Lean Management Basics

LEAN Management:
It is a customer focused waste elimination method that makes the process and there by organization lean (eliminating Fat)
In a Lean company, employees always look to improve their skills and improve the processes. Products and Services are driven in right amounts, to right location, at the right time and in the right condition.

Lean Thinking
The Goal of Lean Thinking is the creation of a continuous stream which delivers customer value with the least waste of resources within the shortest possible time.
The Building blocks of Lean Management are 5s, 8 Wastes, Visual Management and Standardized work

1. LEAN MANAGEMENT BASICS

2. OVERVIEW ON LEAN MANAGEMENT What is Lean Why to use Lean Where to use Lean When to use Lean 5S 8 Wastes Standard work Visual Management INTRODUCTION TO THE PROGRAM – PART 2

3. LEAN MANAGEMENT IMPROVE PHASE – PART 6

4. WHAT IS LEAN MANAGEMENT LEAN Management: It is a customer focussed waste elimination method that makes the process and there by organization lean (eliminating Fat) In a Lean company, employees always look to improve their skills and improve the processes. Products and Services are driven in right amounts, to right location, at the right time and in the right condition. Lean Thinking The Goal of Lean Thinking is the creation of a continuous stream which delivers customer value with the least waste of resources within the shortest possible time. The Building blocks of Lean Management are 5s, 8 Wastes, Visual Management and Standardised work IMPROVE PHASE – PART 6

5. LEAN MANAGEMENT LEAN Management IMPROVE PHASE – PART 6

6. WHY LEAN IMPROVE PHASE – PART 6

7. WHY TO USE LEAN – BENEFITS INTRODUCTION TO THE PROGRAM – PART 2

8. WHERE TO USE LEAN IMPROVE PHASE – PART 6

9. WHERE TO USE LEAN INTRODUCTION TO THE PROGRAM – PART 2

10. WHEN TO USE LEAN IMPROVE PHASE – PART 6

11. WHEN TO USE LEAN IMPACT CAUSES KNOWN UNKNOWN LOW HIGH INTRODUCTION TO THE PROGRAM – PART 2

12. 5S IMPROVE PHASE – PART 6

13. 5S What is 5S: 5S is a methodology which helps us to better organise our workplace in order to improve safety/controls and productivity 5S is the foundation on which to build a leaner organisation Where 5S is used? At any work station or work place. Traditionally used on the shop floor, but equally relevant in office environments, service, on-site works and even computer file storage. IMPROVE PHASE – PART 6

14. 5S – Cycle 5S Cycle: IMPROVE PHASE – PART 6

15. 5S IMPROVE PHASE – PART 6 5S Description Sort Remove all items from the work area Identify all items required to add value at the workstation Eliminate duplicates, infrequently used items, and trash Identify these items as waste or not critical with red tags Store red tag items in a dedicated Red Item’s Area Straighten Take the equipment required in the workstation area and organize it based on frequency and point of use Assign locations for all equipment, WIP (Work In Progress), and raw materials and include minimum / maximum levels to be held Consider ease of reach, identification and proximity to work surface Shine It’s all about cleaning. Clean the floors, walls and equipment Ensure all items are restored to their designated place Cleaning becomes part of daily tasks and responsibilities Clear schedules and standards are developed and worked to Ideas to reduce the need to clean are generated and actioned

16. 5S IMPROVE PHASE – PART 6 5S Description Standardize Standardize maintains the result of the prior three steps Define standardized work, cleaning and organizational procedures for the prior 3 S’s Document the desired state of operations with pictures, short instructions of 5S procedures and target KPIs Clarifies who is responsible for each operation Sustain Sustain aims to make the new standards and procedures, the new habit – “The way we do things around here” Habits initially take time and effort to develop and maintain - cultural change Sustain, holds the other 4S together and embeds them into the culture Without a strong emphasis on Sustain, the new standards will lapse and there will be slippage back to the ‘old ways’

17. 5S 5S Table IMPROVE PHASE – PART 6

18. 5S - BENEFITS IMPROVE PHASE – PART 6

19. 8 WASTES IMPROVE PHASE – PART 6

20. WASTE VSM Key Terms: Waste: Any activity that consumes time and resources like manpower, machinery, money etc., and does not contribute in meeting the customer requirements. Types of Wastes : There are 3 types of wastes ANALYSE PHASE – PART 5 MUDA: WASTE MURA: UNEVENNESS MURI: OVERBURDEN

21. TYPES OF WASTES VSM Key Terms: Types of Wastes : MUDA: Any activity in the process that does not add value. MUDA is not creating value for the customer. In short:  WASTE MURA: Any variation leading to unbalanced situations. In short:  UNEVENNESS , inconsistent, irregular.  Mura exists when workflow is out of balance and workload is inconsistent and not incompliance with the standard. MURI: Any activity asking unreasonable stress or effort from personnel, material or equipment. In short:  OVERBURDEN Muri means: a too heavy mental- or physical burden. For machinery Muri means: expecting a machine to do more than it is capable of or has been designed to do. ANALYSE PHASE – PART 5

22. 8 - DEADLY WASTES Types of Muda (Wastes): Muda is again classified in to 8 types as follows. The popular acronym for the 8 wastes - DOWNTIME D efects O ver Production W aiting N ot using employee creativity T ransportation I nventory M otion E xtra Processing ANALYSE PHASE – PART 5

23. 8 - DEADLY WASTES ANALYSE PHASE – PART 5 Waste Type Description D efects Any product or process not meeting the customer requirement O ver Production Making something before it is truly needed W aiting Time when work-in-process is waiting for the next step in production N ot using employee creativity Not effectively using the collective talents, skills and knowledge of all employees and suppliers T ransportation Unnecessary movement of raw materials, work-in-process or finished goods I nventory Product (raw materials, work-in-process, or finished goods) quantities that go beyond supporting the immediate need M otion Unnecessary movement of people E xtra Processing More processing than is needed to produce what the customer requires

24. 8 WASTES - BENEFITS IMPROVE PHASE – PART 6

25. VISUAL MANAGEMENT IMPROVE PHASE – PART 6

26. VISUAL MANAGEMENT What is Visual Management Visual management is a method of creating an information-rich environment by the use of visual signals, symbols and objects It helps anybody in the workplace to know what the current status is and what to do next Where to use Visual Management In any workplace where working to a standard is key Use it in teams, to create shared understanding and build teamwork How to use Visual Management: Understand elements of the workplace & process that are key Consider methods to make standards clear and easily understood Use it in teams, to create shared understanding and build teamwork. Build participation through shared information Conveying Information - Work environment, safety, operations, storage, quality, equipment… Visual Displays - what, where, when, who and how Visual Controls – for controlling the process (e.g. action triggers) IMPROVE PHASE – PART 6

27. VISUAL MANAGEMENT - GUIDELINES IMPROVE PHASE – PART 6 Visual Management Step Description Understand the standard process Identify key characteristics of the standard process Consider Visual Displays Consider methods which communicate important information, but do not control the process. Consider what, when who, when and how. Involve the team Select clear simple visual displays Consider Visual Controls Consider building visual controls into the process to ensure that activities are performed according to standard Consider what, when who, when and how Involve the team Select clear simple visual controls Implement Visual Management Brief and action the team to implement the agreed visual management Maintain & Review Continually monitor any visual displays and controls Update all displays at agreed intervals Review effectiveness and amend accordingly

28. VISUAL MANAGEMENT - EXAMPLES Examples: IMPROVE PHASE – PART 6

29. VISUAL MANAGEMENT - BENEFITS IMPROVE PHASE – PART 6

30. STANDARD WORK CONTROL PHASE – PART 7

31. STANDARD WORK CONTROL PHASE – PART 7 What is Standard Work A simple written description of the safest, highest quality, and most efficient way known to perform a particular task, (i.e. a checklist to lead someone through the task). It describes the only acceptable way to do the process. Expected to be continually improved Includes the amount of time allotted to hand-off the task to the next step of the process . Focuses on the process, not the equipment or materials Reduces variation, increases consistency

32. STANDARD WORK - STEPS CONTROL PHASE – PART 7 Steps for Creating Standard Work Define the extent of the task for which you are creating standard work (e.g. starts at… ends at…) Determine the appropriate standard work requirements Name of process Author Revision date Task name Work sequence ( i.e checklist, procedure) Time allotted for task – next task in sequence Gather best practices Create the standard work document Train the supervisor on the standard work Train the employees to do the standard work Run the process and observe the results Make adjustments and modifications to the standard work

33. STANDARD WORK – DOs & DON’Ts CONTROL PHASE – PART 7 DON’Ts : Put standard work in a desk drawer Change processes without changing standard work Make standard work difficult to change Give up on standard work – it can be tough, but it’s very important DO: Keep standard work simple Make it accessible Include all information on one, easy-to-read document Create one standard work document for each part of the process Always look for ways to improve the process.

34. STANDARD WORK – TEMPLATE CONTROL PHASE – PART 7 Template Owner Approved By Revision Date Process Start Point End Point Task Process steps

35. STANDARD WORK - BENEFITS IMPROVE PHASE – PART 6

36. Thank you . . . IMPROVE PHASE – PART 6