SCM 4367 Miller exam 1

Long-Term Philosophy of Lean- implications

(includes flexibility) 1. Process optimization 2. Developing Supply Chain Relationships & Perspective on Short Term Profits 3. Identifying Process & Quality Problems 4. Human resource policy (people) & Continuous Improvement

Lean Production Mindset on Human Error

- Errors are seen as an opportunity to improve - Reduce or Eliminate Errors using Poka Yoke

HOW TO DISCOVER WASTE IN A PROCESS- Genchi-Genbutsu

- Go See For Yourself -Get Your Hands Dirty

Purpose of a process (ex)

- Increase value to a customer - Increased performance (product or service functionality) - Increased speed (decreased lead time) - Increased quality (consistency, durability, reliability, aesthetics) - Increased flexibility (product or service variation) - Decreased cost

Pull Production (Lean Mindset)

1. tells you what to do, connection to customer and system 2. Produce to Demand-Machines work only when needed 3. Constant Inventory 4. All jobs are produced quickly 5. Simple scheduling rules

Just because we are learning to identify waste and that waste is bad and costs money and that Lean is focused on removing waste- DOES NOT MEAN

1. that if you see waste in a process, that you should mandate that the waste should immediately be removed 2. REMEMBER: Even after many years of removing waste from a process, most processes will STILL be 80%+ waste

Format of an A3: Right Side

5. Proposed Countermeasures - Proposals for improvement and expected outcomes 6. Plan - Timeline, Responsibilities, Oversight 7. Followup - Challenges, Risks - Contingency Plans

Fundamentals of 5-S

5S Methodology is to create and maintain an organized workplace to focus on creating uninterrupted flow of material, people, and information

Process (def)

A process is a collection of activities that transforms inputs into outputs that offer value to a customer (Inputs: Material, People, Info) INPUTS → TRANSFORMATION ACTIVITIES → OUTPUTS

(Mass vs Lean Mindset Handout) The following belief is generally considered characteristic of a Lean Production Mindset A. Cost, speed, and quality can be improved simultaneously B. Key business data is useful to managers only C. High educational attainment earns the right to avoid manual labor D. Running a business is a complex task E. All business processes can be optimized

A. Cost, speed, and quality can be improved simultaneously

Foundation

Common elements throughout the organization Philosophy, Visual Management, Standardized Processes

Characteristics of a typical work cell- Increases quality

Increases Quality - Employees are responsible for the entire process - Employees become their own customer - Errors are discovered immediately Increases mental engagement

Work Cell Benefits

Increases Quality: 1. Employees are responsible for the entire process 2. Employees become their own customer 3. Errors are discovered immediately 4. Increases mental engagement

People Systems

how people and teams are utilized

Improvement Tools

how processes are improved

Process Flow Tools

how work flows through the organization

When you experience Defects, you create

overprocessing

Most of these wastes happen because we engage in

overproduction

When you experience Inventory & Waiting, you also create

motion

When you experience Inventory & Waiting , you create

transportation

Process Inputs

information (data), materials (manufacturing), people (service)

Ford vs Lean Production (Toyota)- Space Required

Ford- Very Large Lean Production(Toyota)- Relatively Small

Ford vs Lean Production (Toyota)- Product Variety

Ford-Low Lean Production(Toyota)- High

Ford vs Lean Production (Toyota)- Labor Specialization

1. Ford- High Labor Specialization 2. Lean Production(Toyota)- Mid Labor Specialization

Lean Methodology Company

- LEAN is not a STANDARDIZED METHODOLOGY - Because Lean is driven by a philosophical viewpoint, interpretations of Lean can vary from company to company - Each company typically has a unique name for a lean implementation and develops a framework (house) that fits their organizational perspective.

Example of a company that is not familiar with strict principles of the theory of constraints- but uses theory of constraints

- Merichem (located within 1 mile of University of Houston) - Designs and builds customized petroleum refining equipment - Utilizes Theory of Constraints production scheduling

Importance of preparing for human error in a process

- Stops defects from passing into the next process - Avoids wasting people skills by designing "smart" processes

5S Straighten Reducing Waste - Waiting Inspection

-Check gauges and setup gauges -Parts that only fit one way

Cellular Layout challenges

-Duplicate Machines -Extensive Cross Training (this is a cost)

Mass Mindset Managers

-Make employees work longer hours (extra cost) -Make employees work faster (quality decreases) -Hire more employees (cost increases) -Buy technology and automation (capital expenses increase)

Theory of Constraints Characteristics

-Often referred to as "constraint management" because of its focus on identifying process constraints (limiters) -Defines "thinking processes" that encourage consideration of system interactions -Principles are widely used -Strict adoption of principles are not popularly publicized

Seven types of waste (X = material, information, or people)

-Overproduction: transforming more X than is required -Inventory: storing X -Waiting: not actively transforming X -Transportation: moving X from one place to another -Motion: Operators/machines moving while X waits - Defects transforming X incorrectly the first time or damaging X during the process -Over-processing:transforming X multiple times or transforming X using over-capable technology or methods TIM WOOD

5S Straighten Reducing Waste - Waiting

-Reduce batch size -Do tasks in parallel -Eliminate or reduce setup time

5S Straighten Reducing Waste - Inventory

-Small batch sizes -Small, frequent shipments from suppliers -Make only what is needed

Red Tag (Segregated Area)

-Sort based upon frequency of Use-Only keep quantity needed immediately -Red Tag items that are used infrequently and easy/inexpensive to replace - Items that are not needed, but the process owners want to keep anyway, place in a RED TAG area

Mass Production Mindset vs Lean Production Mindeset (see handout for more details)

-The difference between a "lean organization" and a "mass production organization" is the culture-Culture is built and perpetuated by the perspective and mindset of the senior managers-A mass production mindset produces a mass production culture-A lean production mindset produces a lean production culture-Companies do not "become lean;" companies "pursue lean"

Muda

-Uselessness & Wastefulness -Typically identified with the "7 wastes" Muri & Mura will lead to Muda World Class: Less than 80% Waste Typical Organization: More than 95% Waste

Visual Management

-Work organization is obvious -Everyone knows what is expected in a process -Even those unfamiliar with a process know when something is wrong or missing or correct or useful -Everyone does work the same way - because it is easier that way -Where visual management is used, waste is eliminated - Where/When visual management is not used, waste is created

Common misunderstanding & misapplication of implementing lean

1. "If I put a label on everything, I will be lean." 2. "If I put an outline around everything, it will be lean." 3. "If I create a checklist or work instructions, everyone will follow my directions and will be lean

Visual Management Encourages Desired Behavior

1. A place for everything and everything in its place 2. Planograms - describing what is inside a closed cabinet 3. Maps-describing product flow 4. Color Coded Bins 5. Min/Max Inventory Levels 6. Fill Lines on Containers 7. Fit marks on bolts 8. Standard Work

Check sheets (or Count Sheets)

1. A simple, organized way of tracking the frequency of particular events over time. 2. Provides numerical measurement of observed data.

Format of an A3: Left Side

1. Background -Brief, one or two bullets 2. Current Conditions -Summary, VSM, Pictures, Graphs, Charts - What is the symptom? 3. Goals/Targets -Brief, one or two bullets -Focus on the customer 4. Analysis -Identify root causes (5-whys) -Use problem analysis tools

Kanban (signal)

1. Batch or Bin Kanban -Empty container signals production 2. Reorder Point or Card Kanban -Card signals production when a predetermined reorder point is reached 3. River & Rocks Metaphor in Action - How many parts to put in each container? - How many containers to use

Lean Ideals

1. Continuous Improvement (leads to LEAN mindset) 2. Systems Viewpoint (changing system to better serve customers) 3. Continuous Learning (making errors & identifying problems)

The difference between a "lean organization" and a "mass production organization" is the culture

1. Culture is built and perpetuated by the perspective and mindset of the senior managers 2. A mass production mindset produces a mass production culture 3. A lean production mindset produces a lean production culture 4. Companies do not "become lean;" companies "pursue lean"

Sort (seperate/scrap)

1. Decide what to keep, what to discard 2. when in doubt, throw it out 3. Categorize EverythingInventory,Equipment, Supplies,Tools, Workbenches, Information Reference Materials, Personal Items 4. Keep items used in VA/NVA analysis-Keep items used in 80% of variations in VA/NVA analysis-80/20 rule-Keep expensive tools/equipment that is difficult to replace

Check Sheet Implementation Guide

1. Design the check sheet using worker ideas 2. List the items in an order that makes them easy to be found -Alphabetically -Color Coded -In order of perceived frequency -In order of how the item is typically inspected -Using pictures 3. Be willing to change -Leave room at the bottom of the check sheet to add additional categories as they become visible - Periodically, revise the check sheet 4. Use Excel to collect and categorize the data-Arrange for administrative data entry time 5. Check Sheets are for temporary problem solving

The A3 Problem-Solving Process

1. Develop Countermeasures for Each Root Cause 2. Evaluate Countermeasure 3. Advantages/Disadvantages 4. Plan Implementation 5. SWOT Analysis-coming up with countermeasures for the root cause in order to get rid of all symptoms

STRAIGHTEN HINT: MINIMIZE NON VALUE ADDED

1. EXAMPLE: You make yourself a sandwich every day. Where do you keep these ingredients? bread cheese sliced meat mustard lettuce tomato mayonnaise pickle chips plates cutting board knife 2. Imagine you could design your own kitchen around this one process: What would be the IDEAL location of the items? 3. What is possible for the location of the items in YOUR kitchen

Standard Work

1. Each task is performed in a very specific manner by each employee 2. It is the best way known NOW to perform a task 3. If you find a better, faster way of doing a task, you change the standard work.

STARTING A PROCESS IMPROVEMENT INITIATIVE WITH ANALYSIS (B)(5S)- Closely watch the process (or video of the process) to create a VA/NVA Analysis (Several Pages)

1. Easiest to keep track in Excel 2. Note the specific activities (and associated time) for VA [VERY Specific] 3. Note the general activities (and associated time & transportation) for NVA [should be generalized - categories of waste]

Kanban Benefits

1. Enables Pull: responding directly to customer demand 2. Limits and maintains inventory: WIP stays constant- 3. Schedules production without technology or expensive overhead - Ensures the process runs only as fast as the bottleneck (slowest process step) - Limits Overproduction 4. Signals production exactly when needed - Work begins as soon as a need emerges - This is Just-In-Time 5. Signals when something is wrong

Inventory

1. Extra material, parts, supplies, information that are not currently needed 2. Results in additional expenses - Storage Space.... warehouses - Expenses associated with warehouses & storage: (Inventory Containers, Inventory Shelving, Employees, Management, Electricity, Water) 3. When you experience inventory you create waiting

Starting A PROCESS IMPROVEMENT INITIATIVE WITH ANALYSIS (A)- Selecting a process

1. First time practicing lean? Pick a REALLY messed-up process with LOTS of obvious waste. 2. Pick a process where you KNOW you can make progress and the process workers are open to collaboration and change

How to correctly apply standardization

1. How can I arrange the work so that someone new would know exactly what to do? 2. How can I arrange the work so that there is no confusion or misunderstanding?" 3. How can I arrange the work so that it is impossible forget how to do the work or how to use the work area? 4. How can I arrange the work so that errors will not happen or so that it is easier to do the work correctly than to make an error?"

Waiting

1. Idle Time when Materials are not being actively transformed- 2. Nothing is being done to create customer value 3. Easy to see in a business: -Look for inventory production/delivery dates on boxes -Look for dust on inventory

The customers of a process

1. Internal Customers (Employees, Owners, Boss) 2. External Customers (Suppliers, Customers, Society, Shareholders) 3. End Users (Who ever uses the product NOT a customer or customers later down the supply chain) 4. Define what the customer wants (define value for the customer)

The characteristics of a process

1. Involves a collection of activities 2. Transforms physical resources and information into enhanced goods, services, or information 3. The structure and capacity of a process determines the resources required to accomplish the transformation 4. Outputs of a process can range from transportation, design, creation, and information 5. Processes are linked to other processes both internal and external to the organization. Process chains define the complex processes used in organizations. 6. In order to alter the value delivered to a customer, you must alter the process(es) used to create that value

Starting A PROCESS IMPROVEMENT INITIATIVE WITH ANALYSIS (A)(5S)- Spend LOTS of time in the Gemba (YOU experience doing the process)

1. Make notes of Waste: Inventory, Transportation, Motion, Defects, Rework, etc. 2. Make notes of Walking, Difficulties, Struggles, Complexity, Confusion

WHAT POKA YOKE DOES

1. Makes right actions easy and obvious 2. Makes wrong actions difficult 3. Makes it easier to discover errors 4. Makes it possible to reverse errors 5. Makes it harder to do what cannot be reverse

Manager's beliefs create culture

1. Management Beliefs (mindset) 2. Management Behaviors 3. Organizational Policies (formal & informal) 4. Organizational Culture 5.Organizational Culture determines organizational performance

Starting A PROCESS IMPROVEMENT INITIATIVE WITH ANALYSIS (A) (5S)- Get support from management and the process workers

1. Management permission to make changes to the process 2. Recruit process workers to be a part of your improvement team 3. Teach the principles of Waste to your improvement team

Defects

1. Materials and Products that cannot be used 2. Defects can be caused by many things, including -Obsolescence and Spoilage -Damage and Deterioration -Mishandling and Mistakes 3. Results in costs to identify, remove, and correct defects

Six Sigma professionals are expected to:

1. Mentor other six sigma professionals 2. Teach line workers how to implement six sigma tools 3. Coach line workers in using six sigma tools 4. Transfer knowledge to others 5. Identify new opportunities for applying six sigma concepts 6. Influence others to adopt six sigma improvements

Cellular Layout Advantages

1. Minimal transportation within cells. Minimal transportation for delivery of raw materials and finished goods. 2. Allows one-piece-flow or small batches (low WIP inventory)-Each cell is measured as a team which results in cooperation and maximum communication within the cell 3. Small batches, minimal handling, low inventory, and maximum cooperation results in high quality and low scrap 4. Small batches, minimal transportation and high quality results in short throughput times 5. Because of short lead times, production can be initiated within a cell with a predictable lead-time resulting in high on-time delivery. 6. Because of low inventory and high quality, production can be scheduled for exactly what the customer needs. 7. Direct and obvious production flow makes management and scheduling simple, requiring fewer managers (overhead) and eliminates the need for optimization calculations Cellular Layout may require

Historical roots and fundamental characteristics of Six Sigma

1. Motorola developed Six Sigma and adapted heavily be General Electric, Bell Telephone used statistical methods 2. Utilizes a standardized improvement process: DMAIC - Define - Measure - Analyze - Improve - Control

Sort into Categories

1. Needed for this process [will be placed in locations to facilitate the process] 2. Needed for support processes [will be placed wherever there is leftover space] 3. Not Needed [will throw/give away] 4. Not Needed, but want to keep anyway [will stay in an inconvenient RED TAG location until a later date]

STARTING A PROCESS IMPROVEMENT INITIATIVE WITH ANALYSIS (D)(5S)- Restrictions for first-time improvements

1. Only consider NO COST and low cost process changes 2. Do not outsource any VA: Do not spend extra to purchase pre-cooked, pre-chopped, pre-painted, pre-assembled materials. 3. Do not "pre-work" on your process (doing VA & NVA work the night before, or a large batch at the beginning of the week). This is still doing work on the process and counts toward the total process time (and introduces the waste of Overproduction...and consequently, the other wastes) 4. Do not purchase any technology or automation designed to speed up the tasks 5. After improvement, total VA time should be about the same as before improvement (it might be a little longer because the work might be done slower).

Motion

1. People and materials moving without transformation...without creating value 2. Motion creates wasted time and occurs when: -We are looking for items that we cannot find -We are sorting through items -Have to move items that are in the way of other items

The Importance of Numerical Measurement

1. Perceptions are Subjective -Everyone has a different perspective on the source and magnitude of problems 2. Measurement documents the problem 3. Measurement is used to diagnose the problem 4. Measurement documents the solution 5. Measurement convinces others that the change was helpful

5S STRAIGHTEN IDEAS FOR ELIMINATING OR REDUCING NON-VALUE ADDED TASKS- Transportation

1. Point of use storage 2. Reduce inventory 3. Eliminate the need to transport

Traditional Companies (Mass Production Mindset)

1. Policies 2. Management Mandates 3. Employee/Job Manuals 4. Written Work Instructions 5. Warning Signs/Labels

THE HEART OF LEAN: RECOGNIZING & ELIMINATING MUDA

1. Processes are focused on meeting customer needs - Internal & External Customers 2. Value Added (VA) Activities directly transform inputs (people, materials, or information) into outputs 3. Waste: activities that do not deliver value to customers -Non-necessary activities (NVA) - Necessary but non value added activities (NNVA)

Benefits of Standard Work

1. Processing Time variation is decreased 2. Quality variation and results variation is decreased 3. Defects, quality, and process problems are easier to detect 4. Finding the root cause of the problem is easier (because the method of production is consistent)

Push Production (Mass Mindset)

1. Produce to Forecast 2. All machines work all the time 3. Increasing Inventory 4. Expediting "rush jobs" becomes common 5. Complex scheduling algorithms

Overproduction

1. Producing or buying more than the customer Needs before the customer Needs it 2. Results in reduction of cash flow: -Spending money on materials & supplies before it is needed -Spending money on labor before it is needed -Spending money on power and energy before it is needed

STARTING A PROCESS IMPROVEMENT INITIATIVE WITH ANALYSIS (C) (5S)- Set initial goals for your process improvements:

1. Reduce the Total Time for the process by AT LEAST 50% 2. Reduce the Total Distance Walked by at least 85% 3. Make it easy to remember by making the goals "round" numbers: 4. Instead of 12 minutes 33.5 seconds ... Set a goal of less than 10 minutes 5. Instead of 17.53 steps ... Set a goal of less than 15 steps 6. DON'T guess at what will reduce NVA time ... EXPERIMENT! 7. Run mini-experiments to test which configurations work best

Benefits of Lean

1. Reduced inventory levels: 70% - 97% 2. Reduced floor space required: 50% - 70% 3. Reduced delivery lead time: 50% - 95% 4. Reduced operations costs: 40% - 60% (& increased profits) 5. Increased productivity: 10% - 100%+(& increased revenues) 6. Improved quality: 30% - 80% 7. On-time delivery: approaching 100% 8. Increased customer satisfaction: 30% - 80% (& increased sales) 9. Typical results can be achieved with EXISTING employees and EXISTING technology

Disadvantages of Functional Layout

1. Requires excessive transportation (forklifts, confusion) 2. Requires producing in large batches to minimize transportation 3. Each department is measured independently and tries to achieve the highest efficiency, resulting in competition between departments and lack of communication between departments 4. Large batches, transportation, storage, and communication problems result in quality problems, scrap, and rework 5. Large batches, transportation, & quality problems in production results in long throughput times 6. Because of long lead times, production must be scheduled well ahead of delivery dates. 7. Because of quality loss and large batches throughout the process, more product is scheduled to be made than is needed (overproduction) 8. Because of all the above problems and the fact that the various overlapping processes are difficult to visualize, companies use complex scheduling software and algorithms to try to optimize the production flow. 9. Each machine within each department must be scheduled independently which makes management difficult and encourages bureaucratic levels of management (supervisors, department managers, production managers)

Companies with similar products, resources, and experience may perform differently - even when each of them utilizes Lean and Six Sigma tools:

1. Responsiveness to change 2. Product & service quality 3. Performance variability 4. Profit 5. On-time shipments

Formulate a Question

1. Resulting from a defect or process problem 2. Resulting from a new customer requirement 3. Resulting from a changing market need

Shine (scrub, clean)

1. Reveal where dirt and defects are originating 2. Clean Everything: -Equipment maintenance becomes obvious -Equipment lasts longer 3. Paint:-Creates bright work environment (highlights when a problem occurs) -Encourages pride in work area -Create countermeasures at the sources 4. DO NOT put things back where you found them. Put items into the process where they minimize NVA.

starting 5S

1. Select a Process 2. Get support from management and the process workers 3. . Spend LOTS of time in the Gemba Make notes of Waste: Inventory, Transportation, Motion, Defects, Rework, etc 4. Take DETAILED Pictures & Video of Everything 5. Closely watch the process (or video of the process) to create a VA/NVA Analysis (Several Pages) 6. Summarize the VA/NVA Analysis-Set initial goals for your Process Improvements-Begin EXPERIMENTING with possible changes

SUSTAIN - SITSUKE

1. create the discipline to maintain 5S 2. Establish routine 5-S audits 3. Establish a process for removing old items and placing new items in the system 4. Revisit areas for continuous improvement 5. Celebrate the Gains -Compare before and after pictures -Compare before and after measures -Encourage workers to brag about their work area

Characteristics of Poka Yoke

1. Simple and cheap - Most Poka Yoke devices cost less than $100.Part of the process 2. Most Poka Yoke devices do not require additional action by the user 3. Eliminate a root cause - Poka Yoke devices are applied to the cause, not the symptom 4. Provide immediate feedback - Usually Poka Yoke devices are placed near where the mistakes occur

A3 Report

1. Single sheet of paper (usually 11x17) -Typewritten -Charts/Graphs -Hand-written notes and diagrams 2. Organized according to the Lean problem-solving Process 3. Standardizes the Problem-Solving Process - Assures that problems are solved completely at their root cause 4. Standardizes the Communication Process - Making reports easier and faster to read and understand 5. Requires Conciseness - Makes it harder to use extraneous text to make one appear more knowledgeable than reality

Principles for implementing each of the 5-S steps

1. Sort (Seiri, Separate, Scrap) - Decide what to keep, what to discard 2. Straighten (Seiton, Set in Order) - Arrange in a way that minimizes muda 3. Shine (Seiso, Scrub, Clean) - Reveal where dirt and defects are originating 4. Standardize (Seiketso, Neatness) - Insure everyone performs work the same way - Visual Management occurs here 5. Sustain (Sitsuke, Systemize, Discipline) - Create the discipline to maintain 5-S

Kanban is Inventory

1. TRY TO GET RID OF ALL KANBANS! 2. When possible, use one-piece flow cells -Group needed machinery or people to produce a product family -Structure process so one piece is carried from machine to machine until complete 3. If you must use Kanban, continuously strive to reduce the size of the Kanban

Organism Viewpoint Example (cougar and rabbit)

1. The cougar = an organization 2. The parts of the cougar = the employees 3. The habitat = the market environment 4. Other predator animals = competitors 5. Smaller animals = suppliers 6. The cougar's actions = the organization's processes

STARTING A PROCESS IMPROVEMENT INITIATIVE WITH ANALYSIS (B)(5S)- Summarize the VA/NVA Analysis

1. Total Time for the entire process (total process time: beginning to end) 2. Total Time for the VA steps 3. Percent VA (VA time/Total Time) 4. Total Walking Distance (in feet or steps)

examples of poka yokes

1. USB C or Lighting Port 2. Cattle Guard/Crossing Metal bar bridge makes cow fall and no need for gate door 3. Gas Cap - leash or new cars with no gas cap 4. Sink - Drain off to the side, drain grid, and hole from overflowing water 5. Sidewalk gates make you face oncoming traffic

Straighten (Seiton)

1. Use a VA/NVA analysis to guide placement 2. Placement Criteria - What do I need for my primary process? - Where do I need it? - In what order do I need to use it? - How many do I need? 3. Ergonomics - minimize movement 4. Visual Management (During Standardize Step) 5. DO NOT put things back where you found them. Put items into the process where they minimize NVA

How companies remove waste by using the metaphor of a river and rocks

1. Water = Inventory Rocks = Problems 2. When the water is moving, the process is working 3. When the water stops moving, the process is stopped - Slowly reduce inventory levels until a problem emerges - Increase inventory levels slightly to facilitate process flow - Find the root cause of the problem eliminate the underlying waste - Slowly reduce inventory levels until the next problem emerges

When/Where to use Kanban

1. When it is not practical to group machines (suppliers) 2. When multiple product families utilize one machine 3. As a buffer in front of a bottleneck operation 4. When process quality and reliability are stable

STARTING A PROCESS IMPROVEMENT INITIATIVE WITH ANALYSIS (B)(5S)- Answer the following questions about your process:

1. Who is the customer and what do they want? 2. What is the purpose (outputs) of the process? 3. What is being transformed? ["W, X, Y are being transformed into Z"]

Starting A PROCESS IMPROVEMENT INITIATIVE WITH ANALYSIS (A)(5S)-Take MANY DETAILED Pictures & Video of Everything

1. Zoom-In to show details about what is happening 2. Use a Flash to get details on Pictures 3. Video should be in Landscape View (sideways...like a TV) 4. Video tour of the work area & Video of the process(es) from BEGINNING to END

Pareto Chart

1. bar chart that ranks problems or causes of problems in descending order from left to right on a horizontal axis .2. Use Pareto Charts to find the 20% of the sources of 80% of the problems in a process or system. 3. Where do we want to spend our time, money, energy, resources to have the biggest impact on our processes

Overprocessing

1. doing an activity multiple times when it should be done only once 2. Examples of Overprocessing and related costs include: -Repacking a box for reorganization or consolidation -Taking an item out of one box and putting it into another box -Repairing a product or item (kitchen: reheating leftovers) -Reconfiguring a product because the customer wants something different

STANDARDIZE

1. insure everyone performs work the same way 2. Establish standardized processes - completing tasks the same way every time 3. Specify who cleans and what clean looks like 4. Establish a standard layout throughout the process - Maintenance Carts - Call center desks and file cabinets - Parallel production processes

Transportation

1. moving materials without transforming them 2. Because we store excess materials in locations (warehouses) where they are not needed or used, we must transport them: 3. Spending money on material handling equipment -Spending money on labor to run material handling equipment -Spending money on maintenance of material handling equipment -Spending time and resources to move the material

HOW TO DISCOVER WASTE IN A PROCESS- Spend time in the Gemba

2. Spend Time in the Gemba: - Where the work happens - Where the transformation occurs

(From Class 04 Identifying Waste) When you work in a disorganized workplace and have difficulty finding the tools or material you need to do your job you experience this waste A. Motion B. Waiting C. Defects D. Transportation E. Overprocessing

A. Motion

(Six Sigma Vs Lean Article) Six Sigma was developed at the company A. Motorola B. Toyota C. Hertz D. Sigma Inc

A. Motorola

From Class 05 VA/NVA Analysis] Watering a potted plant is an example of a transformation process (transforming a plant in dry soil into a plant in moist soil). Which of the following steps would be categorized as Value Added (VA)? Step 1: Touch the soil to determine how much water is needed Step 2: Find a container for holding water Step 3: Fill the container with water Step 4: Pour the water slowly into the soil of the plant Step 5: Dry the container Step 6: Put the container away Step 7: Wipe up any drips or water that has leaked out of the bottom of the container A. Step 4 only B. Step 3 Only C. Step 3 and 4 D. Step 1,2,3,4,5,6,7, E. Step 1 and 4 only because you could just carry the plant to the sink F. Step 2,3,4,5,6 G. Steps 3,4, and 5

A. Step 4: Pour the water slowly into the soil of the plant

(From Class 04 Identifying Waste) When you are doing a task and must physically move material from one location to some other remote location without transforming it, you are experiencing this type of waste. A. Transportation B. Waiting C. Motion D. Inventory E. Defects

A. Transportation

The following are all key points for overcoming resistance to change EXCEPT: A. Use a variety of charismatic leaders to help implement the change process. B. Making people a part of the change by involving them in the change process. C. Create opportunities for people to provide feedback about the change process. D. Communicate regularly about the need to change and the change process.

A. Use a variety of charismatic leaders to help implement the change process.

Recognize when Poka Yoke should be used

Anytime you want to make an effort to eliminate or reduce errors

The following are all a part of Ohno's Method EXCEPT: A. Mentally force yourself into tight spots. B. Create a well-defined system of reinforcements and consequences. C. Derive personal pleasure from accomplishing Kaizen. D. Generate ideas; find and implement simple, ingenious, low cost solutions.

B. Create a well-defined system of reinforcements and consequences.

(Mass vs Lean Mindset Handout) The following belief is generally considered a characteristic of a Lean Production Mindset A. Significant improvements are complex and take a long time to implement B. Implementing Lean means that problems will become visible C. Culture can be changed by sending employees to a training class D. Implementing lean means that problems will disappear E. Lean companies are successful because they utilize lean tools.

B. Implementing Lean means that problems will become visible

(From Class 04 Identifying Waste) The Physical Material/ parts/ supplies of the Virtual Information that needs to be stored BECAUSE they are not currently needed are referred to as: A. Overproduction B. Inventory C. Transportation D. Motion E. Overprocessing

B. Inventory

(Mass vs Lean Mindset Handout) The following belief is generally considered characteristic of a Lean Production Mindset A. Inventory is an asset B. Inventory is a source of problems C. The mission and vision of the organization is relevant only to top management D. Improvement efforts should be conducted by professionals E. Process Problems need to be avoided

B. Inventory is a source of problems

The process of assigning tasks workload so every operator is doing the same amount of work to meet the customer requirement is called A. Work Focus B. Line Balancing C. Customer Focus D. Task Optimization

B. Line Balancing

Historical Perspective Handout] Craft production (the predominant operations method in the 1890s) typically incorporated: A. High labor specialization, low product variety, and slow process speeds B. Low labor specialization, very high product variety, and slow process speeds C. Operations methods were not utilized in the 1890s D. Low labor specialization, low product variety, and fast process speeds E. High labor specialization, very high product variety, and fast process speeds

B. Low labor specialization, very high product variety, and slow process speeds

(From Class 04 Identifying Waste) The ACT of producing or buying more than you need right now is an example of performing this waste A. Overprocessing B. Overproduction C. Inventory D. Waiting E. Transportation

B. Overproduction

(Mass vs Lean Mindset Handout) The following belief is generally considered characteristic of a Lean Production Mindset A. Managers are the smartest people in the company B. Problems are caused by ineffective processes C. It is difficult to find skilled talented people D. Employees understand what management tells them E. Efficiencies of scale will result in higher profits

B. Problems are caused by ineffective processes

Lean Mindset Managers

Biggest Opportunity for Improvement (NVA. Lean Managers focus improvement efforts here.

(Lean Thinking in the Office Article) Organizing and managing a service organization by "value streams" is also referred to as A. Manufacturing Process Management B. Optimal Process Management C. End to End Process Management D. Functional Process Management

C. End to End Process Management

Columns/Walls/Pillars

Continuous Improvement Tools & Respect for People:

Two Primary "Pillars" of Lean: Continuous Improvement (def)

Continuous Improvement: Creating an atmosphere of continuous learning and an environment that not only accepts, but actually embraces change

(From class 08 lecture) The following are all benefits of Kanban systems except A. Limits and maintains inventory levels B. Enables pull C. Signals production exactly when production is needed D. Eliminates the need to transport inventory E. Schedules production without using technology

D. Eliminates the need to transport inventory

(From class 08 lecture) One situation in which it is appropriate to create a Kanban system is A. Whenever you are trying to implement 5-S B. Whenever efficiency needs to be increased C. Whenever you reduce the setup time D. When it is not practical to group machines or workstations E. When machine quality is unrelaiable

D. When it is not practical to group machines or workstations

Formulate an Hypothesis

Describe how the results are occurring based on the data

Gather Information and Define the System

Describe the system using process data

(From Class 04 Identifying waste) When inputs are not fully or correctly transformed into outputs or when inventory becomes unusable you encounter this waste A. Inventory B. Overprocessing C. Overproduction D. Waiting E. Defects

E. Defects

(From Class 04 Identifying Waste) When you have performed some task in the past but it either was not done correctly the first time or it becomes undone at some time in the future such that you have to do the same task on the same materials AGAIN, you experience this waste. A. Defects B. Inventory C. Overproduction D. Motion E. Overprocessing

E. Overprocessing

(From class 05 VA/NVA Analysis) Painting a wooden chair with a can of spray paint is an example of a transformation process (transforming an unpainted chair into a painted chair). Which of the following steps would be categorized as value added. Step 1: Lay newspaper on the ground to prevent overspray Step 2: Place chair in the middle of the newspaper Step 3: Pick up the can of spray paint Step 4: Shake the can of spray paint to mix up the paint Step 5: Remove the lid/cap from the can of spray paint Step 6: Spray the chair with paint Step 7: Throw away the can of spray paint A. Step 4 & 5 B. Step 4 only C. Step 2 & 6 D. Step 4 & 6 E. Step 6 only F. All steps EXCEPT Step 7 G. Step 1,2,3,4,5,6,7

E. Step 6 only

Evaluate the Results

If the results are different than your prediction, restructure your hypothesis

Roof

Enterprise Goals and Deployment Strategy

Purpose of Poka Yoke

Extension of visual management/5S and to make sure we are doing the correct things and not making errors

Ford vs Lean Production (Toyota)- Production Lead Time

Ford- Relatively Long Lean Production(Toyota)- Short

What is Six sigma focused on

Focused improvement on individual processes utilizing rigorous data collection and statistical analysis

Ford vs Lean Production (Toyota)- Tools Used

Ford- Expensive, Specialized, Large Lean Production(Toyota)- Flexible, Adaptable, Small

Ford vs Lean Production (Toyota)- Process Speed

Ford- Fast- Determined by Manager Lean Production(Toyota)- Variable- Determined by Customer

Ford vs Lean Production (Toyota)- Product Volume

Ford- High Volume Lean Production(Toyota)- Approaches one

Ford vs Lean Production (Toyota)- Quality/ Product Reliability

Ford- Highly Variable Lean Production(Toyota)- Consistent

Ford vs Lean Production (Toyota)- Labor Knowledge

Ford- Low Lean Production(Toyota)- Relatively High

Ford vs Lean Production (Toyota)- Improvement

Ford- Periodic designed by management Lean Production(Toyota)- Continuous designed by the worker

The only way to discover and eliminate waste in a real process is to go to the-

GEMBA Go to and experience the actual process, where the work is happening, participate

Six Sigma (def)(ex)

Improves individual processes at a micro-level - Utilized primarily by statistically trained professionals - Provides statistical tools used to address specific problems

Lean (def)(ex

Improves the organization at a macro-level - Easily utilized by most people in an organization - Establishes a foundational culture of continuous improvement

Why customer focus is important for process improvement?

In order to alter the value delivered to a customer, you must alter the process(es) used to create that value

Philosophy of Lean

Lean is a philosophy of improving a system continually in pursuit of the "Ideal Way" - Perfect Quality - Zero Waste - Exact Quantity - Instant and Complete Customer Satisfaction - Minimum Cost - Ability to Instantly Adapt to Market and Competitive Changes - LEAN is not JIT, Kanban, or 5S

The Scientific Method Connects these 3 Methodologies

Lean, 6 Sigma, TOC

What is the abbreviation for Lean

Lean: aka Toyota Production System (TPS)

THE HEART OF LEAN: RECOGNIZING & ELIMINATING MUDA- World Class

Less than 80% waste

THE HEART OF LEAN: RECOGNIZING & ELIMINATING MUDA- Typical Processes

More than 95% waste (often more than 99% waste)

How the wastes are connected to one another

Most of these waste occurs because we engage in Overproduction Waste - One waste created leads to another waste

Muri & Mura will lead to __________?

Muda

Prioritization of customer desires

Order Qualifiers, Order Winners, Order Losers

Lean: Organism Viewpoint

Organizations are like Living Organisms -The organization grows and changes -The market environment changes -Customers -Competitors -Employees grow and change Therefore, Lean Organizations: -Build flexibility into the system -Encourage flexibility in their employees -Help suppliers to improve -Often implement a "no layoff" policy

Six Sigma Professionals

Organized by the level of statistical knowledge and responsibility:-Champions-Master Black Belts-Black, Green, and Yellow Belts -Annual project savings per Six Sigma trained professional > $1,000,000

Functional Layout (ex)

Organized in departments (organized by team that IS NOT cross functional) DISADVANTAGES - Excess transportation (forklifts, confusion) - Producing in large batches to minimize transportation -Large batches result in quality problems - Long lead times result in scheduling well ahead of time

Process Outputs

Outputs of a process can range from transportation, design, creation, and information

Muri

Overburden -Forcing a person or equipment to work faster than normal -Making people work faster or slower -Requiring "quotas" that are unattainable

Propose a Countermeasure

Predict the result of your proposed process improvement-implement the countermeasure

What should process improvement be

Process improvement must be customer focused

Recognize how the adoption of a lean mindset is mandatory for implementing sustainable culture change

Recognize how effective process management can give a company a strategic advantage

Two Primary "Pillars" of Lean: Respect for People (def)

Respect for People: Refers to everyone inside and outside of the organization who has contact with the PROCESS. Respect anyone who changes the process for better.

Why is Overproduction considered the worst part of waste

Seen as the worst type of waste because it often causes ALL of the other types of waste.When you experience Overproduction, you create ... inventory

Step 3 of 5S- Shine

Shine (Scrub, Clean) Reveal where dirt and defects are originating

Step 1 of 5S- Sort

Sort Separate, Scrap) - Decide what to keep, what to discard

Step 4 of 5S- Standardize

Standardize (Neatness) - Insure everyone performs work the same way - Visual Management occurs here

Steps in creating a Poka Yoke- (importance of preparing for human error)

Steps in creating a Poka Yoke Review each stage of the process to determine where and when failure occurs Find the root cause of the failure Creatively set up a Poka Yoke - Prevent: Make it impossible to make a mistake - Control: Shut down process when mistake occurs -Design: Reconfigure parts so that any action produces an acceptable result

Step 2 of 5S- Straighten

Straighten (Set in Order) - Arrange in a way that minimizes muda

Step 5 of 5S- Sustain

Sustain (Systemize, Discipline) - Create the discipline to maintain 5-S

Cellular Layout

The combination of equipment, material, and people in close proximity to maximize flexibility, create flow, and minimize NVA activities. (organized by team that IS cross functional) -organized by product family -arranged parts by process -training cost in Lean - Empty Space may be used for alternate purposes

Order Winners

These are the traits that, if provided, will differentiate your product or service from competition

Order Losers

These are traits that, if present, will cause the customer to decline a product or service.

Order Qualifiers

These are traits the customer expects. The customer will not pay for a product or service unless these traits are present.

Meaning of the Thinking People System

Toyota Production System We must think about processes, productivity, quality differently Requires creativity, imagination, inventiveness, ingenuity Requires system-thinking: - Not if A changes, then Z will happen - Instead, A, B, C, D influences W, X, Y, Z simultaneously

Historical roots and fundamental characteristics of Lean

Toyota invented Lean (Toyota Production System), Companies worldwide continue to implement lean concepts

Characteristics of a typical work cell- U turn layout

U-Turn Layout Reduces Waste - Eliminates inventory between machines - Minimizes walking and transportation distance - Flexibility: enables workers to be added or removed in response to demand - Minimizes pickups and set-downs

Work Cell

U-Turn Layout ReducesWaste: 1. Eliminates inventory between machines 2. Minimizes walking and transportation distance- 3. Flexibility: enables workers to be added or removed in response to demand 4. Minimizes pickups and set-downs

Mura

Unevenness -Unpredictable variation in the product mix -Unpredictable variation in the types of tasks required -Unpredictable spikes and dips in demand levels -Unpredictable changes in job requirements

HOW TO DISCOVER WASTE IN A PROCESS- Valuable practice for managers

Valuable Practice (especially for new managers) 1. Establishes credibility, experience, and trust 2. Provides first-hand knowledge 3. Reduces misunderstandings 4. Allows workers to have input

Mass Production Mentality

What do traditional managers do when an employee makes a mistake? -Require 100% visual inspection -Reprimand or humiliate the employee -Fire the employee -Retrain the employee -Write a "job description" manual -Tell the employee to>"Be more careful">"Pay closer attention" -Hang motivational posters

Waiting, Transportation, and Motion result in creating

defects

Lean Misconception

identification of lean by a set of tools commonly used in lean implementations (such as JIT, kanban, 5S)

Theory of Constraints (TOC)

informs us where to improve (area that needs to be improved)

The most commonly used "8th waste

untapped human potential."