The Lean Journey

The
Lean
Journey
VerseOne … orchestrating your LEAN solutions

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strictly prohibited.

Process Improvement Methodologies

Theory of
Constraints Six Sigma Lean
Concept Manage Reduce Eliminate
Constraints Variation Waste

Application 1. Identify 1. Define 1. Identify Value
Guidelines Constraint 2. Measure 2. Identify Value
2. Exploit 3. Analyze Stream
Constraint 4. Improve 3. Determine
3. Subordinate 5. Control Flow
Processes 4. Implement
4. Elevate Pull
Constraint 5. Strive for
5. Repeat Cycle Perfection
Focus Constraints Quality Flow


Introduction

• What is Lean?
– It is focused on eliminating waste in all
processes
– It is about expanding capacity by reducing
costs and shortening cycle times
– It is about understanding what is important
to the customer (e.g. value)
– It is not about eliminating people


Introduction (cont’d)

• How Do You Achieve Lean?
– Specify value from the perspective of the
ultimate customer
– Identify the value stream to expose waste
– Create flow to reduce batch size and
work-in-process
– Make only what the customer has ordered
– Seek perfection by continuously improving
quality and eliminating waste

LEAN – a powerful combination of
techniques to increase business
performance, based on the concepts
of eliminating waste, adding value, and
expanding capacity.


Lean is comprised of:

• Keys to leadership
• Principles
• Tools


Keys to Lean Leadership

• Go See -- senior leaders must spend
time on the “production” floor (gemba)
• Ask Why -- use the question many times
every day to uncover the root cause
• Show Respect -- respect employees,
suppliers, and customers


Lean Principles

• Define Value Customer Defined

• Identify Value Stream Follow the Product

• Flow the Product Eliminate Waste

Produce Just in
• Pull the Product
Time for Demand
Continuous
• Strive for Perfection
Improvement

Background and History
• 1574: King Henry III watches the Venice Arsenal produce finished
galley ships using continuous flow processes
• 1799: Eli Whitney perfects the concept of interchangeable parts
• 1902: Sakichi Toyoda establishes the jidoka concept
• 1910: Henry Ford moves into Highland Park, the “birthplace of lean
manufacturing,” with continuous flow of parts
• 1911: Sakichi Toyoda visits the U.S. and sees the Model T line for the
first time
• 1929: Toyota Motor Corp. visited GM and Ford assembly lines in U.S.
• 1938: Just-In-Time concept established at Toyota
• 1940: Consolidated Aircraft builds one B-24 bomber per day, later
improves production to one B-24 per hour


Background and History (cont’d)
• 1945: End of WWII, Japanese economy nearly destroyed
• 1949: Taiichi Ohno promoted to shop manager at Toyota, develops
“elimination of waste” concept
• 1950: Juran and Deming began training Japanese leaders on quality
and Toyota Production system (TPS) was born
• 1951: Ohno refines TPS to include visual control, employee
suggestions, TWI, batch size reduction, and kanban
• 1965: Toyota receives Deming Prize for Quality
• 1975: First English translations of TPS are drafted
• 1980-83: First books on TPS by American authors: Kanban and
Zero Inventories
• 1990: Womack and Jones publish The Machine That Changed the
World, becoming the definitive text creating the term “lean”, followed
by Lean Thinking in 1996


Waste

Anything that does not
add value to a process
and that which a customer
would not want to pay for,
if given a choice.


Eight Forms of Waste
• D efects or rework
• O verproduction
• W aiting
• N on-utilization of talent
• T ransportation or travel
• I nventory
• M otion
• E xtra Processing


Forms of Office Waste

• Conflicting Department Goals
• Traditional Accounting Methods
• Poor Product Design
• Looking and Searching for Files
• Paper Re-work
• Unnecessary Authorizations


Source: Minnesota Council for Quality

Waste Cartoon


Can You Identify Waste?

1. Extra Photocopies
2. Authorizations
NO 3. Final Assembly
4. In Basket
5. Invoicing
6. Payroll


Lean Tools

• 5S (sort, straighten, shine, • Cellular Flow
standardize, and sustain)
• Jidoka (Autonomation)
• Value Stream Map
• Production Preparation
• Spaghetti Diagram Process (3P)
• Visual Management • Just In Time/Pull (JIT)
• Error Proofing (Poka • Training Within
Yoke) Industry (TWI)
• Standard Work • Total Productive
• Setup Reduction Maintenance (TPM)
(SMED)
• Kaizen Events

Lean Lessons From Others

• “Getting lean” takes a long time
• Lean is not a part-time effort
• Lean is more than tools, it’s also behavior
• The journey to lean never ends
• There will be resistance to lean within the
organization


Lean Lessons From Others (cont’d)

• The top leaders need to lead lean
• Be prepared for the front-end investment
• Lean is not just for manufacturing
• There is a lean “roadmap”, but no lean
“cookbook”
• You cannot just copy another lean
organizations journey


Why Get Lean?
• Productivity improvements of 20-50%
• Set-up time reductions of 60-80%
• Inventory reductions of 40-75%
• Floor space reductions of 30-50%
• Reduced quality defects by 50-100%
• Improved safety performance of 30-60%
• More efficient office procedures
• Survival in the marketplace

Actual Lean Examples
• Florida hospital system reduced accounts
receivable to 58 days from 89 days (35%)
• Midwest healthcare system reduced phone
triage to 28 seconds from 89 (69%)
• University clinic increased the number of
available radiology scans by 20%
• Municipal Fire Department increased the
number of annual fire inspections by 23%
• Midwest manufacturer reduced inventory to
$29,000 from $95,000 (69%)

Policy
What Deployment
You Lean Efforts
See
Operations

Policy Deployment –
A process for focusing
a company’s resources
on those few critical
objectives that improve
execution and drive
growth.

Next Steps
• Business Assessment
• Call to Action and Commitment
• Align with Policy Deployment
• Training and/or Sensei
• Resource Allocation
• Process Selection
• Begin the “Journey”
• Implement New Metrics
• Review Progress and Adjust as Needed

You must TRANSFORM
the organization to avoid
“snap-back” to the old
ways or … don’t even
bother to start.

VerseOne Because …
• Custom solutions – never a “one-size fits all” or off-the-
shelf solution
• Attentiveness – each client represents a greater portion
of business to us than to a large firm
• Flexibility – we can make changes and react to our client
needs without contacting “corporate”
• Fee and Value – due to lower overheads, you will receive
outstanding value for reasonable fees
• Risk Free Guarantee – you must be satisfied with our
results during the entire engagement or there is no fee


VerseOne …
orchestrating your LEAN solutions

VerseOne Inc.
708-301-5566 Homer Glen IL
920-882-1474 Appleton WI
877-301-4595 Toll Free
info@verse1.net
www.verse1.net


Thank You


5S Examples

After 5S - Cleaned, organized
Before 5S and drawers labeled (less time
and frustration hunting)

strictly prohibited. 29

Value Stream Mapping – Current State

(This material is taken from LEI source material and belongs to Lean Enterprise
Institute, Inc., who owns its copyright.)


Value Stream Mapping – Future State

(This material is taken from LEI source material and belongs to Lean Enterprise
Institute, Inc., who owns its copyright.)


Spaghetti Diagram


Visual Management


Error Proofing


Standard Work


Set-up Reduction

Also called:
Quick Changeover


Cellular Flow

CHARACTERISTICS

• Source inspection
• Point of use storage
• Simplified handling
• Visual goals & metrics


Jidoka

• Providing machines and operators the
ability to detect when an
abnormal condition has
occurred and immediately
stop work. This enables operations to
build-in quality at each process.
• Sometimes called “automation with
human intelligence.”


Production Preparation Process (3P)


Just In Time/Pull (JIT)

Schedule based

Work in process inventory level
(hides problems)

Unreliable Capacity
Scrap
Vendors Imbalances
Consumption based

Unreliable WIP Capacity
Scrap
Vendors Imbalances


Training Within Industry (TWI)

• Job Instruction Training (JI)
– teaches supervisors how to quickly train employees to
do a job correctly, safely, and conscientiously.
• Job Methods Training (JM)
– teaches supervisors how to continuously improve the
way jobs are done.
• Job Relations Training (JR)
– teaches supervisors how to develop and maintain
positive employee relations to prevent problems from
happening and how to effectively resolve conflicts that
arise.

Total Productive Maintenance


Kaizen Events

• Three to five day intense team efforts
• Elements of a process typically addressed
are:
– Waste and Errors
– Inventory and Flow
– Measurements
– Process management
• End with a “report out” to management

The Lean Journey

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