Lean is a systematic approach to identify and eliminate the eight wastes which are considered non-value-adding activities through continuous improvement. The eight wastes are - waiting, defects, extra processing, inventory, excessive motion, transportation, over production, and underutilized employees. Lean aims to maximize customer value and financial gains to the organization. It also focuses on improving the overall efficiency, quality, and customer satisfaction in an organization. Participants will gain the skills which are necessary to utilize Lean methodologies, decrease expenses, reduce cycle times, increase volume, and improve production in Service, Manufacturing, Supply Chain, and Operations. To know more about Lean Fundamentals training worldwide, please contact us at - Email: support@invensislearning.com Phone - US +1-910-726-3695, Website: https://www.invensislearning.com

1. LEAN
Enabling Growth by cycle time reduction
Course Name : Lean Awareness
Version : INVL_JSSGBS_CW_01_036_1.3
Course ID : QMGT – 120

2. What’s Lean all about?

3. 3
What’s Lean all about?
Origins of Lean
1902
 Sakichi Toyoda (Toyoda group founder) invented the automated loom with human intelligence to
stop at the break of a thread
 This concept of machines/processes with decision making capability to stop at a defect (and not
pass defect on) is a pillar concept of Lean today (Jidoka)
1937
 Toyoda Motor Company Formed (now Toyota)
1943-1978
 Taiichi Ohno and his autonomous study group created the Toyota Production System (TPS)

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What’s Lean all about?
We are pursuing Lean to facilitate growth
 Increase customer responsiveness by reducing cycle time for NPI, ITO, OTR
 Deliver stronger value proposition to the customers (speed and quality)
 Create capacity by eliminating waste

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What’s Lean all about?
Evolution of GE Change Processes
Work Out
Change Acceleration
Process
Project focused Six Sigma
Career focused Six Sigma
Lean Six Sigma ….wing to wing
process focused
Employee Voice
X-functional
involvement
Productivity
Leadership
Customer impact
1989 1992 1996 1999 2005

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What’s Lean all about?
Latest Evolution of Change Processes
Six Sigma Lean Six Sigma
Innovating
Customer
Fulfilling
Selling
NPI = 24 months
NPI = 18 months
NPI = 12 months
• Discrete Projects for Specific Problems
• Individual Project Approach
• Reduce Defects to Deliver Quality & Productivity
• End-to-end Processes… Value Stream Map
• Multi-Functional Team Approach
• Reduce Waste to Deliver Speed & Quality
= Six Sigma Project
= Action workouts
Engin-
eering
Supply
chain
Sales ServiceMark-
eting
Engin-
eering
Supply
chain
Sales ServiceMark-
eting

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What’s Lean all about?
What is Lean?
Is it… or…
…a recipe for quick success that can be
implemented in 6-9 months
…an evolutionary search for better processes that
is never complete.
…a management initiative.
…a total change in the way business people think
and act.
…common sense.
…straightforward principles tied to deceptively
difficult execution.
…a set of tools for improving our business.
…a focus on getting processes right from the
perspective of customers
…a set of principles that work most effectively in a
manufacturing setting
…a set of principles that can apply to any process

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What’s Lean all about?
The relentless pursuit of the perfect process through waste elimination
Lean can deliver impact to nearly any process or
value stream
After
Before
Work: Value
added time
• Reduced cycles
• Better delivery
• More capacity
• Better quality
• Higher productivity
Driving improved customer
satisfaction
Wait time/waste: Non-
value added time
Cycle time or lead time
Cycle time or lead time
Lean
attacks
waste here

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What’s Lean all about?
Why Lean?
•Delivering exactly what customers need exactly when and where they need it
•Eliminating all that does not add value in the eyes of the customer
Eliminate
waste
•Reinforcing a performance culture and a sense of urgency; learning by doing
•Tied to clear goals, and real consequences
Change the
culture
•Optimizing service, cost, and asset productivity
•Segmenting, integrating, and accelerating information flows throughout the business
Grow the
business
•Employing proven tools to eliminate waste, manage variability, and synchronize
flows
•Deploying cross-functional problem-solving teams throughout the organization,
driving to measurable, actionable solutions
Improve
performance

10. Lean Fundamentals

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Lean Fundamentals
Five core Lean principles
 Define VALUE from the end customer back
 Identify the VALUE STREAM
 Establish FLOW
 Always PULL from the customer where you cannot flow
 Continuously improve the process to PERFECTION

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Lean Fundamentals
Define VALUE from the end customer back
 VALUE is the right product or service provided in the right quantity to the right customer at the right
place and time
 VALUE is only defined by the customer
 VALUE can only be determined if the customer and his/her needs are clearly understood
 VALUE changes form and function of work that is in progress
 Activities that add no customer VALUE are WASTE
waste waste waste waste waste
value value value value

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Lean Fundamentals
Identify the VALUE STREAM
 The VALUE STREAM is a time series of all activities & steps (both value add and non-value add)
required to bring a product or service to the customer
 The VALUE STREAM cuts across functional Boundaries
 Focuses on 3 main VALUE STREAMS
OTR
Most Value Streams have less than 5% Value Add Time
New Product
Introduction
Inquiry to Order Order to Remittance
ITONPI1 2 3

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Lean Fundamentals
Establish FLOW
FLOW is
movement of
products, services
or information
down the value
stream without
queues or wait
time
15
30
45 15
30
45
Queue = 10 0
Wait time = 100 0
Queue = 0
Wait time = 0
60 seconds 60 seconds60 seconds
FLOW is created
by eliminating
those queues and
stops while
improving process
flexibility &
reliability in order
to keep them from
reappearing as
demand changes
Ultimate objective of
FLOW is continuous,
uninterrupted
transformation of
product, service or
information by
continuously adding
value

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Lean Fundamentals
PULL requires each step in
the process to take the
product, service or information
it needs, only in the amount
needed and at the moment
needed from the proceeding
process
demanddemanddemand
1
2
3
4
5
6
PULL implies that no action is
taken until the downstream
process initiates it
PULL initiated by end
customer demand

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Lean Fundamentals
Continuously improve the process to PERFECTION
 Reducing waste brings us closer to PERFECTION
 The closer a process is to PERFECTION the more is revealed; as we reduce inventory and
overproduction in the process, new waste and new bottlenecks are exposed
 The relentless pursuit of PERFECTION means always keeping the customer in focus; Does the
customer care? Are we adding value?

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Lean Fundamentals
There are 7 types of waste
Waiting
Inventory
Transportation
Overproduction
Motion
Extra Processing
Defects
• Expensive machine running at
30% capacity
• Material between operations &
process steps
• Buffer & safety stock inventory
• Poor quality or fit of materials
• Handwork…polishing, deburring
• Conveyance of any materials,
tooling
• Conveyance systems
• Sub-assemblies and components
between feeder and main line
• Operators bending, twisting,
turning and reaching
• Machines “cutting air”
• Robotic motion getting home
• Credit application awaiting
approval
• Invoices waiting to be paid
• Missed customer due dates
• Data entry errors
• Duplicate entries
• Shipping hard copies that requiring
signatures
• Running a credit check for every
customer inquiry
• Looking/Searching for data and
info.
• Printing material for personal use
Product examples Transaction examples

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Lean Fundamentals
There are 7 types of waste
Processing
Waiting
Motion
Inventory
Moving Things
Overproduction
Defects/InspectionInventory
People
Quantity
Quality

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Lean Fundamentals
Waste - Over Processing
Doing more work than is necessary to satisfy your customers. Excessive approvals or handoffs
Typical causes:
 Work is not standardized
 Tasks are not simplified
 Operations are not understood
Improvement ideas:
 Automate the process
 Eliminate non-value added steps
 Combine steps/forms
Eliminate Excess Work!

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Lean Fundamentals
Waste - Waiting
Any delay between when one process steps ends and the next begins.
Typical causes:
 Idle time due to lack of “standard” operations
 Waiting for decisions (dispositions, inspections, materials, etc.)
 Waiting for shared equipment
Improvement ideas:
 Balance operations
 Eliminate unnecessary approvals
 Eliminate redundancies
 Establish Single piece flow
 Eliminate hand-offs
Eliminate Wait … Smooth Flow

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Lean Fundamentals
Waste - Motion
Needless movement of people
Typical causes:
 Equipment/Office layout
 Fixture design
 Material storage
Improvement ideas:
 Implement point of use
 Develop work cells
Minimize Wasteful Movements … Movement  Work

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Lean Fundamentals
Waste - Inventory
Excess WIP vs what is needed by the customer
Typical causes:
 Push production
 Over-ordering
 Too many shelves
 Too much floor space
Improvement ideas:
 Reduce lead times
 Establish kanban system
Efficient Use of Inventory … Not Just-in-Case Inventory

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Lean Fundamentals
Waste - Moving Things
Needless movement of work, products or information
Typical causes:
 Unnecessary inventory
 Poor shop/office layout
Improvement ideas:
 Reduce inventory
 Reduce lead times
 Eliminate unnecessary files
 Create a paperless process
 Review record retention policy
Movement Does Not Equal Work!

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Lean Fundamentals
Waste - Over-production
Production of items beyond what is needed for immediate use.
Typical causes:
 Production schedules & push production
 Cost justification for expensive equipment
 Working on the wrong parts at the wrong time
Improvement ideas:
 Reduce lead time and order quantity
 Establish a Kanban system
 Level out the orders
 Remove all unnecessary paperwork
 Improve quality

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Lean Fundamentals
Waste - Defects & Inspection
Defective work or excessively checking work
Typical causes:
 Variation in processes
 Collecting unnecessary inspection data
Improvement ideas:
 Poke Yoke (Mistake Proofing)
 Jidoka (Autonomation)
 Cross training
 Document procedures
 Establish information needs
Six Sigma Mentality … Reduce Quality Defects

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Lean Fundamentals
Operationalizing Lean Principles
1. Understand who the customer is…internal &
external
2. Solve the customers problem completely…
provide exactly what they want, when they
want it, where they want it…reduce the # of
problems they have to solve…don’t waste
their time
3. Understand the value you provide
4. Manage by observational facts…do not make
decisions based on reports
5. Involve people closest to the problem…team
based environment
6. Drive to root cause…stop the process if
necessary
7. Try-storm …TAKE ACTION NOW, do not wait
8. Create a learning organization…make all
employees problem solvers
9. Standardization / discipline
10. Sustain through customer focused cycle time
& process metrics
Specify Value
Create Flow
Identify the Value Stream
Pull where you cannot Flow
Strive for Perfection

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