The Power and Magic of Lean

Norman Bodek
bodek@pcspress.com

•Norman Bodek
This document is a partial preview. Full document download can be found on Flevy:
http://flevy.com/browse/document/the-power-and-magic-of-lean-1445

• Publisher: 250 management books, 100 Japanese translations
• Author of six (6) books
• The Idea Generator
• The Idea Generator Workbook
• All You Gotta Do Is Ask
• Rebirth of American Industry
• Kaikaku The Power and Magic of Lean
• How to Do Kaizen
• Teacher
• Portland State University – The Best of Japanese Management
• The Monterrey Institute of Technology – Mexico
• Utah State University
• Keynoted numerous conferences
•Recognition
• Started the Shingo Prize and also a Shingo Prize Recipient
• Industry Week 2010 Manufacturing Hall of Fame
• Six Sigma Grand Master
• Written many articles on continuous improvement and human
resource development

Why Are We Here?
• We will not focus on whether or not we
should become world class. We must!
• We will focus on how.
1. Opening: The Best of Japan
2. The Time Line – The Toyota Production
System – Wastes
3. Aligning Organization Vision
4. Setting Personal Success – The Harada
Method
5. Total Employee Involvement – Quick and
Easy Kaizen
6. Differences between Leading and Managing
7. Lean Tools and Techniques
8. The Importance of Quality
9. Creating a Technology MAP
10. Establishing a Check List for World Class

Survey
1. Profits
2. People growing
3. Happy people
4. Customer service
5. Great products
6. Great process
7. Cost reduction
8. New products
9. Quality
10.Productivity

"When I was younger I was looking for this
magic meaning of life. It's
very simple now," she says. Making the
lives of others better, doing
"something of lasting value, that's the
meaning of life, it's that simple."
Temple GrandinThis document is a partial preview. Full document download can be found on Flevy:

Taiichi Ohno
“All we are doing is looking at the time line
from the moment the customer gives us an
order to the point when we collect the cash.
And we are reducing that time line by removing
the non-value-added wastes.”This document is a partial preview. Full document download can be found on Flevy:

Ford Motor Company
“One of the most noteworthy
accomplishments in keeping
the price of Ford products low
is the gradual shortening of the
production cycle. The longer
an article is in the process of
manufacture and the more it is
moved about, the greater is its
ultimate cost.”
Henry Ford poses with the first and the ten millionth
Ford cars. 1924.

We Need To See and Eliminate
The Nine (9) Wastes
1. Over Production: Producing more than is needed
2. Waiting: Idle Time (Down Time)
3. Non-Utilized Talents: Under utilizing employees
potential
4. Transportation: Moving materials & parts around the
plant
5. Inventory: Any supply in excess of one-piece flow
6. Motion: Action that does not add value to the product
7. Defects: Inspection, scrap and repair
8. Extra Processing: Effort adding no more value to the
product
9. Resistance to change: Especially management

DEFECT Countermeasures
• Group Discussion

Causes of OVER PRODUCTION
Group Discussion

Causes for WAITING
Group Discussion

Causes of NON-UTILIZED
TALENTS
Group Discussion

TRANSPORTATION
Countermeasures
Group Discussion

INVENTORY Countermeasures
Group Discussion

Taylor's scientific management consisted
of four principles:
1. Replace rule-of-thumb work methods with methods based
on a scientific study of the tasks.
2. Scientifically select, train, and develop each employee
rather than passively leaving them to train themselves.
3. Provide "Detailed instruction and supervision of each
worker in the performance of that worker's discrete task”
4. Divide work nearly equally between managers and
workers, so that the managers apply scientific management
principles to planning the work and the workers actually
perform the tasks.

Causes of EXCESS PROCESSING
Group Discussion

“Failure to Change is a Vice!”
• I want everyone at
Toyota to change and at
least do not be an
obstacle for someone
else who wants to
change.
• Hiroshi Okuda
Chairman Toyota

We Need To See and Eliminate
The Nine (9) Wastes1. Defects: Inspection, scrap and repair
2. Over Production: Producing more than is needed
3. Waiting: Idle Time (Down Time)
4. Non-Utilized Talents: Under utilizing employees potential
5. Transportation: Moving materials & parts around the plant
6. Inventory: Any supply in excess of one-piece flow
7. Motion: Action that does not add value to the product
8. Extra Processing: Effort adding no more value to the product
9. Resistance to changeThis document is a partial preview. Full document download can be found on Flevy:

Kai-Zen = Transforming-Value
Kaizen is a daily activity, the purpose of
which goes beyond simple productivity
improvement. It is also a process that, when
done correctly, humanizes the workplace,
eliminates overly hard work, and teaches
people how to perform experiments on their
work using a scientific method and
shows how to learn to spot and eliminate
waste in all business processes.

Principle 7: Use visual control so no problems are
hidden
Principle 8: Use only reliable, thoroughly tested
technology that serves your people and processes
Principle 9: Grow leaders who thoroughly understand
the work-life, the philosophy and teach it to others.
Principle 10: Develop exceptional people and teams
who follow your company's philosophy
Principle 11: Respect your extended network of
partners and suppliers, challenging them and helping
them to improve.

Root-cause analysis and the 5-whys
If possible solutions are hard to develop, you now need to
develop a
technique call five-whys, Simply put, the five-whys means
asking “Why” five time for each problem. For example:
•Why does the machine break down?
Because the fuse keeps blowing.
•Why does the fuse keep blowing?
Because the lubrication pump is jamming.
•Why does the lubrication pump keep jamming?
Because the pump spindle is worn?
•Why is the pump spindle worn?
Because swarf gets into the spindle housing.
•Why does swarf get into the pump spindle housing?
Because there is nothing to prevent the swarf from entering the
spindle housing.

Copyright (C) 2007 HIRAYAMA Co.,Ltd. All
Rights Reserved. URL
Toyota Production System (TPS)Mansion of Prosperity TPS

• Mura: Uneveness
• Uneven Pace
• Inconsistency
• Instability
• Fluctuation of ___Quality, Material
• Consumption, Production Output, Energy Use,
• Cost, Orders, Machines required, Manpower
• Requirements, etc.
• What Should be Happening
• What is Actually Happening

Key Performance Indicators
The main metric to be used is from
the 10-point 5S audit. Max.
score is twenty. The 5S Audit score
displayed is an average of the crew
areas. The individual scores are
recorded on the table at the bottom
of this page. Individual score sheets
are posted in each
area

• How can everyone be empowered, feel a sense of
ownership and share in the company’s success?

• At all levels, everyone should be involved in
continuous improvement activities every single
day.

• Ask your associates what they fear and then do
whatever is necessary to get rid of it.

• The method is balancing technology with people’s
needs and aspirations and eliminating those non-
value adding wastes.

• Ask Dr. Shingo would always say,
“DO IT!”

MAP is a tool to develop a company
社是
Last
Term
This Term
Next Term
Profit
①Production Innovation
③Products
Innovation
②Management
Innovation
MAP is only Plant food：
Improvement methods
（EX : IE,QC,VE・・・JIT）
Total Productivity
structure
Net for
Take actions
Sales

Leaders Managers
10. Is a change maker 10. Resists change
11. Fights for their employees 11. Looks to get rid of people
12. Builds the business from within 12. Wants to outsource
13. Keeps workers happy 13. Unconcerned – they are paid to do their
job
14. Empowers people to make decisions 14. Maintains power and makes all
decisions
15. Open door policy 15. Hard to reach
16. Personable 16. Always competitive with subordinates
17. Overcomes resistance 17. Doesn’t understand resistance
18. Genuine 18. Often insincere

Leaders Managers
37. Is excited about their job and people 37. Lackluster - doesn’t feel that good
about their job
38. Focuses on how to make the place
better for people
38. Is not concerned about making the
place better for people
39. People stay and work for them – very
low turnover
39. People anxious to find another boss to
work for – high turnover
40. You work with a leader 40. You work for a manager
41. Wants work to be fun 41. Most people dread the job
42. Wants productivity, quality, profits and
happy people
42. Wants production, profits and to please
their boss
43. Sets the vision and lets people do it 43. Directs and dominates what is to be
done
44. Leads people – focus to grow the
company
44. Leads machines – focus to cut costs
45. Shares knowledge 45. Protects and doesn’t really share
knowledge

Japanese Companies
Hitachi – Vision
Inspire the Next

Our Company
Vision
To be the most dynamic computer game design
company in the world.
Mission
To unleash the creative spirits of our employees
and push the limits of their technical skills to
unheard of heights. We will develop the most
intense, entertaining, and fun video games in the
entire industry.

As a Student Group
Values
We not only work to improve ourselves but to
improve our peers and teachers.
By doing so we intend to push the our education
into further and better places in the future.

5 to 95
• "All we are doing is looking at the time line, from the
moment the customer gives us an order to the point
when we collect the cash. And we are reducing the time
line by reducing the non-value adding wastes.”

If all is smooth Ohno would not accept it

• ‘The only place that work and motion are the same thing
is the zoo where people pay to see the animals move
around'.

Poka-Yoke
• ile cabinets can fall over
• if too many drawers
• are pulled out.
•

Fueling area of car has three
mistake-proofing devices:
filling pipe insert keeps
larger, leaded-fuel nozzle
from being inserted gas cap
tether does not allow the
motorist to drive off without
the cap gas cap is fitted with
ratchet to signal proper
tightness and prevent over-
tightening.over-tighten

Poka-Yoke
• This iron turns off
automatically when it is
left unattended or when
it is returned to its
holder.This document is a partial preview. Full document download can be found on Flevy:

• This device continuously monitors
the water level. If the level is too low,
a valve opens to addﾊ water to the
pool.ﾊ

• Speastech Smartbins are a pick-to-light bin system that
also has infrared detectors to sense if a hand is put into the
wrong bin. If that happens, an alarm goes off. Smartbins
can be linked to an ethernet to download custom pick lists

Quality Customer Service
• Stu Leonard
• Melon story
• Wine Story
• Your stories?

“On Error Training.” The following are the
rules
1. When a person detects an error he/she stops working, immediately, and calls over
their entire group.
2. The person who detected the error leads the discussion.
3. They are looking for the root cause of the problem.
4. The supervisor, at first, is not allowed to speak and must patiently wait and give
the person who detected the error the opportunity to discover, on their own, the
cause of the problem.
5. All the team members are allowed to participate and ask questions to determine
the cause of the problem.
6. The team members use the Five Why’s technique to find the root cause of the
problem. Five Whys technique asks people when faced with a problem to ask
why questions five times, attempting to get to the root cause of a problem.
7. The supervisors are allowed to speak only after the team has had an opportunity
to discover the cause of the problem by themselves.

Let us Meet at the Sheraton
• At age 40 – The waitress is beautiful
• At age 50 – Good food and wine
• At age 60 – Eat in peace and smoke free
• At age 70 – Wheel chair accessible
• At age 80 – Never been here beforeThis document is a partial preview. Full document download can be found on Flevy:

I Hope You like my Idea

Respect for People
Traditional Organizations
Mgmt.
Engineering
Supervisors
Employees
Customer

INSANITY
PERFORMING WORK THE WAY
IT HAS ALWAYS BEEN DONE
AND EXPECTING BETTER
RESULTSThis document is a partial preview. Full document download can be found on Flevy:

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