Lean and Kaizen for Rapid Process Improvement

Your Gateway to Operational Excellence
Lean and Kaizen for
Rapid Process Improvement

What’s In It For You?
• Simplifies processes – makes jobs easier and more fulfilling for
employees, which means lower employee turnover.
• Improves the quality of products – helps to better define,
simplify, standardise and control the processes.
• Increases throughput – helps to improve productivity which in
turn improves deliveries and can lead to increased capacity and
sales.
• Permits smaller lots – helps to reduce inventory waste, quality
loss and production delays.
• Makes organisations more competitive – helps to reduce
wastes, lead time, total cost and resources usage and these
savings can be passed on to customers making you competitive.
• Saves jobs – helps to reduce costs and delivery lead times which
benefit the company and customers. Non-deployment of these
tools and techniques potentially make companies non-competitive
and this could lead to loss of work to off-shore companies.
This document is a partial preview. Full document download can be found on Flevy:
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What is a Kaizen Event?What is a Kaizen Event?
An intensive burst of process improvement!An intensive burst of process improvement!

The biggest change of all
• Ultimate objective of all continuous improvement
is Human development
• The real power is when everyone is applying
“lean thinking” to their work every day
• When everyone is giving birth to miraculous new
ideas every day

How do they do that?How do they do that?

The second biggest change of allThe second biggest change of all
Management StyleManagement Style

Everything
Takes timeTakes time
Costs moneyCosts money

All Work is Either
•• Value AddValue Add
–– Transforms material or information to meet the true desires ofTransforms material or information to meet the true desires of
an external customeran external customer
•• NonNon--Value AddValue Add
–– ControlControl
–– InformationInformation
–– AdministrationAdministration
–– OtherOther

The # 1 Fundamental Principle of Process
Improvement
• Anything that does
not add value is
waste, and must be
reduced or
eliminated

Concept of Value
Original Lead
Time
VA
Typical
Company
Lean
Non- Value Addition
Traditional
Improvement
Minor
Improvement
Major
Improvement
Non- Value Addition VA
NVA VA

The Hidden Wastes in Businesses
World-Class Companies
Waste < 40%
40%
Value Added
Activities
60%
Defects
Over Production
Waiting
Non-Effective Use of Resources
Transportation
Inventory
Motion
Excessive Processing
Traditional Companies
Waste
96%
Value Added
Activities
4%

Steps to reduce or eliminate waste
1.1. Organize the workplaceOrganize the workplace –– 5S5S
2.2.
3.3.
4.4.
5.5.
6.6.
7.

What isWhat is ““flowflow””??
A process where a "target object" movesA process where a "target object" moves
quickly from valuequickly from value--adding activity to valueadding activity to value--
adding activity without interruptions for anyadding activity without interruptions for any
of the 7 types of muda.of the 7 types of muda.This document is a partial preview. Full document download can be found on Flevy:

Why flow?
Improved employee morale
• In the classic research book Flow: The Psychology of Optimal
Experience, Csikzentmihalyi studies thousands of self-described
"optimal experiences" at work and play, and summarizes the
characteristics of an optimal work experience
•• The operator sees and understands the whole process and howThe operator sees and understands the whole process and how
the parts fit togetherthe parts fit together
•• The operator has high degree of control and involvementThe operator has high degree of control and involvement
•• The task requires full attentionThe task requires full attention -- it is neither boring norit is neither boring nor
overwhelmingoverwhelming
•• There are few or no interruptionsThere are few or no interruptions
•• There is immediate feedbackThere is immediate feedback

Why flow?
The number one reason…
All of that is great, but what is the number one
reason for wanting to achieve flow?
Flow enables pull
(remember this answer for later)

Functional Department LayoutFunctional Department Layout
(Spaghetti Diagram)(Spaghetti Diagram)

What if our process
includes a “monument”?
• A “monument” is anything (but usually a large
piece of equipment) that is so huge or expensive
that it requires large batches, and/or must be
shared by the production processes for several
product lines
• Ideal option is often to replace the monument
with equipment capable of producing in small lot
sizes
• But the world isn’t always ideal, is it?
• Decouple the processThis document is a partial preview. Full document download can be found on Flevy:

Lower the water level slowlyLower the water level slowly

What are Andon lights?What are Andon lights?
Lights that looks like a trafficLights that looks like a traffic
lightlight –– located on the shoplocated on the shop
floor. Anyone can turn on afloor. Anyone can turn on a
light at any time.light at any time.
•• Red lightRed light –– stops productionstops production
•• Yellow lightYellow light –– need inventoryneed inventory
•• Blue lightBlue light –– have a questionhave a questionThis document is a partial preview. Full document download can be found on Flevy:

Your competitors are going to buy you up and pay for you
by liquidating your own excess inventories if you continue
to use batch & queue for...
• Production of product lines with any kind of
volume
• New product design cycles that allow your
competitors to consistently "beat you to market“
• Sales order processing & fulfillment processes
that are inefficient enough to annoy and anger
your customers

Standard Work
Definition
• Standardization of best work practices - as the
work is actually routinely done. (in real life)
Purpose
• To make operations repeatable, ensuring
consistently high productivity, and reduced
variability of output

What’s the difference between?
• Process lead time
• Cycle time
• Takt time

Takt Time – planning drumbeat
• Process Lead Time and Cycle
Time are measures of the
average time that it actually
takes to do something
• Takt time is used for planning
• Takt time can be thought of as
“planned cycle time” (planned
average time between completion
of two discrete units of
production coming out the end of
the pipe)

Maximize Throughput
Not Output
•• OutputOutput
–– The dollar value of items producedThe dollar value of items produced
•• ThroughputThroughput
–– The dollar value of items producedThe dollar value of items produced that havethat have
been soldbeen sold (based on customer demand)(based on customer demand)

Takt Time – planning drumbeat
We’re workin’ to da takt time…
to da takt time…
Workin’ to da takt time…
Uh huh…
We’re workin’ to da takt time…
to da takt time…
Workin’ to da takt time…
Oh yeah…This document is a partial preview. Full document download can be found on Flevy:

Visual Systems
• Wherever possible –
implement visual systems
that… Are easily found where
needed
• Are easy to understand
• Are quick to understand
• Provide (only) the most
meaningful feedback

Job Design & Change Management Tools
• Jobs Design Spec
• Change Management Worksheet
• Force Field Map
• Organization Chart
• 5S Schedule
• Standard Work Chart
• Standard Work Audit Checklist

Training Program Development Tools
Any design or documentation tools, plus…
• Training Program Development Spec
• Training Plan
• Training Evaluations
•• Training OutlineTraining Outline
–– (perhaps with Instructor Notes)(perhaps with Instructor Notes)
•• Training slides & handoutsTraining slides & handouts
–– (perhaps with Instructor Notes)(perhaps with Instructor Notes)
•• Training database sample dataTraining database sample data
•• CrossCross--Training MatrixTraining Matrix

What is needed for small batch sizes?What is needed for small batch sizes?
Short setupsShort setups
What are the two primary measures used to
reduce Lean batch sizes?
•• Setup TimeSetup Time
•• Every Part Every IntervalEvery Part Every Interval

Every Part Every Interval - Calculation
• Time Available for Changeovers = Working hours per
month for pacemaker operation minus calculated total cycle
time for all items going through pacemaker operation (e.g.
320 working hrs – 280 cycle hours = 40 hours)
• Number of Intervals Per Month = Time Available for
Changeovers divided by number of products or product
families times Changeover Time per changeover (e.g. 40
hours / 20 products x 1 hr per CO = 2)
• EPE Interval = Number of working days per month divided
by the Number of Intervals per Month (e.g. 20 working
days / 2 Intervals per Month = Every Part Every 10 days)

Pull - make only what the customer orders
• "Pull" is the biggest pay-off for re-designing your
process to flow with small batch sizes.
• Benefits of pull
– Little or no waste doing things that no one will
ever pay for
– Little or no finished goods inventory
– Little or no reliance on sales forecast
– Radically short lead times for radically
customized deliverables
– An arsenal of weapons to annihilate your
competitors: Lower costs, lower lead times,
higher quality...

Types of kanbans
•• AA kanbankanban can be any visual signal authorizingcan be any visual signal authorizing
upstream production or deliveryupstream production or delivery
–– Materials kanbansMaterials kanbans
•• authorize replenishment of materialsauthorize replenishment of materials
–– Production kanbansProduction kanbans
•• authorize upstream productionauthorize upstream production
–– Electronic kanbansElectronic kanbans
–– can be used to trigger replenishment by offcan be used to trigger replenishment by off--
site supplierssite suppliersThis document is a partial preview. Full document download can be found on Flevy:

Steps to reduce or eliminate waste
1.1. Organize the workplace (5S)Organize the workplace (5S)
2.2. Arrange everything toArrange everything to ““flowflow””
3.3. Standardize workStandardize work
4.4. Make small batchesMake small batches
5.5. Introduce pull systems (selfIntroduce pull systems (self--correcting control)correcting control)
6.6. Make tiny batches (ideal lot size is 1)Make tiny batches (ideal lot size is 1)
7.7. Never stop continuous improvementNever stop continuous improvement

Let’s do it!
• Let’s get out there and improve some
processes!

Waiting
• People waiting for
information, approvals,
machines materials etc.
• Machines waiting for
materials, people,
changeovers etc
People and Resources waiting …

Inventory
• More than what’s needed
• WIP by next process
• FG in excess of demand
• Due to supplier unreliability
• Long lead times
• Poor planning
• Running machines to full capacity
even if not needed
• Too many emails needing action
• Too many office supplies even
when you can get at a short
notice
• Too many files on desks

Lean Tool Box
Takt Time
POUS
Value Teams
5S
Error Proofing Total Productive Maintenance
Stream Mapping
Kaizen (Continuous Improvement)
Quick ChangeoversPull /Kanban
Continuous Flow Production Leveling
Plant Layout Visual Systems
Standardised Work Quality at Source

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