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					   Welcome
      to
ACME Corporation!


       ACME Proprietary
Lean 100: An Introduction
    to Lean Thinking




           Month 200X



          ACME Proprietary
Jay Watson
Lean Advocate




    ACME Proprietary
Strategy

 The company's business strategy is based on four principles:
 clear market focus, product line breadth, technical excellence
 and cost efficiency.
First, we focus our business on customers whose applications can be best
 served by smaller space and rocket systems, which have grown to be an
 important part of the $100 billion global space industry.
Second, we develop and manufacture a complete set of advanced lightweight
 satellites and comparable launch vehicles that are responsive to our customers'
 needs.
Third, we emphasize creative yet thorough design and engineering along with
 meticulous purchasing, production, and testing, to assure the highest safety and
 reliability for our space products.
And finally, we rely on a strong company culture and disciplined management
 systems that stress cost consciousness and efficient use of resources.


                   Adding Value in everything we do …

                                  ACME Proprietary                                 Lean 100
                                                                                    Page 5
Credo


 SpaceCo is committed to providing High-Reliability
 Space and Defense Systems to Our Customers.

                     We will achieve this through:


 1. Maintaining a highly skilled and motivated team.
 2. Establishing and reviewing Product Quality Metrics.
 3. Continuously Evaluating and Improving our Processes.
 4. Endeavoring to meet and exceed Our Customer‟s requirements
    and expectations.




                            ACME Proprietary                Lean 100
                                                             Page 6
Deployment

Mission:
“Implement Lean Enterprise across all SpaceCo
 divisions using -
• comprehensive training
• standardized rewards and recognition
• teamwork

 … so that Waste and Cost are reduced and Quality,
 Profit and Customer Satisfaction are increased.”

Vision:
“A Corporate Culture where Continuous Improvement
 is a part of every Employee‟s workday.”

                             ACME Proprietary        Lean 100
                                                      Page 7
History of Lean Thinking


                             Pre-industrial                  Mass Production                      Lean Manufacturing
                              - Circa 1890                      – circa 1930                           - circa 1980
                   • Craftsmen perform all aspects   • Employees contribute minimally        • Clusters of employees working
                     of task                           to total product                        in teams
People




                   • Self-taught or apprenticeship   • Training for limited skills           • Extensive, continuing training
                     training                        • Management makes decisions



                   • Customized, non-standard        • Standardized, focused on volume       • Focus on internal/ external
Product




                     products                          not quality                             customer
                   • Variation in quality



                   • Independence, discretion        • Limited skills and knowledge          • Some discretion, group
Work Environment




                   • Variety of skills               • Repetitive, mind-numbing work           effectiveness, empowerment,
                                                                                               team accountability, work cells
                   • Responsibility                  • Little discretion, simplified tasks




                                                             ACME Proprietary                                                    Lean 100
                                                                                                                                  Page 8
Reduced Lead Time




  “One of the most noteworthy accomplishments
   in keeping the price of Ford products low is
   the gradual shortening of the production cycle.
  The longer an article is in the process of
   manufacture and the more it is moved about,
   the greater is its ultimate cost.”


                                          — Henry Ford,




                       ACME Proprietary                   Lean 100
                                                           Page 9
Reduced Lead Time




  “One of the most noteworthy accomplishments
   in keeping the price of Ford products low is
   the gradual shortening of the production cycle.
  The longer an article is in the process of
   manufacture and the more it is moved about,
   the greater is its ultimate cost.”


                                          — Henry Ford, 1926




                       ACME Proprietary                        Lean 100
                                                               Page 10
 Lean Is Market Driven

 Every morning in Africa, a gazelle wakes up. It knows it must run faster than the fastest lion
 or it will be killed. Every morning a lion wakes up. It knows it must outrun the slowest
 gazelle or it will starve to death.




It doesn’t matter
whether you are a lion
or a gazelle — when
the sun comes up, you
had better be running.



                                        ACME Proprietary                                   Lean 100
                                                                                           Page 11
Defining Lean




     Lean is:
     “A systematic approach to identifying
      and eliminating waste (non-value-
      added activities) through continuous
      improvement by flowing the product at
      the pull of the customer in pursuit of
      perfection.”
                                        — The MEP Lean Network




                     ACME Proprietary                            Lean 100
                                                                 Page 12
Defining Lean Thinking



      Lean Thinking is:
      “A way to specify value, line-up value
       creating actions in the best sequence,
       conduct these activities without
       interruption whenever someone
       requests them,
                        and
      perform them more and more
       effectively.”

                                             — Lean Thinking
                                            Womack and Jones
                         ACME Proprietary                      Lean 100
                                                               Page 13
What Is Waste?




     Waste is “anything other than the
      minimum amount of equipment,
      materials, parts, space, and worker’s
      time which are absolutely essential to
      add value to the product.”

     ~ Shoichiro Toyoda
        President, Toyota Motors
          (#1 car company in the world… w/ sales surpassing GM 4/25/2007)




                                      ACME Proprietary                      Lean 100
                                                                            Page 14
Demonstration




   • Let’s have some
     fun !
      (First trial)




                ACME Proprietary   Lean 100
                                   Page 15
Definition of Value-Added Work Content



 Value-Added:                          Non-Value-Added:
 Any activity – done right             Any activity that does not
 the first time - that                 add market form or function
 increases the market,                 or is not necessary.
 form, or function of the
 product or service.


 (These are things the                 (These activities should be
 customer is willing to pay            eliminated, simplified,
 for.)                                 reduced, or integrated.)



                              ACME Proprietary                       Lean 100
                                                                     Page 16
Lean = Eliminating Waste and Wasteful Practices



 Value-Added                          Non-Value-Added
                                       • Overproduction
                                       • Waiting
                                       • Transportation
                                       • Non-value-added processing
                                       • Excess inventory
                                       • Defects
                                       • Excess motion
                                       • Underutilized people

         Typically 95% of all lead time is non-value-added.
                              ACME Proprietary                    Lean 100
                                                                  Page 17
Demonstration




   • Let’s have some
     MORE fun !
      (second Trial)




                ACME Proprietary   Lean 100
                                   Page 18
Eight Wastes




               ACME Proprietary   Lean 100
                                  Page 19
Push versus Pull Systems


Push System                                  Pull System
 Resources are provided                       A method of controlling
 to the consumer based                        the flow of resources by
 on forecasts or                              replacing only what has
 schedules                                    been consumed

Pull System is a flexible and simple         Pull System consists of:
method of controlling or balancing the         • Production based on actual
flow of resources                                consumption
Eliminating waste of handling,                 • Small lots
storage, expediting, obsolescence,             • Low inventories
repair, rework, facilities, equipment,         • Management by sight
excess inventory (work-in-process              • Better communication
and finished goods)


                                    ACME Proprietary                          Lean 100
                                                                              Page 28
How to uncover Waste




                                                ?
       Ask what?
          What is the operation doing?

       Ask why?
          Why is the operation necessary?
          Ask why at least 5 times to lead you to the root cause
       Everything that is not work is waste
          Once you know the function, you can identify as waste
          anything that does not execute that function




?
       Draft an improvement plan…
          Ask how?


                           ACME Proprietary                    Lean 100
                                                               Page 29
How to uncover Waste




                                          ?

?                       Map and Analyze
                        Process steps …
                       ACME Proprietary       Lean 100
                                              Page 30
 How to uncover Waste




 Id Waste &
Organize the
                                           ?
workplace …
  5S is a
‘good start’
 ?                      ACME Proprietary       Lean 100
                                               Page 31
How to uncover Waste

Through Teamwork
  … attack root
     causes
                                                  ?
                                          Accountability



                            Standardize &
                            Mistake-proof

?                            Processes.
                           Monitor Results!
                       ACME Proprietary                    Lean 100
                                                           Page 32
Why Change?


• “The dogmas of the quiet past are inadequate
  to the stormy present. The occasion is piled
  high with difficulty, and we must rise with the
  occasion. As our case is new, so we must
  think anew, and act anew.”
                                ~ Abraham Lincoln

• “The definition of insanity is doing the same
  thing over and over and expecting different
  results.”
                                     ~ Albert Einstein


                       ACME Proprietary                  Lean 100
                                                         Page 33
Funny Thing About Continuous Improvement


Old Adage:
 “If you always do what you always did, you‟ll always
  get what you always got.”


Competitive Corollary:
 “If the other guy gets better, you‟re going to get less.”




 “With regard to Continuous Improvement –
  The Sky’s the Limit !!”
                              ~ Jay Watson
                            ACME Proprietary                 Lean 100
                                                             Page 34
Building Blocks of The Lean Enterprise




                “Continuous Improvement”




     Training         Rewards / Recognition      Teamwork
                              ACME Proprietary              Lean 100
                                                            Page 35
Building Blocks of The Lean Enterprise




                “Continuous Improvement”




                                                            Value
                                                            Stream
                                                            Mapping

     Training         Rewards / Recognition      Teamwork
                              ACME Proprietary                        Lean 100
                                                                      Page 36
Building Blocks of The Lean Enterprise




                “Continuous Improvement”
       Pull / Kanban          Cellular / Flow        TPM

      POUS        Quality at Source        Quick Changeover

     Standardized Work       Batch Reduction        Layout
                                                               Value
                                                               Stream
     Teams           5S System            Visual Management    Mapping

     Training          Rewards / Recognition        Teamwork
                               ACME Proprietary                          Lean 100
                                                                         Page 37
Lean Enterprise Practices


• Continuous Improvement (CI) philosophy
• Teams
    – With rotation of highly specified job skills
    – Using a disciplined problem–solving process
•   Cross-trained and multi-skilled employees
    – Who can work many operations within a cell and
      operations in different cells (or capacities)
• Process quality, not inspection
• Use of participatory decision-making
    – Facilitator-led, team-based problem-solving,
      suggestion systems, etc.
                            ACME Proprietary           Lean 100
                                                       Page 38
Barriers to Improvement


If we all know we need to improve, the question becomes: why don’t we?




                              ACME Proprietary                       Lean 100
                                                                     Page 39
Traditional Culture

• Leader makes all decisions – Team Members follow with little
  input
• Process Improvement ideas are devised by the Leader and carried
  out by the Team Members
• Culture will succeed when the Team Members are inexperienced
  or when immediate decisions are critical (Peace Officers, Military)
• Process Improvement ideas are only as good as the single person
  who makes them
• Little vested interest from Team Members




                             ACME Proprietary                      Lean 100
                                                                   Page 40
Evolving Culture

• More experienced Team members and more enlightened
  Leadership
• Teams surface their ideas for Leaders final approval
• Better Continuous Improvement ideas are devised because of
  the increased participation and slight shift in ownership
• Employee Satisfaction increases
• Leadership begins to shift from Tactical to Strategic decision
  making




                            ACME Proprietary                       Lean 100
                                                                   Page 41
Evolved Culture

• Leader sets boundaries based on Company fiscal plans and
  objectives
• Self Directed work teams manage all Tactical issues
• Leader removes barriers and monitors performance while
  teams develop solutions and meet objectives
• Building Consensus over following orders




                           ACME Proprietary                  Lean 100
                                                             Page 42
Let‟s Build Quality at Every Step

• Design for manufacture/ assembly
   – Complex designs cause defects
• End-product knowledge (NOAC)
   – Will my output satisfy my customer?
• Standardized Work (SW)
   – Eliminate Tribal knowledge (“Rig something up”) / A single
     point of failure leads to poor quality and unreliable legacy
• Communication
   – Timely feedback to associates and vendors when quality
     problems are detected
• Mistake Proofing
   – Low-cost, highly reliable innovations that will detect
     abnormal situations before they occur, or if they occur, will
     stop the Operation

                                ACME Proprietary                     Lean 100
                                                                     Page 45
Implementation Strategy


• Awareness of and active promotion of Continuous
  Improvement – a „Safer, Better, Faster‟ mindset
• Training (OTJ and OYO)
• Development (Self-directed)
• Focused Improvement Events (Kaizen)
• Team participation (Projects)
• Culture Change (Continuous Improvement Mentality)
• Long Term Planning
• Benchmarking
• Promotion of Success (Betterment of Organization)


                          ACME Proprietary            Lean 100
                                                      Page 46
Implementation Success Factors


• Unyielding leadership
• Strategic vision, based on Lean Enterprise as part of
  company strategy
• Observation of outside successes and failures
• Ability to question everything
• Deep commitment to excellence




                             ACME Proprietary         Lean 100
                                                      Page 47
From the CEO
                       “I ask everyone to get involved in this initiative.
                        Lean principles will give us a powerful
                        framework to continuously evaluate and
                        improve our design, production, procurement
 Thurston Howell III    and other essential processes, providing us with
              a new
         tool to meet our commitments to the company’s customers.


         I am looking to each of you for ideas and support of the
         lean enterprise initiative.


         Together, we will continue to boost SpaceCo to heights that
          are beyond our competitors’ reach.”


                                      ACME Proprietary                       Lean 100
                                                                             Page 48
Reference Information

 Lean Website:
 www.freeleansite.com
 • Training
 • Projects
 • Examples
 • Articles
 • Newsletters
 • Presentations
 • Events – in summary
 • 5S program
 • Tools and Forms
 • Seminars
 • Industry Links
 • Contacts

                         ACME Proprietary   Lean 100
                                            Page 49
Lean 100: An Introduction
    to Lean Thinking




           Month 200X



          ACME Proprietary

				
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