
- The case of reworking the grape jelly.An important aspect with this waste is honesty and transparency.Case of the missing applications (in the ceiling) or (the run over brief case, outside Austin with lumber company)
- The case of reworking the grape jelly.An important aspect with this waste is honesty and transparency.Case of the missing applications (in the ceiling) or (the run over brief case, outside Austin with lumber company)
- This starts with Value Centered Design. Value centered design focuses on defining value, from offering to delivery, between the customer experience and the enterprise objectives. The space from Offering to Delivery is often called the value stream.
- If the customer requires 50 per day then takt time is 8 hours / 50 = one every 9.6 minutes.
- Bottlenecks
- Flexibility of work cells. Experience with PCA Professional Service Teams (Team Lead, Consultants, Analyst, Admin Sup)Breaking down software projects into smaller pieces of deliverables, iterations etc. is batch size reduction.
- The case of the database clipboard.
- If you can predict it you know something about it.
- Busy & effective….recently a manger recounted a story about installing and ANDON light….
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