The document summarizes a seminar on applying Lean principles to small businesses to eliminate waste, cut costs and processing times, improve quality and productivity. Lean focuses on identifying and removing non-value added activities through tools like 5S, value stream mapping, and Kaizen events. Attendees would learn how implementing Lean requires changes in thinking and culture but can provide significant benefits like reducing inventory, lead times, and costs.

1. Small Business Seminar:
Lean for your small business
October 26, 2011
The NEW Lean Consulting Group
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2. Welcome and Introductions
• NEW Lean Consulting Group
– Provide Lean consulting services
– To community businesses and not for profits
with a quality resource for their Lean journey.
• Certified Lean Lead Facilitators
– Jamie Voster
– Lisa Rothbauer
– Amy Lauko – Project Lead
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3. Imagine……….
• Cutting time to process customer requestsby 75%
• Reducing inventory by 75%
• Improving quality by 50% – 200%
• Increasing productivity by 50% – 75%
• Reducing clutter
• Reducing time it takes to find and do things
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4. Lean -
 A business system involving all employees
which constantly pursues the elimination of
waste to shorten the lead time of a process.
 Not just for manufacturing! Lean principles
can be applied to any business and every
process.
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5. Lean Is…. Lean Is Not
Is Is Not
• A significant shift in • A headcount reduction
thinking and performance strategy
• A long term strategy • Merely a cost reduction
• Applicable to any strategy
organization and every • A quick, one time fix
process • A short term project
• Applicable only to
• Focused on maximizing
manufacturing
value
– optimizing flow
• Culture changing 5

6. Elements of Lean Thinking
 Learning to see
 Focus on process not on people
 Standard work
 Continuous improvement
 One piece flow
 Error proofing (poka yoke)
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7. Lean Toolbox
5S A3
Teams
Problem
Solving
Setup Reductions
TPM
Kanban
Work Cell
Value Stream Map
Error Proofing
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8. Lean Requires Change
• Change is required in
– Thought
– Culture
– Perspective
• Change must occur to achieve success.
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9. Change is hard……...
But stagnation is fatal.
Dr. Peter Bishop
University of Houston
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10. Implementing Change
Critical success factors:
• Leading
• Training
• Acting
• Sustaining
• Plan, Do, Check, Act (PDCA)
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11. Kaizen -
Japanese for improvementor
change for the better.
It refers to a philosophy or practice that
focuses upon continuous process
improvement.
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12. Kaizen Events
• Cross functional team empowered to make rapid
changes in a process
• Targets waste, variability, and non-value add activity
• All necessary resources are readily available
• Look for immediate results that address root cause.
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13. Continuous Steady Improvements
via Kaizen Events
I
Kaizen
M
Standardize
P
Kaizen
R
O Standardize
V
Kaizen
E Standardize
M
Kaizen
E Starting
N Process
T
TIME From “Kaizen”, Masaaki Imai
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14. Key Characteristics of a Lean Team
An insatiable drive to increase value through
the on-going elimination of waste.
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15. Waste
The focus of Lean is…
waste elimination.
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16. What is Waste?
Anything other than the minimum
resources required to add value to an
end product or service.
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17. Waste Wheel
VALUE
ADDED
WORK
5% Motion
Knowledge
1 Waiting
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Inventory
2
7
3
6 Transport
Over-
5 4
Production
Over- Correction
Processing
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18. Waste in the Office
Types of Waste Business Process Waste
Motion Walking, routing information
Waiting Delays and queues, decision making
Transportation Information hand-offs
Correction Defects, re-work, incomplete data
Processing Unnecessary steps, variation of methods
Overproduction Unnecessary reports and information
Inventory A task waiting to be started (inbox)
Knowledge Untapped skills and experience, routine non-value
adding activities
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19. Introduction to 5s
• Sieri- Sort
• Seiton- Straighten
• Seiso- Shine
• Seiketsu - Standardize
• Shitsuke- Sustain
• = 5S
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20. 5s
• Sort: removing the unnecessary
• Straighten: a place for everything
• Shine: clean up, fix up
• Standardize: everything is consistent
• Sustain: maintain, review standards
= 5S
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21. 5S
Before After
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22. Introduction to
Value Stream Mapping (VSM)
• A one page visual representation showing the flow of
all processes, information and material
• Current state analysis (snap shot) shows
– All current value added and non-value added
processes
• Future state analysis shows
– Improved value added processes and eliminates as
much non-value added work as possible
• Action plan for target state implementation
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23. 23

24. Benefits of Lean
Getting the right things to the right place at the right time in the
right quantity to achieve perfect work flow, while minimizing
waste and being flexible and able to change.
• Reduced waste, costs, and lost opportunities
• Increased
• Efficiencies
• Ability to serve more customers in the same time
• Customer satisfaction
• Timely customer access to goods and services
• Quality
• Employee empowerment
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25. Who have we helped Change?
• Housing Partnership
• Medical Facility/Retirement Home
• Temperature Controls Solution Provider
• Organic American Apparel Company
• Collision Repair Shop
• Public Library
• Counseling Services Company
• Homeless Shelter
• Home Care Provider 25

26. We can help with:
• I need more help, I’m just too busy to keep up.
• I will start fixing it once I find my tool.
• I’m overwhelmed and don’t know where to start
• I’m too busy to train employees.
• There must be an easier way, but how?
• Everyone has their own way of getting it done.
• I can’t find the part so express order a new one.
• There are not enough hours in the day.

27. Chinese Proverb
If we don’t change
we will end up
where we are headed…
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28. Are you ready to Change?
• Contact NEW Lean
• Identify your problem/pain (1-3 focus areas)
• Establish goals ex: (reduce wait list by 50%)
• Develop Plan
• Identify Resources
• Schedule your Event
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29. Contact:
• Amy Laukolaukoamy@yahoo.com
• Lisa Rothbauer
- lrothbauer@new.rr.com
• Jamie Voster jsvoster@gmail.com
• NEW Lean – newlean.org
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