asq national energy & environmental conference august 28...

Quality Support Services

The 5S’s in Construction

ASQ National Energy & Environmental ConferenceAugust 28, 2006Dennis Sowards



Objective:At end of session:• Know what the 5S's are• Cite examples of how the 5S’ eliminate waste• Determine how they can help you



How do we bid a job today?

Estimate theCosts $$

Profit margin

+ = Bid Price

The Lean way to bid a job:

MarketPrice

- Profit margin

= Cost to dothe Job

Is this Possible?



We have a Disconnect!

Constantly having to lower costs.

Constantly having to raise bids.

Our Customers Us



How much time do field crews spend in TREASURE HUNTS?

How much time do you spend looking for things?



Why Change?What do you see on a Construction Site?

– Waste & non-value added work

Current Manufacturing

Current Construction

Value Added10%

SupportActivity

33%

WasteWaste57%57%

Compelling reason to change from CII:– Substantial improvement opportunity!!

ValueAdded62%Support

Activity 12%

WasteWaste26%26%



Customer Expectations

General Motors is challenging the industry to develop, embrace and implement Lean Principles:

• Expect construction firms to be proactive in applying Lean Concepts

• Expect support organizations to lead “Best of the Best” concept identification and application to Lean Construction

• Expect a common approach to maximize owner benefits

• Expect near-term results from bid through implementation at the site

SMWIA/ SMACNA - 2006 Partners in Progress Conference



Sutter Health Capital Program

The Executive Challenge:

– Plan facilities that improve the patient experience and enhance operating margins for reinvestment

– Successfully execute the design and construction of resultant $5.5B program using Lean Project Delivery Methods (Last Planner & 5S’s)

– Minimize risk

– Traverse the OSHPD approval process

– Provide real-time project reporting to a variety of groups



Lean Thinking is a concept of Quality Improvement (TQM)

Lean Thinking is a shift in management's focus to differentiate between Value and Waste

Lean Construction is how we in construction apply/use Lean Thinking



• VALUE• THE VALUE STREAM• FLOW• PULL• CONTINUOUS IMPROVEMENT

THE FIVE PRINCIPLES OF LEAN:



Value VsWaste

5S's

The Value StreamFlowPull

Continuous Improvement

Pathway to Lean

Last Planner

Modularization



• WHAT THE CUSTOMER IS ACTUALLY WILLING TO PAY FOR. (USEFULNESS/COST)

• INCLUDES FUNCTIONS, FEATURES, AND PRICE.

• RELATES TO THE WHOLE PRODUCT OR SERVICE.

• IS THE OPPOSITE OF WASTE.

VALUE



• WASTE OF DEFECTS• WASTE OF TRANSPORTATION OF GOODS• WASTE OF OVERPRODUCTION • WASTE OF WAITING BY EMPLOYEES FOR

PROCESS; EQUIPMENT TO FINISH WORK OR FOR AN UPSTREAM ACTIVITY TO COMPLETE

• WASTE IN PROCESSING• WASTE OF MOVEMENT OF PEOPLE• WASTE OF INVENTORY

THE KINDS OF WASTE



Be a WASTE BUSTER



What are the 5S's?

ARE• Part of Lean

Thinking • Simple and Practical• Reduce Treasure

Hunts• Investment (with a

payback)• A good fit with Craft

ARE NOT

• Mandatory

• A Spectator Sport

• Carrot or stick

• One time "thing"

• Free - takes effort

• Limited to Craft



•Sorting•Simplifying•Sweeping•Standardizing•Self-discipline

The 5 S's



SORTINGSort out the necessary from the

unnecessary, discard the unnecessary.



How to Sort?

NECESSARY ITEMS USED OR LIKELY TO BE USED

UNNECESSARY ITEMS (NOT USED OR NOT LIKELY TO BE USED)

NO VALUE & EASY TO DISPOSE OF

SOME VALUE

NO VALUE BUT COSTLY TO DISPOSE

DISPOSE OF IMMEDIATELY

LOOK FOR BEST USER TO GIVE OR SELL

FIND LEAST COSTLY WAY TO DISPOSE

RARELY USED (1 - 2 times per year)

FREQUENTLY USED (daily or weekly use)

OCCASIONALLY USED (1 - 2 per month)

REDTAG

USEAUCTION



Sorting

Where to look?· At materials or parts stacked around the site/shop· Excess parts or inventory· Under work areas, desks, cabinets, in corners, on storage shelves, around the trailers· In boxes that are not labeled· Near the bottom of tall stacks of items



SortingWhere to look?· Tools, jigs, locked away in lockers or cabinets Rusted, broken or age deteriorated items· Tools, parts or material that has dust or oil accumulation· Outdated posters, slogan signs, notices, and memos· Disorganized paper piles on desktops



Opportunities to Sort



Supply Room - Before



Exercise



SIMPLIFYINGCreate and identify a place for everything

The 5 S's



Simplifyingis creating a designated and marked place for everything according to frequency of use. The goal is achieved when:

• Items used most often are within easy access thus reducing the time to find something to almost zero.

• Anyone, even someone who doesn't work in the area, could put everything back to where it belongs by the ways things are marked.



Simplifying Steps:

1. Review all frequently used items and determine where to put them. Put those used most often closest to the work area, those used less often, further away. Put tools and parts in sequence used.

2. Label or show where everything goes. Consider:

· Shadow board· Marking the item and the location· Color-coding· Labels on drawers with list of contents



Simplifying Steps:

3. Develop ways to daily replace usable items· Establish lead times for replacement of daily usage supplies· Determine minimum & maximum supply levels and mark it.



Examples of Simplifying



Example of Simplifying



QuickTime™ and aTIFF (Uncompressed) decompressor

are needed to see this picture.




Labeling



Simplifying Inside a Service truck



QuickTime™ and aTIFF (Uncompressed) decompressor

are needed to see this picture.

Example of Simplifying



Floor Marking Color CodesFloors should have visual marking to indicate when specific areas are to be used for a specific purpose.

Color DesignationRed Waste accumulation or storage area:

Hazardous Flammable Combustible Special

Yellow Access Aisle (Do not block, must beclear between stripping at all times)

Green Material in process "Kanban" areaBlue Incoming material "Receiving" areaWhite Outgoing material "Shipping" areaYellow/Black Nonhazardous waste accumulationWhite/Black Outlining tool boxes, tool A-frames,

mobile carts or equipmentOrange Rejected material (i.e. line rejects)Red/White Scrap



SWEEPINGPhysical and visual control of the

work area



SweepingSweeping is done when regular sweeping processes occur and areas are clean, safe and neat.

Actions:· Determine regular schedule for cleaning the yard, work & break areas.· Orient everyone including new employees with daily 5S’s activity responsibilities and expectations.· Post area cleaning guidelines and schedules.



SweepingActions:

· Keep tools, machinery and office equipment clean and in good repair.· Keep yard, work/break areas and trailers clean and orderly.· Establish a dependable, documented method in place to reduce hazardous waste and minimize chemical products usage.· Perform safety inspections on a regular schedule.



STANDARDIZINGis creating standard ways to keep the work areas organized, clean and orderly and documenting agreements made during the 5S’s. For standardization to be successful, employees must understand the value of using and maintaining standard methods.



How to Standardize?

• Use a 5S’s assignment map to help everyone know exactly what they are responsible for doing, when it is to be done, where and how it is to be done to maintain the first 3S’s agreements.

• Have clear instructions for people who deliver goods or materials to the site. Clearly mark and post where the material, tools & equipment are to be placed. Educate the supplier on what is expected of him/her.

• Develop checklists for routine tasks



How to Standardize?

• Use a standard 5S’s format for communication boards/binders so they are similar in appearance. • Install standard visual controls for the area (signboards, shadow boards, outlining, etc.)

• Develop standard labeling and outlining methods for the area or department.

• Use the 5S’s methods to improve work processes.

• Document all 5S’s agreements and implement any changes.

• Put Change Order instructions on a Storyboard



SELF-DISCIPLINEFollow through with the 5Ss

agreements



How to create self-discipline:

Self-discipline is done when:

• The 5S’s rules for Sorting, Simplifying, Sweeping and Standardizing are being followed.

• All changes have been documented.

• A daily 5S’s activity checklist is posted and used.

• The 5S’s communication board/binder is being updated regularly by personnel listed as responsible.

• The work area is being kept neat and clean.

Self-discipline is easier when anyone can visually see what is right. Use color-codes, striped areas (open and close lines, signs, maps, pictures, posted checksheets, etc



Self Discipline often includes an Self Audit/ Score Card

# Question Done In progress Not Started

Action

1 Are work benches, desks, table tops and the area free of unnecessary items and are items present used on at least a monthly basis?

2 Are aisles unobstructed?3 Are aisles clearly marked (yellow)?4 Are waste accumulation or storage areas clearly marked (red-hazardous,

yellow/black-no hazardous)?5 Are permanent areas easily identified for mobile carts, tool boxes, tool A-

frames etc.?6 Is the team familiar with the 5S's procedure and is it evident that it is being

used?7 Is red tagging being done at least monthly as evident by a red tag log?8 Are the cells or Special process areas clearly labeled and their boundaries

visible? 9 Are electrical cords out of the way to avoid tripping and are they not tangled

especially where they are seen at a glance?10 Are tools, fixtures and jigs identified?11 Are tools, fixtures and jigs located at the work station where they are used

and easily retrieved?12 Are tools, fixtures and jigs easily returned to proper location by use of

shadow boards, foam cutouts, labels, etc. and are they arranged in order of frequency or sequence of use?

13 Do items needed to perform the process (other than tools and jigs) have fixed storage positions? (i.e. carts, tool boxes etc.)

14 Are minimum and maximum amounts or standard quantities clearly identified for consumable items?

15 Are file cabinets and storage shelfs labeled as to contents in a consistent and organized manner and are the file folders or contents of the cabinet organized in order to retrieve something without searching (alphabetically or numerically)?

16 Are all binders/books labeled consistently and is there a process in place to know if a binder/book is missing?

17 Are there designated areas for cleaning supplies and are the areas organized?

18 Are floors free of debris?19 Are tools/equipment cleaned and placed back in proper location after each

task?20 Are machines and equipment cleaned daily or "as scheduled" following an

established checklist?21 Are work areas and workbenches cleaned after each shift?22 Are areas that require Personal Protective Equipment (PPE) clearly marked

and is everyone using PPE where required?23 Are Point-of-Use materials available within the area?24 Is the daily/weekly production schedule visible within the work area?

25 Are key metrics around cost, quality and delivery visible and are they up-to-date in order to drive continuous improvement?

26 Do storage labels match the item stored in that location?27 Is it visually obvious what items are ready for work, what items are in work

and what items are completed?28 Does the team conduct daily five to ten minute 5S sweeps?29 Do new associates receive basic 5s training within a reasonable amount of

time (2 months)?30 Is a 5S self-audit conducted at least monthly by the team?



Supply Room - NowSupply Shop after Sorting



Electric Shop after 5S’s



Garage – 5 years ago Garage 5 Years ago



Garage – 6 months after 5-S Began

Garage 6 months after starting 5S’s



Garage 2 years ago



Garage Now



SAFETY RESULTSReportable Accident Trend - Cast Iron

154

109

70

4331 33

1832

22 2210

1 2 10

20

40

60

80

100

120

140

160

180

1998 1999 2000 2001 2002 2003 2004

Rep

orta

ble

Total Accidents Lost Time

Accident Rate Trend - Cast Iron

114.81

96.10

73.17

51.5439.12 41.06

21.20

0.0

20.0

40.0

60.0

80.0

100.0

120.0

140.0

1998 1999 2000 2001 2002 2003 2004

Rat

e pe

r mill

ion

hrs.

wor

ked

hrs



The Value of the 5S’s to Customers

• More Value - less waste

• Reduced costs per process

• Faster cycle (ramp) time

• Higher Quality



The Value to Employees

• Safer Workplace

• Increased job satisfaction - reduced frustrations

• Clear requirements

• Leaner operation - less work



The Value the Company• Safer Workplace

• Increased employee job satisfaction

• Reduced changeover time > higher productivity

• Reduced defects > higher quality

• Reduced equipment breakdowns > higher availability

• Better product > More satisfied customers

• More satisfied customers > more Loyal customers

• More loyal customers > more profits

• More profits > Happy stakeholders



Processes

Purpose

What is an Organization?



Change Management

20 - 60 -20 Rule



People Equation

Involvement + Communications =

Engaged Employees

Lean Thinking Culture



Top 10 Ways to Engage Employees

• Invest in Training & Development• Participate on Teams• Have a Best Ideas Program• Empower Employees - Decision Making• Hold 5S’s Competitions• Safety as a Value• Let them have Contact with the Customers• Give Special Assignments• Celebrate Victories & Milestones (big & small)• Have an Open Book



5S’s Opportunities in the Field:

Trailers (reference material, drawings, forms, etc.)Lay down areasRacks for harnessesGang boxesVehiclesTools storage areasDrop off areas/process for deliveriesBehind the yard!StashesSafety equipment storageWhere else?



SortingClearly distinguish theneeded from the unneeded.

Eliminate the unneeded.

SimplifyingKeep needed items in the correct place to allow for easy & immediate use.

SweepingKeep the workplace swept and clean

StandardizingDocument the agreements made during the 5S's.

Self DisciplineMake a habit of following the 5S's agreements.

IMPROVED SAFETY RELIABILE DELIVERIES LOWER COST

HIGHER

QUALITY

HIGHER

AVAILABILITY

Meaning of the 5S's



How to Start?

Start Sorting•Decide on what to keep (auction)

Do Simplification•Decide on what to put where•Determine visual identification

Define the Sweeping processTip: Take before & after pictures



Be a WASTE BUSTER



Q & A

asq national energy & environmental conference august 28...

Documents