The Lean Enterprise

1. The Lean Enterprise An Introduction to 5S Lean Foundations Continuous Improvement Training

2. LearningObjectives The purpose of the this module is: • To introduce the 5S philosophy, actions and measurements. • Understand and apply simple Visual Display and Visual Control techniques. • Explore and examine the benefits of adopting these disciplines.

3. The Benefits of Implementing “5S” • 5S provides a basis for being a world-class competitor and the foundation for a disciplined approach to the workplace. • Safer working conditions • A cleaner and more organized work area • Reduction in non-value added time • Effective work practices • Efficient work processes 5S Improvements: Facilitating a change: Safer, Better, Faster !

4. And The 5-S’s are… Seiri – (Separate) or Sort Seiton – (Straighten) Store, or Put-in Place Seiso – (Clean) or Shine Seiketsu – (Standardize) Shitsuke – (Discipline) or Sustain + Safety ! S

5. Sometimes called 5S + 1 or “6S” Safety 1st !(in everything we do!) Seiri – (Separate) or Sort Seiton – (Straighten) Store, or Put-in Place Seiso – (Clean) or Shine Seiketsu – (Standardize) Shitsuke – (Discipline) or Sustain S

6. Sort and Separate Separate the necessary from the unnecessary. • Identify what is required to work a process or perform a particular operation or task. • Remove unnecessary tools, equipment, files, binders, parts, procedures, furniture, and other ‘stuff’ from the area.

7. 1 - ‘Sorting’ Activity Steps • Establish criteria and explain the handling of items • Assign zones to people • Conduct an event • Identify not-needed items from what is needed • Move identified not-needed items to holding area • Conduct a ‘white elephant’ sale or AUCTION • Conduct an initial cleaning Focus on doing and attaining results

8. Red Tag (Example) Red Tag Item number_______________ Description________________ Date Tagged_______________ Tagged by_________________ Circle one: Stored Disposed Reason _____________________________ Red tags (somewhat of a standard) should be used to identify items that need to be moved or disposed of from the area performing the Sorting event.

9. 2 - Straighten (or Put-in Place) • Organize materials according to frequency of use • Implement visual aids to improve communication Create a place for everything and put everything in its Place ! Lay it out - for when YOU are not there …

10. Steps to ‘Straightening’ process • Identify key equipment and supplies • Determine location for every item • Develop shadow boards • Label needed items • Determine required quantities • Outline locations of equipment, supplies, common areas, and safety zones • Document workplace layout, equipment, safety zones, and supplies Work team involvement is crucial to success

11. 3 - Shine (Clean) • Perform initial clean and sweep of the area • Perform daily cleaning and inspection of area and equipment to determine status and need for corrective and preventive action • A daily discipline to an agreed upon plan that is executed by the work area team members A performance improvement discipline

12. ‘Shining’ Steps • Identify key points to check to ensure proper performance • Determine acceptable performance • Determine corresponding visual indicators and controls • Mark equipment and controls • Establish ‘who and when’ cleaning plan • Conduct daily cleaning and inspections Progress Towards Prevention over Detection

13. 4 - Standardize • Determining, sharing, and using the best processes and methods • Standardization serves to minimize variation and the effect of variation on quality and speed • We want to look towards standardization with process tooling, methods, parts, sub-assemblies, design, etc The Standard Becomes the Baseline for Further Improvement

14. Steps to ‘Standardization’ • Document present work area agreements and routine checks • Establish and document standardized methods across similar work areas • Document new standard methods Attacking Process and Methods Variation

15. 5 - Sustain • Keeping the gains and building further progress • A ‘Continuous Improvement’ thought process becomes the culture Pride in Improvement, Accomplishments, and the Desire to do More

16. Steps to ‘Sustaining’ • Determine 5S level of achievement • Perform routine checks, including point photography • Analyze results of routine checks • Measure progress and plan for continuous improvement Sustain Success (“6S”) through Habit

17. Document The Current Situation • Purpose: • Record the current situation as a baseline for progress • Preparation: • Obtain a camera or photographic assistance • Obtain a layout and mark the before-picture place and angle • Explain the steps of current situation documentation • Publish the picture taking date • Do it: • Take work area photos • Evaluate current 5S ‘level of achievement’ Without a Baseline Measurement, Progress Cannot Be Determined

18. A 5S Case Study (example) • Purpose: • To Document Before and After ACTIONS ! Without a Baseline Measurement, Progress Cannot Be Determined

19. Process followed for the 5S ‘Kaizen’ Event • 2 Days of Office Work • Conducted a detailed audit of current conditions • Created a flow process diagram • Brainstorming Session with entire dept. • Developed a layout that addressed issues • 3 Days in Departments • Rearranged both areas to optimize flow • Decluttered • Moved Accessory inventory to Stockroom freeleansite.com

20. Before After • Excess inventory in area • Lack of space for work & storage - Clutter removed - Consolidation of workspace & storage freeleansite.com

21. Before After • Scattered work in process • No protocol for Eng’s seals in area for failure analysis - Racks organized with work in process & out of work area freeleansite.com

22. Before After • Work area was not defined • Storage in several areas • Old furniture - Machines lined up to optimize flow - Relocated & upgraded hoist - Standardized benches freeleansite.com

23. Before After • Product with no part code • Non-conforming to paint booth regulation - Safer condition - Decreased excess inventory freeleansite.com

24. Before After • Work areas were not conducive to communication or flow - Work space standardized - Flow optimized – assemble, test & package freeleansite.com

25. Before After • Cluttered work areas • Old benches - Standardized work areas - Each employee is responsible for cleaning bench at day’s end freeleansite.com

26. Before After • Testing equipment scattered & unorganized - Testing equipment along one wall and upgraded freeleansite.com

27. Before After • Instruction manuals in 2 cabinets with boxes on top - Instruction manuals in 1 cabinet – organized and labeled freeleansite.com

28. After the Kaizen Event • Many actions remain • Team meets every 1-2 weeks to keep medium to long term actions moving – examples: • Track cross-training plan • Put up doors or plastic strip barriers to separate assembly room from rest of shop • Complete the labeling of drawers & standardization of tools • Engineering protocols in place • Audit plan to sustain improvements freeleansite.com

29. Levels of Achievement (beginning phases) LEVEL 2 Focus On Reliability Necessary and un-necessary items are identified;those not needed are gone. Needed items are safely stored and organized according to usage frequency. Key area items are marked to check and required level of performance noted. Work group has documented area arrangement and controls. Initial 6S level is established and and is posted in the area. LEVEL 1 Just Beginning Needed and not needed items are mixed throughout the area. Items are randomly placed throughout the workplace. Key area items checked are not identified and are unmarked Work area methods are not always followed and are not documented. Work area checks are randomly done and there is no 6S measurement. Sort Shine Standardize Sustain Straighten

30. Levels of Achievement (Strive for Five !) Sort Straighten Shine Standardize Sustain

31. A Simple 5S Progress Check • There are 5 ways to appraise the level of 5S at each stage. • Evaluation of self/ team. • Evaluation by expert/ consultant. • Evaluation by supervisor/ manager. • Combination of the above. • ‘Friendly’ competition among groups. Key to Sustaining a “Visual” Business – Make it FUN !

32. Lessons Learned Start with cross functional team Discuss benefits (METRICS) Train, then immediately do Agree on a vision Agree on standards Define the area to do Define roles Don’t let participants walk away Keys to Success Get everyone involved Get commitment and authorization for facility wide improvement Have leaders set expectations & do follow-up Establish standards Establish routines Keep it simple Link to other Improvement activities 5S Implementation

33. Summary • 5S is more than “cleaning up”, it is a discipline that is used to support all Lean Enterprise activities. • Visual Controls, like Visual Displays, can resolve many information and communication problems in the workplace. • Another important result is fewer work frustrations and a SAFER and more satisfying work experience. • Again, the result is improved work efficiency and effectiveness.

34. Next Steps Want to become a “Tool Master ” ? • Lead a 5S event in your area (a small defined area) • 1 hour training session • Materials you saw today plus a video • You and your team go and see (GEMBA) • And then do ! (Kaizen) • Evaluated by Lean Coach/ MBB (30/60/90 day Metrics) freeleansite.com

35. Expectations • Leadership Development • Improved Process state (sustained) • Team development • Propagation of “Lean Thinking” (Drive the culture …) • 5S “Tool Mastery” Certificate • Recognition and Reward (picture, $) freeleansite.com

36. The Lean Enterprise An Introduction to 5S Lean Foundations Continuous Improvement Training