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LEAN ENTERPRISE

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Title: LEAN ENTERPRISE


1
LEAN ENTERPRISE
  • Training
  • Lean Enterprise Overview
  • The Rules of Lean
  • The Tools of Lean
  • Example from John Deere
  • Example from Aerospace
  • Preparation for Kaizen

2
LEAN ENTERPRISE
  • Every morning in Africa, a gazelle wakes up it
    knows it must run faster than the fastest lion or
    it will be killed.
  • Every morning in Africa, a lion wakes up it
    knows it must outrun the slowest gazelle or it
    will starve to death.
  • It doesnt matter whether you
  • are a lion or a gazelle
  • When the sun comes up,
  • you had better be running.

3
Definition of Lean Enterprise
  • A process to provide ever greater value to
    customers by continually eliminating waste from
    the value delivery system.
  • Also known as the Toyota Production System.

Continuous Improvement
4
Why Lean Enterprise?
  • - Sustainable competitive advantage

SURVIVAL!
5
Lean Enterprise
  • OpEx at Crane
  • Emphasizes Lean Enterprise and Six Sigma
  • Today we are dealing with Lean

6
The Lean Ideal
  • The output of people or machines
  • Is defect free (conforms to the customers
    expectations)
  • Can be delivered one request at a time
  • (economic batch size of one)
  • Can be supplied on demand in the version
    requested
  • Can be delivered immediately
  • Can be produced without wasting any materials,
    labor, energy or other resources (such as costs
    associated with inventory)
  • Can be produced in a work environment that is
    safe physically, emotionally, and professionally
    for every employee.

7
LEAN ENTERPRISE
  • Characteristics of a Lean Enterprise
  • Fifty inventory turns for repetitive products
  • One-day lead time for repetitive products
  • Zero dppm customer perceived defects
  • Three years without down equipment affecting
    production
  • People and equipment organized by product
    production process
  • Short cycle time paperwork processes. Orders
    processed in lt1 hour
  • All internal suppliers on kanban pull
  • All external suppliers of linearly consumed part
    numbers on kanban pull
  • No incoming inspection
  • Design engineering uses lean tools (DFM/DFA,
    product and process FMEAS, etc.)

8
LEAN ENTERPRISE
  • Dramatic (gt50) improvement in
  • Throughput time
  • Inventory turns
  • Quality
  • Total cost
  • New Product Development
  • Market share
  • Profits

9
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10
Lean Manufacturing Strategy Key Initiatives
Ship to Want Date Bar Code Transactions EDI Reduce
Lead-Time Reduce Inventory Vendor
Forecasting KanBan Sizing Liase with Com
Teams Supplier Quality
One Piece Flow Reduce Floor Area Reduce Material
Travel Yield Improvement Scrap Reduction SMED Redu
ce Changeover Turns Reduce Cycle Times Reduce
Non-Value Work
SUPPLY CHAIN MANAGEMENT
KAIZEN
LEAN ENTERPRISE
Automation Cost Improvement New Product
Planning Design Quality Reduced Implementation
Time Standard Process
Six Sigma SPC FMEA Error Proofing Problem/CA
Visibility Supplier Partnership Total Preventive
Maintenance
ADVANCED MANUFACTURING TECHNOLOGY
TOTAL QUALITY
11
LEAN ENTERPRISE
  • Fundamental Types of Kaizen
  • Improve the productivity of the Operator through
  • Operational kaizen efficiency of motion
  • Layout kaizen the conservation and elimination
    of motion.
  • Equipment kaizen the elimination of the manual
    element.
  • Process kaizen the elimination of process waste.

12
LEAN ENTERPRISE
  • 10 Kaizen Principles
  • Get rid of old assumptions.
  • Dont look for excuses, look for ways to make
    things happen.
  • Say NO to the status quo.
  • Dont worry about being perfect. Even if you get
    it half right, start now.
  • It doesnt cost money to do kaizen, it costs
    money not to do it.
  • If somethings wrong, fix it on the spot.
  • Good ideas come when the going gets toughest.
  • Ask Why 5 times to get to the root cause.
  • Look for wisdom from 10 people rather than 1.
  • Never stop doing kaizen.

13
LEAN ENTERPRISE
  • The Key to Continuous
  • Improvement is to Continuously
  • Look For and Eliminate Waste.
  • Taiichi Ohno

14
Waste
Non Value Added
Value Added
Non Value Added
Value Added
Value Added
ELIMINATE WASTE OUT OF TOTAL ACTIVITIES
Non Value Added
15
Lean its all about Value
  • Value Adding Waste Elimination
  • The customer is only willing to pay for value.
  • Value adding means performing work that the
    customer is willing to pay for.
  • Waste means adding cost but not adding value.
  • Customers do not pay for waste, we doby being
    less competitive.

There is nothing so useless as doing efficiently
that which should not be done at all. -Peter
Drucker
16
LEAN ENTERPRISE
  • What is Waste?
  • Waste of
  • Overproduction
  • Time on Hand
  • Transportation
  • Processing
  • Stock on Hand
  • Movement
  • Making Defective Products

17
LEAN ENTERPRISE
  • Waste Definitions
  • Overproduction - Producing larger quantities than
    needed, at a faster rate than is required or
    before it is required.
  • Time on Hand - When people or machines stand idle
    waiting for a previous operation, materials,
    inspection, maintenance etc.
  • Transportation - Moving the product from where it
    was produced to where it is needed. The distance
    is waste.

18
LEAN ENTERPRISE
  • Waste Definitions
  • Processing Operations that arent needed.
  • Stock on Hand - Excess product that cannot be
    immediately consumed.
  • Movement - Any movement of people or machines
    that does not add value to the product.
  • Making Defective Products Inspecting or
    reworking a product that is defective. The
    materials, labor and machine time used to correct
    the defect or deal with customer complaints or
    returns.

19
The Rules of Lean
  • Standardized Work
  • All work shall be highly specified as to content,
    sequence, timing and outcome
  • Standardized Relationships
  • Every customer-supplier relationship must be
    direct and there must be a clear way to send
    requests and receive responses.
  • Standardized Pathways
  • The pathway for every product and service must be
    simple, direct, and specific.
  • Scientific Method
  • Any improvement must be made in accordance with
    the scientific method, under guidance of a
    teacher (supervisor), with direct input from the
    person/s closest to the problem.

20
LEAN ENTERPRISE
  • The Rules
  • Rule 1 Standardized Work
  • All work shall be highly specified as to content,
    sequence, timing and outcome

21
LEAN ENTERPRISE
  • The Rules
  • Rule 1 Standardized Work
  • - Rule 1 is implemented by answering these four
    questions about the work
  • How do you do this work? (content, sequence,
    timing)
  • How do you know you are doing this work
    correctly?
  • How do you know that the outcome is free from
    defects?
  • What do you do if you have a problem?

22
LEAN ENTERPRISE
  • The Rules
  • Rule 1 Standardized Work
  • Example Car seat installation
  • - Bolts are always tightened in the
    same order
  • - Time to tighten each bolt is
    specified
  • - Torque for each bolt is specified
  • - Overall installation time is
    specific
  • - Problems are immediately corrected
  • Variation is the enemy

23
LEAN ENTERPRISE
  • The Rules
  • Rule 1 Standardized Work
  • Performing standardized work tests two
    hypotheses
  • 1) The person doing the work is capable of
    performing it correctly.
  • 2) Performing the work correctly creates the
    expected outcome.
  • If the specified work cant be done in the
    specified time, one of the hypotheses is wrong.
    The worker needs to be retrained (or re-selected)
    or the work needs to be redesigned.

24
Standardized Work
Rule 1
  • Variation is the enemy!
  • Product
  • Processes

25
LEAN ENTERPRISE
  • The Rules
  • Rule 2 Standardized Relationships (How
    Activities Connect)
  • - Every connection must be
  • standardized and direct (no go-betweens)
  • specifying the people involved
  • specifying the form and quantity of goods and
    services to be provided
  • specifying the way requests are made by each
    customer
  • specifying the expected time in which requests
    are met
  • - No gray zones in deciding who provides what
    to whom and when

26
LEAN ENTERPRISE
  • The Rules
  • Rule 2 Standardized Relationships
  • - Two hypotheses
  • 1) Customers requests for goods and services
    will be for goods and services in a specific mix
    and volume.
  • 2) The supplier can respond to the customers
    requests.
  • - If theres a problem, one of the hypotheses is
    false. Then retrain, modify activities or
    reassign customer-supplier pairs as necessary.

27
LEAN ENTERPRISE
  • The Rules
  • Rule 2 Standardized Relationships
  • Example Worker encounters problem installing
    seat
  • - Worker knows to inform group leader
    immediately.
  • - Group leader knows problem must be resolved
    within the cycle time for installing seat or
    production line must be stopped.

28
Standardized Relationships
A Lean Rule
  • Rationale
  • If problems are hidden, they are neither shared
    nor resolved company wide. If workers
    improvise to solve a problem on their own,
    there is no longer standardized
    work (Rule 1).

29
LEAN ENTERPRISE
  • The Rules
  • Rule 3 Standardized Pathways
  • - There is only one routing for a given
    product or service. Each operation in the
    routing is highly specified.
  • - There is only one pathway for problem
    resolution. Methods for resolving problems are
    highly specified.
  • - No gray zones in deciding how, when, where
    or by whom things get done.

30
LEAN ENTERPRISE
  • The Rules
  • Rule 3 Standardized Pathways
  • - Two hypotheses
  • 1) Every supplier that is connected to the flow
    path is
  • required.
  • 2) Any supplier not connected to the flow path
    is not needed.
  • - If theres a problem, one of the hypotheses is
    false. Then, redesign the flow path.

31
LEAN ENTERPRISE
  • The Rules
  • Rule 3 Standardized Pathways
  • - Goods and services do not flow to the next
    available person or machine but to a specific
    person or machine. If theres a problem, a
    specific person is notified.
  • - Because each pathway is specified, the two
    hypotheses are always tested and can be improved,
    if necessary.

32
LEAN ENTERPRISE
  • The Rules
  • Rule 4 Scientific Method
  • - Any improvement must be made in accordance
    with the scientific method, under the guidance of
    a teacher (supervisor), at the lowest possible
    level in the organization.

33
LEAN ENTERPRISE
  • The Rules
  • Rule 4 Scientific Method
  • A problem is identified
  • Relevant data are gathered
  • A hypothesis is formulated
  • If we make the following specific changes, we
    expect to achieve this specific outcome.
  • The hypothesis is empirically tested.

34
LEAN ENTERPRISE
  • The Rules
  • Rule 4 Scientific Method
  • - The Scientific Method is applied to the
    hypotheses underlying
  • Standardized Work
  • Standardized Relationships
  • Standardized Pathways
  • in order to make controlled improvements

35
LEAN ENTERPRISE
  • The Rules
  • Rule 4 Scientific Method
  • - The hypothesis is formulated
  • A specific change in (work, relationship or
    pathway) will improve (cost, cycle time, quality,
    etc.) by a specific amount.
  • - The hypothesis is tested by putting the change
    into effect and observing the result.
  • - If the change doesnt produce the needed
    result, redesign the change.

36
Lean The Rules
  • All the rules require that work, relationships
    and pathways have built-in tests to signal
    problems. If there is a problem, it must be
    obvious to everyone.
  • It is the continual response to problems
    that make the seemingly rigid system so
    flexible and adaptable to changing
    circumstances.

37
LEAN ENTERPRISE
  • The Tools
  • Value Stream Mapping Time Observation
  • Standardized Work Root Cause Analysis - 5 Whys
  • Standardized WIP Quality Function Deployment
  • 5 Ss Visual Control
  • Poke-Yoke Kanban
  • Eliminate Adjustments Process Measures/Capability
  • Jidoka (Built-in Quality) Cross-Training
  • Line Stop Design for Manufacture/Assembly
  • Problem Alarm (Andon) Takt Time
  • Documentation

38
LEAN ENTERPRISE
  • The Tools
  • Value Stream Mapping
  • The Value Stream is simply a process that adds
    value for the customer that you want to improve,
    e.g.
  • Order processing
  • Releasing the order to the floor
  • Machinery set-up
  • Order fulfillment
  • New product development
  • Rolled Throughput Yield

39
LEAN ENTERPRISE
  • The Tools
  • Value Stream Mapping
  • Observe and list every step in process
  • Use 3 x 5 Post-It Notes on a wall of drafting
    paper
  • Color code notes value add, non-value add
    necessary, non-value add unnecessary
  • Note Task Time and Elapsed Time for each step
  • Add them all up and compare
  • Goal Make Elapsed Time approach Task Time

40
Standardized Work
A Rule a Tool
  • Details the motion of the operator and the
    process sequence in producing parts or service.
  • Provides a routine for consistency of an
    operation and a basis for improvement.
  • It is the documentation of the most waste-free
    production, through the best combination of
    people and equipment, the least amount of
    work-in-process possible,
    showing where to check for
    quality and where there are
    safety issues.
  • Team members identify process
    problems and promptly solve them.

41
LEAN ENTERPRISE
  • The Tools
  • Standardized Work
  • Provides a consistent framework for performing
    work at the desired takt time and for revealing
    opportunities for making improvements in work
    procedures.

42
LEAN ENTERPRISE
  • The Tools
  • Standardized Work
  • 4 Elements-
  • Work Content
  • Work Sequence
  • Work Timing
  • Outcome

43
LEAN ENTERPRISE
  • The Tools
  • Standardized Work
  • Productivity at every worksite is improved by
    kaizen improvements in equipment, measures and
    process.
  • Team members identify process problems and
    promptly solve them.
  • As takt time changes from month to month, the
    standardized work must also change the team must
    therefore devise new standardized work
    procedures.

44
LEAN ENTERPRISE
  • The Tools
  • Documentation
  • The most important documentation is documentation
    of Standard Work
  • It should be written so the person using it could
    not possibly misunderstand it use photos, etc.
  • If you dont document standard work during a
    kaizen, the kaizen probably wont stick.
  • It should be displayed where used, not filed.

45
LEAN ENTERPRISE
  • The Tools
  • Standard Work in Process
  • That material which must exist in the process to
    make the process operate
  • Units actually being worked on, plus
  • Units in test
  • Units cooling, curing, aging, drying, etc.
  • Units attached to multi-station machines
  • Excludes units waiting, stored, staged or
    otherwise not serving any purpose in the process.

46
LEAN ENTERPRISE
  • The Tools
  • The 5Ss
  • Seiri
  • Seiton
  • Seiketsu
  • Seiso
  • Shitsuke

47
LEAN ENTERPRISE
  • The Tools
  • 5Ss
  • Organization of the Work Area
  • Get rid of clutter. Red Tag things that are
    not needed now.
  • Orderliness
  • A place for everything everything in its place
  • Cleanliness
  • No oil or chips on floors or machines. No
    adhesives, stray parts on work surfaces
  • Standardized Cleanup
  • A 5-minute cleanup routine that is always
    followed.
  • Discipline
  • Make it a routine way of life.

48
Workplace Organization and Visual Communication
Level 1 Level 2 Level 3 Level 4 Level 5
Mass Production System Initiation System Development System Maturity System Excellence
The workplace is cluttered, dirty, disorganized. Searching for materials is time consuming. Information on standards and abnormalities not readily available. Unnecessary items are removed.  Floors and work areas are clear, but passageways are  used for temporary storage. Proper locations not readily apparent. Intermittent cleaning and organizing initiatives.  All horizontal and vertical surfaces are clean. Workers encouraged to address, label, and outline work spaces. Storage areas, closed cabinets and drawers are disorganized. Clean, organized, 'visually managed areas are maintained. Everyone takes pride in the environment, discipline is high. Teams develop mistake-proofing devices. Abnormalities perceived immediately . Workplace is immaculate workers highly disciplined. At-a-glance visual control of workflow,inventory , and standards. Dirt and contamination are controlled at their sources. All employees continuously improve visual control systems.
Where are we nowwhere do we want to be?
49
LEAN ENTERPRISE
  • The Tools
  • POKA-YOKE
  • Japanese for OOPS PROOFING
  • Devices to prevent the processing of defective
    parts or materials by the use of gauges, gates,
    deflectors, sensors, limit switches in such a way
    that only good product will be allowed to proceed
    to the next downstream operation.

50
LEAN ENTERPRISE
  • The Tools
  • Eliminate Adjustments
  • All adjustable settings can be maladjusted.
  • Positive positioning and alignment is the only
    certain way to assure quality.
  • The best adjustment is no adjustment!

51
LEAN ENTERPRISE
  • The Tools
  • Jidoka
  • Designed-in quality. The design of equipment
    which senses and prevents the manufacture of
    defective product, signals such an abnormality
    and stops the process until intervention to fix
    the problem takes place.
  • A process using equipment to merely sense and
    sort good from bad product is not Jidoka.

52
LEAN ENTERPRISE
  • The Tools
  • Line Stop
  • The practice of stopping production to expose a
    waste or a process failure to force solution of
    the problem rather than providing wasteful
    avenues, backups, spare machines, alternative
    processes, repair stations, or other forms of
    waste.
  • Line stop exemplifies the difference between
    overcoming problems and solving problems.

53
LEAN ENTERPRISE
  • The Tools
  • Problem Alarm (Andon)
  • A signal, light, bell or music alarm triggered by
    an operator confronted with a non-standard
    condition.
  • A non-standard condition includes tool failure,
    machine failure, bad part, lack of parts, cannot
    keep up or when an error needs correction.
  • An andon is a signal for immediate help to
    prevent line stop.

54
LEAN ENTERPRISE
  • The Tools
  • Root Cause Problem Solving
  • Develop list of symptoms
  • Try to define problem
  • Utilize tools to determine probable root causes
  • 5 Whys
  • Trace to Man, Machine, Material, or Method
  • Working on symptoms will not remove root causes
  • Turn problem on/off to verify the root cause

55
LEAN ENTERPRISE
  • The Tools
  • 5 Whys and 1 How
  • Ask Why 5 times in order to help determine the
    root cause of the problem at hand. In this way,
    we can move past the symptoms to reveal the root
    cause. When a root cause is determined, take
    action, so that the problem will never reoccur.

56
LEAN ENTERPRISE
  • The Tools
  • 5 Whys Example
  • 1. Why did the machine stop?
  • There was an overload and the fuse blew.
  • 2. Why was there an overload?
  • The bearing was not sufficiently lubricated.
  • 3. Why was it not lubricated sufficiently?
  • The lubrication pump was not pumping
    sufficiently.
  • 4. Why was it not pumping sufficiently?
  • The shaft of the pump was worn and rattling.
  • 5. Why was the shaft worn out?
  • There was no strainer attached and metal scrap
    got in.

57
LEAN ENTERPRISE
  • The Tools
  • Quality Function Deployment
  • A technique where product performance features
    and the characteristics which deliver them are
    determined by the customer, and paid heed to by
    the producer by listening and acting.
  • The quality responsibility is then deployed
    throughout the organization by making sure all
    operations result in the fulfillment of these
    customer requirements.

58
LEAN ENTERPRISE
  • The Tools
  • Visual Workplace
  • A visual workplace is a work area that is
    self-explaining, self-regulating and
    self-managing...where what is supposed to happen
    does happen...on-time, every day.

59
LEAN ENTERPRISE
  • The Tools
  • Characteristics of a Visual Workplace
  • Physical impediments to effective processing are
    removed.
  • Processes are tightly linked and logically
    ordered.
  • Tools and fixtures have nearby homes no
    searching
  • Information and material travel together.
  • Standards are clear and self-explaining. Clear
    baseline for continuous improvement.

60
LEAN ENTERPRISE
  • The Tools
  • Benefits of a Visual Workplace
  • Clarity of space
  • Clarity of communication
  • Clarity of baseline for continuous improvement
  • Ease of training
  • Ease of compliance to standards, regulations
  • Pride in workplace
  • Customer appeal and approval
  • Bottom line improvement

61
LEAN ENTERPRISE
  • The Tools
  • Visual Replenishment Systems (Kanban)
  • Techniques for using cards, lights, heights,
    grids, squares, flags or other visual means of
    signaling the need for replenishment of
    materials, parts or supplies, located at resupply
    points.
  • Designed to maximize the value adding processes,
    smooth flow and minimize waste of conveyance.

62
LEAN ENTERPRISE
  • The Tools
  • Visual Control
  • Is the use of signals, charts, measurements,
    diagrams, lights, and signs to clearly define the
    normal or desired conditions and to expose the
    abnormal undesired conditions.

63
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64
LEAN ENTERPRISE
  • The Tools
  • Visual Display Boards
  • The most powerful visual display boards
  • Graph the variable youre tracking daily
  • Include a Pareto chart of root causes of poor
    performance
  • Include countermeasures to those root causes with
    names of those responsible to fix and target
    dates
  • Are never allowed to get out of date

65
LEAN ENTERPRISE
  • The Tools
  • Process Measures
  • Process measurements are those which portray
    achievement in terms of the continuous
    improvement of process parameters, not just in
    terms of process results.
  • Therefore, process measures should depict
    performance over time.
  • Good processes yield good results.

66
LEAN ENTERPRISE
  • The Tools
  • Process Measurements - Examples
  • Customer Satisfaction Operational lead time/
    of complaints per of items sold
  • On-time Delivery , goal is 100
  • Inventory Turnover turns/year, avg days supply
  • Space Utilization reduction
  • Productivity Units produced per hour
  • Scrap Total , of CGS
  • Rework Total , of CGS
  • First Pass Yield
  • Defects Defects per million, ppm
  • New product intro time Months
  • Operational lead time Days
  • Gross Margin
  • A/P Invoice Processing Invoices per day
  • Attendance workforce at work

67
LEAN ENTERPRISE
  • The Tools
  • Process Capability
  • Can the process produce an on-spec product or
    service 100 of the time by following the
    standard work with any trained operator?
  • This means both the process and any machines,
    equipment or tools in the process must be
    capable of producing a good part or service 100
    of the time.

68
LEAN ENTERPRISE
  • The Tools
  • Process Capability
  • If only old Joe can coax a machine, tool or
    piece of equipment into making a good part, its
    probably not process capable and needs to be
    calibrated, repaired, overhauled or replaced.

69
LEAN ENTERPRISE
  • The Tools
  • Process Capability
  • Each operation in a process must be process
    capable or youre wasting your time trying to
    make the process Lean.

70
LEAN ENTERPRISE
  • The Tools
  • Multi-Skilled Workers
  • The leanest process may require workers to
    provide effort in a variety of tasks.
  • Rigid job classes and definitions are in direct
    conflict with team work and reduce flexibility.
  • Multi-skilled workers are capable of maximizing
    team work and performance.

71
LEAN ENTERPRISE
  • The Tools
  • Design for Manufacturing Assembly
  • DFMA
  • A conscious process of making design decisions
    only after fully evaluating the manufacturing
    processes, tools, quality control measures and
    equipment impacts.

72
Takt Time
A Lean Tool
  • The most fundamental element of Standard Work
  • A German work for meter or rhythm

Time Available per Day (or Week)
Takt Time

Sold Units per Day (or Week)
Time Available Recognizes productive time
available for making product. Sold Units
Reinforces the concept of making only what you
need no overproduction, driven by demand.
73
LEAN ENTERPRISE
  • The Tools
  • Takt Time
  • Time Available Consider those things that take
    away from available time, i.e., breaks, team
    meetings, clean up, etc.
  • Sold Units Consider who is the customer.
  • Could be Next Operation
  • Kanban Signal
  • Customer Order
  • Sales Forecast
  • This states customer demand viewed against time
    DOES NOT reflect capacity, operator cycle time or
    machine cycle time.

74
LEAN ENTERPRISE
  • The Tools
  • Time Observation
  • 1. Measure manual work, machine work and walking
    time within the operation.
  • (a) Observe the operation 2 or 3 times in order
    to understand the order of tasks and work
    methods and to determine component tasks.
  • (b) Enter component tasks on the Time
    Observation Form and, while watching the
    operation, remember each observation point. An
    observation point is the instant at which the
    end of an operation is read off a stopwatch.
    (Observations can be made of component tasks 2
    or 3 seconds long.)
  • (c) Measure time
  • - Without stopping the stopwatch, take a
    reading at the end of each component task and
    enter that value on the Time Observation Form as
    shown in Figure 1.
  • - Observations must be repeated roughly
    10 times.
  • - Note any exceptional tasks or times
    observed.

75
LEAN ENTERPRISE
  • The Tools
  • Time Observation
  • - Enter times in black in the upper half of the
    square provided.
  • (d) Calculate the time for each component task.
  • - Enter in red in lower half of the square
    provided
  • (e) Find the time per cycle
  • - Enter in Red
  • (f) Determine cycle time
  • - Choose the best value of 10 observations.
    (These are times that allow continuous
    operations do not include abnormal values.)
  • (g) Determine times for each component task
  • - The total of all component task times should
    match the cycle time.
  • (Do not change the cycle time.)

76
LEAN ENTERPRISE
  • The Tools
  • Time Observation
  • 2. Find Machine Times
  • (a) Measure the time between the instant the ON
    button is pressed and the point at which the
    machine returns to its original position after
    completing the target operation.
  • (b) 2 or 3 observations should be sufficient
  • Compare and contrast
  • Rationalize irregular times
  • Use common sense
  • Avoid traditional I.E. mentality.
  • RE Work Pace 100, 120, etc.
  • BOTTOM LINE
  • EMPLOYEE MUST UNDERSTAND AND ACCEPT THE NUMBERS

77
LEAN ENTERPRISE
  • The Tools
  • Time Observation
  • For office procedures, which might take longer
    than the kaizen event to observe, you must rely
    on estimates by those who do the work and/or
    documents which might reveal elapsed time.
  • For example, in observing the order processing
    value stream, check documents in various stages
    of the process to see when the order was received
    and when earlier stages were completed.

78
LEAN ENTERPRISE
  • The Tools
  • Time Observation
  • Units of Time Measurement
  • Choose the appropriate unit of measure seconds,
    minutes, hours or days for the value stream
    youre observing.
  • If you find yourself writing down tasks in
    thousands of seconds, you should probably switch
    to a larger unit.

79
LEAN ENTERPRISE
  • The Tools
  • Time Observation
  • Units of Time Measurement
  • If queue time (waiting time) is 8 hours and the
    process operates only one 8-hour shift, thats
    one day.
  • If queue time is 24 hours and the process
    operates on three 8-hour shifts, thats one day.
  • If the the process extends beyond 5 days and the
    operation is closed on weekends, the two weekend
    days are counted in elapsed time.

80
LEAN ENTERPRISE
81
LEAN ENTERPRISE
82
LEAN ENTERPRISE
  • The Kaizen Plan
  • Schedule
  • Day 1 afternoon Understand problem, gather
    data, set objectives, formulate hypothesis
  • Days 2-3 - Work on applying rules and tools
    to achieve objective
  • - Status report to
    management at 430 P.M.
  • Day 4 - Continue work to achieve
    objective
  • - Report to management at
    Noon
  • How you achieved objective
    through application of rules and
    tools.

83
LEAN ENTERPRISE
  • The Kaizen Plan
  • Kaizen Event Structure
  • Short-Term Intense Effort
  • Multi-Functional / Level Team
  • Flow-Focus, Not People Focus
  • Specific Goals
  • Work in Targeted Area (Factory / Office)
  • Daily Reviews of Progress
  • Closure is a Must

84
LEAN ENTERPRISE
  • The Kaizen Plan
  • Rules for Group Interaction
  • Keep an open mind to change.
  • Maintain a positive attitude.
  • Never leave in a silent disagreement.
  • Create a blameless environment.
  • Practice mutual respect every day.
  • Treat others as you want to be treated.
  • Everyone is equal - No position or rank.
  • No such thing as a dumb question
  • Understand the thought process and then Just Do
    It!

85
LEAN ENTERPRISE
  • The Kaizen Plan
  • Data Gathering
  • Define the problem
  • Flow chart the value stream as it is now e.g.
    activities in entering/launching an order task
    times and elapsed times.
  • Produce a spaghetti chart - physical path of
    the process through the building
  • Calculate Takt time
  • Fill out target sheet
  • Produce time observation form
  • Produce Loading form

86
LEAN ENTERPRISE
  • The Kaizen Plan
  • Kaizens follow the DMAIC Process
  • Define the problem/opportunity to improve -
    hypothesis
  • Measure Make time observations of the process
  • Analyze the components of the value stream (value
    added, non-value added, non-value
    added-necessary)
  • Implement Change process, retrain
  • Control Visual controls, documented standard
    work, pathways, relationships

87
LEAN ENTERPRISE
  • The Kaizen Plan
  • Set Objectives
  • For example
  • - Reduce the cycle time from customer order to
    launch of work order from X weeks to Y days
  • - Assure that purchased parts for a work order
    will be in house, parts complete by ________.

88
LEAN ENTERPRISE
  • The Kaizen Plan
  • Identify and Eliminate the Waste
  • 1st Eliminate valueless time (queue time,
    etc.)
  • 2nd Eliminate valueless activity (things a
    customer wouldnt pay for)
  • 3rd Eliminate valueless variance
  • from your flow chart of the process
  • Produce a proposed flow chart which eliminates
    all the waste you identified. Does it achieve
    your objectives? If not, redesign.

89
LEAN ENTERPRISE
  • The Kaizen Plan
  • Formulate Hypothesis
  • - If we change (certain specific work,
    relationships, pathways), then we will get this
    expected result (which will achieve our
    objective).

90
LEAN ENTERPRISE
  • The Kaizen Plan
  • Rules and Tools
  • Apply the 4 Lean Rules to the process and select
    the tools you need
  • - Write the Standard Work procedures (by asking
    the 4 Questions)
  • - Write the Standardized Relationships
    procedures
  • - Write the Standardized Pathways procedures
  • - Present the plan to management for approval

91
LEAN ENTERPRISE
  • The Kaizen Plan
  • Remember
  • You must write or revise the documentation
    associated with the 4 Rules
  • You must put visual controls in place to measure
    progress
  • There must be someone directly responsible for
    this process going forward (e.g. lead person,
    supervisor)
  • or the kaizen probably will not stick.

92
LEAN ENTERPRISE
  • The Kaizen Plan
  • Follow-Ups
  • Fill out the Kaizen To Do List of any items that
    cant be completed by the end of Day 4.
  • All must be scheduled for completion within 30
    days.
  • Recommend any associated kaizens which should be
    done.
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