tools to make waste visible. 2 for internal use only module objectives by the end of this module,...

Tools To Make Waste Visible

2FOR INTERNAL USE ONLY

Module Objectives

By the end of this module, the participant should be able to:

Develop a Spaghetti Chart to identify waste

Develop a Process Flow Diagram to identify waste

Create a Pareto Chart to identify waste

Develop a Cause and Effect Diagram to identify waste

Utilize Process Reports and Assessments to identify waste

3FOR INTERNAL USE ONLY

Recall The Five PrinciplesOf Lean Thinking

Review: Lean thinking can be summarized in five principles:

Principle 1 – Precisely specify the value of a specific process

Principle 2 – Identify the value stream for each process

Principle 3 – Allow value to flow without interruptions

Principle 4 – Let the customer pull value from the process

Principle 5 – Continuously pursue perfection

4FOR INTERNAL USE ONLY

What Tools Exist ToMake Waste Visible?

Spaghetti Chart

Process Flow Diagram

Pareto Chart

Cause and Effect Diagram

– Five Whys

Process Reports and Assessments

5FOR INTERNAL USE ONLY

Recall Types Of WasteManufacturing And Transactional

Types of waste

Overproduction

Inventory

Waiting

Transportation

Motion

Making defects

Overprocessing

Contributors to waste

Unevenness

Overburden

Current methods and processes

6FOR INTERNAL USE ONLY

Spaghetti Chart

Obtain a layout of the work area

List the steps in the process

Draw the path of the process from start to finish on the layout

Follow that piece of paper, electronic document, product, or service and “chart” it’s flow, distance traveled, loops, etc.

Focus on waste

7FOR INTERNAL USE ONLY

Example Spaghetti Chart

Red Glow Dept.

Yellow Glow Dept.

Inspection

Red Dept. Orange

Glow Dept.

Yellow Dept.

Customer

1

2

3

4

5

6

8

OBSTRUCTION

Rec/Ship/Stock

7

OBSTRUCTION

Not the most optimum of flow for our product/service.

8FOR INTERNAL USE ONLY

Show Before And After

Describe improvement with metrics (before and after): Distance traveled, floor space “saved”, touch points,

number of employees, etc.

9FOR INTERNAL USE ONLY

Process Flow Diagram

Used to make the process visible

Could include time spent at each step

Could include defect levels at each step

Could include Value-Add and Non-Value-Add

Identifies opportunities for improvement

SIPOCs, Value Stream Maps, Detailed Process Maps are all in the “family” of Process Flow Diagrams

Focus on waste

Always walk the process.

10FOR INTERNAL USE ONLY

Basic Structure

• How many Process or Operation Steps are there?

• How many Decision Points?

• How many Measurement/Inspection Points?

• Where are the Bottlenecks?

• How many Rework Loops?

Good

Bad

Good

Bad

Scrap

Warehouse

11FOR INTERNAL USE ONLY

Waste Map

Pro

cess

ing

Han

dlin

gIn

spec

tD

elay

Sto

rage

Dis

tanc

eTi

me

Remarks1

DescriptionStep

23456789101112131415

TeamDate

Comments

Component

Operation

Activity Analysis

Action Study

Waste Map.ppt

12FOR INTERNAL USE ONLY

Pareto Chart

Pareto Charts – Help Identify The “Vital Few” Factors to Focus On

80% of your profits come from 20% of your customers80% of your complaints come from 20% of your customers80% of your profits come from 20% of the time you spend80% of your sales come from 20% of your products80% of your sales are made by 20% of your sales staff

The Pareto principle (also known as the 80-20 rule, the law of the vital few) states that, for many events, roughly 80% of the effects come from 20% of the causes.

The Pareto Principal:

Pareto Principal Examples:

13FOR INTERNAL USE ONLY

Pareto Chart

A descending bar graph that helps to focus on the problems that offer the greatest potential for improvement by showing their relative frequency or size

Compare the relative frequency or cost of each problem category

Pareto Charts – Very useful and used throughout our training.

List the categories in descending order from left to right on the horizontal axis

The height of the bars corresponds to the frequency or cost

14FOR INTERNAL USE ONLY

Cause And Effect Diagram(Fishbone Diagram)

Used to allow team to identify and graphically display, in increasing detail, all potential root causes

Place problem (effect) in box on right-hand side of chart

Draw major cause categories as bones on chart

Repeatedly ask why each cause happens

Look for root cause that appears repeatedly within or across major causes

15FOR INTERNAL USE ONLY

Basic Structure Of The C&E Diagram

Problem/DesiredImprovement

Causes Effect

Main Category

Measurements Materials People

Environment Methods Machines

16FOR INTERNAL USE ONLY

Source Categories For Potential Causes

People Do they follow standards? Efficiency acceptable? Are they problem conscious? Are they responsible? Are they qualified? Are they experienced? Are they assigned to the right job? Are they willing to improve? Do they maintain good

human relations? Are they healthy?

Machines (facilities) Do they meet production

requirements? Process capability? Oiling, greasing adequacy? Is inspection adequate? Frequency of downtime and why? Does it meet precision requirements? Unusual noises? Layout adequacies? Are there enough

machines/facilities? Are they in good working order? Preventative maintenance schedule?

17FOR INTERNAL USE ONLY

Source Categories For Potential Causes

Material

Mistakes in volume?

Mistakes in grade?

Mistakes in brand name?

Are there impurities mixed up?

Is the inventory level adequate?

How much WIP is there? Where?

Is the layout adequate to accommodate materials?

Is the quality standard adequate?

Method (operation)

Are the work standards adequate?

Is the work standard upgraded?

Is is a safe procedure or method?

Does it ensure a good product?

Is the method efficient?

Is the sequence of work adequate?

How is it setup?

Is the setup adequate?

Is there adequate contact/ communication with the upstream and downstream steps?

What method is used to communicate?

18FOR INTERNAL USE ONLY

Fishbone Diagram Major Categories

The 8 Ms (used in manufacturing)Machine (technology)Method (process)Material (Includes Raw Material, Consumables and Information.)Man Power (physical work)/Mind Power (brain work): Kaizens, SuggestionsMeasurement (Inspection)Milieu/Mother Nature (Environment)Management/Money PowerMaintenance

The 8 Ps (used in service industry)Product=ServicePricePlacePromotion/EntertainmentPeople(key person)ProcessPhysical EvidenceProductivity & QualityThe 4 Ss (used in service industry)SurroundingsSuppliersSystemsSkills

These Are Only Examples – Use What Is Right For Your Project

19FOR INTERNAL USE ONLY

Basic Structure Level 1 Causes

Level 1 Cause

Problem/DesiredImprovement

Causes Effect

Main Category

Measurements Materials People

Environment Methods Machines

20FOR INTERNAL USE ONLY

“Five Whys?” One Approach To More Cause Category Detail

Ask why?

When presented with an answer, ask why?

Add additional levels to the C&E Diagram

Repeat step two until you get the real problem or issue identified

An Affinity Diagram will also add detail to the Cause Categories.

21FOR INTERNAL USE ONLY

The Five Whys Business Process Example

The “Five Whys” Method Supervisor: “Why is the sales order being released so late?”Employee: “Because the customer requirements are not entirely known”

Supervisor: “Why are the customer requirements not known?”Employee: “Because the proposal was vague and incomplete”

Supervisor: “Why was the proposal vague and incomplete?”Employee: “Because the performing organization didn’t participate in creating it”

Supervisor: “Why didn’t the proposal team consult with the proper experts?”Employee: “Because we hardly ever talk with those guys”

Supervisor: “Why is communication so poor between departments?”Engineer: “Because that is how we always do proposals, and we don’t have a

process that encourages us to work together”

22FOR INTERNAL USE ONLY

Basic Structure Level 2 Causes

Problem/DesiredImprovement

Causes Effect

Level 1 Cause

Level 2 Cause

Main Category

Measurements Materials People

Environment Methods Machines

23FOR INTERNAL USE ONLY

Objectives Review

The participant should now be able to:

Develop a Spaghetti Chart to identify waste

Develop a Process Flow Diagram to identify waste

Create a Pareto Chart to identify waste

Develop a Cause and Effect Diagram to identify waste

Utilize Process Reports and Assessments to identify waste