Lean White Belt Training Module 3: Lean Principals

Lean White Belt Training Module 3: Lean Principals

Lean White Belt Training Module 3: Lean Principals Steve Rush, BPE Manager Steve Rush, BPE Manager 2015 Envigo 1 envigo.com Biography + Steve Rush, Business Process Excellence Manager Operations (Aug 2004 Dec 2012) + + + + + + Inhalation Analysis,

Formulation Analysis, Study Directing, Validating Analytical Methods, Bioanalysis, Laboratory Manager Business Process Excellence (Jan 2013 Present) + + + + + + + + + Business Process Improvement Projects, Value Stream Mapping, Managing and Supporting Change, Leading Teams, Root Cause Analysis, Workplace Organization,

Analyzing Data, Presentations, Creative Thinking Business Process Qualifications + + + + Lean NVQ level 2 Lean NVQ level 3/Green Belt Trained to Six Sigma Black Belt Black Belt Certification (on-going) 2 Philosophy Principals Benefits Assignment 3

What is Lean Continuous Improvement? Philosophy (Why) Techniques (What) Lean practices (How) 4 Lean Continuous Improvement Eliminate waste Philosophy Kaizen Value Levelling

Value Stream Continuously Improve TPM Flow and Pull Techniques Visual Mgt Kanban Mistake Proofing SMED Involve and Empower 5

VSM 5S Lean practices Managing for Daily Improvement Standard Work Paradigms + A Paradigm is a point in time where there is a set of boundaries to work within and guidance for solving problems + We all have boundaries within which we are comfortable + New ideas may break these rules and boundaries + Therefore causing uncertainty and fear + People dislike uncertainty and Fear It takes courage to make a change! 6 Paradigm Shifts

+1980 2015 + Smart phones and tablets + Organic everything + Too big to fail + 3D printing + Social networking + The internet of things 7 Lean Principals +Specify value in the eyes of the customer +Identify the value stream and eliminate waste +Make value flow at the pull of the customer +Involve, align and empower employees +Continuously improve knowledge in pursuit of perfection 8 Lean Principals

+Specify value in the eyes of the customer +Identify the value stream and eliminate waste +Make value flow at the pull of the customer +Involve, align and empower employees +Continuously improve knowledge in pursuit of perfection 9 Specify value in the eyes of the customer Customers Customers are entitled to presume that the product/service they intend to purchase is of high quality Customers have limited resources and unlimited demands Customers make purchasing decisions based on a much wider range of requirements other than cost (perceived value) and the effect on subsequent choices The companies which will be able to satisfy the largest number of these needs will be the winners in the long run Profit must be the aim of all companies - Without it

survival is not possible Specify value in the eyes of the customer Who is the customer? + Our customer: + Is the purchaser of a product or service, obtained from a seller or supplier for monetary or other valuable consideration + Has the ability to choose between different products and suppliers +Consider who are your Customers? Specify value in the eyes of the customer Value 12 Specify value in the eyes of the customer How To Determine Value?

Customer Value Add (CVA) questions. Business Value Add (BVA) questions Non-Value Add (NVA) questions + Does the task transform? + Does the task create competitive advantage? + Would the customer be willing to pay? + Would the process break down if this task were removed? + Is this task required by law or

regulation? + If the customer knew we were doing this, would he want to pay less? EXAMPLES + + + + Analysing Samples Dosing Animals Calculating Results Scientific Interpretation of Findings EXAMPLES + + +

+ + Order processing Purchasing Regulatory reporting Internal financial reporting Quality Assurance 13 EXAMPLES + + + + Transporting Stocking Rework loops Idle Time Lean Principals

+Specify value in the eyes of the customer +Identify the value stream and eliminate waste +Make value flow at the pull of the customer +Involve, align and empower employees +Continuously improve knowledge in pursuit of perfection 14 Identify the value stream and eliminate waste Map The Value Stream + What is a value stream map + The entire range of the activities, both Value Adding and Non Value Adding, internal and external, that collectively provides value, based on the customers definition + A data rich process map that shows the process flow at a high level + A tool to start a continuous improvement initiative + Identify Non Value Added tasks + Identify Low Correct & Accurate (%C&A) + Identify Long Lead Times

+ Identify Imbalanced Work Flow (Cycle Time vs TAKT time) + Identify Wasted/imbalanced people resources + Identify Waste of any type 15 Identify the value stream and eliminate waste 8 Wastes E R A T HA W E H T M

S E P Y T T? NG EN I IK NM R T IRO S T NV S E O 16 O E T S

A FW IN R U YO Identify the value stream and eliminate waste How to Map The Value Stream + Step 1:Draw the process flow map + Step 2: Add the material and information flow + Step 3: Add data in the data collection boxes + Step 4: Add Cycle Time and Lead Time data 18 Identify the value stream and eliminate waste Types of Data Material Data

Inventory Data I Frequency Time Count of Pieces Distance Time Cost Customer Data Process Data Customer Set up time Cycle time/Lead time # Defects

TAKT Time No of operators Module size No of Shifts Variation Hrs/shift Number of 19 Identify the value stream and eliminate waste Why Value Stream Map? + At a high level, a value stream map Excess Excess

motion motion Defects Defects Late Late Delivery Delivery Poor Poor Quality Quality High High Inventory Inventory Operator Operator Idle Idle time time

Excessive Excessive waiting time time waiting + Shows how we do things and enables us to find the waste + + What is stopping flow and increasing Lead Time? Where is the poor quality? Identify the value stream and eliminate waste Cycle Time and Lead Time +Cycle Time = Touch Time or Process Time + Time spent doing the actual work processes +Lead Time = Total time from start to end

+ Time from first input (work received) to final output (product delivered) + Includes all waiting time +Percentage Active = Cycle Time Lead Time 21 Identify the value stream and eliminate waste Cycle Time and Lead Time Lead Time 10 days IS H T Work Received E V

HA IT F T A TH O ? S N E S S E C O CycleTime R P IO R A N I

C S S E ,Y OR 2 days Work passed to next step U O Y Lead Time = Cycle Time + Waiting and Delays DO Percentage Activity = 2/10 = 20% Lean Principals +Specify value in the eyes of the customer +Identify the value stream and eliminate

waste +Make value flow at the pull of the customer +Involve, align and empower employees +Continuously improve knowledge in pursuit of perfection 23 Make value flow at the pull of the customer Demand +Demand to perform a task is placed on us +This originally comes from the customer +Orders +Work requests +Come to us as: +System prompt +e-mail +etc. 24

Make value flow at the pull of the customer TAKT Time + The average rate at which Customers buy products e h t f o + The rate at which products should be made e c i o v + It is expressed in time units: once every so many days e h t s r

i e t i m , y o l t p s u m i c s t s o M 25

Make value flow at the pull of the customer TAKT time vs Cycle Time TAKT Time = the time we have to complete based on customer demand Cycle Time = the time the process actually takes to complete for 1 piece TAKT Time = Total Available Time Demand 26 Make value flow at the pull of the customer Improve process to meet customer demand 27

Make value flow at the pull of the customer Improve process flow to meet customer demand + Establish flow in remaining value-adding steps + Eliminate non value adding activity + Optimize batch size = The ideal Lean stateProcess one, pass one + Reduce changeover times + Reducing breaks in the process + Eliminate variation and bring variety in as late as possible + Introduce Standard Operating Procedures + Introduce multiskilling + Identification of defects + Flexibility to carry out multiple operation + Use layout to optimise flow + U shapes + Introduce parallel processing

Multiple process occurring at the same time + Let product exit trigger start + 28 Process Capability +A Bad Process will defeat a Good Operator every time W. Edwards Deming What does this mean to you? Lean Principals +Specify value in the eyes of the customer +Identify the value stream and eliminate waste +Make value flow at the pull of the customer +Involve, align and empower employees +Continuously improve knowledge in pursuit of perfection

30 Involve, align and empower employees Lean leadership +Lean leaders inspire and motivate + Keep things simple + Be human + Treat others as you want to be treated + Have a vision + Communicate + Understand not everyone is the same + Recognise contribution and success + Lead by example + Develop programs that encourage and collect Employee ideas Involve, align and empower employees Lean leadership + Go to the Gemba + Open up dialogue and observe

+ Listen more than speak + Use open dynamic questions + Offer support + Raise self-awareness rather than compliance + Follow up with actions, responses and recognition Involve, align and empower employees Leading change Customer Needs Quality Improvements Cost Competitiveness New Strategies Regulatory Changes ? High Probability Culture - Teamwork - Trusting - Accountable

- Empowered - Can Do Attitude - Case for Action - Flexible - Responsive - Open to Change - ? Culture Filter Low Probability Culture - Boss Driven - Bureaucratic - Blame Culture - Trapped in Past - Territorial (Turf Guarding) - Rigid Policies - Work in Silos - Resistant to Change - ?

Lean Principals +Specify value in the eyes of the customer +Identify the value stream and eliminate waste +Make value flow at the pull of the customer +Involve, align and empower employees +Continuously improve knowledge in pursuit of perfection 34 Continuously improve knowledge in pursuit of perfection Striving for perfection Eliminating defects + Visual Management and Visual Controls 35 Continuously improve knowledge in pursuit of perfection Vision for the Visual Workplace

+ There is nothing extra + The environment is immaculate, safe, and self-cleaning + Standards are easy to recognize and abnormal conditions are easier to correct + Every employee can spot a defect + Embedded in the culture + Performance and progress are readily apparent + Zero defects is a reality! 36 Continuously improve knowledge in pursuit of perfection Continuous Loop Team Dashboard Production Dashboard Continuously improve knowledge in pursuit of perfection Lean Benefits

Results achieved by organisations utilising LEAN + Abbot Vascular (Medical Devices) + + Rexam (Can Manufacturing) + + + + Data from The Manufacturing Institute 38

Lead times reduced from 24 days to 1 day Syngenta (Drug Production) + + Lead times reduced by 85% Output increased by over 50% Royal Mint (Coins and Medals) + 90% efficiency gains, + Right First Time up by 20%, +

Delivery on time up by 20% DePuy Synthes (Replacement Joints) + Double capacity with same footprint, + Absence reduced by 50% OC Tanner (Trophies and Awards) + Efficiency increased by 300%, + Turnaround time reduced from 26 days to 1 hour Continuously improve knowledge in pursuit of perfection

Lean Benefits Examples achieved by Envigo: + Waste collection reduction - $22,400 + Bedding material waste reduction - $135,000 + Primate Feed Waste reduction - $176,000 + Standard work = 58% reduction in number of chain of custody forms + Optimised batch sizes = $1,361 + Procurement process review = Lead time reduction 50% + Streamline planning process = 150 hours Data from The Manufacturing Institute 39 Homework Assignment Think of a painful customer experience, a bad product or a work process that you hate. + Answer these questions: 1. What is it about the process or product that you dont like?

2. Is the worker suffering because of the process? How? 3. Do you (the customer) suffer because of the experience, product or the process? How? 4. If you could, what would you do to change it? 5. Why dont people change bad processes? Submit your answers to: [email protected] DUE By: November 11

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