Lean Introduction


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Lean Mastery Training Summary from Akron University

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  • Lean Introduction

    1. 1. Lean Review May, 2009 – HLI Akron
    2. 2. Lean Review <ul><li>Purpose: </li></ul><ul><li>Present a Summary of the Lean Mastery training </li></ul><ul><li>Start discussing a potential Lean Culture Implementation plan </li></ul><ul><li>Establish a team for Lean Implementation in Akron </li></ul>
    3. 3. True continuous improvement occurs all the time, every day, by everybody. Too often, businesses perform only continual improvement activities, those activities that might help improve the quality system and operations, but only periodically. Examples of continual improvement activities might include responding to a customer complaint, and internal audit finding, a Six Sigma Project, or a monthly kaizen event. GENERAL STATEMENT
    4. 4. ATTITUDE AND MINDSET What is Lean Enterprise? It is a philosophy designed to bring about rapid , planned , controlled and measured step-change improvements to the performance of an organization through an overhaul of the value stream. It utilizes a comprehensive set of elements, rules and tools that focus on value , the elimination of waste and continuous incremental improvement . The Most Important Thing to Remember is that Lean is a Thinking Process
    5. 5. LEAN TOOLS
    6. 6. Lean Tools Value Stream Map 5(6)S TPM SMED Process Mapping Line Balancing Focused Factory Heijunka Kanban Poka-Yoke PFMEA Visual Workplace DFMEA Policy Deployment Lean Accounting Takt Time 5 Why’s One-Piece-Flow Pareto Spaghetti Chart U-Shaped Cells Rabbit Chase Six Sigma Standard Work
    7. 7. NEED TO CHANGE
    8. 8. Every morning in Africa, a gazelle wakes up; it knows it must run faster than the fastest lion or it will be killed. Every morning in Africa, a lion wakes up; it knows it must outrun the slowest gazelle or it will starve to death. It doesn’t matter whether you are a lion or a gazelle: When the sun comes up, you had better be running. (Be the hunter, not the hunted!) SURVIVAL
    9. 9. Why Change? <ul><li>Competition is global. Borders and barriers are collapsing. Internet has become a great leveller. </li></ul><ul><li>Pressure to grow margins and profitability is intense. </li></ul><ul><li>No divine right to exist in business. </li></ul><ul><li>Must be “Best In Class” to ensure survival. </li></ul><ul><li>Must be the best in quality, price, delivery and innovation against competition. </li></ul><ul><li>Must be the hunter, not the hunted </li></ul>
    10. 10. “ To do the same thing over and over and to expect that the results will change, is insanity .” Einstein
    11. 11. Steps of Conscious Change. <ul><li>Get disturbed, Get honest, Get hungry. </li></ul><ul><li>Make a real decision. </li></ul><ul><li>Real Plan – R . P . M . </li></ul><ul><ul><li>R esults Focused – What - Get Specific. </li></ul></ul><ul><ul><li>P urpose Driven – Why. </li></ul></ul><ul><ul><li>M assive Action – No Half Measures. </li></ul></ul><ul><li>Eliminate limiting beliefs. </li></ul><ul><li>Set the game up to win. </li></ul><ul><li>Take massive action. (Do it!) </li></ul><ul><li>Utilize the power of environment. </li></ul>
    12. 12. Eliminate Waste “ Waste is any human activity (or inactivity) which absorbs resources but creates no VALUE” James Womack, Daniel Jones, Lean Thinking – Published by Simon and Schuster.
    13. 13. Reduce Variation <ul><li>Everything Has Variation </li></ul><ul><li>The Issue is Control </li></ul><ul><li>Control the Process => Reduce the Variation </li></ul><ul><li>Reduce The Variation => Reduce the Margin for Error </li></ul><ul><li>Reduce Margin for Error => Increase Opportunity for Success </li></ul><ul><li>PROCESS CONTROL IS ESSENTIAL </li></ul><ul><li>Excess Variation = Waste </li></ul><ul><li>Variation Can Result From </li></ul><ul><ul><li>Incapable Processes </li></ul></ul><ul><ul><li>Processes not in Control </li></ul></ul>Waste Waste
    14. 14. <ul><li>ELIMINATE WASTE EVERYDAY </li></ul><ul><li>WASTE CONSUMES 15 – 40% OF THE TIME </li></ul><ul><li>EXAMPLES: Fork Lift Transportation cost, Inventory, Waiting time on information, Scrap, Waste on intellect, time in e-mails, time in meetings, FISH vs. FIFO </li></ul>The most horrible feeling is when you feel that you did not accomplish anything at work in a day
    15. 15. CHALLENGES
    16. 16. 9 out of 10 people will resist change
    17. 17. Employee Participation <ul><li>20% of employees are engaged </li></ul><ul><li>60% are not engaged </li></ul><ul><li>20% are actively disengaged </li></ul>
    18. 18. Cultural Differences <ul><li>Delegate </li></ul><ul><li>Fear of failure </li></ul><ul><li>Inspect defects out </li></ul><ul><li>Push systems </li></ul><ul><li>Fix blame for problems </li></ul><ul><li>Not invented here (NIH) </li></ul><ul><li>Superstars </li></ul><ul><li>We / They </li></ul><ul><li>Results focus </li></ul><ul><li>Best for me </li></ul><ul><li>Support </li></ul><ul><li>Taste of success </li></ul><ul><li>Manufacture Quality in </li></ul><ul><li>Pull Systems </li></ul><ul><li>Problems are opportunities </li></ul><ul><li>Creative </li></ul><ul><li>Teamwork </li></ul><ul><li>Support at the source </li></ul><ul><li>Process focus </li></ul><ul><li>Best for the Customer </li></ul>Traditional Lean
    20. 20. Lean Roadblocks and Pitfalls
    21. 21. Roadblocks / Pitfalls- Strategic <ul><li>Lack of clear strategy and/or how Lean supports that strategy. </li></ul><ul><li>Poor planning / not understanding what is involved. </li></ul><ul><li>Lack of patience/foresight. Not recognizing that we have decades of bad habits to overcome. </li></ul><ul><li>Customer Value not determined. </li></ul><ul><li>Lack of Policy Deployment (Hoshin). </li></ul><ul><li>Inappropriate metrics. </li></ul><ul><li>Picking and choosing pieces of Lean (it’s not a menu and, besides, we have done that already!) </li></ul><ul><li>Using Lean as a downsizing mechanism. </li></ul><ul><li>No Lean Management System. </li></ul>
    22. 22. Roadblocks / Pitfalls- Tactical <ul><li>Not educating everyone in the organization. </li></ul><ul><li>Standard Work not enforced . </li></ul><ul><li>Understanding that no plan survives first contact (adopt and adapt). </li></ul><ul><li>Accounting not on board. </li></ul><ul><li>Sales not on board. </li></ul>
    23. 23. Roadblocks / Pitfalls- Tactical <ul><li>Concrete Heads. </li></ul><ul><li>Financial focus with limited cost understanding. </li></ul><ul><li>Programs of the month (band aids). </li></ul><ul><li>Meetings, meetings, meetings, meetings. </li></ul><ul><li>Silo optimization. </li></ul><ul><li>20/80 – Lean is for everyone. </li></ul>
    24. 24. Roadblocks / Pitfalls- Tactical <ul><li>NIH – Not Invented Here. </li></ul><ul><li>Not following up on improvement efforts (backsliding). </li></ul><ul><li>Not recognizing that approx 2/3 of costs are in support areas. This is not just a shop floor process. </li></ul><ul><li>Ignoring the supplier base. </li></ul>
    25. 25. Roadblocks / Pitfalls- Tactical <ul><li>Resistance to change. </li></ul><ul><li>Not giving both Lean and the Process of Change equal focus. </li></ul>
    26. 26. Roadblocks / Pitfalls- Tactical <ul><li>Not recognizing that we have decades of bad habits to overcome. </li></ul><ul><li>Not institutionalizing the process. </li></ul>
    27. 27. Educate Everyone in the Organization <ul><li>Everyone in the organization must have a Lean education. </li></ul><ul><li>This is powerful and is the key to institutionalizing Lean. </li></ul>There is a direct correlation between the level of Lean success and the level of education provided.
    28. 28. Institutionalizing Lean <ul><li>Management education and commitment followed by engagement. Must win attitude. </li></ul><ul><li>Management must clearly communicate the plan, the reason for it and, to the extent possible, outline the future following implementation. </li></ul><ul><li>Management must stay focused and understand the transition phases. </li></ul><ul><li>Lean must align with Strategy (Policy) Deployment. </li></ul><ul><li>Educate everyone in the organization. </li></ul><ul><li>Lean must be the only system allowed. A real culture change must take place. Get some early successes. </li></ul><ul><li>People must be given authority to make changes ( If you don’t give people power they will take it). </li></ul>
    29. 29. Institutionalizing Lean <ul><li>Deal with the Concrete Heads, BUT Heads and Bee-Keepers. </li></ul><ul><li>Avoid backsliding ( There is no message more destructive ). Relentless pursuit of goals. </li></ul><ul><li>Tools applied to whole organization. </li></ul><ul><li>All improvements must be recognized. Small improvements lead to big gains. </li></ul><ul><li>No embarrassment or retribution for admitting problems. </li></ul><ul><li>Be innovative and creative. Share best practices. </li></ul><ul><li>FOCUS ON THE FUNDAMENTALS EVERY DAY! </li></ul><ul><li>MAKE IT FUN! </li></ul>
    30. 30. Kaizen Environment <ul><li>Openness </li></ul><ul><li>Harmony </li></ul><ul><li>Information </li></ul><ul><li>Learning </li></ul><ul><li>Involvement/Empowerment </li></ul><ul><li>No Blame </li></ul><ul><li>Constant Improvements . </li></ul>
    31. 31. Openness “ Success is about driving fear out of the organization…it is about causing everyone’s opinion to be valued, and removing the threat from minority views.” Deming
    32. 32. Involvement / Empowerment “ Tell me and I will forget. Show me and I may remember. Involve me and I will understand.” Empowerment is not about getting employees to do what you want done, it is about getting out of the way so they can do what is needed.
    33. 33. No Blame “ The way to ensure mediocrity is to put people at risk, wait for something to go wrong and then look for someone to blame.” Failure only occurs when you don’t learn anything from the attempt .
    34. 34. Constant Improvements Everyone has two jobs: doing the job and improving the job. This may be common sense but it is an uncommon practice. Remember: “the past does not equal the future unless you happen to live there.”
    36. 36. Lean People are the Lean Enterprise <ul><li>An enterprise is a collection of people working together to produce a product or service. </li></ul><ul><li>To have a Lean Enterprise, you have to have Lean people. </li></ul><ul><li>People have to get Lean before the enterprise can get Lean. </li></ul>
    37. 37. The Lean Leadership Key Requirements <ul><li>Understand the process so you can set the expectations. </li></ul><ul><li>Provide the necessary commitment. </li></ul><ul><li>Become engaged. </li></ul><ul><li>Provide the means to educate everyone in the organization. </li></ul><ul><li>Set the standards for Lean Management. </li></ul><ul><li>Hold managers accountable for Lean progress. </li></ul><ul><li>Celebrate and reward successes. </li></ul><ul><li>Use Lean to Grow. </li></ul><ul><li>Continuously reinvigorate the process. </li></ul>
    38. 38. <ul><li>Customer- focused </li></ul><ul><li>Organization-wide thinker </li></ul><ul><li>Adaptive </li></ul><ul><li>Initiative </li></ul><ul><li>Innovation </li></ul><ul><li>Team Player </li></ul><ul><li>Center of Influence </li></ul><ul><li>Sense of Urgency </li></ul><ul><li>Tenacity </li></ul><ul><li>Great Listener </li></ul><ul><li>And… Put ATTITUDE as the Number 1 Requirement! </li></ul>Lean Champion Characteristics
    39. 39. Respect for People <ul><li>Acknowledge their talents and skills. </li></ul><ul><li>Find the right fit between talent and role. </li></ul><ul><li>Demonstrate your trust in their abilities to get the job done and contribute to improving organization performance. </li></ul><ul><li>You need to show that you care and they have to believe it. </li></ul><ul><li>Show them that you value them as individuals and that you value their work. </li></ul><ul><li>Provide opportunities to learn and grow by continually challenging them – more thought, more facts, more discussion – this is the highest form of respect! </li></ul>
    40. 40. Lean People Have … Skill Knowledge Experience Lean People
    42. 42. High Level Lean Plan <ul><li>Flavor of the month </li></ul>One Month 2. Project Focus One Year 3. Habitual Behavior 1 – 2 Years 4. Culture Change 3 - 8 Years
    43. 44. Phase 1 Plan <ul><li>Plan </li></ul><ul><li>Assessment. </li></ul><ul><li>Executive commitment and engagement. </li></ul><ul><li>Determine strategy and deploy policy. Address cultural issues. </li></ul><ul><li>Define customer value. </li></ul><ul><li>Define goals, measures and milestones. Create the plan. </li></ul><ul><li>Establish Lean Organization. </li></ul><ul><li>Communicate. </li></ul><ul><li>Begin educating everyone in the organization. </li></ul>Build the compelling vision.
    44. 45. <ul><li>Apply </li></ul><ul><li>Value stream maps. </li></ul><ul><li>Start 5(6)S </li></ul><ul><li>Standard Work </li></ul><ul><li>Single Piece flow / Cell concept </li></ul><ul><li>Begin TPM / Quick Change </li></ul><ul><li>Begin Visual Management </li></ul><ul><li>Begin Poka-Yoke (Error-Proofing) </li></ul><ul><li>Analyze / Review results. </li></ul><ul><li>Feedback and adjust. </li></ul><ul><li>Continue education program. </li></ul><ul><li>Communicate and recognize </li></ul>Pilot or initial application. Utilize all applicable tools. Phase 2 Apply
    45. 46. <ul><li>Deploy </li></ul><ul><li>Review and improve plan. </li></ul><ul><li>Repeat Phase 2 in other areas. </li></ul><ul><li>Begin Lean in admin. areas </li></ul><ul><li>Introduce Kanban. </li></ul><ul><li>Begin DFMA. </li></ul><ul><li>Analyze / Review results </li></ul><ul><li>Feedback and adjust. </li></ul><ul><li>Continue education program. </li></ul><ul><li>Communicate and recognize. </li></ul>Add more areas and teams. Use Kaizen extensively. Phase 3 Deploy
    46. 47. <ul><li>Integrate </li></ul><ul><li>Solidify phase 3 and extend throughout entire value stream. </li></ul><ul><li>Begin supplier development program. </li></ul><ul><li>Train six-sigma personnel. </li></ul><ul><li>Analyze / Review results. </li></ul><ul><li>Feedback and adjust. </li></ul><ul><li>Continue education program. </li></ul><ul><li>Communicate and recognize. </li></ul>Extend to rest of the organization . Institutionalize. Phase 4 Integrate
    47. 48. <ul><li>Control </li></ul><ul><li>Solidify phase 4. </li></ul><ul><li>Establish new baselines. </li></ul><ul><li>Eliminate root causes. </li></ul><ul><li>Cross train workforce. </li></ul><ul><li>Analyze / Review results. </li></ul><ul><li>Feedback and adjust. </li></ul><ul><li>Continue education program. </li></ul><ul><li>Communicate and recognize. </li></ul>Old paradigms eliminated and new baselines established. Phase 5 Control
    48. 49. <ul><li>Improve </li></ul><ul><li>Solidify phase 5. </li></ul><ul><li>Continuous incremental improvement the norm. </li></ul><ul><li>Establish new plan. </li></ul><ul><li>Analyze / Review results. </li></ul><ul><li>Feedback and adjust. </li></ul><ul><li>Continue education program. </li></ul><ul><li>Communicate and recognize. </li></ul>Begin again. Evaluate and adjust plan continuously. Phase 6 Improve
    49. 50. High Level Lean Plan <ul><li>Flavor of the month </li></ul>One Month 2. Project Focus One Year 3. Habitual Behavior 1 – 2 Years 4. Culture Change 3 - 8 Years After repeating too many times