Lean Defined • Toyota Production Systems: An operating philosophy in which the best quality, cost and delivery of a product or service is achieved through shortening the production flow by eliminating waste. • Elimination of 3 M’s: Muda (waste), Mura (inconsistency), Muri (unreasonableness) • Womack, Jones, Roos, The Machine that Changed the World • Half the hours of human effort in the factory • Half the defects in the finished product • One-third the hours of engineering effort • Half the factory space for the same output • A tenth or less of in-process inventories
Lean History • Early 1900’s Henry Ford’s integrated production process (moving conveyance, interchangeable parts, standard work, etc) • Mid and later 1900’s came the contributions of Kiichiro Toyoda, Tai’chi Ohno, Shigeo Shingo, and others • Ideas generated by financial necessity
Current Competitive Environment: Value Addversus Non Value Add $ Profit “fixed” price K a i z e n time Total Cost = VA + NVA • Classic business model: Cost + Profit = Price • New business model: Price – Cost = Profit
Seven (?) Lean Wastes • Over production – prior to demand • Waiting – for information, materials, people, equipment, etc. • Transportation – more conveyance than is necessary • Over-processing – e.g., any form of inspection • Inventories – having more than absolute minimum • Motion – more than necessary to complete the task • Defects or Rework • Note the internal nature! 8. Knowledge Disconnection – inhibition of knowledge, ideas and creativity flows 9. Sustainability
5 Elements of Lean Systems • Leadership: Styles, Skills, Abilities, Behaviors, and Practices • Culture: Atmosphere • Team (stakeholders: employees, management, supply chain) • Principles • Tools
Lean Leadership • Leadership Styles • Consideration (employee-centered behavior) • Job Structure (job-oriented behavior) 2. Choice of Style: Numerous Situational Factors • Leader’s Internal forces • Subordinates’ Internal forces • Type of organization (formal versus informal) • Position power (degree of power and influence manager has over subordinates) • Group effectiveness • Time pressure • Problem itself
Lean Leadership (continued) • Leadership Skills, Abilities, Behaviors and Practices • Lead by example: • Mangement By Wandering Around (MBWA) • Participative Management • Delegation: ranges from an strong, authoritarian style to permissive • Results orientation • Problem-solving skills • Methodical in approach • Imaginative versatility and flexibility (an ability to tolerate ambiguity, accept change, seek change, put out fires) • Organizationally savvy and politically connected • Team builder (facilitator and motivator) • Do not crave the limelight (share the success) • Listen, sensitivity (receiving information), care, communicate, praise, reward • Honesty and integrity • General management outlook • Negotiation and persuasion (salesmanship, convey the purpose) • Accept responsibility for decisions and actions • High motivation • Defuse conflict • Implement organization policy and procedures • Personable (interact with superiors, subordinates, clients, other stakeholders) • Experience, judgment, intuition • Mentoring (encouragement and advice) • Partnering
Lean Culture: Create a Learning Organization Leaders are both learners and teachers, leaders must: • Accept stewardship and responsibility for transformation • Be deeply committed to change • Participate in pursuit of excellence • Create an environment for continuous improvement: kaizen, never-ending • Create an environment for flexibility: quick adaptation to changing needs • Overcome cultural resistance; do not yield to resistance, skepticism, or reluctance • Reflection: plan, attempt, analyze, learn, institute (Plan, Do, Check, Act) • Mistakes are learning opportunities (fear-free environment) • It’s okay to make legitimate mistakes • Problems are exposed because of increased trust • People are not problems, they are problem solvers • Emphasis placed on finding solutions, instead of “who did it?” • 5 Why’s • Change and improvements typically occur slowly and in small steps • Experimentation • Rewards (group and individual) are important
Lean Culture: Establish High Agreement • Recognize importance of standards (common method or process with clear understanding of importance) • Structure Every Activity – each activity should be stable, reliable and repeatable by all (standardized thinking) • Valuing and adopting standards versus our “own” way • Dynamically improving standards
Lean Team • Understand value of people: Training, Education, Empowerment • Leverage knowledge of those closest to problems • Participative management • Nothing is sacred (ask 5W2H often) • Fear-free environment • Standardized thinking • 100% participation • External view (supply chain)
Lean Practices • Create the learning organization • Simplicity and Visibility: simple solutions, quick problem identification and fix • Establish High Agreement • Connect Every Supplier and Customer (internal and external) • Systematic Waste Reduction and Problem Solving
Lean Tools • Quick Changeover (SMED) of Machines and Cross Trained Workers • TQM • Continuous Improvement: kaizen and kaikaku events • Value Stream Mapping • Workplace Organization: 5 S’s • Leveled and Balanced Production (uniform plant loading) • Pull Approach and Produce/Withdrawal Signal (kanban) • One Piece Flow • Audio/Visual Status Signals (Simplicity) • Error Proofing: Poka-yoke, Andon, Jidoka (quality at source) • Total Preventive Maintenance and Wellness Programs • Cellular Configuration (plant within a plant) • Standard Work Instructions (SWI’s) • External: greater supplier participation/collaboration
Lean Goals: Cost, Quality, Flexibility, Speed 1. Cost Strategy: waste elimination 2. Productivity (Speed) Strategies • Produce to exact customer demand • Produce one unit at a time • Eliminate waste • Commit to continuous improvement • Understand the value of people • Allow for no contingencies • Promote long-term perspective • Others?
Lean Goals: Cost, Quality, Flexibility, Speed (continued) 3. Quality Strategies • Operator empowerment • Perfect parts every time • A new customer definition • “Quality at the Source” tool kit • Operator responsibility • Visibility management • Others? 4. Flexibility Strategies • Increase operator skills • Multifunction equipment • Plant within a plant (various layout types) • Resources always ready • Others?