Slide 1Lean Operations © Van Mieghem
Lean Operations House Building Game
The transition to Lean Ops
The Paradigm of Lean Operations: The ideal Basic philosophy of Lean Ops Lean tools for synchronization & waste reduction
Driving Continuous Improvement through Visibility
Slide 2Lean Operations © Van Mieghem
Paradigm of Lean Operations:In Search for the Holy Grail
The ideal Process = – Synchronization of all flows
• 1 x 1• production on demand• defect free
– At lowest possible cost
Waste = Gap between ideal and actual
How do we sync at lowest cost? > Synchronization or Lean Tools How do we set up a system to continually reduce waste ?
Slide 3Lean Operations © Van Mieghem
Improvement as a process
The Ideal Operation
• perfectly synchronized with demand• at lowest cost
The Actual Operation
D = deviation from ideal
= waste, variability, inflexibility= opportunity for improvement
Reduce D• Root cause analysis & problem solving
mindset• Waste reduction (Lean tools)• Variability reduction (Six Sigma, TQM)
Increase visibility of D• Andon pulls, workplace organization• Exploratory stress• Process measurement, visual
management
ContinuousImprovementProcess
Slide 4Lean Operations © Van Mieghem
The architect behind Lean Operations:Toyota’s Taiichi Ohno and waste elimination
“Toyota Production System: Beyond Large-Scale Production” by Taiichi Ohno
Lean operations has been defined as “a business system for organizing and managing product development, operations, suppliers, and customer relations that requires less human effort, less space, less capital, and less time to make products with fewer defects to precise customer desires, compared with the previous system of mass production.”
Slide 5Lean Operations © Van Mieghem
Waste
Incidental Activity
Value Added Activity
Value Added Activity• Work or time that directly increases the
value of the product in the eyes of the customer (e.g. Assembly of parts)
• What the customer is paying forWaste• Work or time that does
not add any value to a product
• Waste is sometimes called "muda", from the Japanese for waste
Incidental Activity• Work or time that does not directly add
customer value, but which is currently necessary to maintain operations (e.g. small movements to reach for material for assembly)
ObjectiveThe objective is to maximise the proportion of value added activity by eliminating waste and incidental activity
Elementsof work
There are three elements of work
Slide 6Lean Operations © Van Mieghem
88
MotionWalking around the factory looking for something or fetching equipment
Inventory Excess stock of drugs or equipment in clinical areas
WaitingMortgage applications piling in a desktop in tray
ReworkDocumenting the same information in several places for a new hospital patient
Over-processing Polishing a luxury walnut dashboard to a mirror finish on both sides
Over-productionMaking parts on a piece rate basis to fully load individual machines
IntellectFailure to make full use of the whole team’s experience and knowledge
TransportationTransferring finished goods to off-site packing and then freighting onto customers
THERE ARE 7 CLASSIC TYPES OF WASTE“wormpit”
Slide 7Lean Operations © Van Mieghem
Lean Tool #1: cut batch sizesAn illustrative example
Consider the following 4-step process:
What is:– The bottleneck:– The process capacity or maximal R: – The theoretical flow time Tth
– The minimal amount of inventory needed to run at capacity: Ith
– Call this scenario 1, the best. Let’s now consider what happens if we have (transfer) batches
A
1 min/jobResource 1
B
1 min/jobResource 2
C
1 min/jobResource 3
D
1 min/jobResource 4
Slide 8Lean Operations © Van Mieghem
Lean Tool #1: cut batch sizeABCD example continued
Batch Shop (Batchsize = 4)
A B C D
0
Ela
psed
Tim
e 2
1
4
3
2
1
4
3
2
1
4
3
2
1
4
3
T
T = I = R = 8
7
0
9
Flow Shop (Batchsize = 1)
A B C D
0
Ela
psed
Tim
e
1
T
1
1
1
2
2
2
2
3
3
3
3
4
4
4
4
5
T = I = R = = scenario ?
6
5
8
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8
7
6
5
8
7
0
9
2
1
4
3
6
5
0
9
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1
Slide 9Lean Operations © Van Mieghem
Changeover / setup / batch related costs must be reduced if batch size is to be decreased
Synchronization requires smaller batch sizes or even 1x1
Slide 10Lean Operations © Van Mieghem
Lean Tool #2: process on demand = pullJust-In-Time operations
JIT = have exactly what is needed, in the quantity it is needed, when it is needed, where it is needed.
“hand-to-mouth” material flow needed by whom?
Slide 11Lean Operations © Van Mieghem
Lean Tool #2: Synchronization with demand: customer demand pulls product
Supplierinputs outputs
Process Customer
PUSH: Inputs availability triggers execution
Supplierinputs outputs
Process Customer
PULL: Outputs need triggers execution
Slide 12Lean Operations © Van Mieghem
Lean Tool #2: how make pull system in house game?
Productioncontrol
Roofcut
Basecut
FABase
assembly
Slide 13Lean Operations © Van Mieghem
Lean Tool #2: Pull Implementation: Kanban Production Control Systems
Kanban
Processing center i
Processing center i + 1
WIP
Job
http://www.toyota.co.jp/en/vision/production_system/video.html
Slide 14Lean Operations © Van Mieghem
Lean Tool #3: Quality at the Source
Defects Found at:
Own Station Next Station End of Line Final Inspection
End User’s Hand
$ $ $ $ $
Impact to the Company
· Very Minor
· Minor Delay
· Rework · Resched.
of work
· Significant Rework
· Delay in Delivery
· Additional Inspection
· Warranty costs
· Administrative costs
· Reputation · Loss of
Market Share
Slide 15Lean Operations © Van Mieghem
Reducing Waste:Quality at the Source
Fool-proof/Fail-safe design (Poka-Yoke) Inspection
– Self– Automated (Jidoka)
Line-stopping empowerment (Andon)
Trouble!
Approach for operators• Preventative• If trouble, STOP!• If defective don't pass
Line-stopping empowerment
Approach for machines• A mistake-proofing system prevents errors and defects• Stop line when defects are detected or machine breaks
down
Poka Yoke and Jidoka
Slide 16Lean Operations © Van Mieghem
Lean Tool #4: Flexible Resources & Standardized Work
Cross training of workforce allows resource pooling
Use of IT in services
Slide 17Lean Operations © Van Mieghem
17
WORKPLACE ORGANIZATION – 5S
Maintenance ofimproved condition
Waste identification and elimination
• Check what is needed and get rid of what is not used
• Place each item in its optimal position in the workplace and employ visual management
• Keep the area and equipment always clean. Set a cleaning program
• Improve and maint-ain the first 3 "S" by improving the en-vironment: – visual controls– standard machine
improvements– standard procedures
for all similar areas
• Employ systems to monitor 5S and ensure that it is constantly maintained
Organize the workplace with the aim to• Identify and eliminate waste• Maintain and continuously improve the workplace/equipment• Improve morale and increase worker involvement
Objectives
SortSet in order
Shine SustainStandardize
5S is a structured approach to systematically clean and organize the workplace to support a lean working environment
Slide 18Lean Operations © Van Mieghem
Lean Tool #5: Heijunka Mixed Level/Balanced Production
Batch Production Schedule Mixed Production Schedule(AAAABBBB..) (ABAB...)
Product April 1.................15...........................30 April 1....................15.......................30
A
B
time
FGI
time
FGI
http://www.toyota.co.jp/en/vision/production_system/video.html
Slide 19Lean Operations © Van Mieghem
SILS: shipping in line sequenceBusiness Mall adjacent to Russelsheim’s LeanField
Slide 20Lean Operations © Van Mieghem
Lean Tool #6: From Functional Layout to Product Cell organization
ProductionControl
RoofCut
BaseCut
FABaseAssy
ProductionControl
ProductionControl
ProductionControl
RoofCut
RoofCut
RoofCut
BaseCut
BaseCut
BaseCut
BaseAssy
BaseAssy
BaseAssy
FA FA FA
Department 1
Department 2 Department 2
Department 2Department 2
Cell 1
ProductionControl
RoofCut
BaseCut
FABaseAssy
Cell 3
ProductionControl
RoofCut
BaseCut
FABaseAssy
Cell 2
Slide 21Lean Operations © Van Mieghem
Scrap &Rework
Missed Due DatesToo Much Space
Late Deliveries
Poor Quality
Machine Downtime
Engineering Change Orders
Long queues
Too much paperwork
100% inspection
Inve
ntor
y
Towards a system of continuous improvement: Increase Problem Visibility– Lower water to expose rocks
Slide 22Lean Operations © Van Mieghem
Visibility: Time plays the role of Inventory in Lean Service Operations
TIME
Slide 23Lean Operations © Van Mieghem
Towards a system of continuous improvement: Kaizen Tools
Reduce variability– Standard operating procedures
Increase visibility of waste and quality at source– Line-stopping empowerment (Andon)– Quality inspection: Self & Automated (Jidoka)– Fool-proof/Fail-safe design (Poka-Yoke)
Targeted improvements: root cause analysis (6 Why’s)– Active worker involvement– Time for experimentation– Supplier involvement
Exploratory stress
Human infrastructure & process measurement and review (visual management)
Slide 24Lean Operations © Van Mieghem
Learning ObjectivesLean Operations
Paradigm of Lean Operations: Strive for the ideal by eliminating waste This is a total business management system
Synchronization Tools1. Reduced batch sizes2. Pull production control systems (vs. push)—JIT & Kanban control3. Quality at the source4. Resource pooling5. Level loading (Heijunka)6. Layout: Cellular operations
Set up a System for Continuous Improvement1. Reduce variability (standard operating procedures)2. Increase visibility (river analogy)3. Improve human infrastructure
Slide 25Lean Operations © Van Mieghem
Slide 26Lean Operations © Van Mieghem
Sears (SHC) does actually have a whole social media team who handles their Twitter and Facebook accounts. They are VERY pro-active on those accounts. SHC contracts out to Viewpoints, which is the company I work for. We run the MySears, MyKmart and Craftsman Community platforms for them, and handle customer service in a pro-active way on those accounts
Along with the senior customer service reps, and folks at corporate, MySears is very fortunate to have a handful of associates or call center employees who pop on to assist, as well. They are not paid, but are influencers who receive an "Advisor" recognition badge for their help. We wish we had more folks like these, as their contributions are most helpful.
Here are a few threads that we would consider "wins" for SHC, as the site helped solve an issue or complaint for a particular customer:– This member was all over the board complaining about the Sears "Lifetime Warranty" on Tools. He
ended up connecting with the VP of Tools through the site, something that would be impossible without utilizing social media: http://www.mysears.com/Tools--7018/topics/WARRANTY-ISSUES/posts
– Someone who visited having issues with their washer: http://www.mysears.com/Appliances/topics/Kenmore-3-1-CU-FT-IEC-High-Efficiency-Front-Load-Washer-model-42052/posts?page=1
– One of the above mentioned "Advisor" that help. This member who offered his suggestion is actually a retired service techinician who hangs out a bunch on the site: http://www.mysears.com/Dishwashers--3933/topics/Washer-model-number-665-17033402/posts?page=1#post_199551