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Lean Office

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  1. Lean Office Dean Pomykala, MBA, LSS

  2. Agenda • My Bio • Lean Overview • What is Lean? Why go Lean? • Value Added vs. Non-Value Added Activities • Value Stream Mapping • One Piece Flow • Kaizen Events • 6S • Wrap Up Dean Pomykala - Lean Office

  3. Agenda • My Bio • Lean Overview • What is Lean? Why go Lean? • Value Added vs. Non-Value Added Activities • Value Stream Mapping • One Piece Flow • Kaizen Events • 6S • Wrap Up Dean Pomykala - Lean Office

  4. My Bio • Dean Pomykala - MBA, LSS Green Belt • Presently • Director of Instruments Operations • Business Improvement Manager • Canberra Industries • Radiation Detection & Analysis Equipment • Used in Power Plants, Labs, Military Applications • 1000+ Employees worldwide • 400 in Meriden, CT Dean Pomykala - Lean Office

  5. My Bio • Dean Pomykala - • Education • Electronics Technology • Bachelor’s Degree in Business • MBA • Lean Six Sigma Green Belt • Over 25 years of experience in creating & improving standard work processes • Industries include Medical, Military, Aerospace • Standards • FDA, ISO, GMP, MIL-SPEC, OSHA Dean Pomykala - Lean Office

  6. Agenda • My Bio • Lean Overview • What is Lean? Why go Lean? • Value Added vs. Non-Value Added Activities • Value Stream Mapping • One Piece Flow • Kaizen Events • 6S • Wrap Up Dean Pomykala - Lean Office

  7. Lean Principles • Lean Principles can be applied to any industry • Health Care • Food Service • Financial • Shop Floor • Customer Service • Any department • Customers can be internal Dean Pomykala - Lean Office

  8. Why go Lean?? • Survival….. Dean Pomykala - Lean Office

  9. Why go Lean?? • Why are Companies going Lean? • Financial Savings • Huge savings can be made initially from low hanging fruit • Product 1 • 32 Hours Saved Plus Material • $8,000 Each • $250,000 in 2013 • Product 2 • 4.4 Hours Saved Plus Material • $590 Each • $20,000 in 2013 • 184 Square Feet Dean Pomykala - Lean Office

  10. Why go Lean?? • Lean Office Projects • Reduce time to enter an order • More efficient method for sales to quote an order • Real-Time Production results displayed in sales office • Freed 6 hours of Shipping/Receiving time • Soft Savings • Hidden Value • Improved Customer Satisfaction • Improved On Time Delivery • Faster turn around • More efficient process / Time saved • More time to be productive in other ways Dean Pomykala - Lean Office

  11. Why go Lean?? • General Electric • Saved $12 billion over five years • Added $1 to its earnings per share. • Honeywell • Saved more than $800 million • Motorola • Reduced manufacturing costs by $1.4 billion from 1987-1994 Dean Pomykala - Lean Office

  12. Why go Lean?? • Baxter Healthcare Corporation • Over a three-day event, a team developed Value Stream Maps (VSM) that detailed the plant’s use of water and identified processes with potential for improvement • Using the VSMs, the team developed an implementation plan that saves 170,000 gallons of water per day and over $68,000 over the next year, with little or no capital investment Dean Pomykala - Lean Office

  13. Why go Lean?? • Canyon Creek Cabinet Company • Expect savings of almost $1.5million annually from process improvements • Process improvements include lead time reduction, defect reduction, overproduction, operator motion, and material loss and damage Dean Pomykala - Lean Office

  14. Why go Lean?? • The Boeing Company • Boeing Everett • Productivity improvements of 30-70% • Eliminated the use of 350 cubic feet of cardboard & bubble wrap packing material per 747 wing panel set • Reduced chemical usage per airplane by 11.6 % • Boeing Auburn • Defects have been reduced from 1,200/10,000 (12%) to fewer than 300/10,000 (3%) • Reduced floor space by 200,000 square feet Dean Pomykala - Lean Office

  15. Why go Lean?? • General Electric • Peebles, Ohio Facility • General Electric's jet engine facility found ways to reduce its greenhouse gas emissions by implementing Lean methods, while also producing significant cost savings. Lean events contributed to the following successes at the facility: • Reduced fuel consumption for GE90 engine testing from 20,000 gallons to 10,000 gallons. • Achieved cost savings of $1,000,000 due to fuel use reduction. Dean Pomykala - Lean Office

  16. Why go Lean?? • NBC & Universal Studios • The Energy Treasure Hunt Model • Conducted well over 200 treasure hunts globally with a combined emissions reduction of over 250,000 metric tons of Green House Gas. • Saved over $14 billion dollars Dean Pomykala - Lean Office

  17. Why go Lean?? • Monetary Savings are easy to see • Soft Savings or Efficiency Savings • Increase in Efficiency • Increased Customer Satisfaction • Increased Market Share • Revenue will follow Dean Pomykala - Lean Office

  18. World Class • It should be everybody’s goal to become a “World Class” Company • World Class • Standard-Setting Excellence • The standard by which all others are measured Dean Pomykala - Lean Office

  19. World Class • Does your product or service have “Standard-Setting Excellence”? • Are your internal processes the standard by which all others are measured? • Does your company function like a World Class Company? • Is your competition World Class? Dean Pomykala - Lean Office

  20. Becoming World Class • Implement Lean Principles • Systematic Continuous Improvement • Product/Service & Processes • Reduce Costs • Not just raw material costs…. • The cost of doing business • People spend too much time fighting fires • Bureaucracy gets in the way • Generate a Road Map • Where are you & where do you want to be Dean Pomykala - Lean Office

  21. What is Lean?? • Lean is a philosophy that characterizes all activities as either • “Value Added” (VAT) • “Non-Value Added” (NVAT) Lean strives to eliminate or reduce all Non-Value Added Activity Dean Pomykala - Lean Office

  22. Continuous Improvement • Identify which Processes need to be addressed • Use Lean Tools to identify road blocks, bottle necks, redundancies, bureaucracies, etc. • Use Lean Tools to determine where you want to be & make consistent improvements over time to reach your goals Dean Pomykala - Lean Office

  23. Implementing Lean Principles • DISCUSSION QUESTION • Three minutes Can you list 2 – 3 internal processes that can be improved? Dean Pomykala - Lean Office

  24. Change • Fear of change is the biggest obstacle in implementing Lean Principles • That’s the way we do it • We’ve always done it that way • That won’t work here • Change is not only inevitable, it is necessary Dean Pomykala - Lean Office

  25. Paradigm Shift • Paradigm • A philosophical or theoretical framework • The way we look at the world • Paradigm Shift • A radical change in underlying beliefs • When a conventional world view is replaced with another • Business Models Change • The preferred method today may not be preferred tomorrow Dean Pomykala - Lean Office

  26. Business Models & Paradigm Shifts “That’s the way we’ve always done it.” Dean Pomykala - Lean Office

  27. Paradigm Shift • The “Vuja De” Moment! (Simon T. Bailey) • “Vuja De” is the reverse of the Déjà vu, which means “already seen it.” The “Vuja de” moment is when “you’ve never seen something” but you intend to create it. • The Vuja De Moment! When your own eyes become “a fresh set of eyes” to see the same thing everyone else sees, but in a unique way. Dean Pomykala - Lean Office

  28. Agenda • My Bio • Lean Overview • What is Lean? Why go Lean? • Value Added vs. Non-Value Added Activities • Value Stream Mapping • One Piece Flow • Kaizen Events • 6S • Wrap Up Dean Pomykala - Lean Office

  29. Value Added Activity • Value Added Activity • Any activity that transforms raw material (Inventory) into a finished product that the customer is willing to pay for • Painting • Assembling • Face time with Clients • Medical • Face time with Patients • Food Service • Food Prep • Serving Dean Pomykala - Lean Office

  30. Non-Value Added Activity • Non-Value Added Activity • Any activity that consumes resources (Labor & Material), but does not add value to the product • Anything that your customer does not perceive as value is waste • Ask yourself, “Is the customer willing to pay for what I am doing at the moment? Dean Pomykala - Lean Office

  31. The 7 Wastes • Overproduction • Waiting • Transportation (The Product) • Motion (People) • Inventory • Over Processing • Defects Dean Pomykala - Lean Office

  32. The 7 Wastes • Transportation (The Product) • Motion (People) • Inventory Dean Pomykala - Lean Office

  33. Waste/Non-Value Added Activity • Examples • Getting Approvals • Waiting for Medical Tests • Searching for Medical Records • Walking to get ingredients • Setting Tables / Washing Dishes • Non-Value Added, but Necessary Dean Pomykala - Lean Office

  34. Waste/Non-Value Added Activity • Anything that your customer does not perceive as value is WASTE • What is the customer willing to pay for? • Assembling? Yes • Repair? No • Time spent walking to copier • Time waiting for approvals • Bureaucracy • Checking other people’s work • Searching for files Dean Pomykala - Lean Office

  35. Review of Waste • DISCUSSION QUESTION • Three minutes Can you list 2 – 3 forms of waste or Non-Value Added Activities at work? Dean Pomykala - Lean Office

  36. Agenda • My Bio • Lean Overview • What is Lean? Why go Lean? • Value Added vs. Non-Value Added Activities • Value Stream Mapping • One Piece Flow • Kaizen Events • 6S • Wrap Up Dean Pomykala - Lean Office

  37. Value Stream Mapping • A tool used to show the work flow • Clearly lays out Value Added & Non-Value Added Activities • Exposes the 7 forms of waste • Create a map for: • “Present State” • “Future State” Dean Pomykala - Lean Office

  38. Value Stream Mapping Dean Pomykala - Lean Office

  39. Value Stream Mapping Dean Pomykala - Lean Office

  40. Value Stream Mapping Dean Pomykala - Lean Office

  41. Value Stream Mapping Dean Pomykala - Lean Office

  42. Value Stream Mapping Dean Pomykala - Lean Office

  43. Value Stream Mapping Dean Pomykala - Lean Office

  44. Value Stream Mapping Dean Pomykala - Lean Office

  45. Value Stream Mapping • Get all of the appropriate people in a room • At least one per department • Map your “Current State” • Map your “Future State” • Make the Future State your new Present State • Re-Visit for Continuous Improvements Dean Pomykala - Lean Office

  46. Agenda • My Bio • Lean Overview • What is Lean? Why go Lean? • Value Added vs. Non-Value Added Activities • Value Stream Mapping • One Piece Flow • Kaizen Events • 6S • Wrap Up Dean Pomykala - Lean Office

  47. One Piece Flow • One Piece Flow is not just for Manufacturing Moves Stack to Person 2 Person 1 10 Minutes Person 2 10 Minutes for each folder Waits for 10 folders VAT = 10 Minutes 5% Efficient NVAT = 90 Min (Wait Time) NVAT = 1 Min (Transportation Time) VAT = 10 Min Total Time = 201 Minutes Total Value Added Time = 20 Minutes NVAT = 90 Min (Wait Time) Dean Pomykala - Lean Office

  48. Benefits of One Piece Flow • Does not overwhelm Shipping at the end of the day • Ship Product to each Customer faster • Customers get consistent service • Is it 100% customer focused to let one customer wait while you work on another? • Steady Out = Steady In • Inventory Control Dean Pomykala - Lean Office

  49. New Fast Food Model • One Piece Flow / One Touch • Pull System / Only build what the Customer Orders • Custom Builds • 6S • Visual Management of Inventory / Supply Chain Management Wastes?? Overproduction? Waiting? Transportation? Motion? Inventory?Over Processing? Defects? Dean Pomykala - Lean Office

  50. Agenda • My Bio • Lean Overview • What is Lean? Why go Lean? • Value Added vs. Non-Value Added Activities • Value Stream Mapping • One Piece Flow • Kaizen Events • 6S • Wrap Up Dean Pomykala - Lean Office