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Reflections….
John Bicheno
What this is about..
Some personal stories had an impactLeading to
A way of thinking about Lean
Reflections on Lean Absolutes 2
Stories of Respect and Humility
Crew Size OptimisationGeneral v.d. RietAWB – Leave it to the MenEisenhower ‘The sergeant is the army’ (The story of Eisenhower, Allied Supreme Commander)
Reflections on Lean Absolutes 3
What are these about?
Reflections on Lean Absolutes 4
Stories about Growing People
Davidson – creating thinking peopleBolitho – every dayMahesh – Leading by Nourishing; Confirmation Bias; Seeds and the Tree
Note:Drucker ‘The goal of management is to make productive the specific strengths of each individual’
Reflections on Lean Absolutes 5
What are these about?
Reflections on Lean Absolutes 6
Stories of Time
The Laundry SupplierLEAP, 3 Day Car, and Muda, Mura, MuriFailure DemandJustin Watts (and others..)
So..Kingman!
Reflections on Lean Absolutes 7
Inventory Profile of the UK Automotive Supply Chain
0
10
20
30
40
50
60
70
80
90
100
Raw
Mat
eria
l
Boug
ht-o
ut P
arts
In-h
ouse
bui
ltPa
rts
Pre-
Asse
mbl
yW
IP
Asse
mbl
y W
IP
Fini
shed
Com
pone
nts
Inbo
und
Tran
sit
On-
site
Par
t(V
M)
Vehi
cle
Prod
uctio
n W
IP
Load
ing
&D
espa
tch
Out
boun
dTr
ansi
t
Mar
ketp
lace
Cus
tom
er
Day
s of
Inve
ntor
y
MaxAverageMin
First TierSuppliers
VehicleManufacturers
Distribution& Retail
Outbound Logistics
Inbound Logistics
Source: Holweg (2002)
Reflections on Lean Absolutes 8
Queue Time, Variation and Utilizationle
adtim
e
30% Utilisation ρ 100%
Moderatevariation
Zero variation
High uncertainty
Some uncertainty
Reflections on Lean Absolutes 9
Expected Lead Time (Kingman)
L = (C2a + C2
e)/2 x (ρ / (1- ρ)) x te + te
C2a is arrival variance; C2
e is process variance
ρ is utilization (load / capacity or arrival rate / service rate)
MURA MURI Ave Process Leadtime
Reflections on Lean Absolutes
ρ = λ / μ10
Expanding on Kingman
Reflections on Lean Absolutes
Capacity
Load
Utilization =
ValueDemand
FailureDemand+
Base Capacity Waste-
11
The Four Fundamental Variables Critical to Lead Time
Arrival variationProcess variationLoad (and especially Failure Demand)Capacity (and waste)
NoteReinertsen: Kingman in Design / NPI timeHopp and Spearman, Factory PhysicsSchmenner: Swift, Even Flow Toyota: Muda, Muri, Mura
Reflections on Lean Absolutes 12
What are these about?
Reflections on Lean Absolutes 13
Stories of Action and Improvement
PDSA and Changeover at RowenJohnny Williams and Small Wins at a Logistics Company (Kata: the everyday encouragement of small wins)
Note:Spear: Surfacing, Swarming, Spreading, EnsuringRother on KataRepetition: TWI, Shenk on ‘Genius’; Gladwell on 10k ruleAmabile and Kramer: Small winsMaurer: Small steps
Reflections on Lean Absolutes 14
What are these about?
Reflections on Lean Absolutes 15
Stories of Customers and Employees
Air SeychellesCutting Staff at Four Logistics Depots (and the effects on those remaining)Doc Hall on Compression (and others)
Reflections on Lean Absolutes 16
What are these about?
Reflections on Lean Absolutes 17
What do these lead onto?
The Absolutes!NeedsSpeedDeedsSeeds
(plus Humility and Reflection)
Reflections on Lean Absolutes 18
Five Lean Principles ….have served us well
Specify what creates value from the customers perspective Identify all steps across the whole value streamMake those actions that create value flowOnly make what is pulled by the customer just-in-timeStrive for perfection by continually removing successive layers of waste
Reflections on Lean Absolutes 19
..but beware of Interpretation
Value = ask the customer, market survey; the 7 wastes ; ‘what are they prepared to pay for?’ ; policy deploymentValue Stream = VSMFlow = constraints, layout, reduce inventory, changeoverPull = kanbanPerfection = six sigma, pokayoke, andon, A3Toolheads! This was not the intention, but was often the result
Reflections on Lean Absolutes 20
A Way of thinking about Lean
Reflections on Lean Absolutes 21
Humility
Reflection
Concepts..
Reflections on Lean Absolutes 22
Needs Speed Deeds Seeds
Customers Arrival variation Gemba (Go See)
Mentoring
Employees Process variation PDSA Socratic Method
Suppliers Utilization: Kata Confirmation Bias
Environment Failure demand Kaizen (end –to-end)
‘The Watchers’
Wastes Kaizen (small wins)
Flow TWI -JR
Leader StdWork
Reflections….
John Bicheno