Introduction to Lean

Lean Enterprise Manual

Introductions

 Name
 Position / Positions Held
 Length of Service
 Workshop Expectations
WHY?

 Why we need to change?

 Why we need Lean Manufacturing?
 Visual Management
 5’S
 TPM
 KAIZEN & KAIKAU
 SMED
 JUST IN TIME
 Zero Defects
 Waste elimination
 Six Sigma
 LTA’s: LONG TERM AGREEMENT

Example: LTA 5%, 5 year contract

Year Price Cost Profit Sales Profit/Loss

2000 50.00 46.50 3.500 100,000 350,000

2001 47.50 46.50 1.000 100,000 100,000

2002 45.12 46.50 (1.375) 100,000 (137,500)

2003 42.87 46.50 (3.631) 100,000 (363,125)

2004 40.73 46.50 (5.775) 100,000 (577,469)

($628,094)

AWARENESS
SYSTEMS THINKING

PIT’s
Systems are analogous to chains
• Each system has a “weakest link” (constraint) that ultimately limits
the success of the entire system
• Strengthening any link in a chain other than the weakest one does
not NOTHING to improve the strength of the whole chain
• Knowing what to change requires a thorough understanding of the
system’s current reality, its goal, and the magnitude and direction of
the difference between the two
Goldratt’s Theory of Constraints -H. William Dettmer

…you will be as good as your worst supplier.

 KAIZEN WORKSHOP

“…what’s good about the workshops is their action

focus. If nothing else, they provide an opportunity

for company members to get together on the plant

floor and make things happen. What’s not so good

is when they are not used strategically as part of a

larger plan…”.

- Becoming Lean; Productivity Press

 “ Speed is useful
only if you are running
in the right direction.”
_ Joel Barker
“ The real act
of discovery consists
not in finding new lands
but in seeing with new eyes.”

-Marcel Proust.
 BECOMING LEAN

There are no experts,

just people with more experience.

The longer we wait,

the more experience our competitors
will have when we start.
Experience, successes

_Becoming Lean; Productivity Press

time
 THE LEADERSHIP CHALLENGE

1.Get the task done, and take care of your men

2.Leadership
_Douglasappears
McArthur to be the art of getting others to want to
do something that you are convinced should be done
_Vance Packard

3.People cannot be managed. Inventories can be managed,

but people must be led _Ross Perot

4.To define reality _Max De Pree

5.To discover the future _Joel Barker

6.To recognize the future _Jack Welch; GE

7. To assure the future _Haveed Riaz; CITIGROUP

MANAGEMENT RESPONSIBILITIES

1. To create an environment which allows,

and requires, all employees to best
utilize their capabilities to attain the
goals of the organization.

2. To avoid or eliminate artificial barriers

which prevent, or restrict, the
organization from accomplishing
number one.
You can and should shape
your own future; because
if you don’t someone else
surely will.
_Joel Barker

Control your own destiny,

or someone else will.
_Jack Welch
FINAL THOUGHT: ACCOUNTABILITY

Our responsibility, it is to make things happen

Requisites:

INTELLIGENCE
(Knowledge & Skills)

+
WILLINGNESS
(Desire)
Workshop Norms

 Be on time
 Be creative
 Be encouraging
 Do not rule the roost
 Be comfortable speaking up
 Ask what you do not know
 Be respectful of others
 Communicate – Communicate – Communicate
 Have Fun!
What you can expect

 Safety & Quality must maintain or improve

 Challenge Mind Set
 Denial
 Resistance
 Exploration
 Acceptance
 Commitment
 Challenge existing processes
 Learn by doing and experiencing on your own
 Have Fun!
 Lean Workshops
A focused approach to continuous improvement,
merging TOC (constraint management) and
lean thinking (waste elimination) to
aggressively increase throughput while simultaneously
identifying and eliminating waste.

LEADING TO
ENHANCED

Safety/
people Quality Delivery Cost
• CI Culture • Zero Defect Quality • 100% On-Time • Inventory
• Performance Driven • System Integrity • Eliminate Expedite $$$ • Competitiveness
• Employee Involvement • Right the First Time • Shortened Lead-time • Quantum leap
• Decision Making • Delighting Customers • Fast Response • Business growth
• Problem Solving
• Job Security
Operations Vision

Agile: Build to customer Takt (flexible processes staffing, skills, equipment, supply-base, …),
changeover within Takt time 1 day process lead time, 5 day dock-to-dock time, 50+
inventory turns, single piece flow, management by sight, simple and robust systems

Low: Low cost manufacturing footprint, reliable, capable and productive processes, low
cost/ high value supply base, consistent waste elimination.

Neat: 5’S, everything in its place, standardized work, visual management

Action oriented: Continuous improvement culture, performance driven, employee, QRQC,
involvement and engagement, data driven decision-making and problem resolution
What is the goal of Lean Manufacturing?

Eliminate Waste and focus on improving Value Added Work

• Prevents Flow • Smoothes Flow

• Hides Defects • Exposes Problems
• Adds Cost • Low Cost
• Makes People Work Harder • People Friendly Processes
• Breaks Down Systems • Designed by People
• Drives Reactive Behavior • Delights Customers
• Creates excess inventory • Proactive mindset and behaviors
How does it compare? LEA
N

TEAMWORK FLEXIBLE, PREVENTION ONE PIECE / PROACTIVE,

CELLS PREDICTABLE, PULL PLANNED MAINT.
STREAM LINED

EMPLOYEES
EMPLOYEES PROCESS
PROCESS QUALITY
QUALITY PRODUCTION
PRODUCTION MAINTENANCE
MAINTENANCE

INDIVIDUALISTIC CONFUSING, DETECTION LARGE BATCH / REACTIVE,

COMPLEX, % DEFECTIVE PUSH FIT IN TYPE
DIFFICULT TO PM
CONTROL

TRADITIONAL
Why Practice Lean?

Customers:
 Desire suppliers that produce superior products at the highest
level of quality sold at a competitive price and delivered in the right
quantity when they ask for them.

Business:
 Capture additional sales
 Become more profitable
 Industry Leader in the Market

Associates:
 Job Security
 Empowerment - Tools to make good decisions, provide input, and
have a stake in the business
 Succession Planning (Preparing people for the future)
 Safe workplace and meaningful responsibility
KAIZEN

Traditional

• Quick, fast
• Little follow-up
Observe Develop
• Management directive Current State Future State

What is better?
Paper Kaizen

Observe Current State • Careful study

• Rapidly implement
• Debug and follow-up
Develop Future State • Ownership
Lean Fundamental Beliefs

In any process…
Work: All work does not add value

Time: Wasting time makes us less competitive

Value: Customers only pay for perceived value

Money: We exist to make money “THE GOAL”

People: Must take ownership. People want to do a good job

Management: Must lead, coach, mentor, and hold accountability

Success: Is the result of good planning. Requires daily renewal

Change

It’s not easy…

 Change is doing something different
 For every change there is an equal or opposite reaction
 Everyone resists some type of change
 Big Change = Big Resistance

What makes us want to change?

 Despair?
 Tired of the same old thing?
 Emotional Event?
 Program of the Month / Brute Force?
Things we hide behind…

Politics Traditions

Past
Practice
Contracts

Policies Intelligence
Barriers to change

New Ideas
Concepts
Thoughts

 Lack of commitment
 Trust
 Skepticism
 Flavor of the Month
Keys to Change

 Positive Outlook
 Gain Knowledge
 Develop Understanding
 Develop Skill
 Partner with People
 Keep Trying
 Honor People and Give Credit
 Celebrate Success
 Tools to Change

Pulse Rate Audits Value Stream Mapping

Total Quality Kaizen Six Sigma

Heijunka 5S TPS Shainin

Lean Manufacturing Standardization

Jidoka Poke-Yoke
Plan – Do – Check - Act Continuous Flow
IT DOESN”T MATTER WHAT YOU CALL IT…..AS LONG AS
YOU JUST DO IT!!