Introduction to Lean and Kaizen - OwnersEdge Inc · Kaizen Event –The Spirit of Kaizen 1. Applies...

Introduction to Lean and Kaizen

• Engagement• Stay focused, turn off your alerts• Raise your hand or utilize chat when prompted

Learn it. Lead it. Live it.

• History and Definition of Lean• Value vs Waste• Tools

• Value Stream Map (identifying value and waste)• Sig Sigma (eliminating variability)• Quick Response Manufacturing (QRM) (eliminating wait time)• 5S (organization) • Nominal Group Technique (team-based problem solving)• Kaizen (team-based improvement event)

Introduction to Lean Initiatives and Methods

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Definition of Lean

Quick history:

• https://www.youtube.com/watch?v=v2KN8CCfu_E

• https://sixsigmastudyguide.com/history-of-lean/

Definition

• Lean is a methodology that focuses on minimizing waste within a business or process while working to

maximize quality and productivity.

• Define value

• Map the value stream

• Create flow

• Establish a pull system

• Pursue perfection (continuous improvement)

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Value vs Waste

*As a customer, define what value means to you (raise hands)

Value

• Anything the customer is willing to pay for.

• Process: must change the form or function of the product or service.

Waste (aka Non-Value Add)

• Any expense or effort that is expended but which does not transform raw materials into an item the customer

is willing to pay for.

• Essential waste is any waste that cannot be removed from the process. It must be done, but the customer

doesn’t value it.

The goal in lean is to eliminate as much waste as possible. So, how do we do that?

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Understanding the types of waste

*Give me examples of waste in your processes. (chat)

The 8 Wastes of Lean

• Defects - Products or services that are not acceptable to the customer.

• Overproduction - Making products faster, sooner, or in greater number than needed.

• Waiting - Employees waiting for products to be worked on or for information to be processed.

• Transportation - Transportation as a waste means that products are moved from Point A to Point B without

adding any value.

• Inventory - Materials, information, work in process and finished goods that are not stocked and supplied in

the most efficient way possible.

• Motion - Wasted movement that does not add value.

• Extra processing - Doing more steps than required within a process or more than what customers will pay

for.

• Non-utilized talent - Not using everyone’s talent to solve challenges, or even worse, not consulting them at

all.

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Value Stream Maps

Value stream mapping (VSM) is a visual lean tool that utilizes a standardized flowchart documenting system to

capture every step in the lifecycle of a process. It is a fundamental tool to identify value, waste, ownership,

and implement process improvement.

The map enables a team to:

1. Analyze the current state.

2. Identify waste and problems.

3. Design the future state to eliminate waste.

4. Work through change management.

5. Measure changes and adjust.

6. Hold everyone accountable.

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Value Stream Maps

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Value Stream Maps

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Six Sigma

Six Sigma is a lean methodology that focuses on the reduction of variability to increase quality and productivity.

Six Sigma is rooted in a quantitative set of tools to drive process improvement. Such tools include statistical

process control (SPC), control charts, failure mode and effects analysis (FMEA), and process mapping. The

intent is that decisions are made using verifiable data and statistics, rather than assumptions.

Creating consistency and reliability within the business, which builds quality, efficiency, and trust.

Sig Sigma uses the DMAIC process

• Define

• Measure

• Analyze

• Improve

• Control

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Six Sigma

Six Sigma is highly dependent on math and data. A six sigma process is one in which 99.999% (often called 5

9’s reliability) of all opportunities to produce something is statistically expected to be free of defects.

What does 5 9’s reliability look like? It means 5.25 minutes of downtime per year, or 3.4 defects in a million

opportunities.

*What types of business require Six Sigma quality? (chat) What products or services does your company

produce that meets that? Which ones do not?

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Quick Response Manufacturing (QRM)

Summary: Manufacturing approach focused on reduction of wait time within internal and external lead times.

1. Time has value

2. Org Structure

3. System Dynamics

4. Must be Enterprise-Wide

Principles can apply to the office in the form of a Quick Response Office Cell

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Quick Response Office Cell (Q-ROC)

Example: Server Manufacturing – Standard Product Line

Traditional Linear Release Process = 12 weeks

Departments Involved:

• Customer Service

• Purchasing

• Project Management

• Design Engineering

• Materials/Inventory Management

• Manufacturing Engineering

• Production

Customer wants a quick time to market on slight modifications.

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Quick Response Office Cell (Q-ROC)

Example: Server Manufacturing – Modification to Standard

3 team members cross trained in all processes.

Team members rotate roles (PM, Engineer, Operations)

Co-located in the same "Office Cell"

Q-ROC Release Process = 2-3 weeks

Goal/Metric = 10 business days or less

Departments Involved:

• Q-ROC

• Production

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5S

Originated from "Just in Time" manufacturing concepts developed in Japan.

• Sort (seiri)

• Remove any unnecessary items from the workspace

• Set in Order (seiton)

• Optimize placement of needed items for optimal efficiency

• Shine (seiso)

• Sweeping, cleaning and inspecting tools or machines consistently

• Standardize (seiketsu)

• Establish expectations and metrics for the prior 3.

• Sustain (shitsuke)

• Training, reinforcement of expectations and celebrate success

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5S

The spirit of 5S is “a place for everything, and everything in its place”.

What areas of your business (or home) do you think could use some 5S?

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Nominal Group Technique

When trying to solve a problem, especially a complex one, there is a set of tools

that when brought together make a powerful process that can draw out ideas,

create natural groupings, and determine the best solution options. The more

cross functional the team involved, the more successful this process is.

4 Step Process:

1. Brainstorming (Ideation)

1. A means to draw out both problems and solution ideas from the team.

2. A freethinking process intended to get outside the norms to discover

“how might we” define and solve a problem.

3. Team members briefly present their ideas to group with a small amount

of time allotted for clarification.

2. Affinity Diagram (grouping)

1. A team-oriented process of finding natural groups and relationships of

the brainstorming info.

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Nominal Group Technique

3. Decision Making (impact analysis, ranking, and voting)

1. This process uses the information from the Affinity

Diagram and steps through a simple analysis to

understand things like probability, risks, how

solving the problem might positively impact the

business, and how much effort it will take. Then

then team can rank the solutions and vote on

which actions to move forward with.

4. Execution

1. Now the team can use whatever project

management techniques they are familiar with to

execute the actions, along with measuring the

results over time and reporting with some regular

frequency back to the team and leadership.

Learn it. Lead it. Live it.

• Define Kaizen• Understand the spirit of Kaizen• Team approach• The process

Introduction to Kaizen

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Kaizen - Definition

改善 *What does Kaizen mean? (chat)

Change – Good

Lean tool used for continuous improvement and waste elimination.

“Change can be threatening when done to us, but exhilarating when done by us.”

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Kaizen Event - Definition

A kaizen is a highly focused event aimed at producing a step-

function process or performance improvement in a short

amount of time, in a narrowly targeted area.

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Kaizen Event – The Spirit of Kaizen

1. Applies almost anywhere.

1. *Building a Deck analogy.

2. Kaizen example.

2. Make an improvement in a short amount of time and make your world better

now!

3. Team oriented

1. Goal oriented, cross functional, collaborative, energetic, results (the

desire to win!).

4. Cross the finish line!

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Kaizen Event – The Spirit of Kaizen

5. Learn the process, do the process, master the process, teach the process.

Roles

Learn Do Master Teach

Particpants

Co-Leader

Leader

Coach

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Kaizen Event – Team Rules

The following team rules are a best practice guideline and can be adjusted as necessary for each

event. In some cases, the team rules can be created by the team themselves with guidance from

the leader.

• Titles are checked at the door

• Participation is required

• Be honest and respectful

• There are no stupid questions

• Be on time

• Complete the kaizen goals!

• Have fun!

• Or else!

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Kaizen Event - Phases

There are 5 phases to running a successful kaizen event:

1. Charter (Evaluation/Approval)

2. Planning

• Plan the work…

3. The kaizen event itself

• …work the plan

4. Report out

5. Follow-up (actions and communication)

Learn it. Lead it. Live it.

• Lean is focused on the elimination of waste• Tools

• Value Stream Map (identifying value and waste)• Sig Sigma (eliminating variability)• Quick Response Manufacturing (QRM) (eliminating wait time)• 5S (organization) • Nominal Group Technique (team-based problem solving)• Kaizen (team-based improvement event)

Summary

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Any questions or comments?

Thank you!