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Learning to be Lean

Learning to be Lean. Understanding Value, Waste and Flow . Are you living on Golden Pond or the ‘Big Muddy’?. Value Are we adding value?. An action that a customer is willing to pay for An activity that transforms a product or service An activity done correctly the first time.

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Learning to be Lean

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  1. Learningto be Lean

  2. Understanding Value, Waste and Flow Are you living on Golden Pond or the ‘Big Muddy’?

  3. ValueAre we adding value?

  4. An action that a customer is willing to pay for An activity that transforms a product or service An activity done correctly the first time. An activity that consumes resources without creating value for the customer An activity that is unpredictable in creating value An activity that requires more time, effort or resources than necessary. Value Addedvs. Non-value Added

  5. How much of what organizations do is considered non-value added?

  6. Office simulation

  7. Reducing non-value The Seven Wastes

  8. The Seven Wastes + 1 • Defects (poor quality) • Transportation • Waiting • Overproduction • Inventory • Motion • Extra processing • Underutilized creativity

  9. Defects Any element of a product or service that does not meet or exceed a key customer requirement.

  10. What are key customer requirements? • Hot food hot, cold food cold • Value (its worth what I pay for it) • I can get it when I want it, not when they are willing to give it to me • It’s easy and convenient to get • If there is a problem, someone is willing to help me, without making me feel like an idiot.

  11. Defects are not always so obvious

  12. Fixing defects usually means: • Re-work • Re-inspection • Re-design • More cost • Unhappy customers

  13. Transportation The unnecessary movement of people, information or materials between processes.

  14. Follow the bouncing paperwork

  15. Waiting People, parts, systems or facilities idly waiting for a work cycle upstream to be completed.

  16. Factoid Waiting accounts for 95% of the time that is required to produce a product or service.

  17. Overproduction Producing products or services faster than your customers are using them requires: • More movement • More storage • More capital tied up in inventory • More resources to track inventory

  18. Office examples of overproduction • Need 54 copies, but make 60, just in case. • Print 5000 brochures because the price per unit is cheaper, then inventory, store and finally recycle 2/3 of them. • Print and distribute forms that frequently change.

  19. Inventory Storing more materials than you need in the near-term, or creating and storing more products than are being demanded by the customer in the near-term.

  20. Motion Any movement of peoples’ bodies that does not add value to product or service.

  21. How about this one? Where should this item be located? 50 Frequency of gets and put-aways Times/Day 40 30 20 10 2 4 6 8 10 12 14 16 18 20 22 24 26 28 30 32 Distance Carried (feet) Frequency of Use Analysis Physical Files - 1

  22. Extra processing • Multiple reviews/signatures • Different ways to produce the same product (no standardized work) • Batching work

  23. Underutilized creativity • People who work in the process and know the process best (both the strengths and weaknesses). • Do they have the tools, training and permission to systematically improve their process?

  24. Flow Searching forLean nirvana Orienting your workplace and adjusting your work tasks so that the product or service is always in a state of constant value adding.

  25. Obstacles to continuous flow • Bottlenecks – Which step in the process constrains the throughput? • Multiple inspections – How many steps involve inspecting actions in previous steps? • Production capacity that does not match TAKT time

  26. Where is the bottleneck?

  27. Takt time and cycle time • Takt time – The average rate at which the customer consumes or requires the product or service (i.e. #/day or #/hour). • Cycle time – The average amount of time it takes to produce the product or service.

  28. Repeat Office simulation How did we do?

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