Day 1 Lean Principles and practices

1. Day 1 Lean Principles and practices The Ferryport Group, www.ferryport.org, contact@ferryport.org

2. Introductions and Ice Breakers Please put your name on the blank piece of paper in front of you and place it on the desk for all to see. Who’s got the most interesting paper? The Ferryport Group, www.ferryport.org, contact@ferryport.org

3. Introductions and Ice Breakers Please answer the following: Q. Where do you keep bleach/cleaning products? Q. Where do you keep your knives and forks? Q. Where do you keep spare bedding? Q. Where do you keep your beer? The Ferryport Group, www.ferryport.org, contact@ferryport.org

4. Introductions and Ice Breakers • Think of a number between 1 and 10. • Multiply the number by 9. • Add the digits of your result. • Subtract 5 from your new number. • Find the letter that corresponds to your number, if 1 = A, 2 = B, 3 = C, etc. • Think of a country that begins with your letter. • Write down the name of that country. • Think of an animal beginning with the second letter of your country. • Think of the colour of that animal. • Write down the animal and its colour. Did you get a Pink Elephant as well? The Ferryport Group, www.ferryport.org, contact@ferryport.org

5. A History of Lean Manufacturing

6. Call it what you will Just another Modern Tool • Lean Manufacturing • World Class Manufacturing • Kaizen • TPM • Continuous Improvements • Lean Thinking The Ferryport Group, www.ferryport.org, contact@ferryport.org

7. A Brief History A number of sources • Eli Whitney – 1790s • interchangeable parts • Henry Ford – 1910s • production lines • Alfred Sloan – 1930s (General Motors) • more strategic approach The Ferryport Group, www.ferryport.org, contact@ferryport.org

8. Charles SorensenVice-President of Production for Ford "The only thing we can't make is something we can't think about." A bomber an hour for the war effort rather than a bomber a day The Ferryport Group, www.ferryport.org, contact@ferryport.org

9. Next Step Toyota's engineers looked to :- Henry Ford Inventor of the assembly line Frederick W. Taylor Inventor of Modern Management Techniques and Industrial Engineering Dr. W. Edwards Deming Father of Modern Quality Management The Ferryport Group, www.ferryport.org, contact@ferryport.org

10. Improvement – Toyota’s Kaizen Masters, Shingo and Ohno • Dr. Shigeo Shingo was asked “Who really discovered Lean, you or Taiichi Ohno?” • He replied “I did, for I was Ohno’s teacher.” however: • Toyota group manager Chihiro Nakao stated – “Which came first, the chicken or the egg?” The Ferryport Group, www.ferryport.org, contact@ferryport.org

11. The 7 Wastes – the Toyota concept of where it’s going wrong • Over production • Poor quality • Movement of men • Movement of materials • Un-necessary processing • Waiting times • Stock The Ferryport Group, www.ferryport.org, contact@ferryport.org

12. Techniques • 5S - Housekeeping • Total Productive Maintenance • SMED – quick changeovers • Problem Solving – CEDAC, brainstorming • Poka-Yoke - foolproofing • FMEA – prevention and contingency planning • Standard Work – SOPs, all doing the same • Kanban – stock control systems The Ferryport Group, www.ferryport.org, contact@ferryport.org

13. Lean Thinking FMEA and Contingency Planning HACCP Risk Analysis What can go wrong and how do we stop it? If we can’t stop it, how do we contain it? The Ferryport Group, www.ferryport.org, contact@ferryport.org

14. Food Industry • What can go wrong? • Hair getting into the product • How do we stop it? • Use hair nets, training, supervision • If we can’t stop it, how do we contain it? • Stores quarantine, Product recall The Ferryport Group, www.ferryport.org, contact@ferryport.org

15. Automotive • What can go wrong? • Carburettor blocking up • How do we stop it? • Filter systems through the petrochemical stages, in the petrol pumps and in the fuel pipes on the car • If we can’t stop it, how do we contain it? • Easy to work on engines, spare parts on stock/24 hour delivery, RAC/AA The Ferryport Group, www.ferryport.org, contact@ferryport.org

16. Lean Manufacturing is Suitable for Everyone • Not ‘too sexy’ for your any company • Not confined to Manufacturing The Ferryport Group, www.ferryport.org, contact@ferryport.org

17. Questions? The Ferryport Group, www.ferryport.org, contact@ferryport.org

18. Challenges What are the current challenges that British manufacturing faces? Global village Legislation – EU, environmental, H&S Market forces Other companies BOGOF – Buy One, Get One Free (Supermarkets force this on suppliers) The Ferryport Group, www.ferryport.org, contact@ferryport.org

19. Challenges How do we know we are improving? How do we know that we need to improve? The Ferryport Group, www.ferryport.org, contact@ferryport.org

20. KPIs • Give me a few examples of what you are currently using • Why do you use these KPIs in particular? • What initiated these KPIs? • Company specific quality, cost and delivery • What else can initiate KPIs? • Customer complaints, short term monitoring The Ferryport Group, www.ferryport.org, contact@ferryport.org

21. Questions? Coffee The Ferryport Group, www.ferryport.org, contact@ferryport.org

22. Value Stream Mapping

23. Value Stream Mapping What parts of the process actually add value? The Ferryport Group, www.ferryport.org, contact@ferryport.org

24. What do we mean by Value Stream Mapping? • Exercise 1 • Describe in as much detail as possible the steps required to make a cup of tea • Split into teams The Ferryport Group, www.ferryport.org, contact@ferryport.org

25. Exercise 1 – Cup of Tea • Review the Standard Operating Procedures (SOPs) or recipes as they are sometimes known. • Detail them in a clearer step-by-step process Detail the individual steps only for now Tracking Sheets Recipes Red and Green Markers The Ferryport Group, www.ferryport.org, contact@ferryport.org

26. The VA/NVA ratios Value Added: Non Value Added: Any work carried out,which is necessary under current conditions but does not increase product value e.g. inspection, part movement, tool changing, maintenance etc. Any process step that changes the nature, shape or characteristics of the product or service, in line with customer requirements e.g. designing, extruding, expanding, fabricating etc. - it’s what the customer is willing to pay for The Ferryport Group, www.ferryport.org, contact@ferryport.org

27. Operator Time The VA/NVA ratios Objective: To raise the ratio of Value Added operations to Non-value Added NVA VA Operator Time Reduce NVA VA The Ferryport Group, www.ferryport.org, contact@ferryport.org

28. The Seven Wastes • Poor Quality • Panic Production • Time • Movement 1 - Parts • Movement 2 - People • Stock • Processing The Ferryport Group, www.ferryport.org, contact@ferryport.org

29. GOOD BAD The Seven Wastes 1. Poor Quality • Production of scrap and reworking of bad parts The Ferryport Group, www.ferryport.org, contact@ferryport.org

30. The Seven Wastes Benefits of eliminating bad quality: • Improved customer satisfaction. • Lower costs of correction and materials used • Improved efficiency and ability to meet workload requirements • Less stress and distraction The Ferryport Group, www.ferryport.org, contact@ferryport.org

31. The Seven Wastes 2. Over production Over running an unstable process • Manufacturing ahead of schedule • Worst waste of all • Produces excess inventory throughout system • All other wastes are produced as a result • Hides manufacturing problems The Ferryport Group, www.ferryport.org, contact@ferryport.org

32. The Seven Wastes Benefits of not overproducing: • Releases time to meet current requirement. • Eliminates double-handling, filing etc. • Reduced risk to changes in plans etc. The Ferryport Group, www.ferryport.org, contact@ferryport.org

33. The Seven Wastes 3. Time Waiting for things to happen • Machinery availability • Stock to arrive • people The Ferryport Group, www.ferryport.org, contact@ferryport.org

34. The Seven Wastes Benefits of eliminating idle time: • Better utilisation of staff time. • Better utilisation of equipment. • Less boredom or frustration The Ferryport Group, www.ferryport.org, contact@ferryport.org

35. The Seven Wastes 4. Movement 1 – Parts • Unnecessary movement or handling • Moving with no load • Moving batches around The Ferryport Group, www.ferryport.org, contact@ferryport.org

36. The Seven Wastes Benefits of reducing transportation: • Reduced cost of handling systems. • Less activity and disruption. • Reduced risk of handling damage, lost documents etc • Can lead to single piece flow The Ferryport Group, www.ferryport.org, contact@ferryport.org

37. The Seven Wastes 5. Movement 2 – People • Operator Motion • Unnecessary or excessive • walking, bending, stretching, twisting and reaching • Moving from one machine to another The Ferryport Group, www.ferryport.org, contact@ferryport.org

38. The Seven Wastes Benefits of eliminating operator motion waste: • Better working environment – less employee fatigue. • Less work related injuries and absence. • More productive work environment – happier staff The Ferryport Group, www.ferryport.org, contact@ferryport.org

39. The Seven Wastes 6. Stock • Raw Material • WIP • Stock The Ferryport Group, www.ferryport.org, contact@ferryport.org

40. The Seven Wastes Benefits of reducing Stock: • Less money tied up. • Less floor space and storage equipment needed. • Less handling and transportation. • Quicker discovery of quality problems and response to change in requirements. • Reduced risk of obsolete stock and stock loss. The Ferryport Group, www.ferryport.org, contact@ferryport.org

41. The Seven Wastes 7. Processing • Set-up times or breakdown • Too much in the process • not doing what the customer wants The Ferryport Group, www.ferryport.org, contact@ferryport.org

42. The Seven Wastes Benefits of eliminating process waste: • Eliminate cost of unnecessary processes • Improved flow of work through the factory • Increased availability of resources The Ferryport Group, www.ferryport.org, contact@ferryport.org

43. The Seven Wastes Identify - Observe and map the process - Share observations with the team Categorise - value adding and non-value adding activities - Prioritise wastes, which ones do we solve first? Eliminate - Countermeasure The Ferryport Group, www.ferryport.org, contact@ferryport.org

44. Decide on Value Adding and Non-Value Adding Value adding is described as: “ ” Non-value adding is everything else The Ferryport Group, www.ferryport.org, contact@ferryport.org

45. VA and NVA I prefer to think of it as: ‘something that the customer would be willing to pay for’ The Ferryport Group, www.ferryport.org, contact@ferryport.org

46. Value Stream Mapping • Exercise 2 • Decide which of the steps you have detailed are actually adding value to the tea making process • What percentage do you think this will be? The Ferryport Group, www.ferryport.org, contact@ferryport.org

47. Value Stream Mapping Typically this will come in at around 5% The Ferryport Group, www.ferryport.org, contact@ferryport.org

48. Lunch The Ferryport Group, www.ferryport.org, contact@ferryport.org

49. Exercise 2 – Timing the Process • Split the process up into distinct process groups and time each one • Go into as much detail as possible • Prepare this information in order to run the process as a production line The Ferryport Group, www.ferryport.org, contact@ferryport.org

50. Overview of Lead time analysis and Takt time Lead time analysis is simply calculating how far in advance certain items have to be ordered or certain processes have to start We’ve all asked the question ‘what’s the lead time on that?’ The Ferryport Group, www.ferryport.org, contact@ferryport.org