Don’t we all think that we get more done if we stay busy? We feel good and efficient. We may even get a pat on the back or even a promotion. But is this good for the company? Is it good for our customers? Are we really optimizing for the whole or are we just keeping ourselves busy?

1. Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com

2. I’m so efficient
Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com

3. Good work!
Keep it up.
Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com

4. Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com

5. Everyone is busy but
we seem to be very
slow getting things
to our customers!
How are
we doing?
Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com

6. Håkan Forss
Lean Coach, Delivery Assistance
Hakan.forss@netent.com
@hakanforss
Flow Sensei / The Plumber
International Speaker
Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com

7. Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com

8. Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com

9. I’m a huge LEGO fan!
DISCLAIMER
LEGO® is a trademark of the LEGO Group,
which does not sponsor, authorize or
endorse this presentation.
Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com

10. Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com

11. Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com

12. Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com

13. Non value adding: Wait time
Non value adding: Required waste
Value adding: Actual demand
Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com

14. Non value adding: Wait time
Non value adding: Required waste
Value adding: Actual demand
Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com

15. Non value adding: Wait time
Non value adding: Required waste
Value adding: Actual demand
Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com

16. Non value adding: Wait time
Non value adding: Required waste
Value adding: Actual demand
Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com

17. Non value adding: Wait time
Non value adding: Required waste
Value adding: Actual demand
Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com

18. Non value adding: Wait time
Non value adding: Required waste
Value adding: Actual demand
Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com

19. Non value adding: Wait time
Non value adding: Required waste
Value adding: Actual demand
Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com

20. Non value adding: Wait time
Non value adding: Required waste
Value adding: Actual demand
Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com

21. Non value adding: Wait time
Non value adding: Required waste
Value adding: Actual demand
Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com

22. Non value adding: Wait time
Non value adding: Required waste
Value adding: Actual demand
Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com

23. Non value adding: Wait time
Non value adding: Required waste
Value adding: Actual demand
Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com

24. Non value adding: Wait time
Non value adding: Required waste
Value adding: Actual demand
Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com

25. Non value adding: Wait time
Non value adding: Required waste
Value adding: Actual demand
Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com

26. Non value adding: Wait time
Non value adding: Required waste
Value adding: Actual demand
Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com

27. Non value adding: Wait time
Non value adding: Required waste
Value adding: Actual demand
Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com

28. Non value adding: Wait time
Non value adding: Required waste
Value adding: Actual demand
Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com

29. Non value adding: Wait time
Non value adding: Required waste
Value adding: Actual demand
Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com

30. Non value adding: Wait time
Non value adding: Required waste
Value adding: Actual demand
Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com

31. Non value adding: Wait time
Non value adding: Required waste
Value adding: Actual demand
Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com

32. Non value adding: Wait time
Non value adding: Required waste
Value adding: Actual demand
Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com

33. Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com

34. Non value adding: Wait time
Non value adding: Required waste
Value adding: Actual demand
Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com

35. Non value adding: Wait time
Non value adding: Required waste
Value adding: Actual demand
Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com

36. Non value adding: Wait time
Non value adding: Required waste
Value adding: Actual demand

37. Non value adding: Wait time
Non value adding: Required waste
Value adding: Actual demand
Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com

38. Non value adding: Wait time
Non value adding: Required waste
Value adding: Actual demand
Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com

39. Non value adding: Wait time
Non value adding: Required waste
Value adding: Actual demand
Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com

40. Non value adding: Wait time
Non value adding: Required waste
Value adding: Actual demand
Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com

41. Non value adding: Wait time
Non value adding: Required waste
Value adding: Actual demand
Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com

42. Non value adding: Wait time
Non value adding: Required waste
Value adding: Actual demand

43. Non value adding: Wait time
Non value adding: Required waste
Value adding: Actual demand
Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com

44. Non value adding: Wait time
Non value adding: Required waste
Value adding: Actual demand
Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com

45. > 1000 hours < 60 hours
Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com

46. A Question of focus
Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com

47. Strategy to increase utilization
Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com

48. Strategy to fulfill needs a.s.a.p.
Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com

49. Niklas Modig
Stockholm School of Economics
@LeanOnMyself
Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com

50. Strategytoincreaseutilization
Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com

51. Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com

52. Strategy to fulfill needs a.s.a.p.
Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com

53. Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com

54. Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com

55. Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com

56. Non value adding: Wait time
Non value adding: Required waste
Value adding: Actual demand
Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com

57. Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com

58. Non value adding: Wait time
Non value adding: Required waste
Value adding: Actual demand
Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com

59. Which process is most expensive?
≥
Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com

60. Flow efficiency
Touch time
Total lead-time
Flow efficiency =
Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com

61. Flow efficiency
Green + Yellow
Green + Yellow + Red
Flow efficiency =
Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com

62. Flow efficiency in numbers
Usually 1-5% value added of
total lead-time
20% value added is a high
number
Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com

63. How many
and
bricks do you have?
Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com

64. The three ”Laws”
Little’s Law
Law of bottlenecks
Law of variation
Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com

65. 𝑳𝒆𝒂𝒅𝐓𝒊𝒎𝒆 ≈
𝑾𝒐𝒓𝒌𝑰𝒏𝑷𝒓𝒐𝒄𝒆𝒔𝒔
𝟏
𝟏 − 𝑼𝒕𝒊𝒍𝒊𝒛𝒂𝒕𝒊𝒐𝒏
𝑻𝐡𝐫𝐨𝐮𝐠𝐡𝐩𝐮𝐭 ≤ 𝑩𝒐𝒕𝒕𝒍𝒆𝒏𝒆𝒄𝒌
The three “Laws”

66. The three ”Laws”
Little’s Law
Law of bottlenecks
Law of variation
Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com

67. Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com

68. Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com

69. Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com

70. Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com

71. Little’s Law
Work-in-Process
Throughput
Lead Time =
Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com

72. Little’s Law
12
12 / min
1 min =
Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com

73. Little’s Law
6
12 / min
0.5 min =
Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com

74. Little’s Law
24
12 / min
2 min =
Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com

75. ABC ABC ABC
AAA BBB CCC
Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com

76. ABC ABC ABC
AAA BBB CCC
Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com

77. ABC ABC ABC
AAA BBB CCC
Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com

78. Time
Capability
100%
Utilization
planed at 70%
Plan for less than 100% utilization
Inspired by Mårten Pehrson
Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com

79. Time
Capability
100%
Lower planned utilization
Inspired by Mårten Pehrson
Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com

80. Lead-time Insurance
Time
Capability
100%
Utilization
planed at 70%
Acts as an insurance policy for
shorter lead-time
Inspired by Mårten Pehrson
Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com

81. Options
Time
Capability
100%
Utilization
planed at 70%
Creates option to do the important
things when you need it
Inspired by Mårten Pehrson
Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com

82. Time
Capability
100%
Utilization
planed at 70%
Creates the time for increasing capability
Inspired by Mårten Pehrson
Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com

83. Time
Capability
100%
Utilization
planed at 70%
Plan for less than 100% utilization
Inspired by Mårten Pehrson
Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com

84. The three ”Laws”
Little’s Law
Law of bottlenecks
Law of variation
Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com

85. Law of Bottlenecks
Every process has one
Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com

86. Capacity = 6 Capacity = 4 Capacity = 6
Throughput = 4
You can’t go faster than your bottleneck
Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com

87. Full use of a higher capacity in front of the bottleneck will make
lead-time go up
You can’t go faster than your bottleneck
Capacity = 6 Capacity = 4 Capacity > 4
Throughput = 4
Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com

88. The three ”Laws”
Little’s Law
Law of bottlenecks
Law of variation
Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com

89. Low variation
Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com

90. High variation
Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com

91. Low variation
Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com

92. High variation
Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com

93. Time
Capability
100%
Utilization
planed at 70%
Plan for less than 100% utilization
Absorbs unwanted variation
Inspired by Mårten Pehrson
Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com

94. “A bad system will beat a
good person every time.”
W. Edwards Deming
Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com

95. Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com

96. Q & AHåkan Forss
Mail: hakan.forss@netent.se
Twitter: @hakanforss
Blog: http://hakanforss.wordpress.com
Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com