MGS 8020 Business Intelligence Improve Nov 13, 2014

1. MGS 8020Business IntelligenceImproveNov 13, 2014

2. Control Improve Analyze Define Measure Improve • Develop Potential Solutions • Identify potential solutions through data analysis, brainstorming, benchmarking • Create Future State • Develop and implement future state process map and/or innovative solutions for the project • Evaluate and Mitigate Risk • Analyze the impact of the solution and error proof the process

3. Agenda • Kaizen Events • Capacity Planning • Defects vs. Mistakes

4. Fight Fires React Improve Processes The Lean Transformation time Lean Improve Activities • Plan for and conduct a week longKaizen event • Learn by doing, and doing it again • Repeat Kaizen’s for key processes “Each new improvement reveals new problems!” Freddy Ballé

5. Kaizen Events • The “Improve” process for Lean, where obvious waste has been identified • A team-based, 3-5 day event with no down time • Cross-functional teams meet full-time (100% of their time!) to solve a specific problem with pre-specified scope, metrics and goals • Results presented to management at the end of the week, with project completion in 30 days • Assumption is made that the team will have all the support and resources needed from management

6. Kaizen Events • Meet within 100 feet and “walk” the process to identify opportunities that are not working right and do not require detailed data to justify change • Count the number of steps within and between tasks; estimate task and handoff times; add improvement opportunities to Value Stream Map • Share “peak” experiences (“Appreciative Inquiry”) • Develop hypothesis and test immediately to see if it works • Make quick and not so elegant changes • Expect the unexpected!

7. Kaizen Event Team • The team should include the following: • 6-8 people • People who work in the process and will have to live with the changes and at least one supervisor from this area • Representatives from upstream and downstream processes • Support personnel (IT, HR, etc.) • One neutral observer • Plus a neutral facilitator

8. Kaizen Event - Day 1 • Travel - am • Lean Classroom Training - pm • All participants required to attend half-day Lean training (Intro, waste, VSM, takt time, etc.) • Review plan for the week • Clarify charter and scope; special needs; available data • Clarify roles/form sub-teams • Distribute materials/post white paper on walls

9. Kaizen Event - Day 2 • Current State Mapping - am • Sub-teams create current process map using large yellow post-its • Label with key data; identify missing data • Identify major opportunities for improvement • Adjust project scope if required • Interview Employees/ Collect Data - pm • Sub-teams time a sample of existing sub-processes (with stop-watches) • Key personnel interviewed for knowledge of problems, suggestions for improvement, and reasons why sample data collection may not be “normal” • May be preceded by a tour of the entire process

10. Complete Current State - am Report-outs of key learnings Addition of collected data Identify key opportunities Experiments to test viability Management progress review Create Future State - pm Perform experiments brainstorm improvement opportunities and potential benefits Create high level future state (“desired” state) Kaizen Event - Day 3

11. Kaizen Event - Day 4 • Complete Future State Map - am • Include full value stream linked to customer • Return to plant to test proposed final recommended changes • Fine tune improvements • Create high-level documentation of new standard procedures • Create presentation - pm

12. Kaizen Event - Day 5 • Practice Presentation - am • Noon - Lunch • Presentation to management • Debrief; Discuss obstacles to success • Next Steps/Responsibilities/Kaizen “Newspaper” • Create new standard procedures • Write report /Send to stakeholders • Celebrate!!! • Defects vs. Mistakes Goal_________ Date__________ Implementation Team______________

13. Agenda • Kaizen Events • Capacity Planning • Defects vs. Mistakes

14. Capacity Planning • Capacity is the largest amount of output that can be produced in a specified amount of time. • It is computed by taking the hourly production rate and multiplying by the number of hours in the specified time period. • Like cycle time, it is constrained by the slowest step in the process. • In addition, it will also be constrained by the type of resource that limits the output of the slowest step. • It can also be increased by flexible plants, processes and workers.

15. Stage 1 Stage 2 Stage 3 Units per month 8,000 7,000 6,000 Stage 1 Stage 2 Stage 3 Units per month 7,000 7,000 7,000 Capacity Planning - Balance Unbalanced Process: Capacity is limited by the slowest step (smallest output in time period!) Balanced Process: The output of one stage is the exact input requirement for the next stage!

16. Capacity Planning - Example • A company manufactures a toy automobile. The toy requires three steps: drilling, sanding and painting and final assembly. The company currently operates one 8-hour shift, 5 days per week. • There are 7 drilling machines. Each drilling machine produces 20 units per hour, Sand and Paint produces 100 units/ hour, assembly produces 80 units per hour. • What is the bottleneck activity, and what is the weekly capacity?

17. Drill Sand &Paint Assemble Process Capacity Calculation Example 8-hour shift, 5 days per week

18. Bottleneck

19. Bottlenecks Dinning Hall Capacity 100 customers per hour Kitchen Capacity 200 meals per hour Sales Capacity 250 customers per hour • The sales team strives to drive new business to the restaurant. Based on the dinning hall capacity, it can only have 100 customers per hour. The dinning hall becomes a bottleneck • The restaurant struggles to enlarge the capacity of the dinning hall, by increasing the dinning area, adding more dinning tables, and increasing the table turnover rate. The capacity of dinning hall becomes 250 customers per hour. • However, the kitchen can only book 200 meals per hour, so the kitchen becomes a new bottleneck.

20. Ways to Reduce Bottlenecks • Identify possibilities to split or share tasks (workload balancing), use line balancing • Determine possibilities to perform parallel work • Consider cellular layout • Reduce setup/ changeover time and/or requirements • Improve employee productivity • Increase work time through overtime • Cross-train employees • Redesign the process • Use flexible facility layouts • Reduce batch size/ approach single-piece flow • Others?

21. Agenda • Kaizen Events • Capacity Planning • Defects vs. Mistakes

22. Defects vs. Mistakes • Defects and mistakes are not the same thing! • A Defect is the result of a mistake • A Mistake is the cause of defects • Mistakes are inevitable! • People are human and can not be expected to concentrate all the time on the work in front of them. • People don’t always completely understand the instructions they are given. • Machines are not always perfect. • Complexity factors such as number of parts or lack of commonality. • The goal of Mistake Proofing is to engineer the process so that mistakes can be prevented or immediately detected and corrected.

23. Mistake-Proofing (Poka-Yokes) Keeping a mistake from becoming a defect Prevention Determine potential problems Develop fault-proof designs Create prevention plans A proactive approach Detection Develop signaling system/identification Plan for quick response at operator level Do root cause analysis; use “5 Whys” Eliminate special causes

24. Mistake-Proofing Examples

25. Types of Mistake Proofing Devices • Mistake Proofing devices fall into two major categories: • Prevention - the process is engineered so that it is impossible to make a mistake at all • Example: 3.5 inch computer diskette • Detection - a device that signals the user when a mistake has been made, so that the user can quickly correct the problem. • Example: Limit switch signals loading jam Let’s hope those guys use prevention type mistake proofing!