What is lean transformation - January 2017

1Marek.Piatkowski@Rogers.com
What is Lean
Transformation
Definition
Thinkingwin, Win, WIN
What is Lean Transformation?
Definition
Marek Piatkowski – January 2017

What is Lean
Transformation
Definition
Introduction - Marek Piatkowski
 Professional Background
 Toyota Motor Manufacturing Canada (TMMC) - Cambridge, Ontario from
1987-1994
 TPS/Lean Transformation Consulting - since 1994
 Professional Affiliations
 TWI Network – John Shook, Founder
 Lean Enterprise Institute (LEI) – Jim Womack
 Lean Enterprise Academy (LEA) – Daniel Jones
 CCM/CAINTRA – Monterrey, Mexico
 SME, AME, ASQ, CME
 Lean Manufacturing Solutions - Toronto, Canada
http://twi-network.com

What is Lean
Transformation
Definition

What is Lean
Transformation
Definition
Management (Operating) System
 Every company has a formal or informal Management (Operating) System
 Management System is a way of managing and operating your business. It allows
management and institutions to formulate solutions to problems of organizing:
 People
 Equipment
 Material
 Capital
to design, market, sale, produce and deliver or provide services to the customer.
 We have learned many things about management over the past 3,000 years. But
we continuously look for new and better management tools or methods.
 The best tools and methods are those which stand the test of time, and which give
you a lot of leverage over common problems.

What is Lean
Transformation
Definition
 Lean Transformation is a practical management system based on TPS (Toyota
Production System) philosophy:
 Customer first
 People are the most valuable resource
 Kaizen - Continuous Improvement
 Gemba - Shop Floor focused
 Lean Transformation is a collection of best know:
 Business philosophies
 Operating principles
 Lean Tools
 Lean Methodologies
 When properly used and applied they will lead any Company to higher profits,
greater business success, stability, growth and profitability
Taiichi Ohno
Credited with realizing the
concept of the Toyota
Production System.

What is Lean
Transformation
Definition
Lean Manufacturing is not “NEW”
 Manufacturing has been around for a long time
 Man has always searched for a better way to manage manufacturing
 Man has been inventing new tools, new machines and new methods for as long as we
have been making things

What is Lean
Transformation
Definition
Venetian Shipyards
 Construction of the Arsenal began
around 1104, during Venice's
Republican era.
 It became the largest industrial
complex in Europe prior to the
Industrial Revolution, spanning an area
of about 45 ha (110 acres)
 About 1320 Arsenale Nuovo was
created, simply a larger and more
efficient version of the original arsenal
 As far back as 1492 the Venetians were
leading builders of ships.
 By the 16th century the Arsenal was
the most powerful and efficient ship
manufacturer in the world.

What is Lean
Transformation
Definition
Venetian Shipyards
 It was capable of producing one fully
equipped merchant or military vessel
per day - in today’s Lean language this
translates to a Takt Time of 24 hours.
 Even in the seas-oriented states of
England and Spain shipbuilding was
slower and less efficient than in
Venice
 Production of similar sized and
featured ships elsewhere in Europe
took months.
 The Arsenal employed 16 000 people
 The employees directly engaged in
producing ships and the rope, oars,
cloth, storage containers, weapons
and other goods they required

What is Lean
Transformation
Definition
Industrial Revolution
 Between 1765 and 1785 the people of England began to use machines to make
cloth and steam engines to run the machines.
 A little later they invented locomotives. Productivity began a spectacular climb. By
1850 Great Britain had become the workshop of the world..
 Changes that led to the Industrial Revolution:
 the invention of machines to do the work of hand tools
 the use of steam, and later of other kinds of power, in place of the muscles of human
beings and of animals
 adoption of the factory system

What is Lean
Transformation
Definition
1913 - Henry Ford introduces a concept of an
Assembly Line and Mass Production

What is Lean
Transformation
Definition
Foundation of Lean Manufacturing
1913

What is Lean
Transformation
Definition
TPS
(ToyotaProductionSystem)
is born
Roots of Lean
1950 - 51
1951

What is Lean
Transformation
Definition
Toyota Production System and Lean Manufacturing
 We have learned many things about management over the past 3,000 years. But
we are still chasing after new management tools or methods.
 The best tools and methods are those which stand the test of time, and which give
you a lot of leverage over common problems.
 Lean Manufacturing based on Toyota Production System (TPS) is a Management
System
 It took Toyota Corporation over 70 years to develop the current form of TPS
 Lean Manufacturing is a collection of best know:
 Business philosophies
 Operating principles
 Lean Tools
 Lean Methodologies
which are proven and are logically connected.

What is Lean
Transformation
Definition
Customer First
 Customers are the reason for existence and they must always receive a perfect
product or service
 We must meet customer’s exact order immediately
 Listen to the voice of the Customer - improvement is always possible and
necessary. Any existing process can be improved - no ifs, buts or maybes
 Assure high quality by building it at each process. No defect shall be passed to the
customer or to the following process
 Customer First thinking drives:
 Highest Quality
 Shortest possible Lead Time
 Lowest Cost
 Do you know who your Customers are?
 Customer first
 People are the most valuable
resource
 Kaizen - Continuous
Improvement

What is Lean
Transformation
Definition
People are the most valuable resources
 Only people are capable of learning, creating and solving problems
 Machines are assets that depreciate over time.
 Conversely people are assets that appreciate over time.
 People must be treated as most valuable assets:
 Safe working environment
 Job Security
 Intellectual challenge
 Job that adds value
 People enjoy their work when it involves trying out their own ideas, mastering new
skills and making visible contributions
 Operators are the most knowledgeable of our processes – their involvement is
critical to our success
 Customer first
resource
Improvement

What is Lean
Transformation
Definition
Kaizen – Continuous Improvement
 Kaizen is the continuous pursuit to close the gap between current and expected
conditions
 Kaizen is a process of eliminating waste in processes involving people, equipment,
materials or methods using creative ideas to solve problems
 Kaizen means making small improvements as well as large ones. Sometimes the
progressive accumulation of even little things is important.
 In a true Lean Environment Culture Kaizen is not seen as an “extra” activity – Kaizen
is a part od daily management and solving problems
 Customer first
resource
Improvement

What is Lean
Transformation
Definition
Kaizen – Continuous Improvement
 Kaizen can be broadly divided into:
 Work Methods Kaizen and
 Equipment Kaizen
 Work Methods Kaizen is central to the development of the Lean Transformation. It
is based on Standardized Work. This type of Kaizen is used to:
 Study employee methods of working
 Determine the rules for redistributing and combining work
 Indicate the layout and storage area of parts
 Improves work operations themselves
 Equipment Kaizen is employed to introduce equipment and automation.
Equipment kaizen involves a special crew and outside resources
 Customer first
resource
Improvement

What is Lean
Transformation
Definition
Gemba – Shop Floor focused
 Gemba is the Japanese term for “actual place,” often used for the shop floor or an
office or any place where work actually occurs
 The term often is used to stress that real improvement in the work place is based
on direct observation of current conditions
 Gemba - “the area where the action is”.
 Shop floor is where key value-added activities take place
 Customer first
resource
Improvement

What is Lean
Transformation
Definition
Gemba – Shop Floor focused
 Shop floor is constantly changing. One must be on the Shop Floor to understand
current conditions
 Input from people on the Shop Floor is extremely valuable and critical to our
success
 When conducting Gemba we will be asking ourselves questions:
 Do I understand this process?
 Do I understand what is going on?
 Is there a Standard Process in place?
 Is the process being followed?
 Is there a problem? Is there a gap? (actual versus standard)
 Is this normal or abnormal situation
 How would I fix this problem?
 How would I improve this situation?
 Is the Lab talking to you? Are you listening to it?
 Customer first
resource
Improvement

What is Lean
Transformation
Definition

What is Lean
Transformation
Definition
 Lean Transformation is a systematic methodology for implementing rapid process
changes and improvements by elimination of waste
 Best accomplished with flexibility in mind, lean thinking, team-oriented and cross-
trained people.
 Improvement is always possible and necessary. Continuously improve every
aspect of the system through Kaizen. Any existing process can be improved - no
ifs, buts or maybes
Lean Transformation is "lean“
because it uses less of
everything compared with a
traditional "mass" production
system

What is Lean
Transformation
Definition
Changing the World. One Transformation at a time
This presentation is an intellectual property of W3 Group Canada Inc.
No parts of this document can be copied or reproduced
without written permission from:
Marek Piatkowski
W3 Group Canada Inc.
iPhone: 416-235-2631
Cell: 248-207-0416
Marek.Piatkowski@rogers.com
http://twi-network.com

What is Lean
Transformation
Definition
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