Lean Basics Dewey Warden D1 Lean Basics Value

Lean Basics Dewey Warden D-1

Lean Basics Value stream mapping The seven wastes 5 S’s Processes and operations Process flow and cell design Process standardization Overview of quick changeovers 2

Value Stream Mapping How many are familiar with value stream mapping? What value do you think mapping can provide your organization? 3

Value Stream Mapping What is a value stream? – A value stream is all the actions (both value added and non -value added) currently required to bring a product through the main flows essential to every product 4

Value Stream Mapping Two main flows (1) The production flow from raw material to the customer (2) The design flow from concept to launch – We are concentrating on the production flow 5

Value Stream Mapping Production flow - all the relevant actions consist of two flows – Orders traveling upstream from the customer – Products coming downstream from raw materials to the customer Together these constitute a closed circuit of demand response in the information flow and the material flow 6

Value Stream Mapping It is the simple process of directly observing the flows of information and materials as they occur, summarizing them visually, and then envisioning a future state with a much better performance. 7

Value Stream Mapping Levels of mapping Process Single plant Multiple plant Across companies 8

Value Stream Mapping Looking at the whole value stream Cost cutting – Most managers look at one place or one point Their machine Their department Their plant Their firm 9

Value Stream Mapping Traditional measures High labor utilization High machine utilization Focusing on their assets Focusing on their organization 10

Value Stream Mapping What about? Performance of the entire value stream 9 out of 10 steps are a waste 99% of elapsed time is a waste 11

Value Stream Mapping Extended value stream maps Can be used to raise the consciousness in every firm and function of the effect of its actions on every other firm and function touching the value stream Guide groups of managers across many departments and firms toward similar results 12

Value Stream Mapping Creating the value stream maps Walk along the value stream Look for – – – Which steps create value? Which steps are waste? Why is order flow so erratic? Why is quality so erratic? How can value be enhanced for the end-customer? 13

Value Stream Mapping Creating the value stream maps Identify all the physical actions required Identify information actions currently required to manage the value stream 14

Value Stream Mapping You want a manufacturing approach that enables companies to make – – What customers want When they want it In the variety they want In the amount they want Keeps cost low, quality high and lead time minimal by eliminating waste 15

The Seven Wastes How do you identify opportunities? By recognizing waste and eliminating it What is waste? – Waste is any element that adds cost without adding value to the product 16

The Seven Wastes Overproduction Excessive inventory Unnecessary conveyance Over processing Excessive motion Waiting Corrections 17

The Seven Wastes Overproduction and excessive inventory are waste – – Overproduction creates excess inventory Inventory hides production problems Inventory leads to transport, storage, damage and delay What are some other ways you can think of that overproduction causes waste? 18

The Seven Wastes Extra inventory hides – – – Production imbalances Late deliveries from suppliers Defects Equipment downtime Long setup times 19

The Seven Wastes Unnecessary conveyance – What do you do with items not used immediately? 20

The Seven Wastes Unnecessary conveyance – – – – Move them Store them Pick it up, put it down Damage Delay 21

The Seven Wastes Over processing – Doing more work than is required by the customer Give us some examples of where you might be over processing 22

The Seven Wastes Excessive motion – – – Reaching Bending Lifting Turning Carrying 23

The Seven Wastes Waiting – What types of things might you be waiting for at your operations that causes delays? 24

The Seven Wastes Corrections – – Rework Redo Retype Do-overs 25

The Seven Wastes Defects Overproduction Waiting Non-utilized talent Transportation Inventory Motion Extra processing Source: Villanova University 26

The Five Ss 27

The Five Ss Sort: Remove everything from the workplace that is not needed for current production 28

The Five Ss Set in Order: Arrange items so they are easy to find and return and locate items to minimize motion waste 29

The Five Ss Shine: Keep everything clean and in top condition, so that it is ready to be used 30

The Five Ss Standardize: Ongoing maintenance of Sort, Set in Order and Shine 31

The Five Ss Sustain: Create the conditions or structures that will help sustain commitment 32

Processes and Operations Quality process – Focuses on meeting requirements and on minimizing warranty costs Cost process – Seeks to remove excess cost or waste in an organization Delivery process – Manages the elements of time and quantity in sourcing materials, producing and getting product and service to the customer as required Innovation – Maximizes an organization’s success rate 33

Processes and Operations Processes – A continuous flow in which raw materials are converted to finished products Operations – Any action performed by workers or machines on materials, WIP, or finished products 34

Processes and Operations Processes – – – Storage of raw materials or components Transport Transformation Storage waiting for a process Inspection 35

Processes and Operations Essential operations – The actual value-adding Other operations – Set-up, transport, inspection 36

Processes and Operations In a lean enterprise – Value stream maps help to focus an organization on their processes to promote optimization of the whole company’s performance by aligning interests across the company 37

Processes and Operations In a lean enterprise – Process-focused strategies unleash new levels of productivity 38

Process Flow and Cell Design There a lot of wastes in an operation based layout – – – Conveyance - using equipment and people Badly used space Lot delays Source: Productivity Press 39

Process Flow and Cell Design Wastes in an operation based layout Source: Productivity Press 40

Process Flow and Cell Design Benefits of a process flow layout – Positioning equipment in the process sequence for a smooth flow – Minimal inventory and delays Source: Productivity Press 41

Process Flow and Cell Design Multi-machine operation – One person runs several machines in process sequence Source: Productivity Press 42

Process Flow and Cell Design U-shaped cells A process flow layout with the end point near the beginning point. Minimizes walking Source: Productivity Press 43

Process Flow and Cell Design Small flexible machines Process small amounts Save space Reduce walking Easy set-up Can be moved easily Less expensive Don’t need high speed 44

Process Standardization Establishes predictability Three elements – Standard cycle time – Standard work sequence – Standard in-process inventory Source: Productivity Press 45

Process Standardization Standard cycle time – The actual time required to process one part – Determines whether a process is capable of producing the required quantity at the required time. 46

Process Standardization Standard work sequence and in-process inventory – – A consistent set of operations and actions A consistent quantity of materials and WIP in the process 47

Process Standardization The foundation for continuous improvement – Not “carved in stone” – it is a living standard – Standardization is the first step in improvement 48

Quick Changeovers Why would quick changeovers be important? Where could you use quicker changeovers? Discuss pit stops and review video 49

Quick Changeovers Separate internal setup from external setup Convert internal setup to external setup Streamline all aspects of setup Source: Productivity Press 50

Demonstrations Leading – Dewey Warden, Lean Manager Assisting – Kent Williams, Manager CTS Tactical Purchasing/Planning – Joetta Hertel, Director Information Technology – Becky Schnur, Manager General Accounting Push vs pull demonstration model Kanban demonstration model 51

End of Day One Tomorrow deep dive into value stream mapping 52