27
Key Concepts of Lean Online Webcast © Copyright 2013 Lean Enterprise Institute, Joe Murli All rights reserved. Lean Enterprise Institute and the leaper image are registered trademarks of Lean Enterprise Institute, Inc. Instructor: Joe Murli For Webex assistance and troubleshooting please use this link: https://support.webex.com/MyAccountWeb/supporthome.do?root=Tools 2 The program consists of four 2-hour modules conducted over a 2-week period. At the end of each module, you will receive an assignment to help you practice what you have learned and develop skills and behaviors required to support a culture of continuous improvement. Each module will be recorded and available to view at lean.org Welcome to this Online Webcast Key Concepts of Lean Course Schedule (1:00pm-3:00pm EST): Module One- March 25 Module Two- March 27 Module Three- April 1 Module Four- April 3

Online Webcast Key Concepts of Lean blast furnace. By ... & Visualization Relentless elimination of waste, overburden and unevenness Lean Tools ... online webcast!

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Key Concepts of L

ean

Onlin

e W

ebcast

© Copyright 2013 Lean Enterprise Institu

te, Joe Murli A

ll rights re

served.

Lean Enterprise Institu

te and the leaper im

age are registered trademarks of Lean Enterprise Institu

te, Inc.

Instru

ctor: J

oe Murli

For W

ebexassistance and tro

ubleshootin

g please use th

is lin

k:

http

s://sup

po

rt.we

be

x.com

/MyA

ccou

ntW

eb

/sup

po

rtho

me

.do

?ro

ot=

Too

ls

2

The program consists of fo

ur 2

-hour m

odules conducted over a

2-w

eek

perio

d. A

t the end of e

ach m

odule, you will re

ceive an assignment to

help you practic

e what y

ou have learned and develop skills

and

behaviors re

quire

d to

support a

cultu

re of contin

uous im

provement.

Each m

odule will b

e re

corded and available to

view at le

an.org

Welcome to

this Onlin

e W

ebcast

Key Concepts of L

ean

Course Schedule (1

:00pm-3:00pm EST):

•Module One-March 25

•Module Two-March 27

•Module Three-April 1

•Module Four-April 3

Housekeeping

1. T

o ask a questio

n use th

e

Q&A box located on th

e

navigatio

n panel. Y

our

instru

ctor w

ill answer a

s

many questio

ns as possible

durin

g and at th

e end of th

e

Webcast

2.For W

ebexassistance and

troubleshootin

g please use th

is lin

k:

http

s://sup

po

rt.we

be

x.com

/My

Acco

un

tWe

b/su

pp

o

rtho

me

.do

?ro

ot=

Too

ls3

Housekeeping

3. The navigatio

n panel contains

WebEx to

ols in

cluding an audio

test to

ensure your s

peakers are

working properly

.

4. A

djust th

e volume on your c

omputer c

onsole

4

Your In

stru

ctor: J

oe Murli

•H

as im

ple

me

nte

d le

an

for o

ver 1

8 ye

ars

•C

oa

che

d b

y re

tired

exe

cutive

s from

Toyo

ta M

oto

r Co

mp

an

y

•A

s Ge

ne

ral M

an

ag

er o

f Ch

en

gd

u A

ero

tech

, inte

gra

ted

the

ele

me

nts o

f

strate

gy

de

plo

ym

en

t, org

an

izatio

na

l de

velo

pm

en

t, facility

de

sign

an

d

Lea

n in

to o

ne

coh

esive

bu

sine

ss ma

na

ge

me

nt a

pp

roa

ch.

•A

s Dire

ctor o

f No

rth A

me

rican

Op

era

tion

s for E

nsig

n B

ickfo

rd, le

d th

e

Co

mp

an

y to

win

the

Sh

ing

o P

rize fo

r op

era

tion

al e

xcelle

nce

.

•Le

d S

terlin

g C

ollisio

n C

en

ters g

row

th fro

m a

startu

p to

a co

mp

an

y w

ith

50

loca

tion

s na

tion

ally

(no

w p

art o

f Allsta

te In

sura

nce

Co

mp

an

y).

•A

s Vice

Pre

side

nt o

f Ma

nu

factu

ring

for th

e K

am

atics

div

ision

of K

am

an

Co

rpo

ratio

n-

restru

cture

d o

pe

ratio

ns to

do

ub

le o

n-tim

e d

elive

ry

pe

rform

an

ce w

hile

red

ucin

g le

ad

time

s by

88

% fo

r 2/3

of p

rod

ucts.

•S

ince

20

03

Joe

ha

s he

lpe

d le

an

thin

kers a

chie

ve su

pe

rior o

pe

ratin

g

ga

ins th

rou

gh

Mu

rli & A

ssocia

tes S

P.

5

Let’s Get S

tarte

d!

6

Lean Herita

ge:

Henry Ford on Flow, and Speed

“Let us say one of our ore boats docks at Fords at 9AM on Monday….It

has taken forty eight hours for the boat to come from Marquette to the docks…

…Ten Minutes after the boat is docked, its cargo will be moving

toward the High Line and become part of a charge for the blast furnace.

By noon Tuesday, the ore had been reduced to iron, mixed with other iron in the foundry cupolas, and cast…

.Thereupon follow fifty eight operations which are performed in fifty five minutes…

By three o’clock in the afternoon the motor has been finished and tested and started off in a freight car to a branch for assembly into a finished car.

Say that it reaches the branch plant so that it may be put into the assembly line at eight o’clock Wednesday morning…

By noon the car will be on the road in the possession of its owner.”

Flow & Speed

7Flow trumps “efficie

ncy”!

7

Standard W

ork

Henry Ford

“To standardize a method is to

choose out of

the many methods the best one, and use

it. Standardization means nothing unless it

means sta

ndardizing upward.

Today’s sta

ndardization, instead of being a

barrica

de against im

provement, is th

e

necessary foundation on which

tomorrow’s im

provement will be based.

If you think of sta

ndardization as the best

that you know today, but which is to

be

improved tomorrow -you get somewhere.

But if y

ou think of sta

ndards as co

nfining,

then progress sto

ps.”

8Without sta

ndard work there can be no improvement!

8

Historic

al C

onsideratio

ns

Training W

ithin In

dustry

1941-1945

–The US Department of War

introduces job instru

ctions,

job methods, jo

b relations,

and program development as

ways to teach millions of

workers in

war industrie

s

–The beginning of developing

Standard Work as a process

on a distrib

uted basis

9If w

e can’t tra

in and then manage a process, th

ere is n

o processes!

9

•Toyota management stu

died Ford’s Value

Stream improvement philosophy

•Integrated diversity

of product / m

ixed model

production

–Took it b

eyond “any car, as long as it’s b

lack”

•Partnered with workers to

build long term

prosperity and respect fo

r humanity

–Identified with and integrated cultural aspects

–Collaborative problem solving model

•Designed and documented a “system”10

Toyota Productio

n System

10

Historic

al C

onsideratio

ns

1980’s: M

IT study

“discovers” th

e

Toyota Production

System

11

“Lean”-High quality product, e

xceptional service, utilizin

g less

labor, less in

ventory, le

ss overhead than the competition

11

•1996: James Womack documents

general applications of TPS for a

wide variety of business ty

pes and

calls it “L

ean Thinking”

•1998 Jim

Womack founds the Lean

Enterprise Institu

te

•Dedicated to disseminating Lean

knowledge on a global basis

•Based in Cambridge MA with

global affilia

tes

12

Historic

al C

onsideratio

ns

It’s not just a car thing, all businesses ca

n benefit fro

m Lean thinking!

12

American companies identifying with and

integrating TPS with health care, industria

l and transactional businesses

13

Beyond Toyota

Beyond Manufacturin

g

13

•Autoliv

•GE finance

•Intermountain Health Care, Mayo Clinic

•Wiremold

•Capital One

•Liberty Mutual

Lean and Six Sigma

Lean

•A management system based on

continual improvement of every

process a

t every level

•Collaborative problem solving with

a focus at the working level

•Simpler more intuitive tool set

•Integrated into daily management

system

Six Sigma

•Project based improvements

closely tied to cost benefit a

nalysis

and financial incentives

•Certifica

tion and rankings

articu

lated as “B

elts”

•Expert based problem solving

•Technically sophistica

ted tools se

t

14

1990’s Allied Signal, Maytag, others sta

rted to integrate Lean and Six Sigma

15

Leanis a set of concepts,

principles and tools used to

create and deliver the m

ost

value from the customer’s

perspectiv

e while

consuming th

e fe

west

resources , and by engaging

people in contin

uous

problem solving.

AC

T

CH

EC

KD

O

AC

TP

LAN

CH

EC

KD

O

Gra

sp th

e

Situ

atio

n

Another W

ay to

Look at L

ean

16

GO BACK TO

FIN

D A

PROBLEM

Continuous

improvement on

every le

vel

FIN

D A

PROBLEM

Use Visual

Management tools

to make problems

stand out

FIX A PROBLEM

ID which of the

proven lean tools

lead to resolution;

Ensure team

involvement

PREVENT IT

FROM

COMIN

G BACK

Develop and use

Management

Standard Work

What is

“Lean”

and where did it

come fro

m?

17

Questio

ns

& Refle

ctio

n

Typical A

pproaches to

Lean

18

Tools F

ocus

5SKan

ban

TP

M

Heiju

nka

Kaiz

en

s

Cells

Team

s

“Syste

m” F

ocus

“C

om

pa

ny

X”

Pro

du

ctio

n

Sy

ste

m

Le

an

Six

Sig

ma

Su

bje

ctiv

e A

ssessm

en

ts,

Co

mp

licate

d G

rap

hic

s,

Co

rpo

rate

Sta

ff Driv

en

Why do W

e Need th

e Tools?

Lean tools w

ere invented to

help people analyze their own

work processes, to

help them

learn how to see the waste

(Muda) so they can improve

their work.

Lean Tools

19

Lean to

ols on th

eir o

wn

don’t c

reate lean cultu

re!

19

20

What h

as been

your

organizatio

n’s

experie

nce in

im

plementin

g

lean to

ols?

Questio

ns

& Refle

ctio

n

21

Purpose

Vision/Values

True North

Employee Line of Sight

Strategy Formulation & deploymentProcess

People

Lean Organizatio

n

Ho

rizo

nta

l flow

of

va

lue

at th

e p

ull o

f

the

cu

sto

me

r

Ma

na

ge

me

nt th

rou

gh

Standardization

& V

isu

aliz

atio

nR

ele

ntle

ss e

limin

atio

n o

f wa

ste

,

ove

rbu

rde

n a

nd

un

eve

nn

ess

Le

an

To

ols

Capability

to ID

& Solve

Problems

PDCA Thinking

Engaged & involved in CI

Continuously solve problems

Teamwork Learners

MANAGEMENT

22

Defin

ing th

e Purpose

Ho

rizo

nta

l flow

of

va

lue

at th

e p

ull o

f

the

cu

sto

me

r

Ma

na

ge

me

nt th

rou

gh

Sta

nd

ard

iza

tion

& V

isu

aliz

atio

n

Re

len

tless e

limin

atio

n o

f wa

ste

,

ove

rbu

rde

n a

nd

un

eve

nn

ess

Le

an

To

ols

Capability

to ID

& Solve

Problems

PDCA Thinking

Engaged a

nd

involv

ed in

CI

Contin

uously

solv

e p

roble

ms

Team

work

Learn

ers

MANAGEMENT

PURPOSE

Vision/Values

True North

(Employee) Line of Sight

Strategy Formulation & deployment)

Having a Line of S

ight F

rom th

e

Producer to

the Company Goals

What is

the ultim

ate goal of y

our w

ork?

How does what I d

o it re

late to the

company’s purpose, values, and goals?

What are the key performance indicators

(People, Quality, S

ervice, Cost)?

Re

spo

nsib

ilities

Pu

rpo

seG

uid

ing

Go

als

Co

mp

an

y G

oa

ls

23

It Starts

with

Values

Values

Beliefs

Thoughts

Actio

ns

Habits

Character

Destin

y

Th

e

“Wa

y”

we

do

bu

sine

ss

“PD

CA

”T

hin

kin

g&

Do

ing

Ma

rket

Ou

tcom

e

"You

acco

mp

lish v

ictory

step

by

step

, no

t by

lea

ps a

nd

bo

un

ds."

-Ly

n S

t. Jam

es

With

in th

is cultu

re yo

u

mu

st alw

ays e

xpla

in n

ot

on

ly th

e W

HA

T a

nd

HO

W, b

ut m

ost

imp

orta

ntly

the

WH

Y!

Ind

ivid

ua

ls with

in a

com

pa

ny

ne

ed

to

see

a ta

ng

ible

rew

ard

for th

eir g

oo

d

pro

cess/th

ink

ing

!

24

Intrin

sic Values of a

Lean

Organizatio

n

•Mutual respect anda commitment for long-term

prosperity (employees, co

mpany, cu

stomer,

community)

•Customer at the center of the process

•Continuous Im

provement by everyone

•Never knowingly pass o

n a defect

•Problems are treasures

•“Go see” (G

enchiGembutsu)

25

True North

(Hoshin)

Pu

rpo

se

Visio

nM

ission

Cu

rren

t Pe

rform

an

ce

The process o

f reflective

learning lead by

management keeps the

organization on track to

its true north despite the

short te

rm influences

Tran

sien

ts

•E

con

om

ic fluctu

atio

ns

•M

ate

rials d

isrup

tion

s

•Te

chn

olo

gy

cha

ng

es

•N

ew

custo

me

rs

•R

eg

ula

tory

cha

ng

es

•E

tc.

26

Highest Q

uality

Lowest C

ost

Shorte

st tim

eSafest M

anner

Respect

Speed

Taste

Quality

Frie

ndly

Service

Elim

inate all

unnecessary

death or illn

ess.

Same day

Next d

ay

Deploying Stra

tegy

Line of S

ight

27

CEO/COO

Mgmt“Councils”

Division

Plant

Departm

ent or Section

Work G

roup or Team

Members

Policy

Policy

Policy

Policy

Policy

Policy

A3

strategies

Action

plans

Five-year & Annual corporate policies

People, Cost, NPD, Quality etc.

200+ Divisions

PDAC

PDAC

PDAC

PDAC

We must se

e company stra

tegy articu

lated by the activities at the

working level of the organization

The Distilla

tion Process

Determ

ining th

e Critic

al Few Through A3

De

fine

25

% M

arke

t

Sp

ace

Un

de

rstan

d V

OC

Wh

at C

on

stitute

s

Bre

ak

thro

ug

h?

De

fine

Co

mp

etito

rs

Un

de

rstan

d

Stre

ng

ths &

We

ak

ne

sses

TH

E C

RIT

ICA

L FE

W!

Critica

l Ob

jectiv

e #

1

Critica

l Ob

jectiv

e #

2

Critica

l Ob

jectiv

e #

3

Critica

l Ob

jectiv

e #

4Id

ea

Focu

s!

Ow

ner:D

ate:F

eb 12, 2009

123456789101112131415161718192021

a.R

educe # of I/B

status ca

lls by 35%

.

b.

Re

duce I/B w

ork content b

y 25%.

c.R

educe aban

donm

ent rate

by __%

.

Start

Targ

et

Wee

k of:

ED

M, p

ayme

nt and IS

O w

ork co

ntent redu

ction will be

pursued as p

art of the 60 day qua

lity "Blitz." S

ee relevant A

3 report

for detail.

6. Co

un

terme

asures

/Plan

7. Effec

ts C

on

firmation

8. Follo

w-u

p A

ction

2. Bac

kgro

und

1. Them

e: W

estboroug

h capacity is co

nstrained due

to season

al and w

eekly dem

and varia

tion a

nd the relate

d work

content. Inbound

status calls co

mp

rise a sig

nificant portion of to

tal claim w

ork content.

Expa

nsion from sing

le pilo

t cell to eig

ht additiona

l cells w

ithin Westb

orough

opera

tions (initial deploym

ent) was con

ducted

during O

ctober a

nd Nove

mb

er (pre

-Tha

nksgiving). P

ost-T

hanksgiving w

eather driven claim

volume, com

bined w

ith

seasonal F

TO

requirem

ents and le

arning curve

challenges, as w

ell as the ad

dition of F

NO

L dem

and (previously han

dled

with

in the

call centers) have

generated

capacity issues. T

he ove

rcapacity situation

has genera

ted increa

sed status calls th

us

further stra

inin

g resources and re

sultin

g in hig

h aband

onment ra

tes.

3. Cu

rrent C

on

dition

5. Ro

ot C

ause

An

alysis (In

bo

und

Statu

s Calls

)

4. Targe

t

Wh

oW

hat

I/B C

allers

51%

24%

14%

7%4%

Insured

ShopC

laimant

3P CarrierR

ental Co.

I/B Call Distrib

ution

19%

15%

14%12%

11%

6% 6% 5% 4% 4%4%

Other

App Sched/Resched

Pmt Info

Rental IssueLiab Decision

App Issues

Supplement

Status/Next Steps

Policy InfoSettlem

entFirst C

all

Daily D

em

and Variatio

n

& S

taffing Surp

lus/(Shortfall)

0

0.05

0.1

0.15

0.2

0.25

0.3

0.35

0.4

Mo

nday

Tue

sday

Wed

nesda

yT

hursda

yF

riday

% FN

OLs

% I/B

Status C

alls

Avera

ge Wo

rk Co

nte

nt/C

laim

05

1015

20

FNO

L

I/B

Outboun

d Calls

EXT In Calls

COA

Payments

EDM

's

ISO

@3.4 I/B

per FN

OL

Inclu

de:

DTP

, appraisal kaizen

, supp

lemen

ts

kaizen, e

tc.

A3

A3

Dia

gra

m

28

Ide

a

Ide

a

Ide

a

Ide

a

Ide

a

29

What is

this

concept o

f “Purpose” &

why is it s

o

importa

nt?

Questio

ns

& Refle

ctio

n

30

Build

ing th

e Lean Process

Capability

to ID

& Solve

Problems

PDCA Thinking

Engaged a

nd

involv

ed in

CI

Contin

uously

solv

e p

roble

ms

Team

work

Learn

ers

MANAGEMENT

PURPOSE

Vision/Values

True North

(Employee) Line of Sight

Strategy Formulation & deployment)

PROCESS

Horizontal flow of value

at the pull of the customer

Workplace Management through

Standardization & Visualization

Relentless e

limination of waste, overburden

and unevenness

Purposeful Application of Lean Tools

Defin

ing Value and W

aste

Value-Adding Activ

ity

An activity that

transforms or shapes (fo

r the 1st tim

e) material or

information to meet

customer requirements.

Non-Value-Adding

Activ

ity

An activity that consumes

resources while not

adding to the customer’s

requirements

Waste

The goal of Lean is to

continually eliminate any and

all factors w

hich consume resources without adding

value.

31

Types of W

aste

Defects

Overproduction

Waiting

NotUtilizin

g Peoples Ta

lent

Transportation

Inventory

Motion

ExcessProcessin

gWhatever a

dds value to

a service

or p

roduct is

what a

customer is

paying fo

r. Everything else is

"WASTE"which needs to

be

contin

uously re

duced.

Just in

Tim

eWhat’s Needed,

In the amount needed,

When its n

eeded!

32

Waste of D

efects

Defin

ition

Repair or rework of any process o

utput that

is not correct th

e first tim

e

33

Waste!

•W

ron

g m

ed

icatio

n g

iven

to p

atie

nts

•In

corre

ct info

rma

tion

on

loa

n

ap

plica

tion

•P

ain

t surfa

ce sh

ow

ing

con

tam

ina

nts

Waste of D

efects

•Extra tim

e required to

inspect, re

work, and

“do over”

•Customer complaint

activity

•Firefighting and

backtracking

•Cumbersome process

very difficu

lt to train

new people

•Lack of process sta

bility

•Incapable processes

•Lack of cle

ar sta

ndards

•Lack of sim

ple visual

work instru

ction

•Lack of feedback from

downstream operations

•Unnecessary handling

•Poor layout

•Poor tra

ining

•Lack of sta

ndard work

Characteris

tics

Causes

34

Waste!

Waste of O

verproductio

nDefin

ition

•Consuming resources on producing

something sooner than or in greater quantity

than needed by either the end customer or

the downstream operation

35

Waste!

•Patients gowned hours in

advance of procedures or

bed availability

•Making more fenders in

a day than can be painted

•Buying more materials th

an needed

Waste of O

verproductio

n

•Waiting rooms of

patients (in

ventory)

between process

steps or as fin

ished

goods

•Large warehouses

•Periodic promotions

to move inventory

•Scheduling practice

s

•Equipment/system

design

•Performance

measurement

systems focused on

local efficie

ncy

Characteris

tics

Causes

36

Waste!

Waste of W

aitin

gDefin

ition

•Producer waiting for the next thing to

work on

•Needed product w

aiting behind less

urgent needs

–Patient waiting for the next process ste

p

–Desk full of partially completed insurance

policy renewals due to needed

information from others

–Assembler working on next unit before

finishing the current one

37

Waste!

Waste of W

aitin

g

•People doing non-

value added

activities

•People working on

tasks that are not

currently needed

•Large batch

methods

•Poor layout

•Scheduling practice

s

•Lack of value stre

am

visibility

Characteris

tics

Causes

Caution:

The most difficu

lt waste to observe because people keep busy

by working on what they can rather than what is n

eeded most

38

Waste!

Not U

tilizing Talent

Defin

ition

People not enabled to improve the value

stream because of lack of

–Visual work place

–Customer information

–Training

39

Waste!

Not U

tilizing Talent

•Lack of ongoing and recent

value stre

am improvements

that involve everyone

•Lack of awareness to

customer service levels

•Lack of awareness o

f waste

between process ste

ps

•Limited employee authority,

management command and

control

•Producers la

cking value

stream information

•Work stations iso

lated

from one another

•Lack of a visual work

place clearly

communicating value

stream performance

•Lack of sta

ndard work

•Poor tra

ining practice

s

•Sub optimized

performance

measurement systems

Characteris

tics

Causes

40

Waste!

Waste of T

ransporta

tion

Defin

ition

•Material movement between process ste

ps

that consume resources

–People

–Equipment

–Excess flo

or space

–Patients w

alking long distances between oncology

and radiology or ch

emotherapy

–Moving paper file

s from office

to office

–Moving parts to

a warehouse between operations

41

Waste!

Waste of T

ransporta

tion

•Parts m

oving from

process to

process

through “mass

transportation”

•Operations that can’t

see the final result due

to visual separation

•Excessive email

attachments, m

ultiple

hand-offs, m

ultiple

approvals

•Multiple staging

locations between steps

•Facility

layouts

•Workspace design

•Specialized Process

centers

•Sub optimized

performance

measurements

emphasizin

g local

efficie

ncy

•Scheduling practice

s

•Large batch processin

g

Characteris

tics

Causes

42

Waste!

Waste of In

ventory

Defin

ition

Idle products in

excess

of what is im

mediately

needed by the next

process ste

p or cu

stomer

43

Waste!

•Gowned patients w

aiting in hallways

•Large quantities of open insurance claims

•Excess n

umber of circu

it boards in inventory

Waste of In

ventory

•Large queues between

process ste

ps hiding

problems

•Not easy to identify

what is n

eeded or is

just being stored

•Not easy to identify

what is m

issing

•Slow response to

changes in customer

demands

•Large batch size

s

•Poor process ca

pability

•Local optimization of

efficie

ncy

•Multiple hand-offs

between functions

•Facility

layout

•Lack of visibility of the

value stre

am

Characteris

tics

Causes

44

Waste!

Waste of M

otio

nDefin

ition

•Any movement of producers or equipment

which does not add value

45

Waste!

•R

N’s w

alk

ing

3.5

mile

s pe

r da

y!

•E

xcessive

scree

n ch

an

ge

s or e

ma

ils in

a v

irtua

l en

viro

nm

en

t

•O

pe

rato

rs ha

vin

g to

pick

up

pa

rts

from

the

floo

r to m

ach

ine

the

m

Waste of M

otio

n

•Excessive reaching &

bending

•Excessive walking

•Inability to take an

information product fro

m

beginning to end in one IT

environment

•Looking to find materials,

medication and tools

•Walking to/from copier,

central filin

g, fax machine,

other office

s, pharmacy,

etc.

•Poor work station

design

•Lack of sta

ndard work

•Lack of workplace

organization

•Poor virtual workspace

organization or process

design

Characteris

tics

Causes

46

Waste!

Waste of E

xcess Processing

Defin

ition

•Effort w

hich adds no further value

•Consumption of tim

e which adds no value

47

Waste!

•MRI’s sp

ecifie

d when sim

pler

procedures would suffice

•Gathering of information that will not

be used

•Excess p

olishing of surfaces that

customer won’t se

e

Waste of E

xcess Processing

•Slow running equipment

•Minor sto

ppages

•Low percentage of

Value Added tim

e on

task

•Specifying extra testing

•Re-entering data, extra

copies, unnecessary or

excessive reports,

transactions, co

st accounting

•Lack of sta

ndard work

•Lack of a visual well

organized work place

•Improper performance

measurements

•Poor leadership

•Poor process ca

pability

Characteris

tics

Causes

48

Waste!

Other S

ources of W

aste

Mura

Definition

Definition

Examples

Examples

•Unevennessin an

operation. Fluctuation or

variation in the pace or

rate of customer demand.

•Overburdenof either

people, equipment or

systems requiring the

resource to work faster or

harder than designed or

appropriate

Muri

•More production required

than can be accomplished

in a normal work day

•Month-end financial clo

se.

•Sales invoice process

(following the shipping

month-end “hockey stick

”)

Wa

ste, U

ne

ven

ne

ss, an

d O

verb

urd

en

are

ofte

n in

ter-re

late

d.

Waste!

Inventory Makes W

aste Acceptable

Hid

den

Wastes

$$

$

$

$

Fin

ished

Pro

du

ctto

Cu

stom

er

$

$

$$

PO

OR

FO

RE

CA

ST

ING

CO

MM

UN

ICA

TIO

N

PR

OB

LE

MS

INC

OM

PL

ET

E

INF

OR

MA

TIO

N

QU

AL

ITY

PR

OB

LE

MS

CO

MP

LE

X

SC

HE

DU

LIN

G

AB

SE

NT

EE

ISM

SP

EC

ILA

IZE

D

SK

ILL

S

LIN

E

IMB

AL

AN

CE

DE

PA

RT

ME

NT

AL

SIL

OS

Org

an

izatio

na

l

Ba

rriers

Inp

ut

Info

rma

tion

50

51

What is

waste?

How do we

recognize it?

Why is th

is

concept

importa

nt?

Questio

ns

& Refle

ctio

nHomework

1.Refle

cton what youdo every day on your own job and identify

activities that youcarry out for each of the 8 wastes:

•Producing defects

•Overproductio

n

•Waitin

g

•Not u

tilizing others ta

lents

2. B

riefly

describ

e each of these wastes in your process a

nd email

your observations to me on Wednesday before the next webcast.

Also, we welcome your feedback that will help us im

prove this

online webcast!

Please send to your e-mails to

Joe.Murli@

TheMurligroup.com

52

•Transportin

g

product/inform

atio

n

•Creatin

g in

ventory

•Going th

rough excess m

otio

n

•Processing something m

ore

than should be necessary

Contin

ue Your L

earning on lean.org

After cla

ss, visit le

an.orgfor LEI’s p

ractica

l how-to resources:

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ooks, w

orkbooks, le

ader guides, tra

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Join us for Public W

orkshops in Chicago, IL May 13-16, 2014

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care Transform

atio

n Summit –

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4-5, 2014

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hn Shook and Jim

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rums, tra

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ow it’s e

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ctor and other lean thinkers by joining our connection center on

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lass!