Upload
trong-phan-thanh
View
25
Download
2
Tags:
Embed Size (px)
Citation preview
Lean and Lean ThinkingApril 2009
Saeed Hessami P.Eng.
Today we will cover…
- What is Lean?- What is Lean Thinking?- Is this a new concept?- How does this apply to me (I am an Engineer!)- Q/A
I am an engineer!What is Engineering?
the practical application of science to commerce or industry
What Engineers do?build products or deliver services
For whom?end-users = customers
Who pays Engineers Salaries? customers
The Lean Philosophy
What is value?
Value vs. Non-Value
Start of Operation End of Operation
= Value-adding Operation Time
= Non-value-adding Time
What Percentage of a typical company
activity is add-value?
Value vs. Non-Value
Typical company
95% Non-value-added 5% Value
“Lean” company
50% Non-value-added 50% Value-added
Toyota
What is lean?• To become “fit” in terms of business and
performance• To systematically and continuously remove
waste (muda)• To challenge the tradition (status quo)• To bring out the best in people and allow teams
to develop ideas and implement changes• To focus on long-term, sustainable changes as
opposed to short-term gains• A way of life, never ending journey toward
world-class status
The Lean in terms of sports
SpeedStaminaStrategy Stability Strength
What is lean thinking?
Lean = Lean Thinking
What is no-blameEnvironment?
When did “lean” start?What year?
History of Lean
1912 – Model T Assembly Line
His
tory
of
Lean
1st Oil Shock1st Oil Shock19731973
Leveraged NetworkChina and India becoming global manufacturer21st21st
(Statistical Process Control)
Total Quality Management)
James Womack
“Lean is consideredFundamental to business
growth and success”Corporations throughout North Corporations throughout North
America are creating new positions America are creating new positions such as such as ““Vice President of LeanVice President of Lean”” and and
““Director of Continuous ImprovementDirector of Continuous Improvement””e.g. Kodak Director of e.g. Kodak Director of KOSKOS““KodakKodak Operating SystemOperating System””
Result?
• encourages and promotes teamwork• integrates lean concept throughout• makes lean part of company vision
To compete and achieve world-class status, focus must be on creating an environment that . . .
Without discouraging or hampering creativity, innovation, or out-of-the-box thinking
. . . and
Possible
Impossible
“Think of the Solutions”
Three Key Drivers for Lean Organization
Process
Technology People
Achieving “balance”among three drivers is absolutely critical
Basic Lean Principles
Five Principles of Lean Thinking
• Define value from the customer’s perspective
• Identify the value stream and the specific steps
• Make the process flow• Pull from the customer• Head toward perfection• Never give up! No ErrorsNo Errors
No WasteNo WasteNo ProblemsNo Problems
Basic Principles of Lean Development• Add Nothing But Value (Eliminate Waste)
– “Zero Defects”– “Do It Right the First Time”– “Test First”
• Center On The People Who Add Value– upgrading the skills of developers through training and apprenticeships– forming teams that design their own processes and address complete
problems– managers exist to support developers, not to tell them what to do
• Flow Value From Demand (Delay Commitment)– “Just-In-Time”– Develop in small, rapid increments– Driven by customer priority and feedback
• Optimize Across Organizations– structure around teams that maintain responsibility for overall business
value– Downstream department is a customer, and satisfying this internal
customer is the ultimate performance measurement
Identify Value Stream –Airport Example
Line Up Check-in Line Up Go throughSecurity Fly
MudaMuda!! MudaMuda!! MudaMuda!! MudaMuda!!
Working in Sync – Balance is the key
Seven Forms of Waste(Manufacturing)
• Overproduction– Producing more or sooner than customer needs
• Waiting– Long periods of inactivity: people, information, machinery, or
materials• Transportation
– Excessive movement of people, information, or materials• Inappropriate Processing
– Using wrong tools, procedures, or systems• Unnecessary Inventory
– Excessive storage and delay of information or products• Unnecessary Motion
– Any motion which does not add value• Defects
– Frequent error in paperwork, product quality, or delivery
Seven Forms of Waste (Software Development – Extreme/Agile Programming)
• Extra Features (= Overproduction)– Develop only for today’s stories
• Waiting - Including Customers (= Waiting)– Deliver in small increments
• Handoffs (= Transportation)– Developers work directly with customers
• Extra Steps (= Inappropriate Processing)– Code directly from stories; get verbal clarification directly
from customers• Requirements (= Unnecessary Inventory)
– Story cards are detailed only for the current iteration• Finding Information (= Unnecessary Motion)
– Have everyone in the same room; customer included• Defects - not caught by tests (= Defects)
– Test first; both developer tests and customer tests
Dilbert’s definition
Typical Achievements of Lean
0%
25%
50%
75%
100%
1
Was
te re
duct
ion
Prod
uctio
n co
stre
duct
ion
Man
ufac
turin
g cy
cle
redu
ctio
n
Labo
ur re
duct
ion
Inve
ntor
y re
duct
ion
Prod
uctio
n ca
paci
tyin
crea
se
Lean Affect Entire Supply Chain
BUY MAKE MOVE STORE SELL
Suppliers
CustomersDesign
• Performance Management• Design Collaboration• Cost Reduction Collaboration• Vendor Managed Inventory• Kanban
• Strategic Sourcing• Buying Pattern Analysis• Consolidation• Invoice Reduction• Blanket Agreement• Leveraging• Specification Changes
• DFA/DFM• Synchronous Engineering• Gating Process• Lean Project Management
• 5S• Root Cause Analysis• Value Stream Mapping• Setup Reduction• Poka Yoke• TPM
• Logistics Analysis• Transportation Optimization• Freight Audit• Consolidation
• Warehouse utilization• Kanban/VMI• Material Flow Analysis• Spaghetti Diagram
• Collaborative Program• Voice of Customer• Call Centre Programs• Automated Processes• Centralized Info System• Demand Forecasting
Over 50 lean toolsOr programs
Getting Strategy Right
Material Flow
Takt Time• Takt time is the rate at which products are produced that just meets the
demands of the customer• Put it another way, Takt time paces the production at the “heartbeat” of
the customer• Takt time SYNCHRONIZES production to true customer demand; you
don’t produce more or less• Any work cells that take longer than Takt time becomes a bottleneck
Takt Time =Operating hours or min/dayOperating hours or min/day
Output demand per dayOutput demand per day
480 minutes (8 hrs)480 minutes (8 hrs)1000 units demanded by 1000 units demanded by
customer per daycustomer per day
== == 0.48 min/unit0.48 min/unit
What is Kanban?• Kanban literally means “sign display” in Japanese, and is one of
the fundamental tools used in lean manufacturing• Kanban allows efficient flow of materials by managing its
demand automatically• It is essentially a form of “trigger” for flow of materials, in much
the same way traffic light controls cars on the road• Kanban could be applied to an internal or external process
• Internal Kanbans are used to manage the flow of materials internally within the plant
• External Kanbans are used to trigger the replenishment of materials from the outside vendors
MaxQty
MinQty
What kind of Kanbans Exist?
• Bin Kanban = Kanbin• Fax Kanban = Faxban• Email Kanban = eBan• Card Kanban = Kanban Cards
• It does not matter what the “flagging” system uses to trigger the material flow, they all work on the same principle of replenishing on demand
Getting Strategy Right
PerformanceManagement
Performance Measurement Provides Yardstick
• It’s next to impossible to determine “how well” you are doing unless objective data can be mined and compared against the industry averages
• Performance measurement brings objectivity into the lean practice and minimizes “guessing”
• Visual tools, pareto charts, and other tools work hand-in-hand with performance measurements to provide additional details
““What gets measured, gets doneWhat gets measured, gets done””
Performance Measurement
• What do you measure now?• Are your metrics “visually available”?• Do you know your company’s performance?
Sales volumeCustomer baseCall rateNumber of successful installation
Potential Performance Measures
–Error rate–Turnaround/lead time–Invoicing error–% backorders–….
Order Entry & Procurement
–Defect rate–Cycle time/Takt time–Lead time–Improvements/employee–…
Manufacturing–# of turns–Inventory levels–Days of inventory–Obsolete inventory–Inventory accuracy–Warranty returns %–….
Inventory Management
–% of successful “wins”–Actual vs forecast–Customer satisfaction level–Customer buying pattern–Customer complaints–Error rates–….
Sales
–Delivery-to-promise–On time delivery–Fill rate–Turn around/lead time–Freight cost–….
Shipping
Visual example
Key Metrics Current C
ompany D
ataIndustr
y Ben
chmark
Future Targ
et (in
3 yrs
)
On Time Delivery 85.0% 99.0% 95.0%First Pass Yield 89.0% 99.0% 94.0%
Number of Turns 3 20 10Sales Per Employee $85,000 $175,000 $150,000
Fill Rate 73.0% 99.0% 94.0%Error Rate 7.0% 1.0% 5.5%
Metric AMetric BMetric CMetric D
GoodOK
Needs ImprovementKey Measures
Getting Strategy Right
Project PlanningTools
Solutions Prioritization
Quick Hits
Mid Solutions
Strategic
3 ~ 12Months
1 ~ 3Months
1 ~ 4Weeks
“Balance”the Projects
Carefully
Plan, Execute, then Follow Up
PurposeOutcomeWorkplanExecuteRe-check
• POWER provides structure and focus into project planning• POWER forces “closure” by following up on the work performed
to ensure sustainability
P
E W
OR
Getting Strategy Right
Continuous Improvement
Kaizen
“Kaizen . . . Everyday,Everybody”
Evolution of World Class
Framework& Strategy
Education& Training
Pilot Projects
Expansion
• Management Support• Sponsorship• Vision
• Increased accountability• Launch other projects• Value Stream Mapping• Kanban• Others
• Launch Initial Project• 5S• Turbocharged Solutions Teams• Kaizen
• Knowledge Base• Foundation• Employee Involvement
Approach differs for each company!Approach differs for each company!
Key Drivers of Team Success• Commitment• Can Do Attitude• Proper Sponsorship• Financial Support• Emotional Support• Weekly Meetings• Results-oriented• Accountability• Ownership• Rewards & Recognition
What to do?
• focus on quick hits• cross-functional solutions• identify longer term issues• facilitate sessions• become the “champions”• spread the “good words”• implementations
Exception Management Manage only the exceptions
Don’t need to knowWhen activities are within acceptable range
Document/Information Approval Process
Milk Run Model“typical”Start
End
Document/Information Approval Process Spider Method
“lean”
StartEnd
Advantages of Daily Meetings
First
15 minuteStandup Meeting
• Quick daily meeting• Stand-up only• Discuss issues• Discuss today’s to do• No more than 15 min
Issues & problems pile up“Batch” system
Issues & problems get resolvedeveryday first thing in the morning
“One piece flow” system
The Lean Journey
“Make things so simple, so obvious, so easy that operations can be carried out without thinking . . .”
5S Definition
5S refers to a list of five Japanese words which are part of the Kaizen philosophy of workplace management. It is a method of organizing and managing your workspace and work flow to improve efficiency, eliminate waste (muda) and improve Processes.
A clean workplace will improve the morale of those that work in it.
5S Definition
• Remove anything which isn’t needed for current work
• Leave only the bare essentials• Focus on what you really need• Apply the 80/20 rule
The First S: Sort (Tidy)The First S: Sort (Tidy)
• Arrange items in a way that they are easily accessible
• Arrange items that are visible
“A place for everything and everything in its place”
Second S: Set in place (Orderly)Second S: Set in place (Orderly)
• Clean everything• Eliminate all sources of contamination• Find ways to keep the work areas clean• Adopt cleaning as a form of inspection• Make cleaning a part of everyday work
Third S: Shine (Clean)Third S: Shine (Clean)
• Standardize:– Standardizing tools– Standardizing methods– Standardizing colours– Standardizing procedures– Standardizing materials– Standardizing equipment processes
Fourth S: Standardize
• Practice • Training• Continuous
Improvement• Inspection• Feedback
• Total Employee Involvement
• Coaching• Facilitation• Education• Discipline
Fifth S: Sustain (Discipline)Fifth S: Sustain (Discipline)
5S Definition
A 5S System will:- get rid of anything that is not needed, - organizing everything that is needed, - cleaning on a daily basis, - standardizing to maintain the system - having leadership and team members exercise the self-discipline to make it a daily habit…
The Lean Journey
Problem Solving Tools
Value Stream MappingValue Stream Mapping
PickMaterials
SortParts
WeldFrames
AssembleComponents
Continue
1. IdentifyKey Steps
2. Cycle TimeIdeal Case
5 min 15 min 20 min 55 min
3. Cycle TimeWorst Case
30 min 60 min 37 min 120 min
4. Input &Output
List Input List Input List Input List Input
Output Output Output Output
5. Key Issues& Problems
List List List List
Look for long cycle times
Eliminate Muda
Fishbone Diagram Fishbone Diagram –– Root Cause AnalysisRoot Cause Analysis
MANPOWER METHODS
MATERIALS MACHINERY
Fishbone Diagram
Problem:
Watch too much TV
Watch too much TV
Feel stressed outWorry about tomorrow
I might lose my job
I need to relax
Effo
rts
Req
uire
d
Value/Benefits Big ValueSmall Value
Big
Effo
r tSm
all E
ff ort
Takes significant
time, efforts, but
benefits are huge
Easy to do, but pay back is
small – “Quick Hits”
Difficult to do, and
small value – DON’T DO IT!
Small effort but big
value – DO THIS NOW!
PLOT POSSIBLE SOLUTIONS ON THE
GRAPH
Value Graph Value Graph –– One Tool to ConsiderOne Tool to Consider
Strategic
GEMS
DON’TDO
QUICKHITS
Effo
rts
Req
uire
d
Value/BenefitsBig ValueSmall Value
Big
Effo
r tSm
all E
ff ort
Value GraphValue Graph
StrategicDon’t Do
Quick Hits Gems
Take shorter showers
Move house
Marry someone rich
Change jobs
Don’t eat junk foodTurn lights off when you leave
the room
Take up a more meaningful hobby (cooking)
Move furniture around
Project Power Charter ExampleEffort: Easy Medium Difficult
Cost: Cheap Medium Expensive
5S Project
Sponsor/Champion: Project Deadline:
PURPOSE:
WORKPLAN: List Recommended Key Steps
EXECUTE: List Team Members
OUTCOME: List Deliverables
John Smith, David Wilson Sep 1st, 2002
• Become more organized• Provide structure into work areas• Standardize methods, procedures, approach• Optimize efficiency through better organization of materials, processes, and work flow
• Create a Lean Team• Provide 5S Training• Apply to one area• Expand to another area• Continue to standardize, organize, and optimize
• List Team Members• List Team Members• List Team Members
• Clean, organized work areas• Materials and tools are easy to find
Re-chec
k Date
Oct 1
Lean StepsPower
TemplateImplementation
Schedule
ProcessMappingProblem
FishboneDiagram
ValueGraph
UCLA Study shows that . . .• Average five-year olds engage in creative
tasks 98 times, laugh 113 times, and ask questions 65 times in a day
• By the time we reach mid-40s, these numbers shrink to 2 creative tasks, 11 laughs, and 6 questions per day
What What happened?happened?
Kaizen Principles Kaizen Principles –– Be InnovativeBe Innovative
Kaizen Principles Kaizen Principles –– Share prizes and successesShare prizes and successes
Kaizen Principles Kaizen Principles –– Choose your battles carefullyChoose your battles carefully
Kaizen Principles Kaizen Principles –– DonDon’’t be afraid to try thingst be afraid to try things
Kaizen Principles Kaizen Principles –– Help whenever you canHelp whenever you can
Kaizen Principles Kaizen Principles –– Maintain Youthful SpiritMaintain Youthful Spirit
Kaizen Principles Kaizen Principles –– Learn to get along with EVERYONELearn to get along with EVERYONE
Kaizen Principles Kaizen Principles –– Be creative!Be creative!
Kaizen Principles Kaizen Principles –– All ideas are good ideasAll ideas are good ideas
So we covered…
- Lean meaning- Lean Thinking concept- It is not a new concept- It applies to Engineering and is way of living
Links and References• The Lean Enterprise Academy
– http://www.leanuk.org/• InfoQ - An Introduction to Lean Thinking for Software
– http://www.infoq.com/articles/lean-thinking-software• Lean Software Development
– http://www.poppendieck.com/• Lean Manufacturing Strategy
– http://www.strategosinc.com/implementation0.htm• The role of leadership in software development (Google tech talk
video)
– http://www.youtube.com/watch?v=ypEMdjslEOI&feature=user
Thank you…