INTRODUCTION TO LEAN

May 30 2017

PRESENTER BACKGROUND

20 years as a Provincial Civil Servant Correctional Officer Manager Capital Planning and Security

Equipment Community Safety MB Justice Strategic Initiative Manager MB

Infrastructure Lean Green Belt Facilitator

FOCUS OF PRESENTATION

Overview of Lean and what it is Assumes no understanding or formal training

in Lean Limited comments on other approaches such

as Six Sigma or other process or quality improvement methodologies

Brief activity to highlight several Lean concepts

AGENDA

History Toyota and Lean Why Lean works - Leadership Terms and Concepts Application in the workplace Bringing Lean into your organization

TERMS AND TERMINOLOGY

Japanese/English terminology Concepts and meaning

Example MUDA = WASTEKAI ZEN = Good Change

WHAT IS LEAN?

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Lean is a management philosophy and business practice with a set of tools to eliminate waste and maximize flow to add value to the customer.

LEAN

Is structured Is one way of looking at the world Respects views and viewpoints and process Presents REALITY of what we do Encourages us to always ask WHY without

retribution Can be eye opening and humbling!!!

LEAN

Is not an Acronym (L.E.A.N.) Not a solution for personnel and performance

issues Not an initiative for staff reduction Not a Silver Bullet or Quick fix Not a manufacturing only tool Should not be misused or misrepresented

LEAN

Lean is a journey Requires discipline to:

study the problem follow the process never forget People People - People!!

HISTORY OF LEAN

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Toyota Production System started in Japan

Brought to North America in the late 1980s

Adopted by many private-sector companies

Manitoba companies adopted Lean in mid-2000s examples - New Flyer, Boeing, Assiniboine CU

Manitoba government adopted Lean in 2008 Health, Healthy Living & Seniors, St. Boniface Hospital and Crown Lands and Property Agency (CLPA)

HISTORY - TPS

TPS -Toyota Production System Should have been called Thinking

production system Development of tools to assist and improve Inclusion of the employee in the process Management at Toyota had to observe-

GEMBA( GO TO THE SOURCE OR WHERE THE WORK IS DONE)

TOYOTA HOUSE

HISTORY - LEAN

James Womack and Daniel Jones Based on observations long-term study of

Toyota (Toyota Production System) Womack and Jones summarize Lean in 5

Principles

LEAN HOUSE

ALTERNATE VIEW

http://www.google.ca/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0ahUKEwjUrJK-8JXUAhXF54MKHRUHCb4QjRwIBw&url=http://planet-lean.com/jim-womack-on-what-is-holding-lean-thinking-back&psig=AFQjCNHo4FVqMgjsr0LefmU7C5CxIhXk3Q&ust=1496173909549535http://www.google.ca/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0ahUKEwjUrJK-8JXUAhXF54MKHRUHCb4QjRwIBw&url=http://planet-lean.com/jim-womack-on-what-is-holding-lean-thinking-back&psig=AFQjCNHo4FVqMgjsr0LefmU7C5CxIhXk3Q&ust=1496173909549535

LEAN PRINCIPLES

1. Define value from the customer perspective

2. Create continuous flow

3. Eliminate waste

4. Engage (involve and empower) employees

5. Continuously seek perfection

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COMMENT: LEAN VS. SIX SIGMA

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Both Lean and Six Sigma focus on waste identification and elimination.

Lean is used when the focus is on removing non-value added steps.

Six Sigma is used when there is variation in waste and the primary issue can be identified only through statistical analysis. Six Sigma also seeks to limit the variability in a process through statistical analysis.

Focus of today will be on Lean

WHEN DO YOU APPLY LEAN??

LEAN IS A GOOD IDEA.... -:

LEAN IS A GOOD IDEA WHEN YOU REALIZE: -:

PLAN BEFORE JUMPING INTO LEAN

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Is YOUR organization too busy for Lean?

HOW OFTEN DO YOU GET THE CUSTOMER OR CLIENTS REQUIREMENTS WRONG?

LEAN IS ABOUT LEARNING TO SEE

Philosophy and a way of doing things Making things visible Draw me a

Map Recognizing you have a problem and

choosing to do something about it Encourages system thinking Looking at the micro and the macro

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LEAN IS ABOUT LEARNING TO SEE

Studying the problem and not jumping to solutions

Engaging and empowering people within the organization

Accepting that mistakes occur and focusing on continuous improvement

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LEAN ACTIVITIES

Can be focused on: paper processesPhysical world shop and or officeElectronic or digitalNumerous small improvement eventsdeveloping organizational capacity to run

Lean (starting with Lean awareness and lean Leadership)

REMEMBER THESE 5 LEAN PRINCIPLES

1. Define value from the customer perspective

2. Create continuous flow

3. Eliminate waste

4. Engage (involve and empower) employees

5. Continuously seek perfection

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PUBLIC SECTOR ARE WE DIFFERENT?

Lean Methodology focuses on improving processes by creating flow and eliminating waste; applying Lean provides the public sector with the means to improve services and achieve outcomes by re-focusing on the value for the customer the public.

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LEADERSHIP - DETERMINES SUCCESS OF LEAN

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Model MessageOld Dictator style Do it my way.

1980s Empowerment style Do it your way.

Lean Style Follow me....and lets figure this out together.

LEAN & LEADERSHIP

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Leadership is a critical component of Lean Lean pushes people out of their comfort zone Lean requires constant innovation and new

processes Lean Leadership requires openness and

willingness to empower employees

LEAN LEADERSHIP VALUES

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Socialize Lean thinking Consider alternative viewpoints not being seen as

having all the answers Engage and be responsible to employees at all

levels. Solicit and encourage ideas. Teach and guide.

Model the behaviours you want employees to follow Actively participate and support Lean activities; be

Champions/Sponsors; own the approach

LEAN CONCEPTS

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Define ValueProcess Flows & Value Streams

The Eight Wastes Standardized Work

5S - example

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It must transform the product Customer must be willing to pay for it It must be done correctly the first time!

Only the customer can define value.

Elements of Value

VALUE VS. NON-VALUE

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Value Added: Issuing a permit Making a decision Responding to an inquiry Assessing a candidate for recruitment

Indexing a document into the correct file

Non-Value Added: Wait/Delays Duplication Correcting errors Excessive approvals Collecting unnecessary

information

Searching for files and documents

Value-added work results in changes to fit, form, or function.

VALUE-TO-WASTE RATIO

Value-added work results in changes to fit, form, or function.

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Chart1

0.25

0.5

0.25

Value-to-Waste Ratio

Value added Work 25%

Non Value-added work50%

Non value added but necessary Work25%

Sheet1

Value-to-Waste Ratio

25%

50%

25%

To resize chart data range, drag lower right corner of range.

VALUE OR NON-VALUE ADDED?

36

Staff meetings

Fixing errors on a form

Providing a permit or license to a business

Obtaining signatures for approval

Writing monthly status reports

Waiting for an email or needed information

Entering data into database

TABLE DISCUSSION

In your organization: (a)who is your customer and; (b)what do they value Open Dialogue Quick report back -

Spokesperson

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CONTINUOUS FLOW

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What is Flow? The seamless linking of value-

added steps in a process to deliver a product or service to the customer without interruption, detours or waiting (without waste).

Balancing resources to meet demand.

PULL PRODUCTION

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Pull systems respond to customer demand. Produces only what the customer wants and when

they want it.

Seeks to avoid overproduction by understanding the customer demand.

Just in time no waiting Less wait time bottlenecks that happen in a Push

Production

WHAT IS WASTE?

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Any activity that does not create value for the organization and its customers.

In Lean, we raise awareness about Waste to eliminate it and provide value for the organization and its customers.

EIGHT WASTES

1. Transportation2. Inventory3. Motion4. Waiting5. Over-Production6. Over-Processing7. Defects8. Skills and knowledge

(Untapped)

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8 WASTES

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What do you see as waste within your environment?

SAMPLE LEAN TOOLS

Visual Stream Mapping 5 Why/Root Cause Analysis -Asking Why Visual Management Kaizen 5S/ Standard Work PDSA/PDCA

LEARNING TO SEE -VALUE STREAM MAP

A Value Stream Map is a visual tool that illustrates how a product moves through a value stream with a focus on improving the whole value rather than just optimizing pieces of it.

Shows a system the journey of a product, with multiple processes and metrics.

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VALUE STREAM MAPPING

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ROOT CAUSE ANALYSIS

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Symptom the visible result or outcome of the problem

Problem the gap between what is and what should be

Cause a self-reinforcing system below the surface that is the source of the problem.

ICEBERG ROOT CAUSESIceberg of ignorance Sydney YoshidaIt is Ok to acknowledge that you dont know what you dont knowAsk your staff or each otherBe open to discussion

ASK WHY.5 WHYS

ASK WHY.5 WHYS

VISUAL MANAGEMENT

Visibility Boards and regular Team Huddles are used to communicate key priorities and issues.

VISUAL MANAGEMENT

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A visual workplace should: Show how to do the job (Standard operations) Show how things are used Show where things are stored Control inventory storage levels Show status of work completed, work-in-progress Indicate when people need help Identify hazardous areas Mistake-proof the operation

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VISUAL MANAGEMENT

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VISUAL MANAGEMENT

EXAMPLE PHYSICAL WORLD

FLOOR MARKINGS SAFETY AND PLACEMENT

BEFORE AND AFTER

MANAGEMENT BOARDS

LABELLING AND SIGNAGE

SHELVING AND BINS

VISUAL CONTROLS

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SHADOW BOARDS

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WHAT IS KAIZEN?

KaizenContinuous Improvement or Change for the Good

Kai Zen

Change Good (nature)

What is Kaizen?Kaizen means change for the better in Japanese. The most popular English equivalent is continuous improvement'. In philosophy, Kaizen can be expressed as CI3 (Continuous, Incremental & Instant Improvement)

What is Kaizen Blitz?Kaizen Blitz is a concentrated, highly intensive activity designed to make rapid improvements quickly and efficiently.

Kaizen

Kai

Zen

Change

Good (nature)

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WHAT IS KAIZEN? Kaizen events are used to implement

recommendations from a VSM event AND for 5S activities

Work is done as a quick project that must be planned, managed and evaluated

It is a short-term, concentrated effort typically carries out by a diverse, multi-functional team

May last anywhere from a few hours to a few days Removes Red Tape barriers

What is a 5S?

5S

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5S is a basic, fundamental, systematic approach for productivity, quality and safety improvement in all types of business.

TOYOTA HOUSE

WHAT 5S MEANS Refers to the five Japanese words that begin with the letter S (Seiri, Seiton, Seiso, Seiketsu, Shitsuke)

Explain the workplace cleanliness and organization system of the Toyota Production System.

5S is more than just a random or spontaneous act of organizing and cleaning. 5S instills the discipline to have "a place for everything, and everything in its place", and it encourages process thinking

5S

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Sort Set in order Shine Standardize Sustain

WHY 5S?

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Simplify work environment Ensure work materials are readily available Reduce waste, avoid confusion & prevents

errors

Eliminates useless activities Improves efficiency Increase safety

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5S BEFORE AND AFTER

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POTENTIAL PROJECTS?

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SAMPLE 5S PROCESS

5S PROCESS

Review and Plan ( Observe and Study Problem)

SORT SET in PLACE SHINE STANDARDIZE SUSTAIN SAFETY

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GEMBA WALK

Go to the Source or WHERE the action happens (work area)

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GEMBA WALK

Go to the Source or WHERE the action happens (work area)

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GEMBA WALK

Go to the Source or WHERE the action happens (work area)

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Before 5S

What we Observed Excess Inventory?? Safety concerns Motion Transportation

Before 5S

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OVER-PRODUCTION

WASTES THAT ARE FOUND

MOTIONMoving items from one area to another (overflow)

WAITING

INVENTORYObserved large quantities of items

TRANSPORTATIONWalking a long way for items or in two different containers

DEFECTS

OVER-PROCESSING

1

2

3

5

7

4

6

SKILLSEmployees could be doing other things

8

After 5S

Summary of Benefits Gained Increase in Usable Space Team Work Organization Experience with Lean and 5S Increased Safety Road towards Standardization

Standard Work and Standard Operating Procedures

5S Standard Supply Stores Area Process Owner: Stores

Supplies do not exceed listed maximum

quantities

Workspace clear of clutter

Everything in its place?

CHECK:

Monthly

ActionM1

M2

M3

M4

All supplies restocked

All supplies in designated areas

Clean

By:

Area:Area Owner:

RANK SCORE

CRITERIA COMMENTSITEM 1 2 3 4 5

SORT(no un-needed items)

No clutter. No un-needed materials. Good identification and separation of parts, tools, etc.

SET-IN-ORDER(home positions used)

A place for everything (& labeled)Everything in its place (or WIP)Use of shadow boards & labels

SHINE(clean / uncontaminated)

Floors and work area are tidy. Area clean & contaminant free. Cleaning responsibilities assigned

STANDARDIZE(regularly maintained)

Area ownership is clear. SOPs & area standard are visible5S activity schedule &

SUSTAIN(owner, changes, audits)

5S maintained every daySelf-check activities are visibleChanges are up to date

AVERAGE Audit By: Date:

5S Audit SheetScoring Guide:

1=Poor, 2= Needs Improvement, 3=Acceptable, 4=Good 5=Excellent

90

PDSA / PDCA

A fourstep model for carrying out change

Just as a circle has no end Cycle should be repeated

again and again for continuous improvement

PDSA - The cycle of Continuous Improvement

GROUP EXERCISE!

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GROUP EXERCISE!

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Please open the package in front of you:Please remove red and blue packages marked 1Working at your table divide into two teams A or BPerson 1 Front Line WorkerPerson 2 - Lead WorkerPerson 3 SupervisorPerson 4 - Manager

Manager take your card and move away from the tableFrontline Worker ( person 1) and Lead Worker ( person 2) must sit directly across the table from each other

GROUP EXERCISE!

93

In the envelope is:1 pen - you must use this only

Group Red If you have a calculator on your cell phone you MAY use Group Blue -paper is provided YOU MUST USE IT- no calculators allowed

Remaining people:

Please time how long it takes to complete per person and then add up 1 person must time - use a cell phone if you have or follow timer on screenYou have 5 minutes to complete this exerciseFor Round 1 Each person must complete all 5 sheets

first before passing to the next person in the chain

OBSERVATIONS

What was the Problem in Round 1? How was Round 2 Improved?

RESOURCES

ONLINE RESOURCES

Government of Manitobahttp://intranet.mbgov.ca/office-of-the-clerk/lean-Government of Saskatchewanwww.thinklean.gov.sk.ca

Government of Minnesotahttp://mn.gov/admin/lean/

Lean Enterprise Institutewww.lean.org

Lean for Government http://leanforgovernment.com/

VIDEOS

Morning Improvement Walk www.youtube.com/watch?v=3OEePS7Oh_g

The 5 Main Steps Of The Lean Manager"www.youtube.com/watch?v=yZvsqm4Jok8

Coaching Leaders & Employees www.youtube.com/watch?v=w3Y4Zw7WEhw

http://www.thinklean.gov.sk.ca/http://www.thinklean.gov.sk.ca/http://www.thinklean.gov.sk.ca/http://mn.gov/admin/lean/http://www.lean.org/http://leanforgovernment.com/https://www.youtube.com/watch?v=3OEePS7Oh_ghttps://www.youtube.com/watch?v=yZvsqm4Jok8http://www.youtube.com/watch?v=w3Y4Zw7WEhw

FAVOURITE BOOKS ON LEAN AND TPS

https://www.google.ca/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0ahUKEwir-P7R8bjKAhWEPCYKHbk6AcEQjRwIBw&url=https://suppapak.wordpress.com/book-review/&bvm=bv.112064104,d.dmo&psig=AFQjCNH51Gs1NnBbOAke4b_WYg7jer6ysw&ust=1453396384588979https://www.google.ca/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0ahUKEwir-P7R8bjKAhWEPCYKHbk6AcEQjRwIBw&url=https://suppapak.wordpress.com/book-review/&bvm=bv.112064104,d.dmo&psig=AFQjCNH51Gs1NnBbOAke4b_WYg7jer6ysw&ust=1453396384588979http://www.google.ca/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0ahUKEwiq9qv78bjKAhVLLyYKHR8FAp8QjRwIBw&url=http://www.amazon.ca/Dont-Make-Widgets-Overcoming-Government/dp/0872894800&psig=AFQjCNFJ0H3oheWn6nRvxrxQdyij_Zi4JA&ust=1453396478439553http://www.google.ca/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0ahUKEwiq9qv78bjKAhVLLyYKHR8FAp8QjRwIBw&url=http://www.amazon.ca/Dont-Make-Widgets-Overcoming-Government/dp/0872894800&psig=AFQjCNFJ0H3oheWn6nRvxrxQdyij_Zi4JA&ust=1453396478439553

WHAT CAN YOU DO?

Find out more about continuous improvement or Lean through the online resources and attached resources

Take a critical look at your workplace to find opportunities for improving the work and services we provide

Think about the tools and exercises from today and start applying them/eliminating wastes in your work area

Engage each other

IN CLOSING Lean is not a project, it is a way of working ... It is

really about a culture change. Lean can help us by empowering our staff to deliver

better value to our customers. Lean is Continuous Improvement, you should strive

for perfection If you are not already doing it, Bring Lean into your

workplace

FINAL THOUGHTS

Comments and Questions?

Contact information:David.Coopsammy@gov.mb.ca

mailto:David.Coopsammy@gov.mb.ca

Introduction to LeanPresenter BackgroundFocus of PresentationAgendaTerms and terminologyWhat is Lean?LeanLeanLeanHistory of LeanHistory - TPSToyota HouseHistory - LeanLean HouseAlternate viewLean Principles Comment: Lean vs. Six SigmaWhen do you apply lean??lean is a good idea.... -:lean is a good idea when you realize: -:plan before jumping into leanSlide Number 22How often do you get the customer or clients requirements wrong?Lean is About learning to seeLean is About learning to seeLean activities Remember these 5 Lean Principles Public Sector arE WE DIFFERENT?LEADERSHIP - determines success of LeanLean & LeadershipLean Leadership ValuesLean conceptsSlide Number 33Value vs. Non-ValueValue-to-Waste RatioValue or Non-Value Added? table DiscussionContinuous FlowPull ProductionWhat is Waste?Eight Wastes8 wastesSample Lean ToolsLearning to see -Value Stream MapValue Stream MappingRoot Cause AnalysisicEBERG root causesASK WHY.5 WHYSASK WHY.5 WHYSVisual Management Visual ManagementSlide Number 52Visual ManagementVisual ManagementExample physical worldFloor Markings Safety and placement Before and AfterManagement BoardsLabelling and SignageShelving and BinsVisual ControlsShadow BoardsWhat is Kaizen?Slide Number 64What is Kaizen?Slide Number 665SToyota HouseWhat 5S Means5SWhy 5S?Slide Number 725S Before and AfterPotential Projects?Sample 5S Process5S ProcessGEMBA WALKGEMBA WALKGEMBA WALKSlide Number 80Slide Number 81Slide Number 82Wastes that are FoundSlide Number 84Slide Number 85Slide Number 86Slide Number 89PDSA / PDCAGroup Exercise!Group Exercise!Group Exercise!OBSERVATIONSResourcesOnline resourcesfavourite books on Lean and tpsWhat Can You Do?In closingFinal Thoughts