Lean Office

Shingo Prize for Excellence in Manufacturing Packard Electric Systems

Lean Office

May of 2003 - Page 1

LEAN OFFICE

A Quantitative Approach to Optimize Business Processes

Jose ZavalaAPQP Manager Mexico Operations

Delphi Packard Electric Systems


Lean Office


Agenda

� Introduction– Resistance to Change and Kaizen

– Creating the Vision and Identifying Opportunities

– Lean Office Kaizen Model and Methodology

� The Macro Current State Map (Tasks)– Using the Worksheet Tool and Data Analysis

– Targeting Areas of Opportunities

� The Micro Current State Map (Activities)– Click-down Analysis at Activity Level

– Correlating Summary Information with Task Level

� Developing the Future State– Action Items for Areas of Opportunity

– Measuring Success by Using the Project Tracker

� Q&A and Closing Comments


Lean Office


Introduction

� Resistance to Change– Using this mathematical relationship: D x V x F < R

– Where all variables fall between a value from Zero to Ten:

» D - is the Level of Dissatisfaction and Care

» V - is the Vision

» F - is the First Step

» R - is the Resistance to Change

– When any variable on the left side of the equation equals Zero, the whole value goes to Zero, NOTHING HAPPENS!

� The Logic for Kaizen

Resistance to Change and Kaizen

Dissatisfaction?

D<>0?YesNo

R rules! Care?Yes

No

Vision?No

Research

First Step

Endless loop begins here

Yes


Lean Office


Introduction

� Creating the Vision and Values– Organizations can’t achieve change unless they have a picture or vision

of where they want to be (the desired future) and a set of values that prescribes how they want to reach that future.

– Vision should consider the external environment, customer needs and competition.

– Benchmarking against best-in-class companies is one way to ensure that the vision is set high.

� Identifying Opportunities– Focus on core processes such as customer engagement, product,

process or service development as well as distribution. Those core processes were not really considered by previous Lean efforts.

– Assess the company’s score card and target the most significant metrics.

– Identify activities that are key for the performance of those metrics.

– Typical core business processes and opportunities have the following attributes: strategic importance, significant customer impact and applicability to other regions, areas or divisions within the company.

Creating the Vision and Identifying Opportunities


Lean Office


Introduction

– Sales

» Creating Purchase Orders

» Invoicing

» Pricing new products

» Engineering Change definition and implementation

– Quality

» Production Part Approval Process

» Process and Product Validation

» Funding for process improvements

» Cost Recovery

– Product Engineering

» Part Validation

» Design Records creation and update

– Production Control and Logistics

» Imports and Exports

» Parts Distribution and Warehousing

» Inventory Audits



Lean Office


Introduction

� Other areas of opportunities are:– Long, unpredictable processing lead times

– Presence of bottleneck departments

– Multiple iterations (of unpredictable duration) for problem resolution

– Lack of standard work practice and disparate routing

– Multiple, uncontrolled document copies in simultaneous circulation

– Presence of unofficial and/or uncontrolled expedite path (fast-track)

– Batching of documents

– Ineffective (or inexistent) workload scheduling

– Personal filing systems with incomplete, inconsistent and erroneous file sites (official and unofficial)

– Production of reports which nobody uses

– Expense reporting systems


Extracted from: Value Stream Management (UK 2000), page 54 – Prentice Hall


Lean Office


IntroductionLean Office Kaizen Model and Methodology

Select Team MembersKickoff Mtg / Training

Business EnvironmentShare Vision & Values

Weekly/16

Weeks info

EDI

Daily/16

Weeks info

EDI

Weekly/3

Weeks info

FAX

Daily/3

Weeks info

FAX

Daily Input

into BSOP

Manual

BSOP prog

sorts info

Auto

BSOP prog

prints info

Auto

Input Reqs

into Excel

Manual

Info

integrity

Start

Custresources

EDI (95%) Fax only (5%)

Yes (90%)

No(10%)

Adjust Info

Manual

Info

Scope

Info

Scope

Weekly Daily Weekly Daily

Info OK?

Check FGInventory

Manual

No (1%)

Yes (99%)

Info OK?No (1%)

Yes (99%)

FG > Reqs?

No (10%)

Yes (90%)

Adjust Prod

Orders

Manual

DistributeProd Plan

Manual

End

Identify all Task

Estimate timing

Reiterate as needed

ACTION!!

Reiterate as needed

Weekly/16Weeks info

EDI

Daily/16Weeks info

EDI

Weekly/3Weeks info

FAX

Daily/3Weeks info

FAX

Daily Input

into BSOPManual

BSOP progsorts info

Auto

BSOP progprints info

Auto

Input Reqsinto Excel

Manual

Infointegrity

Start

Custresources


Yes (90%)

No(10%)

Adjust Info

Manual

InfoScope

InfoScope


Info OK?

Check FGInventory

Manual

No (1%)

Yes (99%)

Info OK?No (1%)

Yes (99%)

FG > Reqs?

No (10%)

Yes (90%)

Adjust Prod

OrdersManual

Distribute

Prod PlanManual

End

Identifying Critical Path

ACTIVITIES

TASKS

BUSINESS PROCESS

Evaluate Task Summary

Total

340VA (+) NVA (-) NNVA (0)

15 130 195% VA % NVA % NNVA

4.41% 38.24% 57.35%

Conclusion

Add “Macro” Map to file

Employee N/A Employee 101.9% Employee 97.4% Secretary 93.1% Supervisor or Manager 101.6%Task 1 0 days A Task 2 0.55 A Task 3 0.20 A Task 4 2.18 B Task 5 8.13 C

Project trigger:

0.000 0.000 0.000 0.375 0.500 0.875 0.125 0.188 0.344 1.500 2.510 2.520 7.000 8.000 9.000

Timeest 0.00 0.00 Timeest 0.54 0.0069 Timeest 0.20 0.0013 Timeest 2.34 0.0289 Timeest 8.00 0.1111

VA (mins) 0 0.00% VA (mins) 35 13.21% VA (mins) VA (mins) 10 0.96% VA (mins) 151 3.87%NVA (mins) 0 0.00% NVA (mins) 45 16.98% NVA (mins) 85 89.47% NVA (mins) 1020 97.42% NVA (mins) 3265 83.70%NNVA (mins) 0 0.00% NNVA (mins) 185 69.81% NNVA (mins) 10 10.53% NNVA (mins) 17 1.62% NNVA (mins) 485 12.43%

0 4.82E-05 1.7668E-06 0.000835 0.012346

PC supplier 98.6% Buyer 102.0% PC supplier 79.4% Buyer 111.4% PC supplier 89.2%

Task 6 3.00 E Task 7 0.75 D Task 8 2.38 E Task 9 1.67 D Task 10 7.43 E

2.250 3.000 4.000 0.625 0.750 0.813 2.000 3.000 4.000 1.000 1.500 2.000 5.000 9.000 9.000


VA (mins) 30 2.08% VA (mins) 20 5.52% VA (mins) 64 5.60% VA (mins) 30 3.74% VA (mins) 65 1.82%NVA (mins) 690 47.92% NVA (mins) 7 1.93% NVA (mins) 879 76.90% NVA (mins) 720 89.78% NVA (mins) 2042 57.25%NNVA (mins) 720 50.00% NNVA (mins) 335 92.54% NNVA (mins) 200 17.50% NNVA (mins) 52 6.48% NNVA (mins) 1460 40.93%

0.007237 9.54E-07 0.01234568 0.000772 0.197531

Gets tools catalog and identifies

the right tool for the process

Prepare requisition and submit to

secretary

Secretary to log it in requisition's

tracker and submit to boss for

approval

Checks budget, availability of

similar tools in tool crib, approves

and returns to secretary

Engineering needs an XYZ tool,

decides to order one

Updates tracker and submits

requisition to purchasing dept

Prepare and submit RFQ to 3

vendors

Vendors receive RFQ and reply with

quote with conditions and terms

Generate PO and get Purchasing

manager approval

Receives PO and Delivers Tool

Data Analysis

Target Areas of Opportunity

0.00

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A B C D E F

Resource Code

Da

ys

bt

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T 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30

Task #

Av

g D

ay

s b

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ask

0.00

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T 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30

Task #

Va

r D

ays

by

Tas

k

Detail Activities

Task 2

Gets tools catalog and identifies the right tool for the process

No ACTIVITY description

1 Requests catalog to central crib (phone)

2 Delay until central crib has catalog available

3 Obtains catalog

4 Selects a particular model from catalog

5 Research other sources (phone)

6 Make final decision for tool model

7 Asks for a requisition form

8 Wait for requisition form to be available

9 Gets blank requisition form

10 Prepares requisition

11 Delay until secretary is available to receive requisition

12 Carry requisition to secretary's In-tray

Calculating Average

& Std Dev for every path

Longest Path Identified is: days long

Path ID Total Te Std Dev

Task ID A B C D F O P Q

Opt (o) 1 2 2 2 4 17 1 2

Most (m) 3 4 3 4 5 18 2 2.5

Pess (p) 4 6 5 6 12 18.5 3 2.75

Avg Te 2.8 4.0 3.2 4.0 6.0 17.9 2.0 2.5

Var σ20.25 0.44 0.25 0.44 1.78 0.06 0.11 0.02


Task ID D E F J P Q R S T

Opt (o) 3 3 5 5 1 2 5 6 3

Most (m) 4 5 7 7 2 2.5 7 10 4

Pess (p) 5 7 9 9 3 2.75 9 11 5

Avg Te 4.0 5.0 7.0 7.0 2.0 2.5 7.0 9.5 4.0

Var σ20.11 0.44 0.44 0.44 0.11 0.02 0.44 0.69 0.11


Task ID G H I K N P Q U V W X Y Z AA

Opt (o) 2 4 3 5 8 1 2 0.5 0.5 2 1 0.5 1 1.5

Most (m) 3 6 4 6 10 2 2.5 0.7 1 4 1.5 0.7 2 1.7

Pess (p) 6 8 6 7 12 3 2.75 0.9 1.25 6 1.9 1 3 2

Avg Te 3.3 6.0 4.2 6.0 10.0 2.0 2.5 0.7 1.0 4.0 1.5 0.7 2.0 1.7

Var σ20.44 0.44 0.25 0.11 0.44 0.11 0.02 0.00 0.02 0.44 0.02 0.01 0.11 0.01

45.533 1.5599

47.958

GHIKNPQUVWXYZAA

DEFJPQRST

ABCDFOPQ 42.375 1.8319

47.958 1.6796

VA

1%

NVA

80%

NNVA

19%

Action Plans to

Eliminate NVA

Minimize NNVA

VA 207 %VA 1.40%

NVA 11,707 %NVA 79.12%

NNVA 2,883 %NNVA 19.48%

Total (mins) 14,797


Lean Office


Introduction

� Methodology:– Forming a team:

» Minimize the number of members.

» Team members should have authority to implement changes.

» Include people that could be affected by the outcome.

» Include expert users of the target business process.

– Selecting work room location or electronic technology to use

– Training and introduction to the initiative: the Kickoff Meeting

– Understanding the Business Process Environment:

» Customers (characteristics, location, etc)

» Suppliers

» Business process purpose

» Inputs and outputs

» Boundaries

» Process owners

– Identifying all tasks in the process (using Post-It’s TM), assign an individual code to each task (example AA, AB, AC, etc.)

Lean Office Kaizen Model and Methodology


Lean Office


Introduction

� Methodology (..2):– Estimating duration time for each task in the process, specifying

» Most optimistic completion time (o), or the minimum task time if everything progresses ideally

» Most likely completion time (m), or the most probable task time under normal conditions

» Most pessimistic completion time (p), or the maximum task time if significant delays are encountered

– Using the Excel spreadsheet provided and assuming a Beta Distribution, calculate the average or expected time for each task as well as its standard deviation (tab: “Calc”). The following formulas will be applied:

Expected Time for each Task: te = ( o + 4*m + p ) / 6

Variance (degree of uncertainty): σ2 = [ ( p – o ) / 6 ]2

– Observing the standard deviation for each path (calculated):

Standard Deviation for Path: σ = SQRT ( Σ (variances of activities) )

– Identifying the critical (longest) path

– Creating the Macro Map on corresponding tab of Excel file (next section)



Lean Office


Introduction

� Methodology (..3):– Analyzing Data and targeting areas of opportunities

» Work load by group or individuals

» Level of uncertainty of each task

» Time statistics for the whole business process

– Clicking-down on each activity

» Clarify nature of activity

» Quantify distances traveled and resources involved

» Identify type of activity (Operation, transportation, inspection or storage)

» Classify activity in terms of value:

� Value Add (VA): What the customer is willing to pay for

� Non-Value Add (NVA): Customer is not willing to pay for, can be eliminated

� Necessary but Non-Value-Add (NNVA): Customer is not willing to pay for but it cannot be eliminated

– Evaluating the task summary information

– Completing all tasks / activity detailed analysis

– Documenting action plans to eliminate NVA and minimize NNVA



Lean Office


The Macro Current State Map (Tasks)

� Standards used on worksheet– Blue Font: Indicates this field is provided by user, not protected

– Red Font: Indicates a calculated value, non-password protected

� Includes the following tabs (use them in that order):– Calc: Capture all path tasks timing to identify critical path

– Macro, with following data analysis sections:

» Header (A1:AC4): Identifies project general information and benchmark

» Tasks (B8:T78): Graphical representation of critical path with timing

» Resources table (V9:AC40): List of human resources involved

» Estimated Time by Resource Chart (U41:AE51)

» Estimated Time by Task Number (U52:AE61)

» Variance Time by Task Number (U62:AA71)

» Business Process Statistics (W73:AA83)

» Only available until detail activity analysis is done:

� Business Process VA/NVA/NNVA content

� VA versus NVA & NNVA Chart (AB62:AE71)

Using the Worksheet Tool and Data Analysis


Lean Office


0.00

5.00

10.00

15.00

20.00

A B C D E F

R

Days b

t R

eso

urc

e

0.00

2.00

4.00

6.00

8.00

10.00

T 2 3 4 5 6 7 8 9 10 11 12 13

Avg

Days b

y T

ask

0.00

0.10

0.20

0.30

0.40

0.50

T 2 3 4 5 6 7 8 9 10 11 12 13V

ar

Days b

y T

ask

The Macro Current State Map (Tasks)

� Evaluating resources and processes:– Total Estimated time by Resource

» Are these dedicated resources?

» Can functions be combined?

» Could training play a significant role?

» Are the various resources using similar technology?

» Does resource A really manage 16 projects for every one that resource E does?

– Estimated time by process or task number:

» What is the business process “takt time”?

» Is task # 10 the bottleneck?

» How much investment is on every task involved?

» Is task # 3 only serving this business process?

» Is there too much walking distance in task # 5 & 10?

– Variance time by process or task number

» Why does task 10 have almost one day of variance?

» How can task number 5 be more consistent than task number 10 if average time is the same?

Targeting Areas of Opportunities

Leveled?

Consistent?

Leveled?


Lean Office


The Micro Current State Map (Activities)

� Detailed analysis of each task:– Select the corresponding tab for the task number to analyze (example

tab T02 for task number 2 and so on).

– List all activities involved on each task (B12:B46).

– Begin each sentence with a verb (example: wait, request, selects, moves, etc.).

� Quantitative assessment:– Once distance and resources are quantified, classify every activity

(Operation, Transportation, Inspection, or Storage -or wait-), but do not type anything on the template, yet. Just move the cursor to thecorresponding column.

– Assess the type of value added (VA / NVA / NNVA).

– If an activity is considered a VA, then type [‘+] – apostrophe and plus sign under the corresponding column (Oper, Transp, Insp or Storage).

– For NVA type [‘-] – apostrophe and the minus sign.

– For NNVA type [‘0] – apostrophe and the number zero.

– Continue until classifying all activities listed for each task.

Click-down Analysis at Activity Level


Lean Office


The Micro Current State Map (Activities)

For every T?? tab (task detailed analysis):

– Section H7:L8 is calculated from the Macro Map (tasks definition).

– Section U3:W8 is calculated fromthe detailed activity analysis.

– On this example, from the macro map: it was determined that theestimated average time (te) was 7 days or 56 hours or 3360 minutes. The team confirmed activities for 3901 minutes, which is very close (101.6% of original estimated time while doing the Macro Map).

– Unfortunately, only 151 minutes (or 3.87%) is Value Added activity.

– This activity should be improved or reduced by 3265 minutes (83.7%), which corresponds to NVA, as a minimum.

– For the 485 minutes (12.43%) of NNVA, the team should try to getsomething out of the system by either upgrading technology, combining functions, etc. If no solution is feasible, keep these activities listed for later discussion.

Correlating Summary Information with Task Level

Optim Most L Pessim Average Variance

7 8 9 8.00 0.111FROM

MACRO:

Estimated Mins

3840Var in Mins

53.3% on detailed t

101.6%

Total

3901VA (+) NVA (-) NNVA (0)

151 3265 485% VA % NVA % NNVA

3.87% 83.70% 12.43%

Conclusion


Lean Office


VA

5%

NVA

69%

NNVA

26%

Developing the Future State

� The team now has enough information to identify areas of opportunity:

– Target all activities classified as storage, transportation and inspection.

– Check for “off-the-shelf” products that might help optimize these NVA / NNVA activities.

– Eliminate batches or pushing jobs downstream. Since this material is not yet “needed”, it must be handled, counted, filed, searched, etc.: MUDA

– Consider continuous flow, combining activities, etc.

– Divide your current state macro map in sections or loops.

– Identify the pacemaker loop (typically it is the farthest downstream loop in the process).

– Use sub-sections or loops to make the future state definition and implementation more manageable.

– Define process key metrics.

– Develop a business process improvement plan.

Action Items for Areas of Opportunity


Lean Office


Estimated time 25.72 Days

Standard deviation 1.98 Days

Limits:

- 3 sigma 19.79 99.50%

-2 sigma 21.76 95.00%

-1 sigma 23.74 68.00%

average 25.72

+1 sigma 27.69 68.00%

+2 sigma 29.67 95.00%

+3 sigma 31.64 99.50%

Days

Estimated time 29.20 Days

Standard deviation 0.48 Days

Limits:

- 3 sigma 27.76 99.50%

-2 sigma 28.24 95.00%

-1 sigma 28.72 68.00%

average 29.20

+1 sigma 29.68 68.00%

+2 sigma 30.17 95.00%

+3 sigma 30.65 99.50%

Days


� Standardization (TPS):– The process of establishing the

repeatability and predictability of Man, Material, Method and Machine in work, which, when properly maintained, forms the basis from which improvement can be made.

– With standardized work:

» You gain consistency, not quality.

» Consistently express the problems.

– Apply 4-S:

» Seiri (Sifting, separate)

» Seiton (Sorting)

» Seiso (Sweeping)

» Seiketsu (Spick and Span)

� Measure consistency

� Don’t go for the home run!!



Lean Office



� Specific Recommendations – a Short-run Action Plan– Introduce document control. Incorporate version number, data,

distribution list and on every document.

– DO NOT Batch and Queue

– DO NOT fast-track / Expedite

» Improve the normal process so that lead time and confidence are adequate to obviate the need for expediting.

» Prioritize strategically important products, but introduce them to the process singly, not in batches.

– Identify push-pull triggers. Instigate continuity. Ideally these should all be in the same direction – and that direction should be pull.

– Educate staff on how to identify and process VA activities. Also instruct on waste identification.

– Instigate a corporate-wide project planning and prioritization procedure.

– Implement a process-wide workflow system to replace the disparate and ineffectual systems currently in place. Ensure all team members have access and training.




Lean Office



– Multi-skill staff to provide operational flexibility.

– Perform only a single validation check.

� Key Elements of the Lean Value Stream:– Specify what does and does not create value from the customer’s

perspective.

– Identify all the steps necessary to design, order and produce across the whole value stream to highlight the non-value-adding waste.

– Make those actions that create value flow without interruptions, detours, backflows, waiting or scrap.

– Only “make” what is pulled by the customer just-in-time.

– Create a dynamic transparency of strategies, cost and information in the value stream.

– Focus on key processes, not just separate business departments.

– Strive for perfection by continually removing successive layers of waste. as they are uncovered.




Lean Office



� Measurements– Keep track of performance on the next business process events.

– Look for effectiveness of action plans implemented.

– Look for consistency.

– Use the “Tracker” tab attached to the Excel file.

– Feedback performance to the team.

– Reiterate as needed.

Measuring Success by Using the Project Tracker

Project code:

OWNER

1 Ordered is needed by (date) Customer

2 Current State Estimated Time Employees direct report

CS Days

Owner Goal Timing Plan Actual Dur

1 Project trigger: Employee 0.0 -41.5 0

2 Prepare requisition and submit to secretary Employee 0.7 -40.8

3 Secretary to log it in requisition's tracker and submit to boss for approvalSecretary 2.8 -38.0

4 Checks budget, availability of PC's, approves and return it to secretarySupervisor or Manager 9.0 -29.0

5 Updates tracker and submits requisition to purchasing deptSecretary 3.8 -25.2

6 Prepare and submit RFQ to 3 vendors Buyer 2.0 -23.2

7 Vendors receive RFQ and reply with quote with conditions and termsPC supplier 3.5 -19.7

8 Generate PO and get Purchasing manager approvalBuyer 1.8 -17.8

9 Receives PO and delivers PC PC supplier 9.3 -8.5

10 PC is received and installed IS&S department 8.5 0.0

PE R F O R M A N C E

ACTIVITY OR PROCESS STEP

PROJECT-SPECIFIC INFORMATION Data

41.45

DAS employee buying a PC for work (1980's)


Lean Office


IntroductionLean Office Kaizen Model and Methodology

Select Team MembersKickoff Mtg / Training

Business EnvironmentShare Vision & Values

Weekly/16Weeks info

EDI

Daily/16Weeks info

EDI

Weekly/3Weeks info

FAX

Daily/3Weeks info

FAX

Daily Inputinto BSOP

Manual

BSOP progsorts info

Auto


Auto

Input Reqsinto ExcelManual

Infointegrity

Start

Custresources


Yes (90%)

No(10%)

Adjust InfoManual

InfoScope

InfoScope


Info OK?

Check FGInventoryManual

No (1%)

Yes (99%)

Info OK?No (1%)

Yes (99%)

FG > Reqs?

No (10%)

Yes (90%)

Adjust ProdOrdersManual

DistributeProd PlanManual

End

Identify all Task

Estimate timing

Reiterate as needed

ACTION!!

Reiterate as needed

Weekly/16Weeks info

EDI

Daily/16Weeks info

EDI

Weekly/3Weeks info

FAX

Daily/3Weeks info

FAX

Daily Input

into BSOPManual

BSOP progsorts info

Auto


Auto

Input Reqsinto Excel

Manual

Infointegrity

Start

Custresources


Yes (90%)

No(10%)

Adjust Info

Manual

InfoScope

InfoScope


Info OK?

Check FGInventory

Manual

No (1%)

Yes (99%)

Info OK?No (1%)

Yes (99%)

FG > Reqs?

No (10%)

Yes (90%)

Adjust Prod

OrdersManual

Distribute

Prod PlanManual

End

Identifying Critical Path

ACTIVITIES

TASKS

BUSINESS PROCESS

Evaluate Task Summary

Total

340VA (+) NVA (-) NNVA (0)

15 130 195% VA % NVA % NNVA

4.41% 38.24% 57.35%

Conclusion

Add “Macro” Map to file

Employee N/A Employee 101.9% Employee 97.4% Secretary 93.1% Supervisor or Manager 101.6%Task 1 0 days A Task 2 0.55 A Task 3 0.20 A Task 4 2.18 B Task 5 8.13 C

Project trigger:

0.000 0.000 0.000 0.375 0.500 0.875 0.125 0.188 0.344 1.500 2.510 2.520 7.000 8.000 9.000


VA (mins) 0 0.00% VA (mins) 35 13.21% VA (mins) VA (mins) 10 0.96% VA (mins) 151 3.87%NVA (mins) 0 0.00% NVA (mins) 45 16.98% NVA (mins) 85 89.47% NVA (mins) 1020 97.42% NVA (mins) 3265 83.70%NNVA (mins) 0 0.00% NNVA (mins) 185 69.81% NNVA (mins) 10 10.53% NNVA (mins) 17 1.62% NNVA (mins) 485 12.43%

0 4.82E-05 1.7668E-06 0.000835 0.012346

PC supplier 98.6% Buyer 102.0% PC supplier 79.4% Buyer 111.4% PC supplier 89.2%

Task 6 3.00 E Task 7 0.75 D Task 8 2.38 E Task 9 1.67 D Task 10 7.43 E

2.250 3.000 4.000 0.625 0.750 0.813 2.000 3.000 4.000 1.000 1.500 2.000 5.000 9.000 9.000


VA (mins) 30 2.08% VA (mins) 20 5.52% VA (mins) 64 5.60% VA (mins) 30 3.74% VA (mins) 65 1.82%NVA (mins) 690 47.92% NVA (mins) 7 1.93% NVA (mins) 879 76.90% NVA (mins) 720 89.78% NVA (mins) 2042 57.25%NNVA (mins) 720 50.00% NNVA (mins) 335 92.54% NNVA (mins) 200 17.50% NNVA (mins) 52 6.48% NNVA (mins) 1460 40.93%

0.007237 9.54E-07 0.01234568 0.000772 0.197531

Gets tools catalog and identifies

the right tool for the process

Prepare requisition and submit to

secretary

Secretary to log it in requisition's

tracker and submit to boss for

approval

Checks budget, availability of

similar tools in tool crib, approves

and returns to secretary

Engineering needs an XYZ tool,

decides to order one

Updates tracker and submits

requisition to purchasing dept

Prepare and submit RFQ to 3

vendors

Vendors receive RFQ and reply with

quote with conditions and terms

Generate PO and get Purchasing

manager approval

Receives PO and Delivers Tool

Data Analysis

Target Areas of Opportunity

0.00

5.00

10.00

15.00

20.00

A B C D E F

Resource Code

Da

ys

bt

Re

so

urc

e

0.00

2.00

4.00

6.00

8.00

10.00

T 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30

Task #

Av

g D

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ask

0.00

0.10

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0.40

0.50

T 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30

Task #

Va

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ays

by

Tas

k

Detail Activities

Task 2

Gets tools catalog and identifies the right tool for the process

No ACTIVITY description

1 Requests catalog to central crib (phone)

2 Delay until central crib has catalog available

3 Obtains catalog

4 Selects a particular model from catalog

5 Research other sources (phone)

6 Make final decision for tool model

7 Asks for a requisition form

8 Wait for requisition form to be available

9 Gets blank requisition form

10 Prepares requisition

11 Delay until secretary is available to receive requisition

12 Carry requisition to secretary's In-tray

Calculating Average

& Std Dev for every path

Longest Path Identified is: days long


Task ID A B C D F O P Q

Opt (o) 1 2 2 2 4 17 1 2

Most (m) 3 4 3 4 5 18 2 2.5

Pess (p) 4 6 5 6 12 18.5 3 2.75

Avg Te 2.8 4.0 3.2 4.0 6.0 17.9 2.0 2.5

Var σ20.25 0.44 0.25 0.44 1.78 0.06 0.11 0.02


Task ID D E F J P Q R S T

Opt (o) 3 3 5 5 1 2 5 6 3

Most (m) 4 5 7 7 2 2.5 7 10 4

Pess (p) 5 7 9 9 3 2.75 9 11 5

Avg Te 4.0 5.0 7.0 7.0 2.0 2.5 7.0 9.5 4.0

Var σ20.11 0.44 0.44 0.44 0.11 0.02 0.44 0.69 0.11


Task ID G H I K N P Q U V W X Y Z AA

Opt (o) 2 4 3 5 8 1 2 0.5 0.5 2 1 0.5 1 1.5

Most (m) 3 6 4 6 10 2 2.5 0.7 1 4 1.5 0.7 2 1.7

Pess (p) 6 8 6 7 12 3 2.75 0.9 1.25 6 1.9 1 3 2

Avg Te 3.3 6.0 4.2 6.0 10.0 2.0 2.5 0.7 1.0 4.0 1.5 0.7 2.0 1.7

Var σ20.44 0.44 0.25 0.11 0.44 0.11 0.02 0.00 0.02 0.44 0.02 0.01 0.11 0.01

45.533 1.5599

47.958

GHIKNPQUVWXYZAA

DEFJPQRST

ABCDFOPQ 42.375 1.8319

47.958 1.6796

VA

1%

NVA

80%

NNVA

19%

Action Plans to

Eliminate NVA

Minimize NNVA

VA 207 %VA 1.40%

NVA 11,707 %NVA 79.12%

NNVA 2,883 %NNVA 19.48%

Total (mins) 14,797


Lean Office


If it ain’t broke, keep looking!!!

THANKS,

Q&A - Closing Comments

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