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Lean Thinking - An Introduction to Lean

Lean thinking is based on over two centuries of manufacturing improvement. It aims to improve efficiency by targeting and reducing waste and non-value added activities through identifying value-adding activities from the customer's perspective, categorizing all activities, breaking processes down, and streamlining non-value added activities. The main types of waste are overproduction, waiting time, transport, over-processing, inventory, motion, defects, and unused employee skills. Lean principles focus on specifying value, identifying all process steps, removing barriers to smooth and continuous flow, and continuously improving to achieve perfection.

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LEAN THINKING
A Little Bit of History
Une courte historique 1800 1900 2000 Royal Navy,  Maudslay/Brunel Production lines Standardisation F.W.Taylor Scientific Management Henry Ford Assembly Lines Sakichi Toyoda Creation of   Toyota Training Within Industry Job Instruction Job Improvement Job Relations DemingJuran Reengineering Identification waste Quality tools (pareto, SPC) Shiego Shingo Taiichi Ohno Ishikawa Weaknesses of batch production Pull Flow, U‐shaped cells, Poka yoke,  Quality Circles Schonberger Japanese Manufacturing Techniques (1982) Goldratt The Goal (1984) Womack/Jones The Machine That  Changed the World (1990), Lean  Thinking (1996) Lean is not new but is based on more than two centuries of manufacturing improvement!
Main Concepts
Objectives of VA/Waste analysis  Improve the organization’s efficiency by targeting  and reducing waste and non‐value added  activities  Enable positioning closer to the customer  request thereby ensuring its satisfaction  Approach 5 Streamline NVA  4 Reduce / eliminate Waste 3 Categorise the activities (VA / NVA /  Waste)  from the customer’s viewpoint 2 Break it down into  distinct activities 1 Identify /map the process Value Adding Activities The customer is willing to  pay for this activity  because it provides value Activities that transform  resources into finished  products, services or  information. Value Adding Activities The customer is willing to  pay for this activity  because it provides value Activities that transform  resources into finished  products, services or  information. Value added activities “Necessary’’ Non  Value Adding Activities that must be  maintained to support  other value added  activities Or activities necessary  for other unavoidable  reasons. “Necessary’’ Non  Value Adding Activities that must be  maintained to support  other value added  activities Or activities necessary  for other unavoidable  reasons. Necessary but non‐ value added activities Non‐Value Adding  (Waste) Activities that consume  time, resources or  space, but bring no  value to the customer. Non‐Value Adding  (Waste) Activities that consume  time, resources or  space, but bring no  value to the customer. Waste AFTERBEFORE Cycle time Definition : Value Added (VA) is time spent or activities that contribute  directly to the satisfaction of the customer requirement. Reduced lead‐time and  cost, time for additional VA
Value added Unavoidable non VA Waste Unexploited  skills Defects  and Errors (Unnecessary)  Motion (Unnecessary)  Transport Waiting timeOver‐processingInventoryOverproduction 1 2 3 4 5 6 7 8 Tim Wood
Overproduction waste is caused by:  Production by pushed flow  Large batch size  The absolute necessity to occupy time  Local objectives  Lack of customer focus  Lack of visibility of available stock  Poor management of priorities Some examples by sector: Production  Batch size higher than demand Production undertaken to increase the  "profitability" of the department Logistics  Actions undertaken before receiving the  orders   Moving a volume of stock greater than  the future consumption Principles : «Overproduction » consists of producing a  good or service before it is necessary. Finance  Redundancy in the production and return  of various indicators and reporting  Duplicate data entry  Level of detail greater than necessary in  the accounting
Transport results in waste because:  It increases the cycle time  It consumes resources  It takes up circulation space unnecessarily   It increases the work‐in‐process  It Increases the risks of breakage Transport waste is caused by:  A poorly designed production process or workshop  A break in the production flow (e.g. outsourcing)  Overproduction, which requires storage in a reserved area  Some examples by sector : Production  Poorly designed workshop  Storage areas far away from workstations  Lack of visibility of the production flow  Logistics  Poorly defined preparation  Poor layout of storage areas  Warehouses too far from the activity  centre (distanced from the customers) “Unnecessary transport"  concerns all movements of  goods that do not bring value  added to the customer. Unnecessary transport is  problematic, because it  consumes resources and  increases the risk of breakage  or damage. Principles : Finance  Paperwork that needs monitoring,  signatures and inter‐departmental  approval   A complex approval system for  purchasing invoices
Inventory results in waste because:  The value of the stock is immobilized  The cost of the area occupied  The increased risk of obsolete and defective units  It reduces the number of references that can be stored  It hides more fundamental problems Inventory waste is caused by:  A lack of reliability of sales forecasts  A poorly sequenced production schedule   Overproduction  Production managed by pushed flow   A lack of supplier reliability  Some examples by sector : Production Stock of finished goods without customer  orders  Stock of semi‐finished products or  components greater than necessary Logistics  Stock of a product greater than the order  commitments  Inventory after bad sales forecasts or  poor management of logistics variants Administration  Orders waiting to be processed  Bills awaiting payment  Stacks of files to be processed “Inventory" comes from the wastes of overproduction  and waiting time.  Inventory has the peculiarity  of compensating for more  fundamental problems.  Beyond immobilized funds,  inventory prevents the  resolution of problems by  obscuring them. Principles :
Motion wastes caused by:  A poorly designed workstation  A lack of training for operators who do not know where to  find what they need  Misplaced tools  A poorly replenished stock Some examples by sector : Production  Finding tools to make a change in series  Urgent replenishment of the workstations  with materials because they are almost  out of stock   Distance of machines for one operator Logistics  Shared equipment (carts, printers...) away  from the work area  Stock shortage of consumables in the  work area (labellers, pallets...) Administration  Poor office layout  Physical validation when an online  validation would be sufficient  Centralised photocopiers Principles : Unlike the transport waste, which refers to goods,  unnecessary motion relates to the movement of  people. Any movement that does not bring added value to the  process is considered a waste.
Over‐processing results in waste because:  It consumes resources unnecessarily It generates additional variability of the process  It can reduce the life expectancy of a product (an engine  that runs too fast, a lamp which is too bright...) Oveer‐processing waste is caused by:  Bad habits "I've always done it like this!”  A misunderstanding of the process by the operator  A poor definition of customer requirements  Lack of innovation, improvement, or questioning of the  existing process  A standard that has become obsoleteSome examples by sector : Production  Exceeding the technical specifications  required by the customer Proliferation of quality inspections Logistics  Reconditioning, handling…  Over‐packaging  Quality control to identify errors in  preparation of orders Over‐processing is a process  that is more complex than it  should be, where the  customer may have to pay for  a level of quality or  complexity that does not  match their requirements.  Principles : IT  Development of features not required by  the user  An oversized workstation with respect to  user needs  Overestimating the need for security
Defects results in waste because:  The cost of materials   The need for quality inspections  The costs of reprocessing   The return of defective goods  The loss of production capacity Wastes caused by:  A poorly defined standard  The absence of Poka Yoke (mistake‐proofing)  Poor operator training   A lack of reliability (or an error of setting) of a machine Some examples by sector : Production  Operator errors  Defective machines  Scrap at setup  Ineffective plans / instructions Logistics  Product inversion  Missing products  Error in picking  Supplier errors Service  Data input error  Missing information for file processing  Misprint in a commercial document  Incorrect allocations Principles : Anything that is not well done the first time is  considered a waste. Errors and defects are wastes  which generate additional costs for  inspections, reprocessing,  customer dissatisfaction,  cost of returned goods ...
Waiting results in waste because:  Disruptions to production  Congestion when trying to catch up  The lengthening of cycle‐time  The loss of capacity Waiting waste is caused by:  Supply disruption  A lack of versatility and flexibility of the operators  Machine breakdowns  Poor production planning  Mismanagement of the resource capacity constraints Principles : Waiting time applies to both product and people. Any form of unsynchronised flow can cause waiting  time. Some examples by sector : Production  Stopping a machine  Waiting on replenishment  Waiting for production planning  Pending availability of a shared resource Logistics  Pending replenishment by a forklift  operator  Waiting to load the carrier  Waiting for a truck  Downtime of compuer system Service  Participation in a never‐ending meeting   Waiting for information to complete a  transaction or close accounts  Waiting on approval from a superior   Document approval circuit too long
Unexploited skills Inventory Overproduction Motion Waiting time Transport Obsolete Immobilization of  funds Profitability Payment delays Delivery delays  Over‐processing Over‐quality  Defects Opportunity Rarity Customer  satisfaction Waste Undesirable effect Impact on income ‐ +
Definition : The 5 Lean Principles are aimed at clearly  specifying value in order to line up all the  activities for a specific process along a value  stream and to make the value flow smoothly  at the pull of the customer in pursuit of  perfection. 5 Continually work to remove waste and achieve perfection Perfection is unattainable but is the motor for continuous improvement 4 3 2 1 Understand what the customer perceives as value. • Who is your customer? • What value do you provide to your customer? Identify all the steps within the value stream that deliver a  product or service Flow through the process can be visualised through the use of Value Stream  Mapping. The aim is to continuously improve the ratio of VA / NVA Remove all the barriers and interruptions that restrict the  flow of a product or service The objective is for products, services, and information to flow without delays,  detours, undertaking unnecessary activities and incurring faults.. Only supply a product or service when it is demanded or  pulled by a customer A Pull System links value stream processes,and therefore the production or  provision of a product or service, to actual customer demand rather than a  predicted customer requirement Value
What is a Value Stream? A value stream is all the activities, both value‐added and non‐ value‐added required to bring a product or service from  concept to launch and from order to delivery. It includes all the steps involved in providing a product or  service from initial concept until the customer pays for the  product or service. The value stream is made up of all functions and stakeholders  who need to work in harmony to provide the  product/service.
A Value Stream can be composed of a number of processes Process Efficiency = Value Adding Time / Total Time Application Typical Cycle Efficiency World Class Cycle Efficiency Machining 1% 20% Fabrication 10% 25% Assembly 15% 35% Continuous Manufacturing 30% 80% Business Processes – Transactional 10% 50% Business Processes – Creative/Cognitive 5% 25% Process Efficiency can be increased by identifyng and eliminating the non value adding time, or the « Wastes »
Looking at processes…... What you think it is... What it actually is... What it could be... What are some of the tools that help us do this?
Lean Tools and Methods
7 Complete with further data  collection as required 6 Highlight the waste and  potential areas of  improvement 5 Compute value added time  and waiting time between  operations 1  Mapping existing streams : 4 Map the process using the  VSM techniques and standards 3 Gather data on timing, batch  size, efficiency for each step of  the process 2 At the  Gemba, analyze flows  of product and information 1 Gather together a  multidisciplinary team 6 Select solutions and develop  action plan 5 Brainstorm and prioritise  solutions 2  Plan future or “ideal” flows 4 Conduct necessary  investigations and data  collection 3 Identify likely causes of waste  and means of verification 2 Develop a ‘future state’ of  what the target looks like (5  Lean Principles) 1 Gather the team together  again Usage : Building a VSM allows for an analysis of the value stream and highlights wastes. A VSM can be used in two steps: This method may be  reused at will! VSM is a continuous improvement  tool which increases mastery of Lean OrderOrder CompanyCompanyCustomerCustomer 3 Available  Stock Fax or  EDI Order release Preparation Dispatch M/ses Capture = 1 = 7 = ND I 150 orders / day 100 orders /day 90 orders /day 90 orders /day ½ day 1-30 day 1 day 1-2 day 3 min ~ 5 min ~10 min Order Shipping Customer Service System Info I I I ~ 7 min
5 4 Compute the Takt Time Deal with bottlenecks and balance the loads Definition : In German, Takt means “rate.” Takt time represents the  rate of production needed in order to meet customer  demand on‐time. It is used as a basis to smooth and  monitor production, and to improve the balance of the  production lines. Benefits: Respecting Takt Time makes it possible to produce with  minimal waste, stocks and operating costs. It gives the  manufacturing tempo to follow. Takt Time can be used to  directly check the “health” of product flow and to enforce  reactivity during problem‐solving and process improvement Methodology: 3 Calculate productive time on the one hand, customer demand on the other. 2 Observe, then identify the bottleneck 1 Target the production line to improve This calculation is only valid if the demand remains relatively constant CompanyCompany Delay between  two good units Steps in the process Time 1       2        3       4       5       6       7       8       9 Takt Time Constraints Bottleneck Takt Time =  Total available manufacturing time Customer Demand (volume) “1 bottleneck hour lost = 1 hour of  production over the whole process  lost” 1 – Takt Time 2 – Bottleneck = Longest operation in the process 3 – Constraint = Any operation longer than the Takt Time that hinders the fulfilment of  the customer’s demand (in volume)
Benefits:  Limits production to customer demand  Limits wastes as well as work‐in‐process and stock levels  Reduces lead‐time for products  Optimize use of resources Definition: Transformation of a push flow into a pull flow is a very important step  of a Lean project.  The transformations radically change how planning, production and  management of incidents occurring during a process are handled.  This step aims at going from a production by batches to an order‐ prompted production.  7  Level the load according to customer  demand 6  Implement the pull flow through Kanban,  supply the workstations Example Approach 5  Reorganize the floor into cells according to  the “target” map 4  Study the balance of workstations in regards  to Takt Time 3 Analyze the setup, the modes of planning,  product movement, stocks… 2  Map the existing value flows and compute  Takt Time 1  Stabilize performance and define standards
Definition: Kanban is a tool for managing supply between two workstations. It limits the upstream production to match the  downstream needs through a pulled flow system. Kanban is useful for a regular production. Its main goal is to eliminate  waste through limiting in‐process stocks and resolving problem causing breaks in flow and  stocks.  Benefits :  Reduces and stabilizes in‐process material stocks  Improves delivery capacity = Reactivity & Flexibility  Improves transparency  Economical = does not need heavy investment... Principles:  Pulled flow system          the customer  triggers the demand  Only manufacture and deliver if there is a Kanban card.  Re‐evaluate the dimensions of the Kanban according to the  evolution of demand Methodology: 5 Implement and adjust 4 Calculate the number of  Kanban cards 3 Determine the supermarket  stocks according to  consumption 2 Determine the number of  units per container = 1 Kanban card 1 Select the flow to manage  with Kanban
Methodology: 6 Correct differences and implement continuous  improvement 5 Train the teams in work cells and start  production 4 Reduce batch sizes 3 Select implantation types and storage locations 2 Balance workstations by reorganizing tasks  1 Stabilize quality performance, lead time and  operations time Definition: The optimization of work cells requires the reorganization of workstations  in such a way as to obtain compact production lines in the form of cells. Benefits:  Reduces lead time  Identifies quality issues earlier  Ensures better visibility of flow Favourable conditions:  Producing relatively similar families of products   Having a stable production time base and reliable capacity data   Owning equipment and tools in good working conditions   Setting up qualified operators   Planning a balanced workload Line Shapes : Visibility  Permutation Assembling 2  process ends Structural  constraints
Definition : SMED : Faster changeover system. It aims at systematically reducing  preparation time and adjustment time during a changeover Benefits :  Improving productivity through  limitations in stops for changeovers,  without damaging the quality of the setup  Optimization of use of resources (better  synchronization of jobs, elimination of  superfluous operations, improved  installation of machinery, improved  flexibility, reorganization of stocks and  tools) Principle : Changeover Time is the unproductive period of time during which operators  reconfigure equipment.  SMED analyses this series of tasks and identifies  possible sources of improvement in order to shorten this  period. Methodology : Shorten external tasks  Standardise storing and cleaning procedures (5S) & track setup defects  on a daily basis. Shorten internal tasks  Improve organization of tasks (example: working in parallel)  Make carrying‐out of these tasks easier (example: fast screw guns, rolling tool carts…) Convert internal into  external The goal is to reduce internal tasks to the bare necessities. Separate internal and  external tasks  Internal Tasks = need to stop the equipment (e.g.: tool assembly)  External Tasks = while the equipment is running (e.g. : preparation of tools to assemble) Analyse operations  Observe the changeover and make a list of tasks and a map of movements.
Definition : 5S is a systematic approach aimed at improving  cleanliness and order in the work environment. It  can be applied in offices as well as in production  areas. Benefits :  Elimination of waste of time looking for tools and  equipment  Improved security: ground markings, a place for  each and  everything  Improved efficiency: identification and  management of problems made easier  Reduction, even elimination of failures: by  detecting sources of dirtiness and contamination  Freeing up of needlessly used space  Provision of better working conditions by  maintaining a pleasant work environment Methodology : SORT
Definition :  OEE is an indicator used to monitor the rate of utilisation of  equipment  It is a measure of the efficiency of a production line.  Benefits : Identification and breakdown of waste in production into different  categories upon which improvement actions can be put in place. Principles :  Defined as : OEE = Useful Time / Required Time (or Value‐Added / Total Time)  Useful Time = time during which the machine produces good units at its normal rate (number of good units * cycle time).   One can improve the OEE by different methods (SMED, TPM, 5S, just‐in‐time, Self‐Checking and Self‐Maintenance, Ergonomics...).  Methodology : Sustainability  Ensure continuing improved performance  Formalize the new standards Optimisation  Implement the action plan and eliminate problems  Deploy necessary tools Data Analysis  Frequency analysis  Time analysis Capturing  production data  Simplify the measurement  Limit constraints for data capture Preparation of the  measurement  Inform and educate staff  Establish a list of causes of machine downtime Usage : Identify  possible areas  of improvement Workshop shutdown Cleaning, idle time, training, meetings, breaks... Failures, adjustments, missing staff, changeovers … Rate differences Non quality RT UT OEE  OT UT OPR  TT UT ERR 
Definition: TPM: Total Productive Maintenance   Methodology for continuous improvement of equipment availability (Productive time) by treating  causes of stoppage in a pre‐emptive way        close link with OEE monitoring. Benefits : Eliminates wastes due to:  breakdowns  teething problems  equipment lag time Reduces changeover time using the SMED  method. Reduces maintenance costs and improves  the lifetime of equipment. Principles : TPM is built on 4 main pillars:  elimination of major problems   self maintenance  planned maintenance   organization of equipment operation Methodology: 5  Train teams for self‐maintenance & Launch self‐maintenance campaigns 4  Define self‐maintenance standards & Schedule planned maintenance 3  Clean up & Identify critical equipment systems 2  Eliminate causes of loss and define new standards 1 List & Analyze losses
LEAN IS NOT A TOOLBOX
• Lean organizations are learning organizations, Lean is a culture, not only a set of techniques • Lean culture needs to be implemented as a “whole system” and sub systems of the work flow also include: ▫ Motivation and incentive systems ▫ Training systems ▫ Organization and management levels ▫ Improvement processes • Lean is a culture and all cultures are complex Lean Culture
• Developing a lean culture requires strong top management commitment and leadership • It involves: ▫ creating a vision ▫ chartering pilot and kaizen teams ▫ monitoring the results and modifying the whole process as it proceeds Developing a Lean Culture
Sustaining a Lean Culture Paramount to sustainability is to keep in minds that Lean is a journey, not a destination. The real benefits come form a sustained effort over years, not weeks or months.
Definition: Kaizen comes from two Japanese words: Kai (which means “change”) and  Zen (which means “good”) “continuous improvement”.  Philosophy with the goal of elimination of waste through setting up  simple, low cost improvements,  daily and at every level of the company.  Tools: Kaizen uses the whole spectrum of classic analysis and problem solving  tools. PDCA, 5S, Five Whys, Poka‐yoke, SMED, TPM, Kanban, … Conditions for success:  Everyone takes a part in continuous improvement  Simple and accessible guides and procedures  Motivational measures (reward system, staff satisfaction…)   Active participation from top management in order to implement the  methodology Kaizen is not a method on its own, but a group state of mind which  lives though everyone’s involvement Benefits : Approach based on common sense and the motivation of employees.  Analyze problems and solve them for good Put in place a series of permanent techniques and methods allowing  the process to be made more reliable Make better use of the existing resources without changing them. = progressively improve without looking for breakthrough improvements 
Want to know more? • “The Goal”, Eli Goldratt (1984) – Written as a novel ‐ can be read in an evening. Should be  compulsory for everyone who works  in manufacturing. • “Kaizen”, Masaaki Imai (1986), – Insight into the Japanese culture from a Japanese. • “The Machine that Changed the World”, Womack, Jones & Roos (1990) – The book that blew the lid off the West v. Japan debate. It’s all about cars but is full of ideas. • “Lean Thinking”, Womack and Jones, (1996) – The sequel, more down‐to‐earth after six years of Lean Thinking • “The Gold Mine”, Michael and Freddy Ballé (2005) – A must‐read for production managers, written by a French father and son! • “Toyota Way / Toyota Way Fieldbook” (2006) – A high‐level ‘how‐to’ for Lean implementation • “The Lean Toolbox”,  John Bicheno (2009) – Quick reference that covers all the main Lean tools
Peter Klym Management / Lean Business France Operational Excellence Consultancy and Training Peter Klym • UK‐born, currently based near Toulouse in the south‐west of France • Works both directly with customers or on a subcontractor basis • Available for assignments in France and internationally • 30 years of experience in both industries and service sectors • Consultant since 2008 Websites : www.leanbusiness.fr http://international.leanbusiness.fr Email : peter.klym@leanbusiness.fr Téléphone : +33 6 84 52 77 70

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Lean Thinking - An Introduction to Lean

  • 1.
  • 2.
    A Little Bitof History
  • 3.
    Une courte historique 18001900 2000 Royal Navy,  Maudslay/Brunel Production lines Standardisation F.W.Taylor Scientific Management Henry Ford Assembly Lines Sakichi Toyoda Creation of   Toyota Training Within Industry Job Instruction Job Improvement Job Relations DemingJuran Reengineering Identification waste Quality tools (pareto, SPC) Shiego Shingo Taiichi Ohno Ishikawa Weaknesses of batch production Pull Flow, U‐shaped cells, Poka yoke,  Quality Circles Schonberger Japanese Manufacturing Techniques (1982) Goldratt The Goal (1984) Womack/Jones The Machine That  Changed the World (1990), Lean  Thinking (1996) Lean is not new but is based on more than two centuries of manufacturing improvement!
  • 4.
  • 5.
    Objectives of VA/Wasteanalysis  Improve the organization’s efficiency by targeting  and reducing waste and non‐value added  activities  Enable positioning closer to the customer  request thereby ensuring its satisfaction  Approach 5 Streamline NVA  4 Reduce / eliminate Waste 3 Categorise the activities (VA / NVA /  Waste)  from the customer’s viewpoint 2 Break it down into  distinct activities 1 Identify /map the process Value Adding Activities The customer is willing to  pay for this activity  because it provides value Activities that transform  resources into finished  products, services or  information. Value Adding Activities The customer is willing to  pay for this activity  because it provides value Activities that transform  resources into finished  products, services or  information. Value added activities “Necessary’’ Non  Value Adding Activities that must be  maintained to support  other value added  activities Or activities necessary  for other unavoidable  reasons. “Necessary’’ Non  Value Adding Activities that must be  maintained to support  other value added  activities Or activities necessary  for other unavoidable  reasons. Necessary but non‐ value added activities Non‐Value Adding  (Waste) Activities that consume  time, resources or  space, but bring no  value to the customer. Non‐Value Adding  (Waste) Activities that consume  time, resources or  space, but bring no  value to the customer. Waste AFTERBEFORE Cycle time Definition : Value Added (VA) is time spent or activities that contribute  directly to the satisfaction of the customer requirement. Reduced lead‐time and  cost, time for additional VA
  • 6.
  • 7.
    Overproduction waste iscaused by:  Production by pushed flow  Large batch size  The absolute necessity to occupy time  Local objectives  Lack of customer focus  Lack of visibility of available stock  Poor management of priorities Some examples by sector: Production  Batch size higher than demand Production undertaken to increase the  "profitability" of the department Logistics  Actions undertaken before receiving the  orders   Moving a volume of stock greater than  the future consumption Principles : «Overproduction » consists of producing a  good or service before it is necessary. Finance  Redundancy in the production and return  of various indicators and reporting  Duplicate data entry  Level of detail greater than necessary in  the accounting
  • 8.
    Transport results inwaste because:  It increases the cycle time  It consumes resources  It takes up circulation space unnecessarily   It increases the work‐in‐process  It Increases the risks of breakage Transport waste is caused by:  A poorly designed production process or workshop  A break in the production flow (e.g. outsourcing)  Overproduction, which requires storage in a reserved area  Some examples by sector : Production  Poorly designed workshop  Storage areas far away from workstations  Lack of visibility of the production flow  Logistics  Poorly defined preparation  Poor layout of storage areas  Warehouses too far from the activity  centre (distanced from the customers) “Unnecessary transport"  concerns all movements of  goods that do not bring value  added to the customer. Unnecessary transport is  problematic, because it  consumes resources and  increases the risk of breakage  or damage. Principles : Finance  Paperwork that needs monitoring,  signatures and inter‐departmental  approval   A complex approval system for  purchasing invoices
  • 9.
    Inventory results inwaste because:  The value of the stock is immobilized  The cost of the area occupied  The increased risk of obsolete and defective units  It reduces the number of references that can be stored  It hides more fundamental problems Inventory waste is caused by:  A lack of reliability of sales forecasts  A poorly sequenced production schedule   Overproduction  Production managed by pushed flow   A lack of supplier reliability  Some examples by sector : Production Stock of finished goods without customer  orders  Stock of semi‐finished products or  components greater than necessary Logistics  Stock of a product greater than the order  commitments  Inventory after bad sales forecasts or  poor management of logistics variants Administration  Orders waiting to be processed  Bills awaiting payment  Stacks of files to be processed “Inventory" comes from the wastes of overproduction  and waiting time.  Inventory has the peculiarity  of compensating for more  fundamental problems.  Beyond immobilized funds,  inventory prevents the  resolution of problems by  obscuring them. Principles :
  • 10.
    Motion wastes causedby:  A poorly designed workstation  A lack of training for operators who do not know where to  find what they need  Misplaced tools  A poorly replenished stock Some examples by sector : Production  Finding tools to make a change in series  Urgent replenishment of the workstations  with materials because they are almost  out of stock   Distance of machines for one operator Logistics  Shared equipment (carts, printers...) away  from the work area  Stock shortage of consumables in the  work area (labellers, pallets...) Administration  Poor office layout  Physical validation when an online  validation would be sufficient  Centralised photocopiers Principles : Unlike the transport waste, which refers to goods,  unnecessary motion relates to the movement of  people. Any movement that does not bring added value to the  process is considered a waste.
  • 11.
    Over‐processing results inwaste because:  It consumes resources unnecessarily It generates additional variability of the process  It can reduce the life expectancy of a product (an engine  that runs too fast, a lamp which is too bright...) Oveer‐processing waste is caused by:  Bad habits "I've always done it like this!”  A misunderstanding of the process by the operator  A poor definition of customer requirements  Lack of innovation, improvement, or questioning of the  existing process  A standard that has become obsoleteSome examples by sector : Production  Exceeding the technical specifications  required by the customer Proliferation of quality inspections Logistics  Reconditioning, handling…  Over‐packaging  Quality control to identify errors in  preparation of orders Over‐processing is a process  that is more complex than it  should be, where the  customer may have to pay for  a level of quality or  complexity that does not  match their requirements.  Principles : IT  Development of features not required by  the user  An oversized workstation with respect to  user needs  Overestimating the need for security
  • 12.
    Defects results inwaste because:  The cost of materials   The need for quality inspections  The costs of reprocessing   The return of defective goods  The loss of production capacity Wastes caused by:  A poorly defined standard  The absence of Poka Yoke (mistake‐proofing)  Poor operator training   A lack of reliability (or an error of setting) of a machine Some examples by sector : Production  Operator errors  Defective machines  Scrap at setup  Ineffective plans / instructions Logistics  Product inversion  Missing products  Error in picking  Supplier errors Service  Data input error  Missing information for file processing  Misprint in a commercial document  Incorrect allocations Principles : Anything that is not well done the first time is  considered a waste. Errors and defects are wastes  which generate additional costs for  inspections, reprocessing,  customer dissatisfaction,  cost of returned goods ...
  • 13.
    Waiting results inwaste because:  Disruptions to production  Congestion when trying to catch up  The lengthening of cycle‐time  The loss of capacity Waiting waste is caused by:  Supply disruption  A lack of versatility and flexibility of the operators  Machine breakdowns  Poor production planning  Mismanagement of the resource capacity constraints Principles : Waiting time applies to both product and people. Any form of unsynchronised flow can cause waiting  time. Some examples by sector : Production  Stopping a machine  Waiting on replenishment  Waiting for production planning  Pending availability of a shared resource Logistics  Pending replenishment by a forklift  operator  Waiting to load the carrier  Waiting for a truck  Downtime of compuer system Service  Participation in a never‐ending meeting   Waiting for information to complete a  transaction or close accounts  Waiting on approval from a superior   Document approval circuit too long
  • 14.
  • 15.
    Definition : The 5 Lean Principles are aimed at clearly  specifying value in order to line up all the  activities for a specific process along a value  stream and to make the value flow smoothly  at the pull of the customer in pursuit of  perfection. 5 Continually work to remove waste and achieve perfection Perfection is unattainable but is the motor for continuous improvement 4 3 2 1 Understand what the customer perceives as value. •Who is your customer? • What value do you provide to your customer? Identify all the steps within the value stream that deliver a  product or service Flow through the process can be visualised through the use of Value Stream  Mapping. The aim is to continuously improve the ratio of VA / NVA Remove all the barriers and interruptions that restrict the  flow of a product or service The objective is for products, services, and information to flow without delays,  detours, undertaking unnecessary activities and incurring faults.. Only supply a product or service when it is demanded or  pulled by a customer A Pull System links value stream processes,and therefore the production or  provision of a product or service, to actual customer demand rather than a  predicted customer requirement Value
  • 16.
    What is aValue Stream? A value stream is all the activities, both value‐added and non‐ value‐added required to bring a product or service from  concept to launch and from order to delivery. It includes all the steps involved in providing a product or  service from initial concept until the customer pays for the  product or service. The value stream is made up of all functions and stakeholders  who need to work in harmony to provide the  product/service.
  • 17.
    A Value Streamcan be composed of a number of processes Process Efficiency = Value Adding Time / Total Time Application Typical Cycle Efficiency World Class Cycle Efficiency Machining 1% 20% Fabrication 10% 25% Assembly 15% 35% Continuous Manufacturing 30% 80% Business Processes – Transactional 10% 50% Business Processes – Creative/Cognitive 5% 25% Process Efficiency can be increased by identifyng and eliminating the non value adding time, or the « Wastes »
  • 18.
    Looking at processes…... Whatyou think it is... What it actually is... What it could be... What are some of the tools that help us do this?
  • 19.
  • 20.
    7 Complete with further data  collection as required 6 Highlight the waste and  potential areas of  improvement 5 Compute value added time  and waiting time between  operations 1  Mapping existing streams : 4 Map the process using the  VSM techniques and standards 3 Gather data on timing, batch  size, efficiency for each step of  the process 2 At the  Gemba, analyze flows  of product and information 1 Gather together a  multidisciplinary team 6 Select solutions and develop  action plan 5 Brainstorm and prioritise  solutions 2  Plan future or “ideal” flows 4 Conduct necessary  investigations and data  collection 3 Identify likely causes of waste  and means of verification 2 Develop a ‘future state’ of  what the target looks like (5  Lean Principles) 1 Gather the team together  again Usage: Building a VSM allows for an analysis of the value stream and highlights wastes. A VSM can be used in two steps: This method may be  reused at will! VSM is a continuous improvement  tool which increases mastery of Lean OrderOrder CompanyCompanyCustomerCustomer 3 Available  Stock Fax or  EDI Order release Preparation Dispatch M/ses Capture = 1 = 7 = ND I 150 orders / day 100 orders /day 90 orders /day 90 orders /day ½ day 1-30 day 1 day 1-2 day 3 min ~ 5 min ~10 min Order Shipping Customer Service System Info I I I ~ 7 min
  • 21.
    5 4 Compute theTakt Time Deal with bottlenecks and balance the loads Definition : In German, Takt means “rate.” Takt time represents the  rate of production needed in order to meet customer  demand on‐time. It is used as a basis to smooth and  monitor production, and to improve the balance of the  production lines. Benefits: Respecting Takt Time makes it possible to produce with  minimal waste, stocks and operating costs. It gives the  manufacturing tempo to follow. Takt Time can be used to  directly check the “health” of product flow and to enforce  reactivity during problem‐solving and process improvement Methodology: 3 Calculate productive time on the one hand, customer demand on the other. 2 Observe, then identify the bottleneck 1 Target the production line to improve This calculation is only valid if the demand remains relatively constant CompanyCompany Delay between  two good units Steps in the process Time 1       2        3       4       5       6       7       8       9 Takt Time Constraints Bottleneck Takt Time =  Total available manufacturing time Customer Demand (volume) “1 bottleneck hour lost = 1 hour of  production over the whole process  lost” 1 – Takt Time 2 – Bottleneck = Longest operation in the process 3 – Constraint = Any operation longer than the Takt Time that hinders the fulfilment of  the customer’s demand (in volume)
  • 22.
    Benefits:  Limits production to customer demand  Limits wastes as well as work‐in‐process and stock levels Reduces lead‐time for products  Optimize use of resources Definition: Transformation of a push flow into a pull flow is a very important step  of a Lean project.  The transformations radically change how planning, production and  management of incidents occurring during a process are handled.  This step aims at going from a production by batches to an order‐ prompted production.  7  Level the load according to customer  demand 6  Implement the pull flow through Kanban,  supply the workstations Example Approach 5  Reorganize the floor into cells according to  the “target” map 4  Study the balance of workstations in regards  to Takt Time 3 Analyze the setup, the modes of planning,  product movement, stocks… 2  Map the existing value flows and compute  Takt Time 1  Stabilize performance and define standards
  • 23.
    Definition: Kanban is a tool for managing supply between two workstations. It limits the upstream production to match the  downstream needs through a pulled flow system. Kanban is useful for a regular production. Its main goal is to eliminate  waste through limiting in‐process stocks and resolving problem causing breaks in flow and  stocks.  Benefits:  Reduces and stabilizes in‐process material stocks  Improves delivery capacity = Reactivity & Flexibility  Improves transparency  Economical = does not need heavy investment... Principles:  Pulled flow system          the customer  triggers the demand  Only manufacture and deliver if there is a Kanban card.  Re‐evaluate the dimensions of the Kanban according to the  evolution of demand Methodology: 5 Implement and adjust 4 Calculate the number of  Kanban cards 3 Determine the supermarket  stocks according to  consumption 2 Determine the number of  units per container = 1 Kanban card 1 Select the flow to manage  with Kanban
  • 24.
    Methodology: 6 Correct differences and implement continuous  improvement 5 Train the teams in work cells and start  production 4Reduce batch sizes 3 Select implantation types and storage locations 2 Balance workstations by reorganizing tasks  1 Stabilize quality performance, lead time and  operations time Definition: The optimization of work cells requires the reorganization of workstations  in such a way as to obtain compact production lines in the form of cells. Benefits:  Reduces lead time  Identifies quality issues earlier  Ensures better visibility of flow Favourable conditions:  Producing relatively similar families of products   Having a stable production time base and reliable capacity data   Owning equipment and tools in good working conditions   Setting up qualified operators   Planning a balanced workload Line Shapes : Visibility  Permutation Assembling 2  process ends Structural  constraints
  • 25.
    Definition : SMED : Faster changeover system. It aims at systematically reducing  preparation time and adjustment time during a changeover Benefits : Improving productivity through  limitations in stops for changeovers,  without damaging the quality of the setup  Optimization of use of resources (better  synchronization of jobs, elimination of  superfluous operations, improved  installation of machinery, improved  flexibility, reorganization of stocks and  tools) Principle : Changeover Time is the unproductive period of time during which operators  reconfigure equipment.  SMED analyses this series of tasks and identifies  possible sources of improvement in order to shorten this  period. Methodology : Shorten external tasks  Standardise storing and cleaning procedures (5S) & track setup defects  on a daily basis. Shorten internal tasks  Improve organization of tasks (example: working in parallel)  Make carrying‐out of these tasks easier (example: fast screw guns, rolling tool carts…) Convert internal into  external The goal is to reduce internal tasks to the bare necessities. Separate internal and  external tasks  Internal Tasks = need to stop the equipment (e.g.: tool assembly)  External Tasks = while the equipment is running (e.g. : preparation of tools to assemble) Analyse operations  Observe the changeover and make a list of tasks and a map of movements.
  • 26.
    Definition : 5S is a systematic approach aimed at improving  cleanliness and order in the work environment. It  can be applied in offices as well as in production  areas. Benefits : Elimination of waste of time looking for tools and  equipment  Improved security: ground markings, a place for  each and  everything  Improved efficiency: identification and  management of problems made easier  Reduction, even elimination of failures: by  detecting sources of dirtiness and contamination  Freeing up of needlessly used space  Provision of better working conditions by  maintaining a pleasant work environment Methodology : SORT
  • 27.
    Definition :  OEEis an indicator used to monitor the rate of utilisation of  equipment  It is a measure of the efficiency of a production line.  Benefits : Identification and breakdown of waste in production into different  categories upon which improvement actions can be put in place. Principles :  Defined as : OEE = Useful Time / Required Time (or Value‐Added / Total Time)  Useful Time = time during which the machine produces good units at its normal rate (number of good units * cycle time).   One can improve the OEE by different methods (SMED, TPM, 5S, just‐in‐time, Self‐Checking and Self‐Maintenance, Ergonomics...).  Methodology : Sustainability  Ensure continuing improved performance  Formalize the new standards Optimisation  Implement the action plan and eliminate problems  Deploy necessary tools Data Analysis  Frequency analysis  Time analysis Capturing  production data  Simplify the measurement  Limit constraints for data capture Preparation of the  measurement  Inform and educate staff  Establish a list of causes of machine downtime Usage : Identify  possible areas  of improvement Workshop shutdown Cleaning, idle time, training, meetings, breaks... Failures, adjustments, missing staff, changeovers … Rate differences Non quality RT UT OEE  OT UT OPR  TT UT ERR 
  • 28.
    Definition: TPM: Total Productive Maintenance   Methodology for continuous improvement of equipment availability (Productive time) by treating  causes of stoppage in a pre‐emptive way        close link with OEE monitoring. Benefits : Eliminates wastes due to: breakdowns  teething problems  equipment lag time Reduces changeover time using the SMED  method. Reduces maintenance costs and improves  the lifetime of equipment. Principles : TPM is built on 4 main pillars:  elimination of major problems   self maintenance  planned maintenance   organization of equipment operation Methodology: 5  Train teams for self‐maintenance & Launch self‐maintenance campaigns 4  Define self‐maintenance standards & Schedule planned maintenance 3  Clean up & Identify critical equipment systems 2  Eliminate causes of loss and define new standards 1 List & Analyze losses
  • 29.
    LEAN IS NOTA TOOLBOX
  • 30.
    • Lean organizationsare learning organizations, Lean is a culture, not only a set of techniques • Lean culture needs to be implemented as a “whole system” and sub systems of the work flow also include: ▫ Motivation and incentive systems ▫ Training systems ▫ Organization and management levels ▫ Improvement processes • Lean is a culture and all cultures are complex Lean Culture
  • 31.
    • Developing alean culture requires strong top management commitment and leadership • It involves: ▫ creating a vision ▫ chartering pilot and kaizen teams ▫ monitoring the results and modifying the whole process as it proceeds Developing a Lean Culture
  • 32.
    Sustaining a LeanCulture Paramount to sustainability is to keep in minds that Lean is a journey, not a destination. The real benefits come form a sustained effort over years, not weeks or months.
  • 33.
    Definition: Kaizen comes from two Japanese words: Kai (which means “change”) and  Zen (which means “good”) “continuous improvement”.  Philosophy with the goal of elimination of waste through setting up  simple, low cost improvements,  daily and at every level of the company.  Tools: Kaizen uses the whole spectrum of classic analysis and problem solving  tools. PDCA, 5S, Five Whys, Poka‐yoke, SMED, TPM, Kanban, … Conditions forsuccess:  Everyone takes a part in continuous improvement  Simple and accessible guides and procedures  Motivational measures (reward system, staff satisfaction…)   Active participation from top management in order to implement the  methodology Kaizen is not a method on its own, but a group state of mind which  lives though everyone’s involvement Benefits : Approach based on common sense and the motivation of employees.  Analyze problems and solve them for good Put in place a series of permanent techniques and methods allowing  the process to be made more reliable Make better use of the existing resources without changing them. = progressively improve without looking for breakthrough improvements 
  • 34.
    Want to knowmore? • “The Goal”, Eli Goldratt (1984) – Written as a novel ‐ can be read in an evening. Should be  compulsory for everyone who works  in manufacturing. • “Kaizen”, Masaaki Imai (1986), – Insight into the Japanese culture from a Japanese. • “The Machine that Changed the World”, Womack, Jones & Roos (1990) – The book that blew the lid off the West v. Japan debate. It’s all about cars but is full of ideas. • “Lean Thinking”, Womack and Jones, (1996) – The sequel, more down‐to‐earth after six years of Lean Thinking • “The Gold Mine”, Michael and Freddy Ballé (2005) – A must‐read for production managers, written by a French father and son! • “Toyota Way / Toyota Way Fieldbook” (2006) – A high‐level ‘how‐to’ for Lean implementation • “The Lean Toolbox”,  John Bicheno (2009) – Quick reference that covers all the main Lean tools
  • 35.
    Peter Klym Management/ Lean Business France Operational Excellence Consultancy and Training Peter Klym • UK‐born, currently based near Toulouse in the south‐west of France • Works both directly with customers or on a subcontractor basis • Available for assignments in France and internationally • 30 years of experience in both industries and service sectors • Consultant since 2008 Websites : www.leanbusiness.fr http://international.leanbusiness.fr Email : peter.klym@leanbusiness.fr Téléphone : +33 6 84 52 77 70