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Introduction To Lean
The document is a presentation on Lean methodology presented by Tracy O'Rourke, outlining the definition of Lean, the importance of minimizing waste, and key Lean tools including the 8 wastes and spaghetti chart. It discusses the historical figures who contributed to Lean principles, common myths surrounding Lean, and the significance of fostering a culture of continuous improvement. Additionally, the document provides insights into the costs of poor quality and encourages organizations to identify and eliminate waste for better efficiency.
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Introduction To Lean
- 1. Introduction to Lean PresentedBy Tracy O’Rourke VP, Content Development at GoLeanSixSigma.com
- 2. Our Expert: Tracy • VP, Content Development at GoLeanSixSigma.com • Began Process Improvement career at GE where earned Black Belt • UCSD & SDSU Instructor: Lean Enterprise and Lean Six Sigma Master Black Belt Courses • MBA from Pepperdine University • BA in English Literature from San Francisco State University
- 3. How To Interact • Raise your hand • Ask a question • Answer polls 3!
- 4. Let’s Interact! Where areyou from? Share your location in the Questions area in your Control Panel! 4!
- 5. Who Is GoLeanSixSigma.com? GoLeanSixSigma.commakes it easy for everyone everywhere to build their problem solving muscles. We provide the most practical, easy to understand and enjoyable Lean and Six Sigma resources available. 5!
- 6. We’ve Helped PeopleFrom… 6!
- 7. Today’s Agenda • Whatis Lean? • Why Do Organizations Implement Lean? • Lean Myths • 2 Basic Lean Tools: • The 8 Wastes • Spaghetti Chart 7!
- 8. Working ON theprocess versus Working IN the process How much time do we spend working ON the process versus IN it? What Is Process Improvement? POLL: What percent of your time is spent working ON the process versus IN it?
- 9. When Did ProcessImprovement Start? 9!
- 10. The Fathers ofLean Quality W. Edwards Deming 1900-1993 • American statistician • Helped the Japanese transform after WWII • Deming Prize Henry Ford 1863-1947 • Founder, Ford Motor Company • Sponsor of the assembly line technique of mass production • Introduced the Model T automobile Taiichi Ohno 1912-1990 • Production Engineer at Toyota • The father of TPS – Toyota Production System • Published the “Toyota Production System” Shigeo Shingo 1909-1990 Author of several books about Lean concepts including single-piece flow, mistake-proofing and the Shingo system for continuous improvement 10!
- 11. What is Lean? Leancreates value for customers by minimizing waste. 11!
- 12. A Lean process… • Is faster • Is more efficient • Delivers satisfactory quality to customers What Is A Lean Process?
- 13. Popular Lean Tools • Intro to Six Sigma • A3 • Process Walks • Process Mapping • 5S & Visual Workplace • Standard Work } We’ll cover these two today! • The 8 Wastes • Spaghetti Chart POLL: If you had a choice, which Lean tool would you like to learn about in a future webinar? 13!
- 14. Yesterday’s Market Profit Approach:Selling Price = Cost + Profit More Profit = Raise Selling Price 14!
- 15. Today’s Market Profit Approach:Less Cost = Increased Profit More Profit = Reduce Cost To Produce 15!
- 16. The Cost ofPoor Quality 16!
- 17. Traditional vs. PoorQuality Costs 17!
- 18. Cost of PoorQuality Example
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- 20. Lean Is AboutWaste People are not a waste, but often, their talents are wasted on wasteful activities that do not add value. How can we eliminate wasteful steps so that people’s time and energy are not wasted? 20!
- 21. Lean Myths • Myth:LEAN stands for “Less Employees Are Needed” • Myth: Lean applies mainly to manufacturing processes • Myth: Lean is too time consuming • Myth: Lean is too hard to translate into “laymen’s terms” for employees to use 21!
- 22. Applying Lean • CustomerValue: Determine what matters most to customers • Process Focus: Enable the workforce to identify and remove waste from the system in order to satisfy customers • Lean Culture: Foster a respectful, interactive culture of process ownership 22!
- 23. Defining Customer Value: • Value-Add (VA) – Any activity or process step that an external customer sees as valuable. The key characteristics of a value-add step is: 1. The customer is willing to pay for it 2. It transforms the item toward the final product 3. It must be done right the 1st time • Non-Value Add (NVA) – Any activity or process step that does not add value from the customer perspective. • Necessary Non Value-Add (NNVA) – This activity/step is still considered NVA from the customer perspective, but is deemed a necessary step by a specific entity, i.e. fiscal compliance or regulatory activities. 23!
- 24. Critical Questions ToAsk For each core process, ask: • Who are our customers? • What do our customers care about? (requirements by process) • Do we measure what customers care about? • What are we doing about gaps in performance? 24!
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- 26. Are Some ProcessesDesigned Like This? 26!
- 27. Processes Have 4Versions POLL: Which version are we trying to understand first in process improvement? 27!
- 28. We Organize PeopleVertically 28!
- 29. But Processes RunHorizontally 29!
- 30. • Involve thepeople who do the work in the improvements • Process improvement should not be “done to” people, but with people • Clear away organizational barriers Engage The People POLL: What is your experience with Lean?
- 31. Questions To AskAbout Culture • Does your organizational culture encourage people to solve problems? • Are you delivering on what your customers are asking for? Or are there gaps? • Are employee improvement ideas implemented on a regular basis? • Do you get quick, measurable bottom-line results from your efforts? Or does it take months? • Are your current efforts resulting in quick and effective process improvements? 31!
- 32. What Is AWaste? • Waste is “muda” in Japanese • Waste is a strain on an organization’s time and resources • Waste doesn’t add value for the customer • The more an organization can reduce waste, the better 32!
- 34. “The real voyageof discovery consists not in seeking new lands but seeing with new eyes.” - Marcel Proust Seeing With New Eyes
- 35. Learning To SeeWith New Eyes • Process improvement requires us to look at our processes in a new way • Organizations that use Lean have different conversations • It’s OK to challenge the status quo • Asking “why” is not reacted to defensively • An example of this new view of work is knowing the 8 Wastes. 35!
- 36. • Excessive exceptionitems or exception processing • Errors that occur in a process over and over • Customer dissatisfaction in a process • A data entry error causes the wrong actions like shipping too many or too few to the wrong address, etc. 1. Defects Efforts caused by scrap, rework and incorrect information. Let’s Interact! Please share some examples of defects in your industry.
- 37. • Printing 20copies of a report that only 3 people look at • “Reply-all” e-mails when it pertains to only a few • Large batch sizes 2. Overproduction Production that is more than needed or over what is needed. Let’s Interact! Please share some examples of overproduction in your industry.
- 38. • Excessive cycletime between process steps • Sub-optimization of the whole process • Wait time vs. Touch Time is usually high • Waiting for files or information 3. Waiting Wasting time waiting for the next step in a process. Let’s Interact! Please share some examples of waiting in your industry.
- 39. • Not utilizingteams or employee brain’s • Micro-managing employees • Lack of empowerment • People do no get to “think,” but rather are told what to “do” 4. Non-Utilized Talent Underutilizing people’s talents, skills and knowledge. Let’s Interact! Please share some examples of non-utilized talent in your industry.
- 40. • Poor layout • Inefficient “flow” • Carrying large quantities in and out of storage facilities • Redundant movement of materials 5. Transportation Unnecessary movements of products and materials. Let’s Interact! Please share some examples of transportation in your industry.
- 41. • Purchasing excessinventory for greater discounts • Unreliable suppliers • Long cycle times for certain parts, or suppliers 6. Inventory Excess products and materials not being processed. Let’s Interact! Please share some examples of inventory in your industry.
- 42. • Poor layout • Inefficient workplace organization • People, Material, and Machine Ineffectiveness • Inefficient placement of frequently used supplies, tools, etc. 7. Motion Unnecessary movements by people (e.g., walking). Let’s Interact! Please share some examples of movement in your industry.
- 43. • Multiple re-workloops or work-arounds • Complex processes, or redundant steps • Excessive information in systems or forms 8. Extra Processing More work or higher quality than is required by the customer. Let’s Interact! Please share some examples of extra processing in your industry.
- 44. How can you… • Eliminate? • Simplify? • Streamline? • Minimize? Once Waste Is Identified
- 45. • A spaghettichart is a visual depiction of motion in a process that helps: • Understand the current layout • Understand how a layout affects the process • A start to changing a layout to reduce wasteful activities What Is A Spaghetti Chart?
- 46. Spaghetti Chart atBahama Bistro 46!
- 47. Today We Covered: • What is Lean? • Why Do Organizations Implement Lean? • Lean Myths • 2 Basic Lean Tools: • The 8 Wastes • Spaghetti Chart 47!
- 48. • Purchase thisposter • View all posters (scroll to bottom of page) Getting Started: The 8 Wastes Poster
- 49. Getting Started: • Learnmore by starting some more training! • Yellow Belt training is FREE at GoLeanSixSigma.com • Use coupon code December5 to get 5% off of any GoLeanSixSigma.com course until December 31, 2015: • Yellow Belt Certification • Green Belt Training & Certification • Black Belt Training & Certification • Lean Training & Certification • Start to look for waste in your organization • Then reduce and eliminate the waste 49!
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- 51. Upcoming Webinars Look outfor an email announcement to learn about upcoming webinars. We’ll select upcoming webinars based on what’s interesting to you – please share your feedback on the survey at the end of close of this webinar. You can also follow us on social media for free templates, infographics and news: LinkedIn, Twitter and Facebook 51!
- 52. Thank You! More Questions? Askus at contact@goleansixsigma.com! Use coupon code December5 to save 5% on any of our Lean and Six Sigma Training & Certification Courses until December 31, 2015.