LEAN ENTERPRISE

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LEAN ENTERPRISE

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

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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.

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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
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Why Lean Enterprise?

• - Sustainable competitive advantage

SURVIVAL!
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Lean Enterprise

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

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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.

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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.)

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LEAN ENTERPRISE

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

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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
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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.

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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.

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LEAN ENTERPRISE

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

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Waste
Non Value Added
Value Added
Non Value Added
Value Added
Value Added
ELIMINATE WASTE OUT OF TOTAL ACTIVITIES
Non Value Added
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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
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LEAN ENTERPRISE

• What is Waste?
• Waste of
• Overproduction
• Time on Hand
• Transportation
• Processing
• Stock on Hand
• Movement
• Making Defective Products

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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.

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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.

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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.

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LEAN ENTERPRISE

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

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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?

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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

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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.

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Standardized Work
Rule 1

• Variation is the enemy!
• Product
• Processes

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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

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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.

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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.

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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).

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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.

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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.

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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.

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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.

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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.

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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

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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.

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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.

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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

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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

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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

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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.

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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.

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LEAN ENTERPRISE

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

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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.

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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.

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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.

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LEAN ENTERPRISE

• The Tools
• The 5Ss
• Seiri
• Seiton
• Seiketsu
• Seiso
• Shitsuke

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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.

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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?
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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.

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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!

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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.

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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.

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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.

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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

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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.

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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.

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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.

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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.

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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.

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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

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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.

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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.

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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

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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.

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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

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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.

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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.

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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.

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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.

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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.

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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.
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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.

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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.

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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.)

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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

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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.

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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.

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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.

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LEAN ENTERPRISE
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LEAN ENTERPRISE
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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.

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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

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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.