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Lean Transformation
Anand Subramaniam
Lean Transformation
2
E2E Value Stream
3
Bias for Action
4
Take Away
▪ It is a systematic approach to drive value and operational excellence
▪ Be flexible and vary the approach depending on the organisation’s
culture
▪ It is a journey / endurance race for continuous learning and improving
▪ It requires leadership, discipline, and buy in on lean philosophy
▪ Continuous improvement and people development must go hand in
hand
▪ It is on the job, real time learning & training
▪ Lean is 20% Technical and 80% Behaivioral
5
Lean Daily Management System
(LDMS)
6
Importance of LDMS
7
Leader Standard Work
(Specific sequence & time)
Daily Accountability
(Gemba, Tool Box)
Leadership Discipline
(Audits, Coach, Teach)
Visual Controls
(Visual Boards, Go See)
LDMS
Leader’s Standard Work
8
Leader’s Std Work – Walk Frequency
9
Leader’s Std Work – Activity & Time
10
Leaders Audit Checklist
11
Lean Scorecard
12
Lean Metrics
13
• Establish Lean metrics
– What to track?
– How to track?
– Who will track it ?
– How often to track ?
– Which form to use ?
– When to report ?
– Where to display?
– Why track?
• Obtain buy-in for metrics
• Calculate baseline metrics
• Select targets
• Create visual aids
• Measure results
• Post results
• Act on results
• Improve on results (PDCA)
• Sustain results (SDCA)
KPI on Visual Boards
14
Lean Box Score – Cell to Value Stream
15
Hoshin / Policy Deployment
16
Hoshin Process
17
▪ Aligns Strategy and Execution
▪ Systematically develops and links plans from organizational vision to
operational tactics
▪ Ensures deep and common understanding and maximizes ownership
and buy-in to plan
▪ Requires thoughtful, detailed planning for each and every improvement
action
▪ Consistently assesses actual performance vs. plan and addresses
issues and learns from the process
All Employees are Engaged in the Process
Hoshin - Seven Phases (PDCA)
18
Deploy Improvement Priorities
Develop Annual Breakthrough
Objectives and Improvement
Priorities
Monthly Review
Implement
Improvement Initiatives
Annual Review
PLANNING
IMPLEMENTATION
REVIEW
Establish
Organizational Vision
Strategic Planning/ Develop 3-5
Year Breakthrough Objectives
Annual Review
Self-Diagnosis
Root Cause
Countermeasures
Catchball
Critical Step
P
D
C
A
Top Level Matrix
19
RESOURCES
Annual
Breakthrough
Objectives
Targets
to Improve
3-5 Year
Breakthrough
Objectives
Top Level
Improvement
Priorities
= Primary Responsibility
= Secondary Responsibility
5- WHO
4- HOW MUCH
Use dots to show
relationship of Targets and
Resources to the
Improvement Priority
3- HOW
Use dots to show
relationship of Improvement
Priorities to Annual
Objectives
2- HOW FAR
1- WHAT
NOTE: Only Solid dots on a
resource deploy to the next
level
The whole picture on one sheet of paper!
OWNER
Cascading Priorities to Action
20
= Original Plan x = Progress at Review
Action Step/ Kaizen Events Milestone Jan Feb M ar Apr M ay June July Aug Sept Oct Nov Dec
Improvement Priority Title: *
Department/Location:
*
Management Ow ner:
*
Date: *
Core Objective: *
Timeline
Target Improvement
Planned
Dates
Policy Deployment Action Plan
Review Team: * Next Review : *
Environmental Situation Summary: *
Status
( P a st D ue i n R e d )
Impact
Ow ner (Lead is bold)
2003
Second Level Policy Deployment
l Primary Responsibility
m Secondary Responsibility
RESOURCES
Target to
Improve
SECOND LEVEL –
Plant/Business
Danaher Business System Office - Policy Deployment 1998
l Primary Responsibility
m Secondary Responsibility
Resources
Annual
Breakthrough
Objectives
3-5 Year
Breakthrough
Objectives
Target to
Improve
TOP LEVEL –
Company/Group
POINT OF IMPACT -
ACTION PLAN
Engineer/SupvCascade as many times as
necessary to the
Root Cause Level
Point of Impact - Action Plan The level where
root causes are addressed! Action Plans can be
initiated out of any matrix level.
POINT OF
IMPACT
Second Level Policy Deployment
l Primary Responsibility
m Secondary Responsibility
RESOURCES
Target to
Improve
ROOT CAUSE LEVEL-
Sub Plant/Dept
Annual
Objectives
Breakthrough
Top
Level
Improvement
Priorities
Second
Level
Improvement
Priorities
Top
Level
Improvement
Priorities
Top
Level
Improvement
Priorities
Second
Level
Improvement
Priorities
Third
Level
Improvement
Priorities
Scorecards Created for All Matrices
21
Second Level Policy Deployment
l Primary Responsibility
m Secondary Responsibility
RESOURCES
Annual Breakthrough
Objectives
Top Level
Improvement
Priorities
Targets to
Improve
SECOND LEVEL
SCORECARD
Danaher Business System Office - Policy Deployment 1998
l Primary Responsibility
m Secondary Responsibility
Resources
Top Level
Improvement
Priorities
3-5 year
Breakthrough
Objective
Annual
Breakthrough
Objectives
Target s to
Improve
TOP LEVEL
SCORECARD
2nd Level
Improvement
Priorities
Title
Hoshin Example
22
Lean Maturity Assessment
23
Lean Maturity Chart
24
SDCA & PDCA
25
Improvement vs. Maintenance
26
Everyone’s Job
27
Why PDCA?
28
PDCA Cycle
29
Goal Achievement
30
Goal : Improve
Performance
Goal : Achieve
Standard
Performance
Performance Management
31
Managing to
Improve
Managing to
Sustain
Standard Work
32
What is Standard Work ?
33
• A simple written description of
the safest, highest quality, the
most efficient and ONLY
acceptable way known to
perform a particular process or
task
• Reduces variation, increases
consistency
• Includes the amount of time
needed for each task
• Needed in all work areas and
expected to be continually
improved
When correctly applied, standard work will not only sustain kaizen
improvements, but also expose and eliminate previously unseen waste.
Critical Elements of Standard Work
34
▪ The customer demand
▪ The most efficient work routine or steps (Value Add)
▪ The exact / standard amount of work in process
required
▪ The cycle times required to complete work elements
▪ All process quality checks required to minimize
defects / errors
8 Steps – Creating Standard Work
35
1. Define the extent of
the process for which
you are creating
standard work (e.g.
starts at… ends at…)
2. Determine the
appropriate standard
work requirements
3. Gather required
information
4. Create standard
work documents
• Standard work for
each function in a
multi-function
process
• People doing the
same job will use
the same standard
work
• The end point will
be the starting
point for the next
standard work
sequence
• Title
• Work area
• Author
• Revision date
• Takt time, cycle
time
• Work sequence
• Approvals
• Document location
and ownership
• Whenever
information is
collected for
standard work, it is
important to search
for best practices.
• Observing multiple
people doing the
same work is a
good way to let
everyone see how
much variation
there is from unit to
unit and from
person to person.
Now that you have
gathered the required
information, you are
ready to create the
standard work
document (s).
8 Steps – Contd.
36
5. Train the supervisor
on standard work
6. Train the employees
on standard work
7. Run the process and
observe the results
8. Make adjustments
and modifications to the
standard work
• This is an essential
step.
• The supervisor is
the owner of the
standard work and
must understand it
perfectly and train
others to do it
perfectly
• Once trained, each
employee must be
able to demonstrate
their ability to
perform the
standard work
perfectly
• Once standard work
has been created
and everyone is
trained, it is time to
start the process
and make
observations. This is
the time to look for
improvements.
• Look for:
• Training needs
• Inadequate
processes
• Waste Types
• Standard work
should be a
document subject to
change; however, a
process should be
implemented for
making changes to
the standard work.
• Revision levels
should be recorded
each time standard
work is changed and
old standard work
should be filed for
future reference
Standard Work – Do & Don't
37
Do
• Keep standard work simple
• Make it accessible
• Include all info on one, easy-to-
read document
• Create one standard work
document for each part of the
process
• Always look for ways to improve
the process
Do Not
• Put standard work in a desk
drawer
• Change processes without
changing standard work
• Make standard work difficult to
change
• Give up on standard work – it can
be tough, but it’s very important
Kaizen
38
Cases for Kaizen
39
System & Process Kaizen
40
Kaizen Timing
41
Outcomes from a Kaizen Event
42
Lean Tools utilised during Kaizen
43
Day 1 Day 2 Day 3 Day 4 Day 5
Kick Off
meeting
Goals,
KPI’s ,
Teams
Game
Plan
Current State Assessment = Go See / Walk the Process
Before Pictures &
Video Taking
Spaghetti / Zoning
Data - Plan, Forms, Checklist, Collect, Analyse & Report
Waste Walk
CT, CO, VA, NVA, WIP, RTY, Resource
3S Work Place Organisation
Future State Improvement Plan
Idea Generation
Idea Prioritise
After Pictures
Implementation
Plan / A3
Lean Coaching = Principles, Thinking, Challenging Status Quo, Tools , Methods & Techniques
Facility
Stats
Process Map & Activity Steps Demand / Capacity / Level
FIFO, S’Mkt, KanbanConstraint/ B’neck
Takt, ECRS, Std Wrk
Skill Assess /JI
3S, Waste, E’Proof
Min / Max, Visual
Layout = Flow / Pull
Kaizen Event Roadmap
44
Problem Definition
45
What is a problem?
46
Problem Definition – 6W2H
47
• Who - Who does the problem affect? Specific groups, organizations, customers, etc.
• What - What are the boundaries of the problem, e.g. organizational, work flow, geographic,
customer, segments, etc. What is the issue? What is the impact of the issue? What impact is the
issue causing? What impact does it have on the business or stakeholders. What will happen when
it is fixed? What would happen if we didn’t solve the problem?
• When - When does the issue occur? - When does it need to be fixed by?
• Where - Where is the issue occurring? Only in certain locations, processes, products, etc.
• Which – Which metric / measure has been impacted?
• How - How do you know it is a problem?
• How Much / How Many - How much is it costing the business? How many are impacted?
• Why - Why is it important that we fix the problem?
How to set targets?
48
A3 – Problem Solving
49
Shingo Model – Operational
Excellence
50
Guiding Principles & Supporting Concepts
51
Lean books for your knowledge
52
53
Good Luck
http://www.linkedin.com/in/anandsubramaniam

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Lean transformation

  • 5. Take Away ▪ It is a systematic approach to drive value and operational excellence ▪ Be flexible and vary the approach depending on the organisation’s culture ▪ It is a journey / endurance race for continuous learning and improving ▪ It requires leadership, discipline, and buy in on lean philosophy ▪ Continuous improvement and people development must go hand in hand ▪ It is on the job, real time learning & training ▪ Lean is 20% Technical and 80% Behaivioral 5
  • 6. Lean Daily Management System (LDMS) 6
  • 7. Importance of LDMS 7 Leader Standard Work (Specific sequence & time) Daily Accountability (Gemba, Tool Box) Leadership Discipline (Audits, Coach, Teach) Visual Controls (Visual Boards, Go See) LDMS
  • 9. Leader’s Std Work – Walk Frequency 9
  • 10. Leader’s Std Work – Activity & Time 10
  • 13. Lean Metrics 13 • Establish Lean metrics – What to track? – How to track? – Who will track it ? – How often to track ? – Which form to use ? – When to report ? – Where to display? – Why track? • Obtain buy-in for metrics • Calculate baseline metrics • Select targets • Create visual aids • Measure results • Post results • Act on results • Improve on results (PDCA) • Sustain results (SDCA)
  • 14. KPI on Visual Boards 14
  • 15. Lean Box Score – Cell to Value Stream 15
  • 16. Hoshin / Policy Deployment 16
  • 17. Hoshin Process 17 ▪ Aligns Strategy and Execution ▪ Systematically develops and links plans from organizational vision to operational tactics ▪ Ensures deep and common understanding and maximizes ownership and buy-in to plan ▪ Requires thoughtful, detailed planning for each and every improvement action ▪ Consistently assesses actual performance vs. plan and addresses issues and learns from the process All Employees are Engaged in the Process
  • 18. Hoshin - Seven Phases (PDCA) 18 Deploy Improvement Priorities Develop Annual Breakthrough Objectives and Improvement Priorities Monthly Review Implement Improvement Initiatives Annual Review PLANNING IMPLEMENTATION REVIEW Establish Organizational Vision Strategic Planning/ Develop 3-5 Year Breakthrough Objectives Annual Review Self-Diagnosis Root Cause Countermeasures Catchball Critical Step P D C A
  • 19. Top Level Matrix 19 RESOURCES Annual Breakthrough Objectives Targets to Improve 3-5 Year Breakthrough Objectives Top Level Improvement Priorities = Primary Responsibility = Secondary Responsibility 5- WHO 4- HOW MUCH Use dots to show relationship of Targets and Resources to the Improvement Priority 3- HOW Use dots to show relationship of Improvement Priorities to Annual Objectives 2- HOW FAR 1- WHAT NOTE: Only Solid dots on a resource deploy to the next level The whole picture on one sheet of paper! OWNER
  • 20. Cascading Priorities to Action 20 = Original Plan x = Progress at Review Action Step/ Kaizen Events Milestone Jan Feb M ar Apr M ay June July Aug Sept Oct Nov Dec Improvement Priority Title: * Department/Location: * Management Ow ner: * Date: * Core Objective: * Timeline Target Improvement Planned Dates Policy Deployment Action Plan Review Team: * Next Review : * Environmental Situation Summary: * Status ( P a st D ue i n R e d ) Impact Ow ner (Lead is bold) 2003 Second Level Policy Deployment l Primary Responsibility m Secondary Responsibility RESOURCES Target to Improve SECOND LEVEL – Plant/Business Danaher Business System Office - Policy Deployment 1998 l Primary Responsibility m Secondary Responsibility Resources Annual Breakthrough Objectives 3-5 Year Breakthrough Objectives Target to Improve TOP LEVEL – Company/Group POINT OF IMPACT - ACTION PLAN Engineer/SupvCascade as many times as necessary to the Root Cause Level Point of Impact - Action Plan The level where root causes are addressed! Action Plans can be initiated out of any matrix level. POINT OF IMPACT Second Level Policy Deployment l Primary Responsibility m Secondary Responsibility RESOURCES Target to Improve ROOT CAUSE LEVEL- Sub Plant/Dept Annual Objectives Breakthrough Top Level Improvement Priorities Second Level Improvement Priorities Top Level Improvement Priorities Top Level Improvement Priorities Second Level Improvement Priorities Third Level Improvement Priorities
  • 21. Scorecards Created for All Matrices 21 Second Level Policy Deployment l Primary Responsibility m Secondary Responsibility RESOURCES Annual Breakthrough Objectives Top Level Improvement Priorities Targets to Improve SECOND LEVEL SCORECARD Danaher Business System Office - Policy Deployment 1998 l Primary Responsibility m Secondary Responsibility Resources Top Level Improvement Priorities 3-5 year Breakthrough Objective Annual Breakthrough Objectives Target s to Improve TOP LEVEL SCORECARD 2nd Level Improvement Priorities Title
  • 30. Goal Achievement 30 Goal : Improve Performance Goal : Achieve Standard Performance
  • 33. What is Standard Work ? 33 • A simple written description of the safest, highest quality, the most efficient and ONLY acceptable way known to perform a particular process or task • Reduces variation, increases consistency • Includes the amount of time needed for each task • Needed in all work areas and expected to be continually improved When correctly applied, standard work will not only sustain kaizen improvements, but also expose and eliminate previously unseen waste.
  • 34. Critical Elements of Standard Work 34 ▪ The customer demand ▪ The most efficient work routine or steps (Value Add) ▪ The exact / standard amount of work in process required ▪ The cycle times required to complete work elements ▪ All process quality checks required to minimize defects / errors
  • 35. 8 Steps – Creating Standard Work 35 1. Define the extent of the process for which you are creating standard work (e.g. starts at… ends at…) 2. Determine the appropriate standard work requirements 3. Gather required information 4. Create standard work documents • Standard work for each function in a multi-function process • People doing the same job will use the same standard work • The end point will be the starting point for the next standard work sequence • Title • Work area • Author • Revision date • Takt time, cycle time • Work sequence • Approvals • Document location and ownership • Whenever information is collected for standard work, it is important to search for best practices. • Observing multiple people doing the same work is a good way to let everyone see how much variation there is from unit to unit and from person to person. Now that you have gathered the required information, you are ready to create the standard work document (s).
  • 36. 8 Steps – Contd. 36 5. Train the supervisor on standard work 6. Train the employees on standard work 7. Run the process and observe the results 8. Make adjustments and modifications to the standard work • This is an essential step. • The supervisor is the owner of the standard work and must understand it perfectly and train others to do it perfectly • Once trained, each employee must be able to demonstrate their ability to perform the standard work perfectly • Once standard work has been created and everyone is trained, it is time to start the process and make observations. This is the time to look for improvements. • Look for: • Training needs • Inadequate processes • Waste Types • Standard work should be a document subject to change; however, a process should be implemented for making changes to the standard work. • Revision levels should be recorded each time standard work is changed and old standard work should be filed for future reference
  • 37. Standard Work – Do & Don't 37 Do • Keep standard work simple • Make it accessible • Include all info on one, easy-to- read document • Create one standard work document for each part of the process • Always look for ways to improve the process Do Not • Put standard work in a desk drawer • Change processes without changing standard work • Make standard work difficult to change • Give up on standard work – it can be tough, but it’s very important
  • 40. System & Process Kaizen 40
  • 42. Outcomes from a Kaizen Event 42
  • 43. Lean Tools utilised during Kaizen 43 Day 1 Day 2 Day 3 Day 4 Day 5 Kick Off meeting Goals, KPI’s , Teams Game Plan Current State Assessment = Go See / Walk the Process Before Pictures & Video Taking Spaghetti / Zoning Data - Plan, Forms, Checklist, Collect, Analyse & Report Waste Walk CT, CO, VA, NVA, WIP, RTY, Resource 3S Work Place Organisation Future State Improvement Plan Idea Generation Idea Prioritise After Pictures Implementation Plan / A3 Lean Coaching = Principles, Thinking, Challenging Status Quo, Tools , Methods & Techniques Facility Stats Process Map & Activity Steps Demand / Capacity / Level FIFO, S’Mkt, KanbanConstraint/ B’neck Takt, ECRS, Std Wrk Skill Assess /JI 3S, Waste, E’Proof Min / Max, Visual Layout = Flow / Pull
  • 46. What is a problem? 46
  • 47. Problem Definition – 6W2H 47 • Who - Who does the problem affect? Specific groups, organizations, customers, etc. • What - What are the boundaries of the problem, e.g. organizational, work flow, geographic, customer, segments, etc. What is the issue? What is the impact of the issue? What impact is the issue causing? What impact does it have on the business or stakeholders. What will happen when it is fixed? What would happen if we didn’t solve the problem? • When - When does the issue occur? - When does it need to be fixed by? • Where - Where is the issue occurring? Only in certain locations, processes, products, etc. • Which – Which metric / measure has been impacted? • How - How do you know it is a problem? • How Much / How Many - How much is it costing the business? How many are impacted? • Why - Why is it important that we fix the problem?
  • 48. How to set targets? 48
  • 49. A3 – Problem Solving 49
  • 50. Shingo Model – Operational Excellence 50
  • 51. Guiding Principles & Supporting Concepts 51
  • 52. Lean books for your knowledge 52