Transcription

Lean Basics OverviewEMC2011 TrainingNCDENR April 2011 Copyright 2010 EMC Corporation. All rights reserved.1

Topics Lean Six Sigma definedWhy Lean Six Sigma?What’s a process?Interrogating the process by identifying Value & WasteBrief overview of some tools that identify WasteKey principles of Lean Thinking: Flow & PullBrief overview of some tools that help eliminate WasteNext steps Copyright 2010 EMC Corporation. All rights reserved.2

Lean Process improvement methodology targeting theelimination of waste – any human activity that absorbsresources but creates no value. Lean Thinking is the method used to combat waste– Pioneered by the Toyota company in Japan after WWII.– Application of Lean in Manufacturing has led to much costremoval via the elimination of wasteful efforts.– Lean Thinking provides for change that allows you to do more withless while coming closer to providing customers with what theyreally want. Lean concepts can easily be used in other businessapplications and is not just beneficial tomanufacturing Copyright 2010 EMC Corporation. All rights reserved.3

So what is LEAN?Simplify theprocess Identification of value and elimination of waste toimprove the process. Value: what customers are willing to pay for Value Stream: all the steps in our processes thatKey Principles ofLean ThinkingKey LeanPerformance Goals Copyright 2010 EMC Corporation. All rights reserved.deliver value to our customers Flow: organizing the Value Stream to becontinuous Pull: responding to downstream customer demand Perfection: relentless continuous improvementculture; A continuous journey On-demand: when the customer wants it Defect-free: how the customer wants it One-by-one: exactly the quantity the customerwants Lowest total cost: business cost for you and thecustomer4

Six Sigma Business management strategy developed by Motorola inthe 1980’s. Seeks to improve the quality of processes byidentifying and removing causes of defects andminimizing variability within in process. Six Sigma is a statistical term indicating a high level ofquality– 99.99966% of the products are expected to be free of defects– Can also be stated as 3.4 defects per million Six Sigma tools and concepts can easily be used inother business applications and is not just beneficialto manufacturing. Copyright 2010 EMC Corporation. All rights reserved.5

What is Six Sigma?Level of ProcessPerformanceConsistent,Rigorous Approachto ProblemSolving 3.4 Defects per Million Opportunities Define MeasureThe right people working a well scoped problem AnalyzeAnalyze failure modes to understand the causes and effects ImproveExperiment with and improve process based on data ControlMonitor critical outputs to prevent repeat failureClearly understand and measure the “As Is” Process Executive Ownership Business Profitability & Customer SatisfactionPhilosophy– Moving the Mean– Variation Reduction Data-based decisions Hard, Soft and Strategic Benefits Copyright 2010 EMC Corporation. All rights reserved.6

Why Lean Six Sigma?Drives down costs by eliminating waste and process variabilityLeanN (Simplify)NE (Simplify & Control)E (Control) Copyright 2010 EMC Corporation. All rights reserved.Six Sigma7

Lean Six Sigma combines the strengths of bothapproaches A structured problem solving methodology used to:– Define (Scope) Get the right people on a well scoped problem Set a SMART goal on what’s critical to the customer SMART? Specific, Measurable, Achievable, Relevant, Timebound– Measure (Baseline)– “As Is” process around the problem– Data, variation not just the average– Analyze (Cause &Effect) Drives cause and effect conversations around the “As Is” process Look for variation in the critical metric throughout the process Look for waste with Lean tools Prioritizes where to work Copyright 2010 EMC Corporation. All rights reserved.8

Lean Six Sigma combines the strengths of bothapproaches Structured problem solving methodology continued:– Improve (Communication) Improves the process based on waste removal and mistakeproofing Improves the process based on data– Control (Control Plan) Develop a control plan to maintain the gains and have an earlywarning system on the critical metric Copyright 2010 EMC Corporation. All rights reserved.9

How does Lean Six Sigma help us compete? Profit Price – Cost– Price controlled by market– Cost controlled by the seller Greatest competitive edge iscost reduction Reduce cost by Wasteelimination– those things customers do notwant or need Reduce cost and improvequality by removing Variability Increase customer satisfactionat lower costs by:– identifying their needs (values)– eliminating process variation– providing what the customerneeds when they need it Copyright 2010 EMC Corporation. All rights reserved.10

Any questions aboutLean,Six Sigma, orLean Six Sigma? Copyright 2010 EMC Corporation. All rights reserved.11

Process improvement requires that we know ourprocess what’s a process? A set of common tasks that creates a product, service, orplan that will satisfy a customer or group of customers.– Processes can have “internal” customers and “external” customers A sequential series of steps leading to a desired outcomeIf you can't describe what you are doing as aprocess,you don't know what you're doing.W. Edwards Deming Copyright 2010 EMC Corporation. All rights reserved.12

What’s a great tool that we can use to get an overviewof a process in just 1 OutputOutputIPO Chart* Input and Output Variables that are Measurable Copyright 2010 EMC Corporation. All rights reserved.13

Any questions aboutwhat’s a process?IPOs? Copyright 2010 EMC Corporation. All rights reserved.14

Interrogate the process Where’s the Value? Where’s the Waste? Copyright 2010 EMC Corporation. All rights reserved.15

Value Value Add– Customer believes it is important; willing to pay for this task– Physically changes the thing adding desired function, form, or feature– Work is done right the first time Non-Value Add– Task adds no value as viewed by the customer– Examples include: correcting/reworking, expediting, multiplesignatures, counting, handling, inspecting, set up time, downtime,transporting, moving, delaying, storing etc. Necessary Non Value Add– Process would break down if this task was not performed– Required by law or regulation– Task reduces financial risk Copyright 2010 EMC Corporation. All rights reserved.16

Truths About Seeing Waste WASTE isn’t a judgment on how well people work; it existsin all processes– Processes are wasteful, people are not– Don’t take it personally; let’s improve the processes Our solutions have to eliminate waste– Waste elimination improves performance– Improved performance creates secure companies– Secure companies create secure Jobs As we learn to see waste, we need to work on not beingjudgmental about itIt is what it is and it wasn't createdintentionally Copyright 2010 EMC Corporation. All rights reserved.17

Transportation:Physical movementof materials or workfrom where it wasproduced to whereit is neededDefining Value – Seeing the Waste Copyright 2010 EMC Corporation. All rights reserved.18

Inventory:Any excess materialwithin a processthat the customerdoes not want orneed based onactual demandDefining Value – Seeing the Waste Copyright 2010 EMC Corporation. All rights reserved.19

Motion without productivity:If motion is part of the process and not used to add value,it is wasteDefining Value – Seeing the Waste Copyright 2010 EMC Corporation. All rights reserved.20

Waiting:People or parts that waitfor a work cycle to becompletedDefining Value – Seeing the Waste Copyright 2010 EMC Corporation. All rights reserved.21

Over-production:Producing items for which there are no true customer orders ormore work than the next operation needs or can absorbDefining Value – Seeing the Waste Copyright 2010 EMC Corporation. All rights reserved.22

Over-processing:Any non-value added activitythat customers neither want,request or will pay for Defining Value – Seeing the Waste Copyright 2010 EMC Corporation. All rights reserved.23

Defects:A defect is a componentor unit which the customerwould deem unacceptableDefining Value – Seeing the Waste Copyright 2010 EMC Corporation. All rights reserved.24

Safety Risks are a WasteSafety risks are in processes thatenable injuries to happen in theworkplace.Injuries cost through: lost work days higher insurance costs product delivery delays slowing the processDefining Value – Seeing the Waste Copyright 2010 EMC Corporation. All rights reserved.25

8 Forms of istrationExampleTransportationExcessesMoving material between disjointedproduction stages in separate locationsWalking around to get approvalsignatures on a travel authorizationInventoryBuild-upLarge WIP (work in progress) inventoryduring production stagesMultiple copies of a document stored inevery deskMotionWithoutProductivityOperator must bend over to pick upcircuit board to start production sequenceLooking for poorly filed documents bysearching every filing cabinetWaitingforMaterialsWaiting for raw material replenishment tobegin production setupWaiting for approval signature of adocumentOverProductionProducing more than production schedule Generating project status reports that arerequirementsnot reviewed or usedOverProcessingReworking of defective components fromthe first stage of productionCapital projects plans needing reviewsand signatures from 18 peopleDefectsProducing one bad unit out of 10 duringfinal assemblyAn inaccurate report that must be redonedue to incorrect informationSafetyRisksInjuries that result in personal suffering,lost work days, increase insurance costsand delays in product deliveryInjuries that result in personal suffering,lost work days, increase insurance costsand delays in product deliveryDefining Value – Seeing the Waste Copyright 2010 EMC Corporation. All rights reserved.26

Any questions aboutValue?Waste? Copyright 2010 EMC Corporation. All rights reserved.27

What tools identify waste?Strategic ToolWaste IdentifiedValue Stream mappingInventory, Over productionTakt timeInventory, Over production, WaitingSpaghetti diagramTransportation, MotionTime ObservationsWaiting, Motion, Transportation, Over processing, Defects,Inventory, Over productionFlow ChartsOver processing, Motion, TransportationLoad ChartsWaitingStandard work sheetsDefects, Inventory, Over production, Waiting,Transportation, Over processingProduction Control BoardsDefects, Inventory, Over production, WaitingTools to Identify Waste Copyright 2010 EMC Corporation. All rights reserved.28

Cookie Making ProcessRead the cookierecipeGet the neededingredients fromthe fridge &cabinetsGet the neededbowls, spoons,measuring toolsis ovenrequired?Place in oven &cook for theamount of timestated in recipe.Shape the cookies& place on cookietrayFollow the recipestep by step & mixthe cookie doughif yes, preheatoven totemperature statedin recipeRemove from theoven & allow tocoolIf no, continue tofollow instructionsEat them all up!Tools to Understand the Process plus Identify Waste Copyright 2010 EMC Corporation. All rights reserved.29

Flow Charts/Process Flow Diagram Definition: a diagram commonly used to indicate the generalflow of processes Can be completed at different levels, or in different styles Uses:– preparation for a timestudy– identify VA/NVA/NNVA– look for flow & missingsteps– see the wasteTools to Understand the Process plus Identify Waste Copyright 2010 EMC Corporation. All rights reserved.30

Value Stream A value stream is a series of all actions required to fulfilla customer's request, both value added and not. A valuestream contains a product or a family of products thathave similar material and information flows. . Including:www.gemba.com/resources.cfm– Information flow– Material flow– Inventory (WIP)– Value Add and Non Value Add activities– Transportation flow A company will have multiple value streamsTools to Understand the Process plus Identify Waste Copyright 2010 EMC Corporation. All rights reserved.31

Value Stream Maps (VSM) A VSM combines:–––––Process FlowInformation FlowTransportation FlowInventory BalancesCycle Times VSMs make it easy to see:– Improvement Opportunities– Excessive Inventory VSMs highlight:– Total Inventory– Total Process Time– Inventory Days of Supply VSMs display the entire value-delivery systemTools to Understand the Process plus Identify Waste Copyright 2010 EMC Corporation. All rights reserved.32

Sample of a Value Stream Map inManufacturingC/T 20 MINIBottleneckOperationCPK – 0 McsC/O 020 pcs2 shiftsYield 99%Batch 1 orderDGR 10 Brds/DayREWORK64 pcsXPE Cell – 0 McsESS – 6 McsPre-ESS 1 McsIII240 pcs60 pcs450 pcsC/T 60 MINC/T 360 MINC/T 420 MINC/O 103-133 secC/O 1090 secC/O 180 sec3 shifts3 Shifts2 shiftsYield 85%Yield 91%Yield 91%Batch 1 - 12DGR 60 Brds/DayBatch 2,4,6, or 8DGR 60 Brds/DayBatch 4DGR 50 Brds/Day2.1 Days6 Days62 Min7.8 Days378 Min443 MinTools to Understand the Process plus Identify Waste Copyright 2010 EMC Corporation. All rights reserved.33

Value Stream Map – Software DevelopmentWorkWaitMarketingVision DocInitial EngEstimates1 wk2 wks2 4 wks4 wks8 wks0 time2 wks0 timeCode“Freeze” QAFinal QACode Deployment6 wks2 wks0 time4 wks44 wks 1 day total process timeof which 12 wks is wait timeDeploy*From Kent Beck,Lean Software Developmentby Mary & Tom Poppendieck1 day0 ifiesChanges2 wks2 wks1 wk4 wks0 time0 timeTools to Understand the Process plus Identify Waste Copyright 2010 EMC Corporation. All rights reserved.34

Takt Time Takt Time is the required pace of production to meet anaverage customer demand rateAvailable Time/DayTakt Time Customer Demand/Day Available Time 7 hrs or 420 minutes Customer Demand per Day 840 itemTakt Time 420 min840 itemMust produce 1 item every .5 minutesto meet customer demand rateTools to Understand the Process plus Identify Waste Copyright 2010 EMC Corporation. All rights reserved.35

Spaghetti DiagramBeforeParts Traffic Dist. 214 ftWalking Dist. 431 ftAfterParts Traffic Dist. 139 ftWalking Dist. 292 ftTools to Understand the Process plus Identify Waste Copyright 2010 EMC Corporation. All rights reserved.36

Any questions aboutthese tools that helpidentify waste plusunderstand yourprocess? Copyright 2010 EMC Corporation. All rights reserved.37

Key Principles of Lean Thinking:FLOW - Organize the Value Stream to beContinuous Objective is for materials to flow non-stop until it gets to thecustomer– Delays or wait times increase the time for delivery and create waste May require a new Layout– Value-adding steps are arranged one after the other– Shrink physical footprint of area to avoid inventory piles– Product moves via the most direct route Work must be balanced amongst workers so items flow“non-stop”Lean Philosophies to Eliminate Waste Copyright 2010 EMC Corporation. All rights reserved.38

FlowLean Philosophies to Eliminate Waste Copyright 2010 EMC Corporation. All rights reserved.39

Key Principles of Lean Thinking:PULL - Responding to Downstream CustomerDemand Pull: Producing goods based on actual consumption– Process steps in the Value Stream are linked via Pull replenishment– No one upstream process produces until the customer downstreamsignals for it Push: Producing goods to a forecast or demand schedule– Not linked directly to actual customer demand consumption– Often requires managing separate production schedules at multiplepoints in the process– Will lead to all forms of Waste – TIM WOODSPush is not LEAN. Pull is the desired LEAN Process MethodLean Philosophies to Eliminate Waste Copyright 2010 EMC Corporation. All rights reserved.40

What tools help eliminate waste?Strategic ToolWaste EliminatedCellular ManufacturingWaiting, Motion, Transportation, Over processing,Defects, Inventory, Over productionKanbansImpact of Defects, Inventory, Over production,Waiting, TransportationSMED (Single Minute Exchange ofDies)Waiting, Motion, Over processing, Defects, Inventory,Over production5SDefects, Inventory, Over processing, Motion,Transportation, Over ProductionVisual ManagementWaiting, Motion, DefectsJidoka (Automation with a human mind)/ Poka-Yoke (Error proofing)Defects, Inventory, Over processingKaizenWaiting & all other forms of waste can be addressedTools to Eliminate Waste Copyright 2010 EMC Corporation. All rights reserved.41

Cellular Manufacturing Cellular manufacturing definition:– Machines / operations / process steps are placed side by side withminimal inventory between– Continuous flow Cell layouts are more robust to machine breakdowns, havecommon jigs and fixtures in the same area and support highlevels of differentiation Grouped together according to the families of partsproduced Advantage: Material flow is significantly improved whichreduces– distance travelled by materials– inventory– cumulative lead timesWaste eliminated: Transportation, Inventory, Motion, Waiting, Over processing,Overproduction, DefectsTools to Eliminate Waste Copyright 2010 EMC Corporation. All rights reserved.42

Principles of Cellular Manufacturing Key components––––––––Continuous flow/single piece flow*Standard work (the one best way)Typically product specificUtilizes kanbansEmploys 5S and visual management“U” shaped layout (minimizes people and parts movement)Runs on Takt TimeStandard WIP (work in progress)* Single piece doesn’t always 1Tools to Eliminate Waste Copyright 2010 EMC Corporation. All rights reserved.43

Kanban and Kanban System Kanban in Japanese means “card” or “sign”– Visual tool used to achieve JIT (just in time) production Kanban is established using fixed quantity bins, containers,or pallets that are produced in an agreed replenishment time Kanban Systems can provide direct communication betweenour customers, through our work cells, and out to ourSupplier/Partner Kanban Systems have less dependency on forecasts fordriving receipts of materials – replace only what is usedWaste eliminated: Impact of Defects, Inventory, Overproduction, Waiting, TransportationTools to Eliminate Waste Copyright 2010 EMC Corporation. All rights reserved.44

Look familiar?Tools to Eliminate Waste Copyright 2010 EMC Corporation. All rights reserved.45

What is 5S? Sort – When was this last used? Set in Order – get organized! Shine – keep it clean! Standardize – take ownership! Sustain – keep it up!Tools to Eliminate Waste Copyright 2010 EMC Corporation. All rights reserved.46

How is 5S implemented? Identify the area to be improved– Set bounds and scope work Red Tag everything not needed in that area– Move to designated location Prioritize items frequently used– Organize to minimize wasted motion Clean what remains Set standards and assign responsibilities– Take pride in ownership – what accomplishment!Tools to Eliminate Waste Copyright 2010 EMC Corporation. All rights reserved.47

5S - Visual ManagementTools to Eliminate Waste Copyright 2010 EMC Corporation. All rights reserved.48

What is Kaizen? KAI ChangeZen Good (for the better)– Japanese word for continuous improvement in small, incrementalsteps A Kaizen Event is ––––a “Tool” from Lean methodologytargeted at the improvement or creation of a specific processup to a week in a very focused, structured team environmentworking together to rapidly implement change initiatives to quicklyrealize benefits– an application of continuous improvement Lean has a foundation built on the concept of continuousimprovement; Kaizen helps to accelerate changeTools to Eliminate Waste Copyright 2010 EMC Corporation. All rights reserved.49

Any questionsabout thephilosophies ortools used toremove waste? Copyright 2010 EMC Corporation. All rights reserved.50

Lean Basics – Key Points Lean is a process improvement methodology used to combatwaste. It can be used with Six Sigma which helps us removevariation from a process. Everything is a process; every process can be improved. Only our customers can define value. Everything else iswaste and should be eliminated as possible. In order to remove the waste in our process, we must be ableto see it Lean provides the needed tools. Copyright 2010 EMC Corporation. All rights reserved.51

Lean Basics – Key Points Key components of Lean include:– Pull– Cellular Manufacturing– Continuous Flow / Single Piece Flow– Standard Work Kaizen is the tool that can take us from our current state towhere we want to be quickly. Continuous Improvement is essential to success in all Leanprograms. Copyright 2010 EMC Corporation. All rights reserved.52

Are you ready to beginyour Lean Journey?Final Questions & Next StepsAvailable for mentoring:Lee Ann ParrottEMC Corporation(919) [email protected] Copyright 2010 EMC Corporation. All rights reserved.53

References to check out Read:– Lean Six Sigma by Michael L. George– Lean Six Sigma for Service by Michael L. George– Lean Solutions, How Companies and Customers CanCreate Value and Wealth Together by James P.Womack & Daniel T.Jones Check out these web sites:– www.isixsigma.com– www.lean.org Copyright 2010 EMC Corporation. All rights reserved.54

Thank you! Copyright 2010 EMC Corporation. All rights reserved.55

Lean Thinking is the method used to combat waste – Pioneered by the Toyota company in Japan after WWII. – Application of Lean in Manufacturing has led to much cost removal via the elimination of wasteful efforts. – Lean Thinking provides for change that allows you to do more with