Understanding & Applying the Five Principles of Lean
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FIVE. PRINCIPLES of LEAN. THINKING. 1. VALUE IN THE. EYE OF THE.
CUSTOMER. THE STARTING POINT OF ALL LEAN. Thoroughly understand
what the.
collection, and support tasks. VALUE STREAM MANAGER HAS. FULL ACCOUNTABILITY. 3. MAXIMIZE THE. FLOW & PULL. MATERIAL
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Understanding & Applying the Five Principles of Lean
What is Lean? Technical Tools. Culture ... Wiremold Company. Wire guards. *
Adapted from Lean Thinking by James Womack.
Understanding & Applying the Five Principles of Lean Christy Nikel Founder, Broad Arrow Consulting
BROAD ARROW CONSULTING
#psf11
…redefining efficiency
Agenda 1. Welcome 2. Technical Tools: The Five Principles of Lean 3. Culture Change 4. Applications - 5S - Value stream mapping
5. Close
Connections
So I know you better…
Round Robin
Christy Nikel I’ve seen it work…
What is Lean?
Technical Tools
Culture
LEAN
TECHNICAL TOOLS
The Five Principles of Lean
The Five Principles of Lean
Commonplace: • “The customer will want it once we explain it” • “The customers weren’t sophisticated enough to get the product”
1. Define Value from the Customer’s Perspective • What products do your customers want? • What specific characteristics do they want that product to have? • What are they willing to pay for it?
Take a Moment • Who are your customers? • What do they want?
How do you know you are delivering what they want?
What you measure is what you treasure.
Let’s look at value in more detail…
Wiremold Company Wire guards
*Adapted from Lean Thinking by James Womack.
Wiremold Company Wire guards
*Adapted from Lean Thinking by James Womack.
The Five Principles of Lean
2. Identify the Value Stream • A value stream is all of the steps required to bring a product from order to delivery. Information
Suppli er
I n
Proce ss
Proce ss
Material
Proce ss
Out Custome r
Metal Fabrication
Cut
Weld
Polish
Sandblast
Powder Coat
Ship
Food Processing
Scale De-pan
Mix
Pour
Bake
Cooling 1
Cooling 2
Slice
Pack
Ship
Pulp and Paper
Wash
Tumble
Screen
Wash
Chip
Digest
Delignification
Brownstock Washing
Bleach
Roll
Ship
Air Dry
Wash
Cut
Spray
Identify the Value Stream – Cont’d • Walking the value stream will almost always show that three types of actions are occurring: – Value-adding work – Incidental work – Pure waste
Value Adding Work
• Physically changes the product • Not rework! • Customer is willing to pay for it
Incidental Work
• Activities that are currently necessary to create a product for a customer but which have no value to the customer
Pure Waste • Activities that create no value and can be completely eliminated Seven traditional types…
Transportation Excessive movement of people, information or materials
Spaghetti Diagrams
Waiting Periods of inactivity for people, information, machinery or materials
Motion Movement of people that does not add value to the product
Inventory Excessive storage and delay of information or products
Over-processing Work done on a product that is not required by the customer
Defects Product or paperwork errors
Defects are also called…
• • • • •
Rework Errors Mistakes Scrap Corrections
Overproduction Producing more or sooner than the customer needs
3. Create Continuous Flow • True continuous flow occurs when the product is produced and moved from one processing step to the next, one at a time, without stopping, errors, or backflow.
The World of Batch and Queue
Water Works
Water Works
Total lead time: 4.6 weeks Total processing time: 10.2 hours
Continuous Flow • If we can line up the essential steps into continuous flow with no interruption, batches or queues, there are dramatic results: – – – –
Time Effort Space Inventory
Cut in half very quickly!
Water Works
Fly it!
The Five Principles of Lean
Pull from the Customer • No one produces a good or service until the customer downstream asks for it. • Let your customers pull the product from you as needed, rather than pushing products onto the customer.
Water Works
A
20 A
A
20 A
A
B
B
B
C
C
C
Raw Material
WIP
20 A
Finished Goods
Example of a Pull System – Raw Materials O/NO:
DEL: O/NO:
DEL:
O/NO:
DEL:
O/NO: O/NO: O/NO:
DEL: DEL: DEL:
BACARDI 150CL UK BACARDI 150CL UK
BACARDI 150CL UK
FRONT LABELS
FRONT LABELS
1 BOX
1 BOX
FRONT LABELS
1 BOX
BACARDI150CL 150CLUK UK BACARDI 150CL UK BACARDI FRONTLABELS LABELS FRONT LABELS FRONT
BOX BOX 111BOX
As the Containers are used, remove the Kanban card & raise an order on the supplier
Add Order & delivery details and return card to board
The Deliveries arrive, turn cards to ‘red’ as each container arrives, to show ‘bay full’
The Five Principles of Lean
Strive for Perfection • There is no end to the process of reducing – – – – –
Effort Time Space Cost Mistakes
• Offering a product that is ever closer to what the customer actually wants • Not benchmarking with competitors!
The Five Principles of Lean
What is Lean?
Technical Tools
Culture
LEAN
CULTURE
Culture of Excellence • Requires knowledgeable and experienced people to continually find better ways to create customer value
Change your Culture Today • Take a walk! • Identify and post metrics • Have regular staff meetings involving everyone; discuss metrics • Ask for volunteers to create an employee suggestion process – Follow up!!!
• As problems arise, ask your employees for help
LEAN
APPLICATIONS
5S or Workplace Organization • A process to achieve and sustain a clear, clean, safe and organized workplace • A way to ensure that the workplace contains only what is needed, when it is needed and where it is needed.
What does this accomplish?
5S or Workplace Organization • • • • •
Sort: Necessary vs unnecessary Set in order: A place for everything… Shine: Clean and ready to use Standardize: Maintain the gains Sustain: Self discipline
High Performance Glass
“5S implementation in our shop has seen a return of $12,500 over the last 4 months.” Ted Roosen General Manager
$40k annual savings
Value Stream Mapping • VSM: A picture of the value stream from the product’s point of view – Grasp current condition – Identify improvement opportunities
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