Christopher Wood has over 26 years of experience helping companies implement Lean principles across multiple industries. He discusses the origins and key thinkers behind Lean, and defines Lean as a time-based philosophy focused on eliminating waste to create value for customers. The presentation reviews the five laws of process thinking, including defining value and value streams, the activities in any process, and the need for continuous flow. It provides examples of how Lean has helped companies significantly reduce costs, lead times, defects and inventory while improving productivity, quality and space utilization.

1. Introduction to Lean Thinking
Christopher Wood
chris@tenxv.com
chris@tenxv.com (509) 220 4990

2. Chris@tenxv.com
30 different industries
Has worked with over 35
different companies
Has worked in 28 states
And 5 different countries
From New start-ups to 100
year old firms
Small family businesses to
Fortune 500 companies
Old Brown field sites to New
Green field plant start-ups
And from the shop floor to
the boardroom
From dirt clods to clean
rooms
26 years of Experience

3. Primary Materials – metals,
plastics & wood
Solar Energy Start Ups
Utilities
Medical Devices
Biotech
Contract Manufacturing
Forestry & Agriculture
Financial Services
Bakeries
Automotive
Construction Equipment
Food Processing
Consumer Electronics
Defense & Aerospace Electronics
Aerospace Structures
Telco Equipment .
Interior Fixtures & Furnishings
Lighting System Mfg.
26 years of Experience
Multiple Industries

4. 26 years of Experience
Boeing Commercial Airplane
Alcoa
BF Goodrich Aircraft
Sensors
Honeywell Aircraft
Equipment
Johnson & Johnson’s
BioSense Webster
Iomega
Purcell Systems
PV Power
GreenVolts
Mackay
Ecolite
Novation
Cyrus O’Leary Pies
Washington Trust Bank
Sample of Clients

5. Today Presentation
The purpose of todays presentation
• Learn the Principles of Lean Thinking
• Understand the 5 of the laws of Process Thinking
• How People are key
• Problem solving is a method that is necessary

6. Why Bother with Lean?
Why bother with the Lean Thinking?
• Customer response times improve
• Costs are reduced
• Errors and defects are eliminated
• Competitive advantages are created

7. Industry Week’s Best Plants winners and
finalist from 1998 to 2002 results
• Average productivity up 30% per year
• Operational availability of equipment better > 95%
• Though put time of an order reduced by 70%
• Reduced Work In Process Inventory from 10 days
to 2 days, a 80% reduction
Reason To Believe Real Numbers

8. So what is Lean ?
• A time based business philosophy (model)
− Customer focus
− Flow is key - think value streams
− Eye on eliminating waste
− A management system of people, process
thinking and problem solving
− Endless journey of continuous improvement
• Best known as the Toyota Production System
(TPS)

9. Origins of Lean
Kiichiro & Eiji Toyoda

10. The Masters of Lean
Taichi Ohno

11. Spirit of Improvement
• Challenge:
– Keep costs low
– Keep quality high
• Requires:
– A new way of thinking and a new spirit of improvement
– Training in methods of reducing waste
– Leadership at all levels
– Implementation builds skill
• Theory is worthless unless it can be applied
• We must put the principles into practice to understand them
• Improvements can be made at little or no cost
Principles of Lean

12. Creating a Common Language
TheFacts
How do we get to a common place, the
intersection?

13. Defining Value
1. Any activity that changes the fit, form, or
function of a product or service.
2. Something a customer is willing to pay for it.
1st Law of Process Thinking

14. Defining a Value Stream
 A sequence of operations that transforms
the fit form or function of a product or
service.
 Three high level types of Value Streams:
1. Process and Product Development / Design
2. Transformation / processing
3. Logistics
Value Stream

15. Another View of Value
Necessary
Activity
“Less is More”
Mistake proof
Setup Reduction
Simplify,
Standardize,
& Sustain
Unnecessary
Activity
Stop doing it
Today!
Eliminate!
Process
Improvement focus
Non-Value-
Added Activity
Value Creating
Activity
Creating Value

16. 1. Processing (VA) - when the fit, form or function of
the product or data changes.
2. Inspecting (NVA) - verifying, checking, inspecting
and auditing the product or data – a comparison to a
standard.
3. Transporting (NVA) - when the product or data
changes location.
4. Storing (NVA) - any time when transformation,
inspection, or transportation is not happening.
2nd Law of Process Thinking
Activities of Any Process

17. Every activity requires these basics
components – the “4M’s”
1. Team Members: perform the work and activities of
the value stream.
2. Materials: parts, data, off-loaded work, …..
3. Machinery: equipment, facilities, tools, computers,
jigs, fixtures, ……
4. Methods: product design, inspection, processing, daily
management and infrastructure, includes software.
3rd Law of Process Thinking

18. How do we create value in service
processes?
Data = Materials
• Data = a point in time, describing reality
Data + Questions = Information
• Questions = Methods
• Methods = Knowledge
• Knowledge = Intellectual property
Information = Value ($)
How do we create value ?

19. We Must Define Waste Better

20. Many Different Tools
Waste Elimination

21. “The key to eliminating waste is to create
flow”
Taichi Ohno
4th Law of Process Thinking
“Without flow, all there is…
is too much complexity” Chris Wood

22. Continuous Flow
. . . Means Steady Velocity
Traditional batch production:
meandering stream with many
stagnant pools and eddys
Lean production:
pipeline with
fast-flowing product

23. Objectives for Every Value Stream
• Correct specification of value
• Elimination of wasteful tasks
• Flow where you can
• Pull where you can’t
• Manage toward perfection
Value Stream Objectives

24. 8 Steps of Continuous Flow
1. Collect data and analyze work flow.
2. Design process sequence.
3. Minimize the distance between machinery.
4. Produce and move one piece at a time.
5. Produce at the rate of customer’s consumption.
6. Balance operations and standardize work in the
cell.
7. Train personnel to operate multiple operations.
8. Separate people from machines.

25. 4 Stages of CF
Stage 1
Production in Specialized Departments
Stage 2
Production in Product Cell
Stage 3
Production in Compact Cell with One-Piece Flow
Stage 4
Production in Compact Cell with
One-Piece Flow and Separation Man/Machine

26. How to move to Stage 2?
Getting Alignment – Process Walk

27. Stage 2
Which of the 8 steps were completed?
Stage 2
Production in Product Cell

28. 8 Steps of Continuous Flow
1. Collect data and analyze work flow.
2. Design process sequence.
3. Minimize the distance between machinery
Which of the 8 steps were completed
in Stage 2?

29. Stage 2
Process walk after a Kaizen Workshop

30. BeforeStage 2
Before Kaizen Workshop

31. Produce at the rate of customer’s consumption.
Determine customer demand by calculating
Takt Time
(Available time/required product)
(420min/day)/210units/day= 2 min/unit
5th Law of Process Thinking
Key to material and capacity planning

32. A3 Thinking – Scientific Method of Problem Solving, the PDCA Cycle 32
A Complex Case Study
• Aerospace manufacture
– Electronic and wiring fabrication/assembly
– 2,500 employees, two locations
– Products/services
• Aircraft electrical wiring
• Flight deck electronics
• Electrical bay racks/shelves
• Cabin management/IFE systems
– Sales: $1 billion

33. A3 Thinking – Scientific Method of Problem Solving, the PDCA Cycle 33
Sample of Work

34. A3 Thinking – Scientific Method of Problem Solving, the PDCA Cycle 34
A Complex Case Study
• Commercial Aircraft Power Panels
– Six power panels
– 2’ x 3’ enclosure
– 3,000 to 4,000 wires each
– 100 to 200 connectors with standards
– Completely custom/unique
– Engineering defined 10 days before build

35. A3 Thinking – Scientific Method of Problem Solving, the PDCA Cycle 35
Departmental Layout

36. A3 Thinking – Scientific Method of Problem Solving, the PDCA Cycle 36
Stage 2 Product Family Layout

37. A3 Thinking – Scientific Method of Problem Solving, the PDCA Cycle 37
Stage 2- Cell Design

38. A3 Thinking – Scientific Method of Problem Solving, the PDCA Cycle 38
Stage 3 -Moving Line Layout

39. A3 Thinking – Scientific Method of Problem Solving, the PDCA Cycle 39
Results Using Lean
Production Flow Time
WIP Inventory
Floor Space
Before
21 Days
5 Ship Sets
5,499 Sq. Ft.
After
8 Days
1.4 Ship Sets
2,691 Sq. Ft.
Change
62% less Time
72% less WIP
51% less Space
Power Cells
Production Flow Time
WIP Inventory
Floor Space
Flight Deck
Production Flow Time
WIP Inventory
Floor Space
APO 3
23 Days
5 Ship Sets
5,694 Sq. Ft.
7 Days
1 Ship Set
3,024 Sq. Ft.
70% less Time
80% less WIP
46% less Space
7 Days
3 Ship Sets
2,400 Sq. Ft.
3 Days
1 Ship Set
1,800 Sq. Ft.
57% less Time
67% less WIP
25% less Space
A Complex Case Study

40. A3 Thinking – Scientific Method of Problem Solving, the PDCA Cycle 40
Recommended Strategy: Model Value Stream
Lean Enterprise
Lean Awareness and Education
• Quick look
• Lean education
• Lean Enterprise model
Lean Strategy
• Analysis/Assessment
• Alignment/Vision
• Implementation Planning
Model VS Implementation
• 90-day project
• Learning by doing
• Example of lean
Systems Resolution
• Global issue resolution
• KE approach
• Project approach
Cell-by-Cell Transition
• Strategic sequence
• Area by area
• Focused effort
KEs
KEs
5S Launch
40
Road Map to Lean Enterprise

41. A3 Thinking – Scientific Method of Problem Solving, the PDCA Cycle 41
People
• How we manage creates the culture we want
• We need to manage so that we have a culture
of learning fast how to do things right
Skill
(how to)
Desire
(want to)
Knowledge
(what to do)
Deep Learning Cycle = the right culture

42. A3 Thinking – Scientific Method of Problem Solving, the PDCA Cycle 42
People
• In the book The 5th Discipline, Peter Senge
outlines what it takes to build a learning
organization.
• He states there are 5 key elements:
1. Shared Vision
2. Team Learning
3. Mental Models
4. Personal Mastery
5. Systems Thinking
Creating a learning organization

43. A3 Thinking – Scientific Method of Problem Solving, the PDCA Cycle 43
Principles and People
Learning Organization and TPS fit hand and
hand:
1. Philosophy
• Shared Vision
• Mental Models
2. Process Thinking
• Systems Thinking
3. People
• Personal Mastery
4. Problem Solving
• Team Learning

44. A3 Thinking – Scientific Method of Problem Solving, the PDCA Cycle 44
A3 Thinking
Why aren’t we more effective in our companies?
– Communications issues
– No common language or definitions within the
organization
– Lack of use of facts & data
– Leadership does not truly understand their responsibilities
We Lack a systematic way to solve problems!
The A3 problem solving method provides concrete
structure to create a tremendously capable workforce.

45. A3 Thinking
Heading
Plan
Do
Check
Act/
Adjust
Footnotes
Plan
Do
Check
Adjust
(Act)
A3 Sheet of Paper (11”x17”)
A3 Thinking = PDCA Problem Solving
A Scientific Method

46. A3 Thinking

47. An A3 is a PDCA Story Board
 Always the four steps of Plan, Do, Check & Act
 Not a form, not even a standardized format
 Adjusted for the type of story being told, from
quality problems to company strategy
 No exact or specific look
It Tells a Story

48. A3 Thinking – Scientific Method of Problem Solving, the PDCA Cycle 48
A3 Thinking Benefits
A3 Thinking Benefits
1. Logical thinking process
2. Objectivity
3. Results and process
4. Synthesis, distillation & visualization
5. Alignment
6. Coherence within and consistency
across
7. Systems viewpoint

49. One Final Thought
Spirit Ground rules 3P Hoshin Policy Deployment Scientific method – PDCA
1.Collect data and analyze work flow.
PQ analysis Process walk Value stream mapping
2.Design process sequence.
Process flow chart Value streams A3 problem solving 4M’s
3.Minimize the distance between machinery.
5S Cell layout & design Visual controls
4.Produce and move one piece at a time.
Setup reduction Pull system SWIP POUS Kanban Poke yoke Six sigma
5.Produce at the rate of customer’s consumption.
Takt time calculation Level loading Heijunka Plan for Every Part TPM
6.Balance operations and standardize work in the cell.
Standard work combination sheet Standard work layout sheets Time observation studies
Line balance chart
7.Train personnel to operate multiple processes.
Cross-training Skills analysis matrix TWI – JI, JM, JR
8.Separate people from machines.
Chaku-chaku Autonomation/Judoka Andons Right-sized machines