Lean TrainingModule Task Information

What is Lean?

• An evolutionary search for better processes that is never complete.

• A strategy for maximizing value for the customer.

• Straightforward principles tied to deceptively difficult execution.

• A set of principles that can apply to any process.

The relentless pursuit of the perfect process through waste elimination

Starting with basics…The word Lean has 3 Core Purposes

ü Create Value As defined by the Customer

ü Focus on ProcessA value-stream creating Process Flow that begins with “Pull” from the Customer.

ü Eliminate Non-Value Activity (Waste/Muda)

“Look at the time-line from the moment the customer gives us an order to the point when we collect the cash and reduce that time-line by removing non-value added wastes to create a LEAN process”

~Taiichi OhnoFounder, Toyota Production System

Why implement Lean?

• Improve performance• Increase capacity• Increase quality through simplification

• Increase customer/market responsiveness through cycle time reduction

Customer satisfaction = business prosperity

TYPES

OF

WASTE

Extra

Processing

Motion

Waiting

Defects

Over

ProductionTransport-

ation

Inventory

7 Types of WASTE: TOM-WIDE

Inventory

Defects

Over

Production

Motion

Transportation

Waiting

Identifying Waste (Muda)

“Lean” Targets the Waste and Eliminates It ... QUICKLY!

PEOPLE

QUANTITY

QU

ALIT

Y

Extra

Processing

Coffee Shop Example

Enter to Coffee Shop

Order Coffee Pay Receive your exchange ticket

Look for a table

Enjoy your coffee

Order Preparation

Coffee Shop Example

Enter Coffee Shop

Order Coffee Pay your Order

Receive your exchange ticket

Look for a table

Enjoy your coffee

Order Preparation

WAITING WAITING DEFECTS

WAITINGMOTION

DEFECTSMOTION

TRANSPORT-ATION

The 5 steps to Lean Thinking …

Specify valueValue is what the customer is

willing to Pay for!

Coffee Shop value = Beverage/food, place to

sit/work/socialize

2 Map the

Value Stream

3Establish

Flow

4Implement

Pull

5Work to

Perfection

1Specify Value

Introduction to Lean

The 5 steps to Lean Thinking …

Map the Value Stream

Map all of the steps…value added & non-value added…that bring a

product of service to the customer

2 Map the

Value Stream

3Establish

Flow

4Implement

Pull

5Work to

Perfection

1Specify Value

Introduction to Lean

Any Process has at least three versions

Why Map a Process?

What you THINK it is: What it ACTUALLY is: What it should be:

The 5 steps to Lean Thinking …

Establish Flow

The continuous movement of products, services and information

from end to end through the process

2 Map the

Value Stream

3Establish

Flow

4Implement

Pull

5Work to

Perfection

1Specify Value

Introduction to Lean

Flow is…• Movement of products, services and information down the

value stream

• Objective is continuous flow as product, service and information is transformed by continuously adding value

• Flow is created by eliminating Queues and Stops and improving process flexibility & reliability

Receive Order Write Down Order

III50

= 14 = 5

5 Days

Process Order

= 10

5 Minutes

Before After

After Takt Time – 1min

One single Piece Flow

“Real World” Flow at Drive Thru

1 Car Ordering

1 Car Paying

1 Car Picking Up Food

1 Car Exiting

BeforeInterminable queues inside and

outside

WAITING

WAITING

The 5 steps to Lean Thinking …

Implement Pull

Nothing is done by the upstream process until the downstream

customer signals the need

2 Map the

Value Stream

3Establish

Flow

4Implement

Pull

5Work to

Perfection

1Specify Value

Introduction to lean

Implement Pull• End customer initiates pull process

• Each step in the process takes the product it needs, when needed from the proceeding process

• Only the amount required is taken

• No action is taken until the downstream customer initiates it

supplier customer

One more please!Okay

Pull: Customer centric

For the most part, “Pull” comes naturally in a transactional environment – provided the customer is driving the activity.

The 5 steps to Lean Thinking …

Work to PerfectionThe complete elimination of waste so

all activities create value for the customer

2 Map the

Value Stream

3Establish

Flow

4Implement

Pull

5Work to

Perfection

1Specify Value

Introduction to lean

Perfection

• Perfect output • is delivered immediately• is defect free• is delivered one request at a time • is produced without waste

• Kaizen is the road to perfection… continuous improvement

months

days

hours

minutes

seconds

cycle time

Continuous Improvement Never Stops!

SPECIFY VALUE

Sunday’s Ice Cream Sundaes provides high quality, custom sundaes and a fun, social place to

enjoy them with friends!

EXAMPLE: Sunday’s Ice Cream Sundaes

MAP THE PROCESS

Wait for customer to decide on order

Take order

Call customer’s name

Process payment

Make sundae

Give Sundae to Customer

Call name again

Sundae melted

Order wrong

ESTABLISH FLOW

• Where wait can be reduced/eliminated

• How to re-purpose staff and layout of ice

cream parlor to maximize flow

IMPLEMENT PULL

• Use online ordering and inventory technology to ensure no excess materials ordered,

preparation of product in response to order

• Measuring tools to ensure correct amount of material used each time

WORK TO PERFECTION

Continue to monitor key metrics to ensure continuous improvement, waste reduction, and

customer satisfaction!

Issues:Waste

Melted sundaes if customer does not hear name called, incorrect orders, dropped sundaes as customer tries to find tableWait time

Long line at order counter, crowding at pickup window, long wait for sundae to be made

Solutions:• Online ordering – pre-payment and more accurate orders, fewer cashiers and more

sundae-makers• Table delivery – no melted sundaes and no line at pickup window• Online menu/more menus in-store--reduce wait time at counter• Store inventory system tracking to suggest supply re-order timing and volume

Sunday’s Basic Process:

WAITING

WAITING

WAITING

WASTE

Importance of Lean for You!

• Lean can be applied to anything – your process for making coffee, your routine for completing school work, etc.

•The more you think about and practice Lean, the more you’ll begin to see opportunities for process improvement in manyareas of work and life.

•Regardless of where your career and life take you, Lean canhelp you approach challenges efficiently and effectively!