d-1 lean basics dewey warden. d-2 lean basics value stream mapping the seven wastes 5s’s processes...

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Lean BasicsLean Basics

Dewey WardenDewey Warden

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Lean BasicsLean Basics

Value stream mappingValue stream mapping

The seven wastesThe seven wastes

5S’s5S’s

Processes and operationsProcesses and operations

Process flow and cell designProcess flow and cell design

Process standardizationProcess standardization

Overview of quick changeoversOverview of quick changeovers

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Value Stream MappingValue Stream Mapping

How many are familiar with value stream How many are familiar with value stream mapping?mapping?

What value do you think mapping can provide What value do you think mapping can provide your organization?your organization?

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Value Stream MappingValue Stream Mapping

What is a value stream?What is a value stream?– A value stream is all the actions (both value added and A value stream is all the actions (both value added and

non-value added) currently required to bring a product non-value added) currently required to bring a product through the main flows essential to every productthrough the main flows essential to every product

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Value Stream MappingValue Stream Mapping

Two main flowsTwo main flows

(1) The production flow from raw material to the (1) The production flow from raw material to the customercustomer

(2) The design flow from concept to launch(2) The design flow from concept to launch– We are concentrating on the production flowWe are concentrating on the production flow

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Value Stream MappingValue Stream Mapping

Production flow - all the relevant Production flow - all the relevant actions consist of two flowsactions consist of two flows– Orders traveling upstream from the Orders traveling upstream from the

customercustomer

– Products coming downstream from raw Products coming downstream from raw materials to the customermaterials to the customer

Together these constitute a closed circuit of Together these constitute a closed circuit of demand and response in the information flow demand and response in the information flow and the material flowand the material flow

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Value Stream MappingValue Stream Mapping

It is the simple process of It is the simple process of directly observing the directly observing the flows of information and flows of information and materials as they occur, materials as they occur, summarizing them visually, summarizing them visually, and then envisioning a and then envisioning a future state with a much future state with a much better performance.better performance.

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Value Stream MappingValue Stream Mapping

Levels of mappingLevels of mapping

ProcessProcess

Single plantSingle plant

Multiple plantMultiple plant

Across companiesAcross companies

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Value Stream MappingValue Stream Mapping

Looking at the whole value Looking at the whole value streamstream

Cost cuttingCost cutting– Most managers look at one place Most managers look at one place

or one pointor one pointTheir machineTheir machine

Their departmentTheir department

Their plantTheir plant

Their firmTheir firm

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Value Stream MappingValue Stream Mapping

Traditional measuresTraditional measures

High labor utilizationHigh labor utilization

High machine utilizationHigh machine utilization

Focusing on their assetsFocusing on their assets

Focusing on their organizationFocusing on their organization

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Value Stream MappingValue Stream Mapping

What about?What about?

Performance of the entire value streamPerformance of the entire value stream

9 out of 10 steps are a waste9 out of 10 steps are a waste

99% of elapsed time is a waste99% of elapsed time is a waste

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Value Stream MappingValue Stream Mapping

Extended value stream maps Extended value stream maps

Can be used to raise the consciousness in every Can be used to raise the consciousness in every firm and function of the effect of its actions on firm and function of the effect of its actions on every other firm and function touching the value every other firm and function touching the value streamstream

Guide groups of managers across many Guide groups of managers across many departments and firms toward similar resultsdepartments and firms toward similar results

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Value Stream MappingValue Stream Mapping

Creating the value stream maps Creating the value stream maps

Walk along the value streamWalk along the value stream

Look forLook for– Which steps create value?Which steps create value?

– Which steps are waste?Which steps are waste?

– Why is order flow so erratic?Why is order flow so erratic?

– Why is quality so erratic?Why is quality so erratic?

– How can value be enhanced for the end-customer?How can value be enhanced for the end-customer?

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Value Stream MappingValue Stream Mapping

Creating the value stream maps Creating the value stream maps

Identify all the physical actions requiredIdentify all the physical actions required

Identify information actions currently required to Identify information actions currently required to manage the value streammanage the value stream

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Value Stream MappingValue Stream Mapping

You want a manufacturing approach that You want a manufacturing approach that enables companies to makeenables companies to make– What customers wantWhat customers want

– When they want itWhen they want it

– In the variety they wantIn the variety they want

– In the amount they wantIn the amount they want

Keeps cost low, quality high and lead time Keeps cost low, quality high and lead time minimal by eliminating wasteminimal by eliminating waste

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The Seven WastesThe Seven Wastes

How do you identify opportunities? How do you identify opportunities?

By recognizing waste and eliminating itBy recognizing waste and eliminating it

What is waste?What is waste?– Waste is any element that adds cost without adding value Waste is any element that adds cost without adding value

to the productto the product

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The Seven WastesThe Seven Wastes

OverproductionOverproduction

Excessive inventoryExcessive inventory

Unnecessary conveyanceUnnecessary conveyance

Over processingOver processing

Excessive motionExcessive motion

WaitingWaiting

CorrectionsCorrections

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The Seven WastesThe Seven Wastes

Overproduction and excessive inventory are Overproduction and excessive inventory are wastewaste– Overproduction creates excess inventoryOverproduction creates excess inventory

– Inventory hides production problemsInventory hides production problems

– Inventory leads to transport, storage, damage and delayInventory leads to transport, storage, damage and delay

– What are some other ways you can think of that What are some other ways you can think of that overproduction causes waste?overproduction causes waste?

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The Seven WastesThe Seven Wastes

Extra inventory hidesExtra inventory hides– Production imbalancesProduction imbalances

– Late deliveries from suppliersLate deliveries from suppliers

– DefectsDefects

– Equipment downtimeEquipment downtime

– Long setup timesLong setup times

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The Seven WastesThe Seven Wastes

Unnecessary conveyanceUnnecessary conveyance– What do you do with items not used immediately?What do you do with items not used immediately?

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The Seven WastesThe Seven Wastes

Unnecessary conveyanceUnnecessary conveyance– Move themMove them

– Store themStore them

– Pick it up, put it downPick it up, put it down

– Pick it up, put it downPick it up, put it down

– Pick it up, put it downPick it up, put it down

– DamageDamage

– DelayDelay

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The Seven WastesThe Seven Wastes

Over processingOver processing– Doing more work than is required by the customerDoing more work than is required by the customer

Give us some examples of where you might be over processingGive us some examples of where you might be over processing

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The Seven WastesThe Seven Wastes

Excessive motionExcessive motion– ReachingReaching

– BendingBending

– LiftingLifting

– TurningTurning

– CarryingCarrying

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The Seven WastesThe Seven Wastes

WaitingWaiting– What types of things might you be waiting for at your What types of things might you be waiting for at your

operations that causes delays?operations that causes delays?

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The Seven WastesThe Seven Wastes

CorrectionsCorrections– ReworkRework

– RedoRedo

– RetypeRetype

– Do-oversDo-overs

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The Seven WastesThe Seven Wastes

DDefectsefects

OOverproductionverproduction

WWaitingaiting

NNon-utilized talenton-utilized talent

TTransportationransportation

IInventorynventory

MMotionotion

EExtra processingxtra processing

Source: Villanova University

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The Five SsThe Five Ss

Set in Order

ShineStandardize

Sort

Sustain

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The Five SsThe Five Ss

Sort: Remove Sort: Remove everything from everything from the workplace the workplace that is not that is not needed for needed for current current production production

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The Five SsThe Five Ss

Set in Order: Arrange Set in Order: Arrange items so they are items so they are easy to find and easy to find and return and locate return and locate items to minimize items to minimize motion wastemotion waste

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The Five Ss The Five Ss

Shine: Keep Shine: Keep everything clean and everything clean and in top condition, so in top condition, so that it is ready to be that it is ready to be usedused

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The Five SsThe Five Ss

Standardize: Ongoing maintenance of Sort, Set Standardize: Ongoing maintenance of Sort, Set in Order and Shinein Order and Shine

Div./Dep./Section:

No. 5S Job

Org

aniza

tion

Ord

erlin

ess

Cle

anlin

ess

Cle

anup

Discip

le A B C D E F

1 Red-tag strategy O O2 Ret-tag strategy (repeated) O O3 Place indicators (check or make) O O4 Item indicators (check or make) O O5 Amount indicators (check or make) O O6 Sweep around line O O7 Sweep within line O O8 Sweep around worktable O O9 Sweep on and under worktable O O

10 Sweep work areas and walkways

Date: 5S Job Cycle Chart

Entered by:

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The Five SsThe Five Ss

Sustain: Create the Sustain: Create the conditions or conditions or structures that will structures that will help sustain help sustain commitmentcommitment

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Processes and OperationsProcesses and Operations

Quality processQuality process– Focuses on meeting requirements and on minimizing Focuses on meeting requirements and on minimizing

warranty costswarranty costs

Cost processCost process– Seeks to remove excess cost or waste in an organizationSeeks to remove excess cost or waste in an organization

Delivery processDelivery process– Manages the elements of time and quantity in sourcing Manages the elements of time and quantity in sourcing

materials, producing and getting product and service to the materials, producing and getting product and service to the customer as requiredcustomer as required

InnovationInnovation– Maximizes an organization’s success rateMaximizes an organization’s success rate

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Processes and OperationsProcesses and Operations

ProcessesProcesses– A continuous flow in A continuous flow in

which raw materials are which raw materials are converted to finished converted to finished productsproducts

OperationsOperations– Any action performed by Any action performed by

workers or machines on workers or machines on materials, WIP, or materials, WIP, or finished productsfinished products

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Processes and OperationsProcesses and Operations

ProcessesProcesses– Storage of raw materials or componentsStorage of raw materials or components

– TransportTransport

– TransformationTransformation

– Storage waiting for a processStorage waiting for a process

– InspectionInspection

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Processes and OperationsProcesses and Operations

Essential operationsEssential operations– The actual value-addingThe actual value-adding

Other operationsOther operations– Set-up, transport, inspectionSet-up, transport, inspection

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Processes and OperationsProcesses and Operations

In a lean enterpriseIn a lean enterprise– Value stream maps help to focus an organization on their Value stream maps help to focus an organization on their

processes to promote optimization of the whole company’s processes to promote optimization of the whole company’s performance by aligning interests across the companyperformance by aligning interests across the company

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Processes and OperationsProcesses and Operations

In a lean enterpriseIn a lean enterprise– Process-focused strategies unleash new levels of Process-focused strategies unleash new levels of

productivityproductivity

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Process Flow and Cell DesignProcess Flow and Cell Design

There are a lot of wastes in an operation based There are a lot of wastes in an operation based layoutlayout– Conveyance - using equipment and peopleConveyance - using equipment and people

– Badly used spaceBadly used space

– Lot delaysLot delays

Source: Productivity Press

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Process Flow and Cell DesignProcess Flow and Cell Design

Wastes in an operation based layoutWastes in an operation based layout

Source: Productivity Press

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Process Flow and Cell DesignProcess Flow and Cell Design

Benefits of a process flow layoutBenefits of a process flow layout– Positioning equipment in the process sequence for a Positioning equipment in the process sequence for a

smooth flowsmooth flow

– Minimal inventory and delaysMinimal inventory and delays

Source: Productivity Press

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Process Flow and Cell DesignProcess Flow and Cell Design

Multi-machine operationMulti-machine operation– One person runs several machines in process sequenceOne person runs several machines in process sequence

Source: Productivity Press

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Process Flow and Cell DesignProcess Flow and Cell Design

U-shaped cellsU-shaped cells

A process flow A process flow layout with the layout with the end point near end point near the beginning the beginning point.point.

Minimizes Minimizes walkingwalking

Source: Productivity Press

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Process Flow and Cell DesignProcess Flow and Cell Design

Small flexible Small flexible machinesmachines

Process small Process small amountsamounts

Save spaceSave space

Reduce walkingReduce walking

Easy set-upEasy set-up

Can be moved easilyCan be moved easily

Less expensiveLess expensive

Don’t need high Don’t need high speedspeed

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Process StandardizationProcess Standardization

Establishes Establishes predictabilitypredictabilityThree elementsThree elements– Standard cycle timeStandard cycle time– Standard work Standard work

sequencesequence– Standard in-process Standard in-process

inventoryinventory

Source: Productivity Press

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Process StandardizationProcess Standardization

Standard cycle timeStandard cycle time– The actual time required to process one partThe actual time required to process one part

– Determines whether a process is capable of producing the Determines whether a process is capable of producing the required quantity at the required time.required quantity at the required time.

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Process StandardizationProcess Standardization

Standard work sequence and in-process Standard work sequence and in-process inventoryinventory– A consistent set of operations and actionsA consistent set of operations and actions

– A consistent quantity of materials and WIP in the processA consistent quantity of materials and WIP in the process

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Process StandardizationProcess Standardization

The foundation for continuous improvementThe foundation for continuous improvement– Not “carved in stone” – it is a living standardNot “carved in stone” – it is a living standard

– Standardization is the first step in improvementStandardization is the first step in improvement

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Quick ChangeoversQuick Changeovers

Why would quick changeovers be important?Why would quick changeovers be important?

Where could you use quicker changeovers?Where could you use quicker changeovers?

Discuss pit stops and review videoDiscuss pit stops and review video

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Quick ChangeoversQuick Changeovers

Separate internal setup from external setupSeparate internal setup from external setup

Convert internal setup to external setupConvert internal setup to external setup

Streamline all aspects of setupStreamline all aspects of setup

Source: Productivity Press

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DemonstrationsDemonstrations

LeadingLeading– Dewey Warden, Lean ManagerDewey Warden, Lean Manager

AssistingAssisting– Kent Williams, Manager CTS Tactical Purchasing/PlanningKent Williams, Manager CTS Tactical Purchasing/Planning

– Joetta Hertel, Director Information TechnologyJoetta Hertel, Director Information Technology

– Becky Schnur, Manager General AccountingBecky Schnur, Manager General Accounting

Push vs pull demonstration modelPush vs pull demonstration model

Kanban demonstration modelKanban demonstration model

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End of Day OneEnd of Day One

Tomorrow deep dive into value stream mappingTomorrow deep dive into value stream mapping