© sustainable productivity solutions “processes + people drive performance”...

© Sustainable Productivity Solutions “Processes + People Drive Performance” [email protected]

Wednesday September 15, 3-4 pm EST:Choosing a Process Improvement Path

Wednesday October 27, 3-4 pm EST: Understanding Process Improvement

Tools

Thursday December 2, 3-4 pm EST:Leading for Continuous Improvement

IIE Great Lakes Region Fall 2010 Webinar Series


Benefits of Institute of Industrial Engineers Membership

Improve your skills and help your company by:

1) Attending an IIE sponsored conference

2) Speaking at an IIE sponsored conference

3) Attending an IIE local chapter meeting

4) Becoming an IIE local chapter officer

5) Reading Industrial Engineer magazine

6) Attending an IIE sponsored training/certification program

7) Finding resources to support your success

Develop your skills by Sharing and Exchanging ideas on how tobest implement the various process improvement tools out there


Choosing a Process Improvement Path

• Most organizations need to Work Projects

• Sooner or later, want to migrate to a continuous improvement culture, where Process Improvement is driven by “front line”

• In the meantime, set up the infrastructure to support migration to a Continuous Improvement Culture by:

1) Driving “Process” thinking

2) Defining & Adhering To Standard Work

3) Using Control Charts to track performance

4) Engaging the workforce, especially the front line managers

© Sustainable Productivity Solutions “Processes + People Drive Performance”

Understanding Process Improvement

Facilitated by: Khaled MabroukProcess Improvement [email protected](402) 213-5135


Seminar Agenda

• Process Improvement Focus:Standard Work & Reduce Variability

• How to Apply LEAN

• Most Common LEAN tools

• Other Important Process Improvement Tools

• Guidelines for an Effective Kaizen

“It’s not about the tools, It’s about the process”


Seminar Facilitator Background

• B.S. Industrial Engineering

• Experience:- Fortune 500 Corporations (Transportation, Mfg) - Consulting Industry- Software Industry- Instructor for WSU & EMU

• Additional Activities Include:- Active in various professional organizations - Member of Six Sigma Conference Board- Published 22 papers- Frequent presenter at professional conferences


Sustainable Productivity Solutions – Services Provided

SPS drives improvement in operational performance through the use of Process Improvement tools. Specifically, we:

1) Facilitate Kaizens where front line teams generate solutions that deliver impactful and sustainable results.

2) Identify optimal process design and flow, through the use of modeling and optimization techniques .

3) Improve decision making ability through situational simulation exercises .

4) Provide advice & coaching on how to improve the effectiveness of your Productivity Program.

5) Manage process improvement projects that generate sustainable solutions, for difficult operational performance issues .

6) Deliver on-site training on LEAN, Kaizen Facilitation, Six Sigma, Theory of Constraints, process flow modeling, and other process improvement tools .

7) Deliver on-site training on how to most effectively engage the front line workforce, so that the front line workforce owns and drives the process improvement effort .


Questions & Thoughts


Process Improvement Focus:Standard Work & Reduce

Variability


Process Adherence

Increases

Process Speed

Process Adherence

Increases

Process Speed


1st 1Step - Reduce Variability

1) Documented standard processes

2) Measure process adherence

3) Document contingency plans

4) Ensure clear communications

Daily Process Throughput

60

80

100

120

140

160

180

200

Passage of Time

Th

rup

ut

Daily Process Throughput

60

80

100

120

140

160

180

200

Passage of Time

Th

rup

ut

Understand & Reduce Variability

2nd Step - Improve Process

Identify causes of Signals and problem solve them.

signal

noise

Variability is an operation is buffered by some combination of: Increasing Inventory, Increasing Capacity, and/or Increasing Process Times


How to Apply LEAN


Reduce Wait Time (Waste/NVA)

Before Applying LEAN Tools

Work

Wait

Start End

After Applying LEAN Tools

Work

Wait

Start End

Focus OnBiggest “Waits” First

Not Unusualfor a “Work” Time to

increase


Basic LEAN Process

1) Develop Project Charter

2) Go & See the process

3) Map the process

4) Collect & analyze data

5) Convert process map to Value Stream Map

6) Identify biggest wastes (wait times)

7) Problem solve, preferably through Kaizen

8) Instill solution and control plan


Process Mapping Guidelines• Must observe process and talk with people who do the work.

• Choose a level of detail that is sufficient for the project.

• Ensure that boundary of process map is consistent with project charter.

• Include a cross section of people who work with the process.

• Ensure that process maps are visible to all, and reuse for team discussions and problem solving.

• Map the Current State before defining the desired Future State.

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Sal

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In

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ing

Pro

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ctio

nS

hip

pin

g

Order Entry Credit Check Order Fulfillment

Generate Order

1

Complete Order

2

Receive Order

3Check Credit

4Credit OK?

5

Address Credit

Problem

17

No

Problem Solved?

18

Stop Order

19

Proceed With

Order

6Yes Prepare Invoice

12Order

Picked?

13Send

Invoice to Shipping

14

Enter Order

7Schedule

Production

8Make

Product

9Assemble Packages

10

Pick and Pack Order

11

Ship Order

15

Process Payment

16

Yes

No


Creating a Value Stream Map

• Map the process

• Add delay time before each process step and process time for each step (primary goals)

• Add the material flow to the process map

• Add the information flow to the process map

• Collect process data and assign the information to the appropriate process map step.

• Process data includes:- trigger to start the process- setup time and processing time/unit of production- Takt rate of customer demand- Percentage of defects/scrap- number of people required to perform process step- Percentage downtime- WIP attached to process step- Batch size (if appropriate)

Secondary Goals


Value Added vs. Non-Value Added

• Customer Value Added (VA) – process steps that must be performed to meet customer demands. It adds form or feature to the end product. Customer would be willing to pay for it.

• Business Value Added (BVA) – process steps required by business to execute VA work, but adds no value as far as the customer is concerned. Usually includes activities that are required by laws, are resource maintenance related, or are required for financial reporting.

• Non-Value Added (NVA) – WASTE – examples include rework, duplicate activities, idle time, overproduction, unnecessary motion, over-processing (exceeding customer requirements), and unnecessary handling (such as inspection, paperwork, storing, retrieving, moving materials, etc.)


Most Common LEAN Tools


LEAN Tools – 5S

• 5S is used to create and maintain an organized, safe, and clean work environment.

• 5S allows anyone, at a glance, to distinguish between normal and abnormal conditions.

• 5S is a foundational tool for Continuous Improvement.

• 5S is a systematic way to improve the workplace processes through front line employees involvement.

• 5S steps are:- Sort – empty the storage area and sort all the tools/material- Straighten –organize all the tools/material by type & size, and

determine which ones we need to keep- Shine – keep the work area clean- Standardize – determine which tool/material goes where in the

storage location, we put labels on storage racks to informpeople what goes where, and add visual controls as needed

- Sustain - go by the rule “put everything back in its place, whenyou are not using it”. Then we perform periodical auditsto ensure that we are still keeping tools/material in thelocation where we agreed that they go in


Process Uses Parts

"Consuming"

Process Makes Parts

"Preceding"

Schedule Box

B

BB

DD

C CC

A AA

Stock Area

B

BA C D

LEAN Tools – Pull System

A PULL system provides goods only when the customer needs them. Nothing is produced until it is required by the downstream process. This approach reduces inventory levels (congestion), and increases process speed.


Lean Tools – Rapid Setup (SMED, Quick Changeover)• Map out setup procedures

• Identify whether each step in this process is Internal to the process (must be done by the operator) or External (can be done by somebody other than the operator while machine is busy working)

• Brainstorm how you can convert more of the Internal process steps to become External process steps

• Streamline internal setup process steps

• Use Visual Controls andMistake Proofing toeliminate adjustmentsrequired in setup process

Order Arrival Order CompletionProcessing Time

Order Arrival

OrderCompletion

Processing Time

Prep

Activities

Post Completion

Activities


LEAN Tools – Mistake Proofing Approaches• Control/Warning Approach –

- shuts down the process or signals when a mistake occurs- dials, lights, and sounds bring attention to the mistake- prevents bad product from moving to subsequent steps in the process

• Prevention Approach –- utilizes methods that do not allow a mistake to occur


LEAN Tools – Visual Process Control

Visual Workplace Strategy

Info Deficit

Notice motion outside of my Value Field

Determine where you want

to find the answer next

time you need it

Which of six core questions

needs to be answered

Identify cause of information

deficit

Translate that answer into a visual device

Where?What?When?Who?How Many?How?

My Value Field is the physical area where I actually perform Value Added Activities

Answer will be firmly installed as close to point-of-use as possible


LEAN Tools – And there is so much more

• Line Balancing

• Level Loading

• Total Productive Maintenance

• Work Cell Optimization


Other Process Improvement Tools


Identifying Root Cause- 5 Whys

• This approach pushes people to think about the root causes, by getting them past superficial causes.

• How to do it:- select cause, and ask why this outcome occurs- select one of the reasons why, and ask why it occurs.- continue this process until you get to the fifth why.

• There’s nothing sacred about the number 5. It is just a guideline.


Identifying Root Causes – Fishbone Diagram (cause and effect)• Best used once you have a focused definition of the problem.

• Often used to brainstorm ways to avoid future problems by better understanding the cause-effect relationships around the process.

ManpowerManpower

MaterialMaterial

MethodMethod

MeasurementMeasurement

Issue to Resolve Issue to Resolve

MachineMachine

Environ-ment

Environ-ment


Creating a Workflow Diagram (Spaghetti Diagram)A diagram that represents the physical flow of work or material in a process• Create (or find) a diagram of the workspace.

• If a process map does not exist, then create one.

• Mark on the Workspace Diagram where the first step in the process occurs.

• Draw an arrow from the first steplocation to the location of the nextstep in the process. Continue doingthis until you have mapped all stepsin the process.

• It the lines crisscross, experiment(on paper) with workspacearrangements to create a cleanerflow.

• If the lines repeatedly come back tosame location, determine ifcombining of activities will preventthis backtracking.


Process Improvement Tools – Decision Making Exercises (1 of 2)

• People make decisions based on intuition

• People start with first option that comes to mind, and evaluate whether it will work

• If it works, people will move forward until something proves that this is a bad decision

• If it does not work, people will move to next option to consider

• Major causes of bad decisions are:1) lack of experience in pattern recognition2) lack of information3) confirmation bias

• Superstition …… IS common… is often mislabeled as experience… include rules/guidelines that have easily outlasted their useful life

Experience (without blinders) Counts


Process Improvement Tools – Decision Making Exercises (2 of 2)

• Tactical decision making exercises provide:- Mental simulation EXPERIENCE- Discussion improves pattern recognition skills

Situation

Cues

Patterns

Action Scripts

Generates

That lets you recognizeThat activates

To affect the

Mental Simulations

Mental Models

Using yourWhich youassess by


Cycle timeTBF & TTRArrival rateetc..

SimulationModel

ThroughputBottlenecksUtilizationetc..

Simulation is the art and science of building models

to evaluate alternatives

for the purpose of making decisions

Process Improvement Tools – Process Flow Simulation(also called Discrete Event Simulation)


Kaizens


Kaizen Guidelines (1 of 3)

• Definition of Kaizen Success – Getting a team of front line workers & managers to work together to generate effective solutions for an operational challenge/problem. The solutions generated are sustainable due to the fact that the people who have to make it happen, own the solutions

• Leadership Team Responsibilities:- Define bounds of operational problem to be worked on by Kaizen team- Empower Kaizen participants to generate solutions- Define practical limits on solution space; such as budget or culture- Attend Kaizen kick-off and report out meetings, and show appreciation for Kaizen participant’s effort- Follow up, on a regular basis, on action items generated from Kaizen


Kaizen Guideline (2 of 3)

• Guidelines for Selecting Kaizen Participants:- People closest to work, with varying perspective on operational problem to be solved- People who are willing to both SHARE their thoughts and RESPECT the thoughts of other Kaizen participants- People who are respected by peers when they take Kaizen action items back to the rest of the team

• Kaizen Agenda:- Clearly define scope of problem and limits on solutions space- Share data available that adds perspective to problem- Teach LEAN tools that are applicable to the problem- Go through problem solving process from Go and See step, through issues identification, solution generation, four squaring of solution set, and detailing out of action plans going forward


Kaizen Guidelines (3 of 3)

• Kaizen Facilitators Responsibilities:- Energize the Kaizen team to openly discuss the critical issues- Select appropriate LEAN tools to teach, given problem to be solved and data available- Be prepared to SEED conversations, when appropriate, to get Kaizen team moving on issue identification, problem solving, solution generation, etc. - Ensure that Kaizen team follows the problem solving process- Have good enough crowd control skills, so as not to allow any one set of individuals to either dominate the discussion, or to withdraw from the discussion.


Moving Forward


Presentation Summary

• It’s not about the tools, it’s about the process you follow

• Focus on Standard Work & Variability Reduction

• Start with LEAN to get at the low hanging fruit

• LEAN is about reducing waste

• Process Map to Value Stream Map

• LEAN tools are not the only tools out there

• Kaizen Facilitator skills are key to Kaizen’s success


Reference BooksLEAN Tools:

• “Creating a LEAN Culture”, David Mann, 2005.

• “Toyota Productions System: Beyond Large Scale Production”, Taiichi Ohno, 1988.

• “The Toyota Way”, Jeffrey Liker, 2004.

• “Visual Workplace, Visual Thinking", Gwendolyn D. Galsmith, 2005.

Other Tools:

• "Factory Physics", W. Hopp, Mark L. Spearman, 2007.

• “The Goal”, Eliyahu M. Goldratt, 1992.

• “Lean Six Sigma: Combining Six Sigma Quality with Lean Production”, Michael L. George, 2002

• “The Power of Intuition”, Gary Klein, 2004.

Statistics:

• “Understanding Statistical Process Control", Donald J. Wheeler, David S. Chambers, 1992.

• “Understanding Variation: The key to Managing Chaos”, Donald J Wheeler, 2000

© sustainable productivity solutions “processes + people drive performance”...

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