lssa guide

5/21/2018 Lssa Guide

1/74

Page

1


2/74

TableofContents

DEALINGWITHLINKS ................................................................................................................................... 4

ABOUTTHIS

EBOOK...................................................................................................................................... 5

................................................................................................................................ 6ACKNOWLEDGEMENTS

ABOUTLSSACADEMY .................................................................................................................................. 8

......................................................................................... 9CHAPTER1:WHATISLEANMANUFACTURING?

........................................................................................................ 11CHAPTER2:FINANCE101BYTAIICHI

............................................................................................................. 13CHAPTER3:

THE

FORGOTTEN

MS

................................................................................................................................. 14CHAPTER4:WAITING

................................................................................................. 16CHAPTER5:NOSTANDARDS,NOKAIZEN

.................................................................................................................. 18CHAPTER6:STANDARDWORK

...................................................................................... 20CHAPTER7:WHYFLOWCOUNTERCLOCKWISE?

......................................................................................... 22CHAPTER8:JIDOKA THEFORGOTTENPILLAR

........................................................................................... 23CHAPTER9:HEIJUNKAINTHEFRONTOFFICE

................................................................................................... 25CHAPTER10:WHYHEIJUNKA?PART1

................................................................................................... 29CHAPTER11:WHYHEIJUNKA?PART2

...................................................................... 32CHAPTER12:SINGLEMINUTEEXCHANGEOFDIES(SMED)

.............................................................................. 35CHAPTER13:OEENOTJUSTFORTPMPROGRAMS!

................................................................................ 37CHAPTER14:VALUESTREAMMAPPINGOVERVIEW

CHAPTER15:HOWTOCREATEAPQPRMATRIX....................................................................................... 39

Page

2


3/74

....................................................................... 41CHAPTER16:CURRENTSTATEVALUESTREAMMAPPING

.......................................................................... 50CHAPTER17:FUTURESTATEVALUESTREAMMAPPING

............................................................................ 56CHAPTER18:INTRODUCINGTHEKAIZENNEWSPAPER

CHAPTER19:TWOTYPESOFKAIZEN......................................................................................................... 59

.............................................................................................................. 61CHAPTER20:KAIZENRULES:1&2




............................................................................................................ 65CHAPTER24:KAIZENRULES:9&10

.................................................................................................... 66CHAPTER25:REPENT,IMEANHANSEI!

CHAPTER26:ISLAYINGPEOPLEOFFREALLYANTILEAN?........................................................................ 67

........................................................................................................ 69CHAPTER27:SHADOWSORREALITY

............................................................................................................................................. 72FINALWORDS

......................................................................................................................... 73RECOMMENDEDREADING

Page

3


4/74

DealingwithLinks

ThroughoutthiseBookweveinsertedhyperlinkstovariousarticlesandwebsites. Depending

ontheconfigurationofyourAdobeproductyoumayneedtoholddowntheShiftbuttonon

yourPC(orMacequivalent)inordertoopenthelinkinyourbrowser.

The easiest way to determine whether this is needed this is to hover your cursor over the

hyperlink.

Ifyouseea+signnexttothefingeryouwillneedtoholddowntheShiftkeybefore

pressingthehyperlink.

IfyouseeaWsignnexttothefingeryoucansimplyclickonthehyperlinkas itwill

openinawebbrowserautomatically.

InsomeAdobeproductsyoucanforceittoalwaysopen inawebbrowserbyfollowingthese

guidelines.

1.

Click

Edit

2. ClickPreferences

3. ClickWebCapture

4. SelectInWebBrowserintheOpenWeblinksmenu

Ifyouhaveanyproblemspleasefeelfreetocontactus.

Page

4
mailto:[email protected]:[email protected]:[email protected]:[email protected]


5/74

AboutthiseBook

WelcometotheLSSAcademyGuidetoLeanManufacturing.

Thisbook isacompilationofthoughtsrelatedto leanmanufacturingthat Ihaveaccumulated

overthepast13yearsinbothmanufacturingandtransactionalenvironments. Itismyhumble

hopeyouwillbenefit,eveninasmallway,fromtheseexperiences.

Since the content of this eBook is made of individual articles, it wont read like a traditional

book. However,IhavetriedtomakethetopicsflowasbestIcould.

Please feel freetosharethiseBookwithcolleagues, friends,andacquaintances. However, if

youwishtocopyorusethecontentforanypurpose,pleasecontactRonPereirafirst.

Ifyouhaveanyquestionsorcomments,pleaseemailusorleaveacommentonourwebsite.

TostayuptodatewiththelatesthappeningsatLSSAcademy,pleasesubscribetoourwebsite.

Youcan

also

subscribe

via

email

by

visiting

http://lssacademy.com.

Page

5
mailto:[email protected]:[email protected]:[email protected]://lssacademy.com/http://feeds.feedburner.com/lssacademy/nNHZhttp://feeds.feedburner.com/lssacademy/nNHZhttp://feeds.feedburner.com/lssacademy/nNHZhttp://lssacademy.com/http://lssacademy.com/http://feeds.feedburner.com/lssacademy/nNHZhttp://lssacademy.com/mailto:[email protected]


6/74

Acknowledgements

I would like to gratefully acknowledge the support and contributions of the following

individualsduring

this

project.

These

same

people

continue

to

inspire

me

with

their

wisdom

andkindness.

JonMiller,GembaResearch

MarkGraban,LeanBlog

KevinMeyer,EvolvingExcellence

Andspecialthankstomywonderfulmotherinlaw,JaneZilligen,fortheproofreading!

Page

6
http://www.gembapantarei.com/http://www.gembapantarei.com/http://www.gembapantarei.com/http://www.gembapantarei.com/http://www.gembapantarei.com/http://www.gembapantarei.com/http://www.gembapantarei.com/http://www.leanblog.org/http://www.leanblog.org/http://www.leanblog.org/http://www.leanblog.org/http://www.leanblog.org/http://www.leanblog.org/http://www.leanblog.org/http://www.evolvingexcellence.com/http://www.evolvingexcellence.com/http://www.evolvingexcellence.com/http://www.evolvingexcellence.com/http://www.evolvingexcellence.com/http://www.evolvingexcellence.com/http://www.evolvingexcellence.com/http://www.evolvingexcellence.com/http://www.leanblog.org/http://www.gembapantarei.com/


7/74

Dedicatedtomywife,children,andmentors.

Page

7


8/74

AboutLSSAcademy

MynameisRonPereiraandIbelieveleanmanufacturingandsix

sigmacan

and

should

work

together

in

harmony.

Ialsobelieveweshouldall learnasmuchaswecanaboutboth

lean manufacturing and six sigma, using them as needed and

whenneeded.That,inasentence,isthemissionofLSSAcademy.

Professionally, I have held the following job titles throughout my 15 year career: Process

Engineer, Process Engineering Supervisor, ManagerofSCM Development & Integration, Black

Belt, Corporate Master Black Belt, and finally Director of Manufacturing and CIP (continuous

improvementprocess). I also co-foundedGemba Academy LLCwith the sole mission of improving

the way online training is done.

Iammarriedtomybestfriend,Genni,andhavebeenblessedwith4amazingkiddos.Weare

very involved with our church and enjoy spending time with our family and friends here in

Keller,Texas.

Lastly,sinceIgrewupinthegreatstateofOhioIamcompletelyobsessedwithTheOhioState

Universityfootballprogram. AsmyMomsays,YoucantaketheboyoutofOhio,butyoucant

takeOhiooutoftheboy. GoBucks!

Page

8
http://lssacademy.com/http://lssacademy.com/http://lssacademy.com/http://gembaacademy.com/http://gembaacademy.com/http://gembaacademy.com/http://gembaacademy.com/http://lssacademy.com/


9/74

Chapter1:WhatisLeanManufacturing?

Depending on the book or consultant you are talking to, lean manufacturing has many

definitions.

At LSS Academy, we believe lean is all about respecting people while eliminating the 3 Ms

which are muri (overburdening), mura (unevenness), and muda (non value added activity).

Sadly, respecting people is often left out which turns lean manufacturing into mean

manufacturing.

Modeled after the Toyota Production System (TPS), the term lean manufacturing was first

coinedbyagroupofMITresearchersinthe1980s,leadbyDr.JamesWomackastheyprepared

towritethebookTheMachinethatChangedtheWorld.

TheHousethatToyotaBuilt

A house is often used to describe the Toyota

Production System. One pillar of the house

representsJIT

(just

in

time).

Here

we

look

at

how

to

make things flow (one piece at a time preferably)

usingprinciplesliketakttime.

Wealsofocusonthecustomerandonlyproducewhattheyaskforandwhentheyaskforit. In

otherwords,weallowthecustomertopullvalueinsteadofusattemptingtopushthings

ontothem.

Finally,we

never

overproduce

which

is

one

of

the

seven

deadly

wastes.

Theotherpillar,Jidoka,isallaboutensuringwemakeaqualityproductandeliminate,asmuch

aspossible,anyopportunitytoproducedefects. Contrarytowhatsomepeoplefalselyassume,

leanisveryconcernedwithprocesscapabilityandeliminatingdefects.

Page

9


10/74

At the base of the TPS house we find heijunka, or leveling. Here we work to smooth out

productioninsuchawaythatallowsustobetterutilizeourresources.

Lastly, the staples of standard work and kaizen are absolutely essential for any organization

wantingtopracticeleanmanufacturing.

Readonasalloftheseconceptsarediscussedatlength.

Page

10


11/74

Chapter2:Finance101byTaiichi

InChapterSixofTaiichiOhnosWorkplaceManagementwereadabouttheprofitformulas.

Whenwethinkabouthowacompanycanturnaprofittherearethreewaystoexpressit.

1. PriceCost=Profit

2. Profit=PriceCost

3.

Price=Cost+Profit

Forthemathgurusoutthereyoumaybescratchingyourheadas

algebraically these formulas are the same. But Mr. Ohno begs to

differ.

Formula3

Letsstartwith the third formula (Price=Cost+Profit). Mr.Ohnoexplains that thismaybe

likened to the government approach to setting a price. If, for example, a profit of $100 is

wantedandthecosttoproducetheproductis$200thepriceis$300.

Formula2

This is the trickiest formula (Profit = Price Cost) and iswhere I was a bit mistaken myself.

Ohno likens this formula toacompany thatproduces luxurygoodssince theycannot reduce

costs. Iamremindedofarecentarticle IreadaboutMotorolawho istargetingtherichwith

theirnewestRazrlikecellphone.

Page

11
http://www.amazon.com/gp/redirect.html?ie=UTF8&location=http%3A%2F%2Fwww.amazon.com%2FGemba-Press-978638751-Workplace-Management%2Fdp%2FB000NWUPP0%3Fie%3DUTF8%26s%3Doffice-products%26qid%3D1201625985%26sr%3D8-3&tag=leasixsigacab-20&linkCode=ur2&camp=1789&chttp://www.amazon.com/gp/redirect.html?ie=UTF8&location=http%3A%2F%2Fwww.amazon.com%2FGemba-Press-978638751-Workplace-Management%2Fdp%2FB000NWUPP0%3Fie%3DUTF8%26s%3Doffice-products%26qid%3D1201625985%26sr%3D8-3&tag=leasixsigacab-20&linkCode=ur2&camp=1789&chttp://www.amazon.com/gp/redirect.html?ie=UTF8&location=http%3A%2F%2Fwww.amazon.com%2FGemba-Press-978638751-Workplace-Management%2Fdp%2FB000NWUPP0%3Fie%3DUTF8%26s%3Doffice-products%26qid%3D1201625985%26sr%3D8-3&tag=leasixsigacab-20&linkCode=ur2&camp=1789&chttp://www.nytimes.com/2007/05/16/technology/16motorola.html?ref=businesshttp://www.nytimes.com/2007/05/16/technology/16motorola.html?ref=businesshttp://www.nytimes.com/2007/05/16/technology/16motorola.html?ref=businesshttp://www.nytimes.com/2007/05/16/technology/16motorola.html?ref=businesshttp://www.nytimes.com/2007/05/16/technology/16motorola.html?ref=businesshttp://www.nytimes.com/2007/05/16/technology/16motorola.html?ref=businesshttp://www.amazon.com/gp/redirect.html?ie=UTF8&location=http%3A%2F%2Fwww.amazon.com%2FGemba-Press-978638751-Workplace-Management%2Fdp%2FB000NWUPP0%3Fie%3DUTF8%26s%3Doffice-products%26qid%3D1201625985%26sr%3D8-3&tag=leasixsigacab-20&linkCode=ur2&camp=1789&c


12/74

Formula1

Lastlywecometothe leanformula(PriceCost=Profit). Thisformula isarranged insucha

wayastosaythatcostsexisttobereduced,nottobecalculated. Thethinkinghereisthatthe

marketsetsthepriceandtheonlysurewaywecanincreaseprofitsisbyreducingcosts.

So,thekeythingwemustrememberisthereisonlyonethingwealwayshaveinourcontrol.

Thatonethingisthecostsideoftheformula.

Now,dependingonyourproductorservice,youmayargueyouhavesomecontrolover the

price. But,intheendtheonlythingyoualwayshavecontroloverishowmuchitcostsyouto

producethegoods.

Page

12


13/74

Chapter3:TheForgottenMs

Thosefamiliarwithleanmanufacturinghavelikelyheard

thewordmudamanytimes.

Muda istheJapanesewordforwasteand istheenemy

ofusallwhetherweknowitornot.

Strangelyenoughmuda isnottheonlyenemyofa lean

system. There are two more, less popular (at least in

Western companies), Ms we must also be aware of

namelymura

and

muri.

Mura

Murainitssimplestformmeansunevenness.Forexample,muraresultswhenyouroperators

aretoldtoworklikecrazyearlyinthemorningonlytostandaroundanddonothinglateinthe

day.Heijunkamaybe theanswer to thisproblembut letussave thatdiscussion foranother

chapter.

Muri

Muri means to overburden equipment or operators. For example, if your entertainment

center isonlymeanttohold200poundsandyouplaceyournew425poundsuperduperHD

ReadyTVonitwehavemuri.Wealsohaveotherissueslikeaveryrealsafetyconcern!

LeadstoMuda

Sothenexttimesomeonedropsthewordmudaintheirattempttoshowyouhowmuchthey

know about lean you may be able to educate them on the other two Ms that arejust as

important as the infamous muda. Of course you should be humble and polite during this

educationprocess.

Page

13


14/74

Chapter4:Waiting

Ifyoupickupanybookabout leanorattenda training

course, you will likely hear how overproduction is the

mother

of

all

wastes.

OK,

in

the

truest

sense

it

is

especially for those that manufacture any type of

product.

But as I sit on this lovely airplane hoping to eventually

takeoff,Imustadmitwaitingseemsliketheworstofall

wastes.Infact,atthismomentintime,Icouldcare less

aboutoverproduction!

Letshaveaquickreviewofthe7deadlywastesforthosenotfamiliarwithwhat Iamtalking

about.IamsureseveralconsultingfirmswillsaytheycameupwiththeacronymIamaboutto

shareandbeforetheleanpolicecomeformeIwilladmitthisisnotmyowninvention.

Hereistheeasiestwaytorememberthe7deadlywastesidentifiedmanymoonsagoinJapan.

Withoutfurtherwaiting,letmeintroduceMr.TimWood.

Transportation

Inventory

Motion

Waiting

Overproduction

Overprocessing

Defects

IfyouwanttogetreallytrickyyoucanaddthewasteofSkills(meaningwhenyoudonttake

advantageofeveryonesabilities)whichwillmakeitTIMWOODS.

Page

14


15/74

It is my opinion that the muda of waiting is the number one enemy for service related

companies.Thinkaboutitnothingisworsethanwaitinginlinetoseeamovie,waitingtosee

thedoctor,waitingtoclearcustomsaftera12hourflighttoBrazil,waitingforyourfoodata

crowdedrestaurantwhenyourkidsarehungryandcranky,etc.

Soifyouareinthebusinessofservingpeopleinanyway,pleasetakesmyadviceandfocuson

howyoucaneliminatewaitingyourcustomerswillappreciateitespeciallyifyouworkinthe

airlineindustry.

Page

15


16/74

Chapter5:NoStandards,NoKaizen

Wherethereisnostandard,therecanbenokaizen.

Taiichi

Ohno

Whatdoesthismean?

Atitssimplestlevel,Ibelieveitmeansifyoudontknowhowyouaredoingsomething,orifyou

dontdosomethinginaconsistentmanner,howcanyoueverexpecttomakeitbetter?

ThenicepeopleatMcDonaldsaremastersatthis.Ifyoueverwatchoneoftheirassemblers

workyouwillnoticetheymakeaBigMacinaveryspecificmanner.Iamnot100%sureabout

thisbutIwouldimaginethereisastandardwayforanyperson,nomatterwheretheyare,to

makeaBigMac.

Soafter 5S I cannot imaginehow anyonecan reallydokaizenwithoutstandardwork. In the

nextchapterwewilldiscussstandardwork inmoredetailbutbeforethen letmeofferthese

tipstoyoutohelpyougetstarted.

1.

If

you

have

a

task

or

ajob

you

do

on

even

a

semiconsistent

basic

(e.g.

assemble

a

product, takecare of patients,callcustomers,etc.) start off bywritingdown the way

yougenerallydothesesteps.

2.

Onceyouhavethestepsdocumented,asksomeonewhodoesthesameorsimilarjobto

review the steps to see if they agree with them. If they dont, and many times they

wont,discussitwiththemandseeifyoucanmutuallyagreeonthebestwaytodothis

task.

3.

Onceyou

and

your

pal

have

the

agreed

steps

documented

work

together

and

time

each

other doing these steps. You dont need an industrial engineering degree to time

something.Youdontevenneedfancystopwatches!Startwiththesecondshandonthe

clockonyourwallifyouhaveto.

Page

16


17/74

4.

Onceyouhavethestepsandthetimesdocumented,seeifyoucancomeupwithsome

standard work procedures. There are some standard lean templates you can use if

youwant.Butdontgetbotheredwithtryingtobeperfect.Justgetsomethingonpaper

andinplace.

5. Onceyouhavetheprocessdocumented,shareitwithothersandgetthemtofollowthe

steps for awhile exactly as shown in the document or documents depending on how

detailedyougo.

Now, when someone figures out how to do it better, and they will, change the procedures

accordingly. This,mygoodfriends,iswhatkaizenisallabout.

Page

17


18/74

Chapter6:StandardWork

SincethemissionofLSSAcademy istooffer ideasforhowtoalignthestrengthsofboth lean

manufacturing and six sigma I wanted to discuss a topic I firmly believe all continuous

improvement practitioners should practice. This

topicisstandardwork.

Therearethreecomponentsofstandardwork:

1)TaktTime

2)WorkSequence

3)Standard

Work

in

Process

(SWIP)

TaktTime

Formallydefined,takttimeistherateatwhichyourcustomerbuysaproduct.Itisoftencalled

theheartbeatofproduction,sinceoncetakttimeiscalculatedallprocessesshouldoperateat,

orpreferablyabitbelow,takttime.

Acommon

mistake

Ihave

seen

is

when

people

think

they

can

measure

takt

time

with

astop

watch.Thisisincorrectastakttimemustbecalculatedasfollows:

TaktTime=NetAvailableTimeperDay/CustomerDemandperDay

Americanfootballhelpsmerememberthisformula.ByrememberingTDfortouchdownIgetT

(time)/D(demand).Typically,wenotetakttimeinsecondsperpiece.

TaktTime

is

the

law

of

the

land

and

once

it

is

understood

all

processes

must

work

to

this

pace.

Toyota,forexample,operatesatatakttimeofaround50~60seconds.Howamazingisthat?

Page

18


19/74

WorkSequence

Next up is Work Sequence which is simply the order in which an operator performs manual

operations(includingwalkingandwaiting).Itisextremelyimportanttodeterminethebestand

mostefficientwayforoperatorstoperformtheirwork.Ithelpsensureyourprocessmaintains

consistency and stability. Whenever possible our aim should be to limit wasted motion,

reaching,oranyothernonvalueaddedaction.

StandardWIP

Finally,wemustdiscussStandardWorkinProcess(SWIP).SWIPiscalculatedasfollows:

StandardWIP=(ManualTime+AutoTime)/TaktTime

Whenaprocessisoperatingat,orslightlylessthan,takttime,SWIPwillusuallybe1piece.An

exceptiontothisrulewouldbe iftwosequentialprocessessummedcycletimewas lessthan

takt time. In this case, you may only have one piece of SWIP for these two processes. If a

processhasacycletimegreaterthantakttime,SWIPwillbeat least2pieces,possiblymore,

dependingonhowtheformulaworksout.

TolearnmoreaboutStandardWIPcheckthispostoutbyJonMiller.

Summary

We have only discussed the basics of standard work in this chapter. There is much more to

standardwork including thingssuchas thecycletime/ takttimebarchartand thestandard

workcombinationsheet.

But if you understand the basics outlined in this chapter, you will be well on your way to a

betterandmoreefficientprocessnomatterifyourtitleisblackbeltorleanspecialist.

Page

19
http://www.gembapantarei.com/2007/02/how_to_calculate_standard_work.htmlhttp://www.gembapantarei.com/2007/02/how_to_calculate_standard_work.htmlhttp://www.gembapantarei.com/2007/02/how_to_calculate_standard_work.htmlhttp://www.gembapantarei.com/2007/02/how_to_calculate_standard_work.htmlhttp://www.gembapantarei.com/2007/02/how_to_calculate_standard_work.htmlhttp://www.gembapantarei.com/2007/02/how_to_calculate_standard_work.htmlhttp://www.gembapantarei.com/2007/02/how_to_calculate_standard_work.htmlhttp://www.gembapantarei.com/2007/02/how_to_calculate_standard_work.html


20/74

Chapter7:WhyFlowCounterClockwise?

When designing a ushaped cell it is often recommended that material flows in a counter

clockwisedirection.Whyisthis?

Itsabouttherighthand

Researchshowsthatmostpeoplearerighthanded. Ihaveheardthatasmanyas85%to90%

arerighthanded. Whydoesthismatter,youmightwonder?

Well,whenyouthinkaboutwhathappensinacell,weknowthatfirstwepicktheproductup.

Sincewehavetoaimsotospeaktopickitupwetendtowanttouseourdominatehand.

Then, once we have added value to the product,we are ready to pass it on to the

downstream process. There is not much aiming involved with simply placingsomething

down.

So,withthisknown,wecanseewhyhavingthingsflowcounterclockwiseorlefthandinside

makessensewhenmostpeopleare righthanded.Wepickupwithour righthand (whenwe

needto

aim)

then

put

it

down

with

our

left

(when

no

aim

is

needed).

Itsaboutthehorses

Whiletherighthanddominateaspectmaybethemost

commonreasonforflowingcounterclockwise,thereis

anotherreasonthatisquiteinteresting.

Haveyou

ever

seen

ahorse

race

held

where

the

horses

ranclockwise?Probablynot.IneveryhorseraceIhave

seenthehorsesruncounterclockwise.Thesamething

appliesfortrackathletesandracecars.Theyalsomovearoundthetrackinacounterclockwise

manner.

Page

20


21/74

You may not have ever given this much thought but there is actually quite a bit of brain

sciencebehindthis.Imustgivecredittomyfriendandmentor,JonMiller,forfirstexplaining

thistome.Well,heexplainedittoalotofpeopleinthispostsometimeago.Hewrote:

One of the strongest reasons givenfor the innate left hand insidepreferencefor

humanmotioncomesfrombrainscience.AccordingtoaProfessorMatsumoto,sincethe

rightbrainprocessesspatialrecognitionhumanperceptionofspaceisstrongerthrough

the leftsideofvision(thehemispheresofthebraincontroloppositesidesofthebody).

Whenyouarerunninglefthandinsideorcounterclockwise,youhavebettervisibilityof

spaceontheleftsideandyouareabletorunmorecomfortably,confidently,andquickly.

Hereis

alittle

test

for

you.

If

you

dont

believe

this

brain

science

stuff,

head

to

the

closest

track

and run a lap headed clockwise and time yourself. Then, take a rest and run another lap

counterclockwiseandtimeyourself.Chancesareverygoodthatyourcounterclockwisetime

willbeseveralsecondsfasterthanyourclockwisetime.

Ofcourseyoushoulddothisafewtimestomakesure.Inadditiontolearningaboutlean,you

will be doing some great exercising which is lean as well I guess. Yeah, I know, that was a

really

bad

joke.

MycellflowsclockwiseamIevil?

Sowhattodoifyourcellorcellsflowclockwise?Doesthismeanyouarenotlean?Ofcourse

not. In fact, I recently talked to some folks who initially designed a cell to flow counter

clockwisebutafterpiloting it,theoperatorscomplainedandofferedsome reasonswhy they

preferredtoflowclockwisewhichtheengineerstookintoconsiderationandmadethechanges.

So,takethischapterwithagrainofsaltandbesuretotestwhateversolutionyouimplement.

Intheend,thefolksworkingonthe lineneedtobecomfortablewithwhateveryoucomeup

with.

Page

21
http://www.gembapantarei.com/2004/09/flow_counterclockwise_for_a_go.htmlhttp://www.gembapantarei.com/2004/09/flow_counterclockwise_for_a_go.htmlhttp://www.gembapantarei.com/2004/09/flow_counterclockwise_for_a_go.htmlhttp://www.gembapantarei.com/2004/09/flow_counterclockwise_for_a_go.html


22/74

Chapter8:Jidoka TheForgottenPillar

In the Toyota Production System house there are two

pillars.

TheonepillarmostofthebooksarewrittenaboutisJIT.

You know all the fun stuff about takt time, one piece

flow,andpull.

But there is an entire other pillar that, in my opinion,

doesnotgetenoughrespect.Thatotherpillarisjidoka.

Toyotaswebsitedefinesjidokaasfollows:

The termjidokaused intheTPScanbedefinedasautomationwithahuman touch.

The wordjidoka traces its roots to the automatic loom invented by Sakichi Toyoda,

Founderof theToyotaGroup.Theautomatic loom isamachine that spins threadfor

clothandweavestextilesautomatically.

Thereare

four

main

steps

to

jidoka.

They

are:

1)

Detecttheabnormalityordefect

2) Stopdoingwhatyouaredoingsomethingiswrong!

3)

Fixtheissue

4)

Investigatetherootcauseandensureitdoesnthappenagain

PokaYoke,orerrorproofing,isanexcellenttooltoensurejidokaisinplace.Onceyouidentifya

failuremode,thebestcontrolofallisaPokaYokedevice.Somecallthismistakeproofingwhile

otherscallitidiotproofing.Bothwork,Isuppose,butmistakeproofingsoundsmorerespectful

(rememberakeytenettoleanisrespectingpeople).

IfyouhavenevervisitedToyotasTPSwebsite,Ihighlyrecommendit.

Page

22
http://www.toyota.co.jp/en/vision/production_system/index.htmlhttp://www.toyota.co.jp/en/vision/production_system/index.htmlhttp://www.toyota.co.jp/en/vision/production_system/index.htmlhttp://www.toyota.co.jp/en/vision/production_system/index.htmlhttp://www.toyota.co.jp/en/vision/production_system/index.htmlhttp://www.toyota.co.jp/en/vision/production_system/index.html


23/74

Chapter9:HeijunkaintheFrontOffice

In the house of Toyota, heijunkabelongs in the

foundation. Sadly, manypeopledismiss this

critical lean concept explaining how it isnt

relevantfortheirbusiness.

Heijunka which is properly pronounced (hey

junekah)andnot(heyjunkah) isdefined inthe

LeanLexicon ThirdEditionas:

Levelingthe

type

and

quantity

of

production

over

afixed

period

of

time.

This

enables

productiontoefficientlymeetcustomerdemandswhileavoidingbatchingandresultsin

minimum inventories, capital costs,manpower,andproduction lead time through the

wholevaluestream.

Wenormallyhearaboutheijunkain themanufacturingenvironment. Assuminga factorycan

change overtheir machinesin an expedient manner, (a prerequisitefor heijunka) a leveled

productionsystemmaylooksomethinglikethis. Notethat(c)standsforchangeover.

AAA(c)BB(c)C(c)AAA(c)BB(c)C(c)AAA(c)BB(c)C

Comparethistothewayamassproducerwould likelyapproachthissamedemandstructure

keeping in mind their changeover time is likely muchgreater when compared to the lean

producer.

AAAAAAAAA(c)BBBBBB(c)CCC

Page

23


24/74

Whataboutthefrontoffice?

Canweapplythesame,orsimilar,ideainthelandof

cubicles? Definitely. Letsseehow.

One of the easiest ways to accomplish this is by using a

heijunkawheelasshowninthepicturetotheright. Inthe

wheel we can place the work, normally in folders, to be

doneintheslotsinaleveledandbalancedmanner.

Forworkthatneedstobedonedaily,thelabelsalongthe

top(thepitch)maybenoted,forexample,inhoursor30minuteintervals. Forworkthatneeds

tobedoneweeklywemaynotetheparticularday(Monday,Tuesday,etc.)onthelabel.

Anotherpowerfulapproachistoplaceallthefoldersinprocessinanuprightposition. Then,

oncetheworkhasbeencompleted,laythefolderonitsback. Thisisapowerfulvisualcontrol

thatletsanyoneandeveryonethatwalksbytheheijunkawheelseehowthingsaregoing.

Wecanalsostore,withintheheijunkawheel,standardworkinstructions,trainingrecords,and

otherdocumentation.

Thebenefitsofusingaheijunkawheelaremany. Someofthemostobviousarethatpeople

knowwhattheyaretodoandwhentodoit. Thereisnomoreguessingorwonderingwhatto

workonnext. And ifan individualfallsbehind,theywillknow it immediatelyandcanaskfor

helpbeforeseverelyimpactingtheentiresystem.

Page

24


25/74

Chapter10:WhyHeijunka?Part1

B.D.asked,YouretalkingaboutHOWtodoheijunka,butImnotseeingWHY.

Great comment B.D. I will attempt to answer the why here this evening. Lets dig into the

manufacturingsideofthingstonightandtomorrownightIwillwriteaboutheijunkainthefront

office.

TaiichisTakeonHeijunka

First,letsstartwithsomewordsofwisdomfromamanofimmensewisdom.

Theslower

but

consistent

tortoise

causes

less

waste

and

is

much

more

desirable

than

the speedy hare that races ahead and then stops occasionally to doze. The Toyota

ProductionSystemcanberealizedonlywhenalltheworkersbecometortoises.

TaiichiOhno

HeijunkaReview

Lastnight

we

introduced

the

basic

concepts

of

heijunka.

Lets

assume

acompany

generally

sellsequalamountsoftwoparticularproductsAandB.

Amassproducerwould likelytoolupandrunagiantpileofAs,switchoverandrunanother

giantpileofBs. TheseevilpeopleOK,theyarenoteviljustmisguided,normallylivebythe

mantrabuilditandtheorderswillcome. Funnythingthoseorderswhenwewantthemto

come,theyrarelydo. Andwhenwearenotquiteready,theyfloodin.

In this same situation, a lean producer would likely attack this demand as follows:

ABABABABABABABAB. Ifyouarenewto lean,this isperhapsthemostcounterintuitivething

you have ever seen. I will grant you this I really struggled with heijunka myself. But by

keepinganopenmindandactuallyseeingitwork,Icametobelieve.

Page

25


26/74

SoWhyHeijunka?

There are many reasons for implementing heijunka. I will touch on a few that helped me

understandthisconcept.

First,buildinginhugebatchesisnotoptimalformanyreasons. Onethatimpactedmegreatly

atmypreviouscompany(amobilephonemanufacturer)wasthatcustomerschangetheirmind

alot.

Forexample,ifIthoughtIneeded100redtoasters,50bluetoasters,and25greentoastersthis

monthbasedonhardordersandaforecast, Imaysetoffandbuildall100redtoastersfirst,

thenalltheblue,andlastbutnotleastthoseshinygreentoasters.

This is all well and good until the worst thing that could ever happen to a mass producer

happens.

Letssaywe are on red toaster number98andour friendSal, fromsales, callsand explains,

Hey buddy, great news! Ijust got our customer to commit to 200 blue toasters! Isnt this

great? Imeanwearemakingakillingonthebluetoasters. Oh,yeah,andRon(Isheepishly

answeryes)

they

only

want

25

red

toasters

now

so

can

you

just

tweak

that

little

MRP

system

of

yoursandmakeithappen? Thanksbuddy. Yourethebest.

WhilethismaybegreatnewsforSal,Iamnowstuckwithabunchofredtoasters. Granted,we

maysellthemnextmonth. Butnowweenterthatdangerousgameofdemandgamblingand

thegoodguysrarelywinthisbet.

Now, had we leveled production as previously discussed, we may have only produced a few

red,blue,andgreentoastersenablingustobemuchmoreflexibleandnotbestuckwithallthe

red toasters. Truth be told, even lean producers get nailed with demand changes but

thesesituationsarefewandfarbetweenascomparedtowhatmassproducersdealwith.

Page

26


27/74

AdditionalBenefits

Therearemanymoreadvantagestoheijunka.

Thebullwhip

effect

is

common

in

mass

production

circles.

The

slight

twist

of

the

wrist

(i.e.

demand) can create a massive strike at the end of the bull whip. This means even small

demandvariationscanwreakhavocthroughoutourplantandespeciallywithoursuppliers.

When we level production, the entire value stream, including our suppliers, can cope much

better.

Heijunkaalsoallowsustoscheduleresources(equipment,employees,etc.)inamorebalanced

manner. Instead of having employees stand around in January or February, when demand is

lower,andthenwatchingthemrunaround likemaniacsandpayingmandatoryovertime in

OctoberandNovemberduringthepeakseason,wecanlevelthedemandproducingthesame

orsimilaramountsthroughouttheyear.

Insomecasesthismaymeanoverproducingandcarryingasmallamountof inventoryduring

theslowseasonsasweprepareforthepeakseason. Whilenottheperfectsituationthisisfar

betterthan

the

alternative.

Therearemanymoreadvantages Iamnotdiscussing. Thereareentirebookswrittenonthe

topic. Buttheseareafewofthebiggiesthathelpedmegetovertheheijunkahump.

ChallengestoHeijunka

Whataboutthechallengestoheijunka? Dr.JeffreyLikerexplainsthatimplementingheijunkais

aself

inflicted

choice.

Sounds

painful,

eh?

WhatDr.Likermeansisthatwhenweimplementheijunka,andonepieceflowforthatmatter,

wecannolongerallowthingslikelongchangeoverstoexist,ortoproducedefectafterdefect,

ortobasicallyhidebehindthepilesofinventorymassproducersdo. Thesecrutchesaregone.

Page

27


28/74

Butevenwiththesechallenges,heijunkayieldsfarmoreadvantagesoncethesystemisworking

asasmoothmachine. Now,letsdiscussheijunkainthefrontoffice.

Page

28


29/74

Chapter11:WhyHeijunka?Part2

In chapter 10 we discussed why we would use heijunka in a manufacturing environment in

responsetoareadersquestion. Now,letusfocusinonwhywewouldwanttouseheijunka,

orleveling,inanofficeenvironment.

This could bea very short chapter as I could say we use heijunka in the office for the same

reasons we use it in manufacturing. But as you probably guessed,I willnotbe taking that

approachinthischapter.

LevelinginaRestaurant

Oneplacewecanseetheimportanceoflevelinginanon

manufacturingenvironment isatsit downrestaurants.

Normallywhenyouwalkintoyourfavoritesteakhouse,(I

preferSaltgrass)thereisapersonstandingtherestudying

adiagram/layoutoftherestaurant. Sincethereareafinite

numbers of waiters and waitresses (and tables for that

matter)eachcustomermustbecarefullyseated.

Ifcareisnottaken,aparticularwaitermaybestressedtothemaxwhileanotherwaitressmay

be standing around complaining as she is not making any tips. Also, customers may grow

frustratedastheyseetheirwaiterrunningaroundandtakinga longtimetofilluptheirdrink

whilethewaitressisofftalkingwithhermates.

Thus,normallycustomersareseatedinabalanced/levelmanner. Eventually,onbusynights,all

tablesmay

become

occupied

in

which

case

leveling

flies

out

the

door.

Now

we

enter

into

the

worldofqueuingtheory.

Page

29
http://lssacademy.com/2007/06/05/heijunka-in-the-front-office/#comment-522http://lssacademy.com/2007/06/05/heijunka-in-the-front-office/#comment-522http://lssacademy.com/2007/06/05/heijunka-in-the-front-office/#comment-522http://www.shmula.com/series-on-queueing-theory/http://www.shmula.com/series-on-queueing-theory/http://www.shmula.com/series-on-queueing-theory/http://www.shmula.com/series-on-queueing-theory/http://lssacademy.com/2007/06/05/heijunka-in-the-front-office/#comment-522


30/74

LevelingOfficeWork

Ontheshopfloor,weproducewidgetsofsometype. Inanofficewealsocreatewidgets. Only

these widgets are thingssuch asinvoices, quotes, BOMs, drawings, etc. In some industries

thesefrontofficetasksmayevenbeaconstraint. Sounderstandinghowtobelevelorsmooth

workinthefrontofficeareaisequally,andinsomecases,moreimportantthantheshopfloor.

AccountsPayableExample

Letsseehowlevelingcouldhelpanaccountspayabledepartment. Inthissituationthewidgets

beingproducedareinvoices. TheAPclerkscouldjustflybytheseatoftheirpantsandallwork

onwhatevertheywantexpeditingthehottestitemwhensomeoneyellsloudenough.

Orthesesameclerkscoulddeterminehowmany invoicestheygenerallyprocess inaweekor

month. Fromthis,theycouldcalculatethetakttime(availabletime/demand)andpitch(takt

timexpackoutquantityorinthiscasereasonableamountofinvoicesneededatanyonetime).

Armed with this information, they could use a heijunka box or heijunka wheel to level the

amountofworkeachAPemployeeisexpectedtodo.

Bob,for

example,

would

now

be

able

to

look

at

the

heijunka

wheel

and

know

exactly

what

he

wastodoandwhentodo it. Thiswillhelphimpacehisworkandalsoaskforhelp ifhefalls

behind. This would be similar to a Toyota employee stopping the line when a problem is

noticed.

BalancingAct

Manytimes,peoplelikeBobhaveothertaskstodoinadditiontoprocessinginvoices. Allthese

otheritemscanandshouldbetakenintoconsiderationwhendetermininghowtolevelloadhis

responsibilities. Nothingismorefrustratingtoanemployeethanbeingaskedtodo12hoursof

workinan8hourday.

Inthissense,thewaitressandAPclerkaremorealikethanmanypeoplerealize.

Page

30
http://lssacademy.com/2007/06/05/heijunka-in-the-front-office/http://lssacademy.com/2007/06/05/heijunka-in-the-front-office/http://lssacademy.com/2007/06/05/heijunka-in-the-front-office/http://lssacademy.com/2007/06/05/heijunka-in-the-front-office/


31/74

AdditionalResources

Tobesure,heijunkaisoneofthemoreadvancedleanconcepts. Youwouldnotnormallybegin

yourleanjourneybyimplementingheijunka.

Instead,focusingonvaluestreammapping,standardwork,flow,pull,anddefectreductionfirst

is wise. With this said, when you are ready to look at heijunka let me offer the following

articles/booksasexcellentresources.

CreatingLevelPull

SMEHeijunkaArticle

WikipediaExplanation

SuperfactoryonHeijunka

Page

31
http://www.amazon.com/gp/redirect.html?ie=UTF8&location=http%3A%2F%2Fwww.amazon.com%2FCreating-Level-Pull-Production-System-Production-Control%2Fdp%2F0974322504%3Fie%3DUTF8%26s%3Dbooks%26qid%3D1181160442%26sr%3D8-1&tag=leasixsigacab-20&linkCode=ur2&camp=1789&creative=9325http://www.amazon.com/gp/redirect.html?ie=UTF8&location=http%3A%2F%2Fwww.amazon.com%2FCreating-Level-Pull-Production-System-Production-Control%2Fdp%2F0974322504%3Fie%3DUTF8%26s%3Dbooks%26qid%3D1181160442%26sr%3D8-1&tag=leasixsigacab-20&linkCode=ur2&camp=1789&creative=9325http://www.amazon.com/gp/redirect.html?ie=UTF8&location=http%3A%2F%2Fwww.amazon.com%2FCreating-Level-Pull-Production-System-Production-Control%2Fdp%2F0974322504%3Fie%3DUTF8%26s%3Dbooks%26qid%3D1181160442%26sr%3D8-1&tag=leasixsigacab-20&linkCode=ur2&camp=1789&creative=9325http://www.amazon.com/gp/redirect.html?ie=UTF8&location=http%3A%2F%2Fwww.amazon.com%2FCreating-Level-Pull-Production-System-Production-Control%2Fdp%2F0974322504%3Fie%3DUTF8%26s%3Dbooks%26qid%3D1181160442%26sr%3D8-1&tag=leasixsigacab-20&linkCode=ur2&camp=1789&creative=9325http://www.amazon.com/gp/redirect.html?ie=UTF8&location=http%3A%2F%2Fwww.amazon.com%2FCreating-Level-Pull-Production-System-Production-Control%2Fdp%2F0974322504%3Fie%3DUTF8%26s%3Dbooks%26qid%3D1181160442%26sr%3D8-1&tag=leasixsigacab-20&linkCode=ur2&camp=1789&creative=9325http://www.sme.org/cgi-bin/find-articles.pl?&ME06ART49&ME&20060809&&SMEarticlehttp://www.sme.org/cgi-bin/find-articles.pl?&ME06ART49&ME&20060809&&SMEarticlehttp://www.sme.org/cgi-bin/find-articles.pl?&ME06ART49&ME&20060809&&SMEarticlehttp://www.sme.org/cgi-bin/find-articles.pl?&ME06ART49&ME&20060809&&SMEarticlehttp://www.sme.org/cgi-bin/find-articles.pl?&ME06ART49&ME&20060809&&SMEarticlehttp://en.wikipedia.org/wiki/Heijunkahttp://en.wikipedia.org/wiki/Heijunkahttp://en.wikipedia.org/wiki/Heijunkahttp://www.superfactory.com/topics/heijunka.htmhttp://www.superfactory.com/topics/heijunka.htmhttp://www.superfactory.com/topics/heijunka.htmhttp://www.superfactory.com/topics/heijunka.htmhttp://www.superfactory.com/topics/heijunka.htmhttp://www.superfactory.com/topics/heijunka.htmhttp://en.wikipedia.org/wiki/Heijunkahttp://www.sme.org/cgi-bin/find-articles.pl?&ME06ART49&ME&20060809&&SMEarticlehttp://www.amazon.com/gp/redirect.html?ie=UTF8&location=http%3A%2F%2Fwww.amazon.com%2FCreating-Level-Pull-Production-System-Production-Control%2Fdp%2F0974322504%3Fie%3DUTF8%26s%3Dbooks%26qid%3D1181160442%26sr%3D8-1&tag=leasixsigacab-20&linkCode=ur2&camp=1789&creative=9325


32/74

Chapter12:SingleMinuteExchangeofDies(SMED)

One of the core principles to making a lean system work is Single Minute Exchange of Dies

(SMED). You may also hear it referred to as Quick Changeover especially in western

companies.

CommonMisconceptions

Contrarytowhatsomethink,SMEDisnotjustforthefolksontheshopfloor.Ionceheardan

individualstate,WedontusediesheresoSMEDisnotrelevant.SMEDisaconceptandisjust

asrelevantinthefrontoffice. Andnohugediesarenotrequired!

Anothercommonmisunderstandingstemsaroundthetermsingleminute.Sometakethisto

meanthatachangeovermusthappenin60secondsorless.Thisisnot,andneverwas,theidea

aroundSMED.

Instead,ouraimistoreducethetimeittakestoswitchfromthelastgoodpartofproductA

tothenextgoodpartofproductBinlessthan10minutes(generally).

7steps

to

SMED

Dependingonwhichbookyoureadorexpertyoutalkto,therearegenerallyaround7steps

followedwhenimprovingchangeovers.

1. Observe thecurrentprocess. An extremely valuable tool to help with this step is the

videocamera!Becarefulthoughas insomecountriesvideocamerascangetyou into

hotwaterwithworkerunions,etc.Sobesuretocheckallthelocalregulations.Also,be

suretoaskthepeopleyouplantovideotapefortheirblessing.Youcanmakefriends

andenemiesatthisstageofthegame Irecommendyouaim forthefriendlysideof

things.

2. Categorize INTERNAL and EXTERNAL activities. This is perhaps the most important

conceptbehindSMED.Internalactivitiesarethosethatcanonlybecompletedwhenthe

Page

32


33/74

machineorprocessinquestionisnotrunning.Youcannot,forexample,changethebit

onarunningdrill.AtleastIdontrecommendit!Externaltasksarethosethingsthatcan

be done while the machine or process is running. For example, you may be able to

knock out the paperwork required, gather tools and materials, and essentially get

everythingyouneedreadybeforethemachineorprocessstops.

3. Whenpossibleconvert internalactivities intoexternalactivities.Aretherethingswe

candowhilethemachine isrunningsowedontwastetimeonce ithasstopped?My

Mom used to make me lay my clothes out for school the night before so I wasnt

searchingforsocksinthemorning.ShewasteachingmeSMEDandIdidntevenknow

it.Blessher!

4.

Make

the

remaining

internal

activities

flow.

For

tasks

that

cannot

be

moved

externally,

ournextfocusistodothemasfastaspossible.Thinkofthepitcrewforyourfavorite

racingteam.Theyhavemasteredthisstep!Also,ifweneedtoscrewthingsdown,how

canwereducethenumberofturnsrequired(i.e.shorterbolts,wingnuts,etc.)?Anddo

wereallyneed28boltsholdingthefixtureinplace?Maybe.Maybenot.Ofcourse,do

notjeopardize anyones safety. But often times no one has asked why there are 28

bolts!

5.

Similar

to

step

4

we

also

need

to

optimize

the

external

activities.Again,

think

about

makingthingsflowasefficientlyaspossiblewithnostopping,waiting,ordefects.

6. Document the newprocedure so it is repeatable and reproducible. Is it possible to

video an excellent changeover so new employees can watch it and learn from it? Of

course, having things written down in words is important but seeing it on video may

reallyacceleratethelearningexperienceofanewassociate.

7. PursuePerfection.Aswithall things leanandsixsigmawemustconstantlywork to

make

things

better

and

faster.

A

good

strategy

is

to

attempt

to

halve

the

current

changeovertime.Soifittakesyou2hourstoday,aimtogetitdownto1hourafterthe

SMED kaizen event! Our ultimate aim may be to change things over in less than 10

minutesbutthisprobablywonthappenimmediately.

Page

33


34/74

Summary

Inordertomakethings like levelloading (heijunka)areality,wemustbeabletochangeour

machinesoverquickly.

ThereareexcellentbooksonthistopicthatgointomuchgreaterdetailthanIhavehere.

Finally,JonMillerhaswrittenonthistopichere.AndthegoodmenoveratEvolvingExcellence

havesomeexcellentfoodforthoughthere.

Page

34
http://www.gembapantarei.com/2007/03/quick_changeover_and_smed_for.htmlhttp://www.superfactory.com/topics/smed.htmhttp://www.superfactory.com/topics/smed.htmhttp://www.gembapantarei.com/2007/03/quick_changeover_and_smed_for.html


35/74

Chapter13:OEENotJustforTPMPrograms!

Ifsomeonewereto forceme intoacornerandonlyallowmetouse

one metric in my plant, I would have to choose Overall Equipment

Effectiveness(OEE).

The

reason

Iwould

pick

it

is

simple

it

is

really

3

metrics inone!Here isaquicksummaryofhow thispowerfulmetric

works.

The3PiecesofOEE

OEElooksat3areas:

1.

Performance:

Here

we

compare

the

actual

output

with

what

that

particular

piece

of

equipment should be producing. We are really focusing in on what we call speed

losses.Forexample,duetothehardnessofaparticularmaterialthelathemayneedto

runataslowerspeed thannormal.So, inagivendayamachineshould produce100

widgetsbutattheendofthedayitonlyproduces85widgetssowehaveaperformance

of85%(85/100).

2. Availability:Herewelookathowmuchtimeisavailabletorunthemachine(takingout

breaks,

etc.)

and

how

much

we

actually

ran

the

machine.

With

availability

we

are

primarily looking at our losses associated with downtime. Things like setup time,

machinebreakdowns,andstartuplossesarecommonculpritsofavailabilitylosses.So,if

there were 7 hours available to run the machine and we actually ran 6 hours our

performanceis86%(6/7).

3. Quality:LastlyOEEalsolooksatquality.If80outofthe85widgetswereacceptable(5

bad)wehaveaqualityscoreof94%(80/85).

OncewehaveourthreepercentageswesimplymultiplythemtogethertogetourOEE.Inour

example,wehaveanOEEof69%(85%x86%x94%).

Page

35


36/74

Dependingonwhichbookyoureadorconsultantyoutalktoyouwillhearvariousopinionsof

whatworldclassOEEis.IworkwiththethoughtthatifyouhaveanOEEof80%ormore,you

aredoingwell.Reallywell,actually!

NotJustforTPMPrograms!

One thing that bothers me immensely is how some people think OEE isjust a maintenance

thing.Ifwegobacktotheaforementionedbooksandexperts,wemostlyhearaboutOEEinthe

TPM(TotalProductiveMaintenance)chapterortrainingmodule.This is fineasOEEandTPM

definitelygotogether.

But,letmejustgetonmysoapboxforabit.OEEisarguabletomostholisticproductivitymetric

knowntomankind.So ifyouthink themaintenanceguysare theonlypeoplethatshouldbe

drivingOEEwiththeirTPMprogramyouaredeadwrong.

Anyone and everyone that cares how many widgets are produced in the plant should care

aboutOEE.Theoperatorshouldcare(andbeintimatelyinvolvedincapturingthedata).Theline

supervisorshouldcare.Thequalitymanagershouldcare.Theplantmanagershoulddefinitely

care. The maintenance teamshouldcare.Even the controller, who wants tosee all thecash

flowingonthefinancialstatements,shouldcare.Heck,yoursignificantother,whowantstosee

youemployedforalongtime,shouldcareaboutOEE!Itsjustthatimportant.

Here isafree video and OEE calculator youcan download. And yes, I know,it is in theTPM

sectionofthiswebsite. Cestlavie!

Page

36
http://www.tpslean.com/tpm.htmhttp://www.tpslean.com/tpm.htmhttp://www.tpslean.com/tpm.htmhttp://www.tpslean.com/tpm.htmhttp://www.tpslean.com/tpm.htmhttp://www.tpslean.com/tpm.htmhttp://www.tpslean.com/tpm.htmhttp://www.tpslean.com/tpm.htmhttp://www.tpslean.com/tpm.htmhttp://www.tpslean.com/tpm.htm


37/74

Chapter14:ValueStreamMappingOverview

Oneof,ifnotthesinglemostpowerfulleantoolavailable

to us is value stream mapping (VSM). The reason its so

powerfulis

because

of

its

relevancy.

You see, it doesnt matter if you are an accountant who

sits behind a desk, or a nurse caring for the sick, or an

assembler building a Toyota Camry value stream

mappingcanhelpyouseewastefulactivityinanewway. I

guaranteeit.

DefinitionofaValueStream

A value stream can be defined as all the steps both value added and non value added

required to take a productor service from its raw materials state into the waitingarms ofahappycustomer.

VSMOverview

Initially,valuestreammappingcanseemabitintimidating.Therearelotsoffunnylookingicons

andzigzaggylinesthatuponfirstglanceseemtodonothingbutconfusethings.Butonceyou

understandwhatyouarelookingatyouwillbehookedforever.

Likemostthingsrelatedtoleanandsixsigmatherearesomegeneralstepstofollowwhenwe

createvalue

stream

maps.

Here

is

how

Ido

it.

Step1:IdentifytheProductFamily

ThefirststepIrecommendyoutakeistoidentifytheproductfamilyyouwishtomap.Thetool

touse for this isaPQPR (ProductQuantity/ProductRouting)matrix.This toolwillhelpyou

identifywhichproductorinsomecasesproductstofocusinon.

Icannotstresshow important thisstep is. Ihaveseen toomanyexcitedpeoplerunoutand

start mapping the first productorprocess they see.Whilevaluestreammapping anything is

betterthannothingyoudefinitelywanttofocusyoureffortsonthemostimportantareasfirst.

Step2:CreateaCurrentStateValueStreamMap

Onceyou identifywhat tomapyouand yourmotleycrew mustsetoff and create acurrent

statevaluestreammap.

Page

37


38/74

Asthenameimpliesweareinterestedinhowthingslooktoday.Wearenotinterestedinhow

thingsshould lookorweredesignedto look.No,wewanttodrawrealityontoapieceof

paper.

Thepieceofpaperisakeypoint.WhileIamabigadvocateofusingsoftwaretodrawourfinal

mapsup,

Icringe

when

Isee

people

attempting

to

go

straight

to

the

computer.

Astopwatch,oversizedpieceofpaper,pencil,andgooderaserareallyouneedatthispoint.

Step3:CreateaFutureStateValueStreamMap

Nowthatwehaveabetterunderstandingofthecurrentstateofaffairs,whichistypicallyone

eyeopeningexperiencebytheway,wearereadytodrawapictureofhowwewouldlikethings

tolookinthefuture.

Typically,asanexample,weaimtomakethingsflowandreducetheamountof inventoryor

waitingin

between

steps.

Itsatthispointwhenpeoplegettodreamalittle.Youknow,createtheidealworkingplace.

Step4:CreateanActionPlan

Nowthatweknowhowthingsareworkingtodayandhowwewouldliketoseethemworking

inthefutureitstimetoformaplan.

Thereareavarietyoftemplatesavailableforthis.ThekeyisnotwhichkaizennewspaperorA3

reportyou

use

instead

its

that

you

and

your

team

know

exactly

what

needs

to

happen

and

whenitneedstohappen.

Inshort,weformtheplanthenexecutetheplan!

Page

38


39/74

Chapter15:HowtoCreateaPQPRMatrix

Inordertogarnermaximumbenefitsfromyourvaluestreammappingefforts,itisimportantto

takesome

time

up

front

in

order

to

identify

the

product

family

you

wish

to

study

and

improve.

ThefirsttoolIrecommendyoulookat isaproductquantitymatrix.Thebasicpremisehereis

that you should target your higher volume products for improvement first. Here is a 2 step

roadmapfordoingjustthis.

1.

Collectproductionoutputdatabothinunitsshippedandsalesfigures.Asa

startingruleofthumbIrecommendattemptingtocollect6to12monthsworthof

data.

2. CreateaParetochartwiththisdatainattemptstoidentifywheretofocusfirst

(e.g.highestvolumeproducts).

Insomecasesyoumayhavetworesults.Thefirstplacewinnerbasedonunitsshippedmay

beproductABC.However,thefirstplacewinnerbasedonsalesdollarsmaybeproductXYZ.

Inthesesituationsitisuptothemanagementteamtomakethecallastowheretofocus.

Sincethisisallbasedonhistoricalfacts,youcantweakthismethodeversoslightlybyincluding

forwardlookingforecasts.Butbecarefulsincetheonlythingcertainwithaforecastisthatits

certaintobewrong.

ProductRoutingMatrix

Iftheresultsoftheproductquantitymatrixareinconclusivewecanlookatanothertoolthe

productrouting

matrix.

Withthistoolweareinterestedtolearnhoweachproductfamilymovesthroughtheprocess.

Forexample,docertainproductspassthroughtheexactsamemachines?Ifso,wecanactually

groupthemtogetherandcreateonesetofvaluestreammapscoveringbothproducts.

Page

39


40/74

CombiningtheTools

While

each

of

these

tools

can

work

well

on

their

own,

it

is

my

opinion

they

are

at

their

best

whenworkingtogether.

InthepictureaboveweseethatABCtooktheprizeformostunitsshipped,andXYZmadeus

themostmoney.

Then, when we looked at the routings we saw that ABC and QRS actually went through the

samemanufacturingsteps.Further,productQRSwasaclosesecondplaceonsales$andthird

placefor

units

shipped.

So,inthisexampletheteamdecidedtomapproductABCandQRStogether.

Summary

Thatsreallyall isthere istothistool. Obviously,real lifeexampleswillbefarmorecomplex

thanmysimplescenario. Buttheprocessyouuseshouldbenodifferent.

Lastly, thissameprocessworks in frontoffice/transactionalenvironmentsaswell. Insteadof

lookingatmachinesyoumayinsteadlookathowapieceofpaperflowsthroughtheoffice(e.g.

whichfunctionaldepartmentstouchit).

Page

40


41/74

Chapter16:CurrentStateValueStreamMapping

Whenever there isaproductforacustomer, there isavaluestream.Thechallenge lies in

seeingit.

LearningtoSee,LeanEnterpriseInstitute

Inthischapterwewilldiscusshowtogoaboutcreatingacurrentstatevaluestreammap.

Itiswhatitis

ThekeytocreatinganexcellentcurrentstateVSM istodocumentwhatyouactuallyseewith

yourown

eyes.

We

are

not

interested

in

how

the

process

is

supposed

to

work,

or

was

designed

towork.

Instead,weareinterestedinhowtheprocessisperformingtoday.Willtheprocesschangeabit

tomorrow?Sure.ButthatsOK.

FunwithIcons

Iremember

the

first

time

Isaw

avalue

stream

map.

Iwondered

how

anyone

could

benefit

from

it.Itwasabitmessy,andIdidntknowwhatanyofthelittleshapesandiconsmeant.Inshort,I

wasabitintimidatedbythewholeexperience.

Luckily,IhadsomegreatinstructorsandIdidquiteabitofselfstudytogetpastmyinitialfears.

So,theonlywayyouwillnotbeabitintimidated(assumingyouhaveneverseenaVSMbefore

thatis)istostudyabitandpractice,practice,practice.Therearereallyonlyahandfulloficons

youwillalwaysuse.Andfortherest,youcanuseacheatsheetlikeIdo!

Tohelpyoualong,Ifoundthiswebsitethatoffersgood(andfree)explanationsonmanyofthe

keyVSMiconsyouwillneedtoknow.AnotherexcellentresourceisthisVSMQuickReference

GuidefromourfriendsoveratGembaResearch. Itsnotfree,butdefinitelyworththemoney.

Page

41
http://www.strategosinc.com/value-stream-mapping-3.htmhttp://www.strategosinc.com/value-stream-mapping-3.htm


42/74

Itstimetocreatethemap!

OK, lets learnhowtocreateacurrentstatevaluestreammap.Tohelpyouvisualizethings I

havecreatedafictitiousexampleofapeanutbutterandjellysandwichfactory.

OurPB&JmanufacturingcompanygoesbythenameofKB&R Inc.Forthose interested,thats

thefirstletterofeachofmythreekidsnames!

Step1:Calculatetakttime.Dontproceeduntilthisstepisdone.Ifyoudontrememberhowto

calculatetakttimethisfreeresourceshouldhelpyoualong.

Inourexample,wehaveadailydemandof700pieceswiththefollowingarrangement.

Hourspershift:8

Breakminutespershift:30

Shiftsperday:1

Daysperweek:5

Irecommendyoupracticepunchingthisout.Butincaseyoudont,Illtellyouthetakttimeis

39seconds

per

piece.

In

other

words,

we

need

to

produce

aPB&J

sandwich

every

39

seconds

in

ordertosatisfycustomerdemand.

Step2:GetapencilandBIGeraser.Thebestvaluestreammapshaveerasermarksall over

them.Please,Ibegyou;dontuseapenwhendrawingthese.

Step3:Haveabigpieceofpaperready.Yourstandard8.5x11pieceofpaperwontcut it.

Personally,Ipreferthe11x17papersize.Itsbig,butnottoobigtocarryaround.

Finally,whileIwillbedrawingthevaluestreammapusingsoftwareinthisarticle,Irecommend

youalwaysdrawthemaponpaperfirst.Then,whenyouarereadytoshareyourmasterpiece

withseniormanagementyoumaychoosetogoforthesoftware.

Page

42
http://www.gembapantarei.com/2008/02/101_kaizen_templates_takt_time_calculator.htmlhttp://www.gembapantarei.com/2008/02/101_kaizen_templates_takt_time_calculator.htmlhttp://www.gembapantarei.com/2008/02/101_kaizen_templates_takt_time_calculator.htmlhttp://www.gembapantarei.com/2008/02/101_kaizen_templates_takt_time_calculator.html


43/74

Step4:Walktheprocess fronttoback.Quicklywalktheprocesswithyourteam inorderto

understand the general flow. Its important to also define the start and stop point of the

process.Dontattempttotakeontoomuch.Remember,weeatanelephantonebiteatatime.

Step5:Drawinthecustomerbox/details.Inthetoprighthandsideofthepaperwedrawthe

littlesawtoppedboxrepresentingourcustomer.

Wealsonotetheirmonthlyand/ordailydemandalongwiththetakttimeascalculatedinstep

one.

Step6:Gototheend!Next,westartattheENDof theprocessandbegindrawingthemap

backtofront.Anddontforgetaboutthateraser.Youwillneedit.Irecommendyounominatea

scribeandhavethemdrawthemapfortheteam.

Another trick is to ask each person on the team to map it out so you can compare and

consolidatewhenyougetbacktotheroom.Yetanothertrick istohavetheteamdivideand

conquerasyousendsomeofftomapthebeginningsection,sometothemiddle,andsometo

theend.

Therearemanywaystodothis.Experimentanddowhatworksbestforyoursituation.

Step7:Focusonthematerialflowfirst.Focusonthematerialflowsideofthingsfirst(bottom

portionofthemap).Thisincludestheprocessboxesanddataboxes.

Page

43
http://lssacademy.com/wp-content/uploads/2008/02/cs1.JPGhttp://lssacademy.com/wp-content/uploads/2008/02/cs1.JPGhttp://lssacademy.com/wp-content/uploads/2008/02/cs1.JPGhttp://lssacademy.com/wp-content/uploads/2008/02/cs1.JPGhttp://lssacademy.com/wp-content/uploads/2008/02/cs1.JPGhttp://lssacademy.com/wp-content/uploads/2008/02/cs1.JPGhttp://lssacademy.com/wp-content/uploads/2008/02/cs1.JPGhttp://lssacademy.com/wp-content/uploads/2008/02/cs1.JPGhttp://lssacademy.com/wp-content/uploads/2008/02/cs1.JPGhttp://lssacademy.com/wp-content/uploads/2008/02/cs1.JPGhttp://lssacademy.com/wp-content/uploads/2008/02/cs1.JPGhttp://lssacademy.com/wp-content/uploads/2008/02/cs1.JPGhttp://lssacademy.com/wp-content/uploads/2008/02/cs1.JPGhttp://lssacademy.com/wp-content/uploads/2008/02/cs1.JPGhttp://lssacademy.com/wp-content/uploads/2008/02/cs1.JPGhttp://lssacademy.com/wp-content/uploads/2008/02/cs1.JPGhttp://lssacademy.com/wp-content/uploads/2008/02/cs1.JPGhttp://lssacademy.com/wp-content/uploads/2008/02/cs1.JPGhttp://lssacademy.com/wp-content/uploads/2008/02/cs1.JPGhttp://lssacademy.com/wp-content/uploads/2008/02/cs1.JPGhttp://lssacademy.com/wp-content/uploads/2008/02/cs1.JPGhttp://lssacademy.com/wp-content/uploads/2008/02/cs1.JPGhttp://lssacademy.com/wp-content/uploads/2008/02/cs1.JPGhttp://lssacademy.com/wp-content/uploads/2008/02/cs1.JPGhttp://lssacademy.com/wp-content/uploads/2008/02/cs1.JPGhttp://lssacademy.com/wp-content/uploads/2008/02/cs1.JPGhttp://lssacademy.com/wp-content/uploads/2008/02/cs1.JPGhttp://lssacademy.com/wp-content/uploads/2008/02/cs1.JPGhttp://lssacademy.com/wp-content/uploads/2008/02/cs1.JPGhttp://lssacademy.com/wp-content/uploads/2008/02/cs1.JPGhttp://lssacademy.com/wp-content/uploads/2008/02/cs1.JPGhttp://lssacademy.com/wp-content/uploads/2008/02/cs1.JPGhttp://lssacademy.com/wp-content/uploads/2008/02/cs1.JPGhttp://lssacademy.com/wp-content/uploads/2008/02/cs1.JPGhttp://lssacademy.com/wp-content/uploads/2008/02/cs1.JPGhttp://lssacademy.com/wp-content/uploads/2008/02/cs1.JPGhttp://lssacademy.com/wp-content/uploads/2008/02/cs1.JPGhttp://lssacademy.com/wp-content/uploads/2008/02/cs1.JPGhttp://lssacademy.com/wp-content/uploads/2008/02/cs1.JPGhttp://lssacademy.com/wp-content/uploads/2008/02/cs1.JPGhttp://lssacademy.com/wp-content/uploads/2008/02/cs1.JPGhttp://lssacademy.com/wp-content/uploads/2008/02/cs1.JPGhttp://lssacademy.com/wp-content/uploads/2008/02/cs1.JPGhttp://lssacademy.com/wp-content/uploads/2008/02/cs1.JPGhttp://lssacademy.com/wp-content/uploads/2008/02/cs1.JPGhttp://lssacademy.com/wp-content/uploads/2008/02/cs1.JPGhttp://lssacademy.com/wp-content/uploads/2008/02/cs1.JPGhttp://lssacademy.com/wp-content/uploads/2008/02/cs1.JPGhttp://lssacademy.com/wp-content/uploads/2008/02/cs1.JPGhttp://lssacademy.com/wp-content/uploads/2008/02/cs1.JPGhttp://lssacademy.com/wp-content/uploads/2008/02/cs1.JPGhttp://lssacademy.com/wp-content/uploads/2008/02/cs1.JPGhttp://lssacademy.com/wp-content/uploads/2008/02/cs1.JPGhttp://lssacademy.com/wp-content/uploads/2008/02/cs1.JPGhttp://lssacademy.com/wp-content/uploads/2008/02/cs1.JPGhttp://lssacademy.com/wp-content/uploads/2008/02/cs1.JPGhttp://lssacademy.com/wp-content/uploads/2008/02/cs1.JPGhttp://lssacademy.com/wp-content/uploads/2008/02/cs1.JPG


44/74

Regardingthedataboxes, ifyoudonthaveallthedataperfectlycollectedonthedayofthe

mapping exercisejustdo thebestyoucan.Youcanalwaysassignhomework togobackand

validatethefigureslater.

Infact,evenifyouthinkyouhavesoliddata,Iurgeyoutovalidateyourmeasurementsystems

to make surewecan trust thedata. Ifyouwant toget really trickystate bothameasureof

central tendency and dispersion. You wont see this advice in most lean VSM books I

guaranteeit!

AfterstudyingtheKB&Rmanufacturingprocessforanafternoonwelearnedthateachprocess

step is staffed with 1 operator. We also collected cycle time information at each step.

Additional homework will be to collect information such as defect rates and changeover

times.

Step8:Addthe Inventory/WaitTimes.Onceyouhavealltheprocessanddataboxes in, its

timetoaddininventoryand/orwaitingtimes.ThesearethelittleyellowtriangleswithanIin

themiddle.

Forinventory,wesimplycountthenumberofpiecesinbetweentheprocessesandnotethem

underthetriangle.

Page

44


45/74

Wealsowant toconvert thesepieces intodayssupply.Todothis,wedivide thenumberof

piecesbytheaveragedailydemand(whichweusedtocalculatetakttime).

So,ifyouraveragedailydemandis10piecesandyoucount20piecesofinventoryinbetween

process step A and process step B you have 2 days supply (20/10) in between the two

processes.Wewillnotethisnumberonourtimeline(tobeaddedinafuturestep).

Lastly,dontattempttomapeverypartnumber!Chooseoneortwokeycomponentstostart

with.Youcanalwaysaddmoretothemaplater.

Inourexample,wechosetosimplycounttwopiecesofbreadasonesubassemblysincethey

movetogether

down

the

production

line.

Also,wearenotaccounting forthepeanutbutterandjellyrawmaterialatthispointsince

KB&RsexpertsupplychainteamnegotiatedakillerconsignmentstockdealwithSamsClubso

thisinventoryisquitelowontheline.

Duringthestudy,welearnedthat,asoneexample,therewere486subassemblies(972pieces

of bread) in between thejelly application and packaging stations. This equates to 0.69 days

supply(486units/700dailydemand).

Page

45


46/74

Lastly,duringthewalkthroughoftheprocesswenoticedthateachprocessstepseemedtobe

workinginisolation.Inotherwords,theladyworkingatthepeanutbutterapplicationseemed

to produce as many units as she could and then pushed them along to thejelly application

process.

Thispushprocessisfound injustabouteverymassproductionprocessknowntomankind.

Whenweseethispushingactionwenote itonaVSMwithadashed linethroughtheyellow

inventorysymbol.

Step9:Drawintheinformationflow.ThisstepiswhatreallyseparatesaVSMfromtraditional

processmapsinmyopinion.Yousee,inadditiontolearningabouthowmaterialflowswealso

wanttounderstandhowinformationflows.

For example, we want to know it is moves about electronically? If so, we use a lighting bolt

lookingarrowedline.Isitcommunicatedmanually?Ifso,weuseastraightarrowedline.

Duringthisstepwealsodrawinourproductioncontrolbox.Formany,thisboxwillincludethe

letters MRP in it. In most mass production systems we typically see several manual

information(straight)linescomingoutoftheMRPboxaimedstraightateachprocessstepbox.

Inourexample,we learnedthatproductionscheduleseachprocessstep in isolation. Inother

words, each work station gets its unique production schedule. We draw this using straight

manualinformationlines.

Page

46


47/74

We also add in the information flow from our customers as well as to our suppliers. In our

example,

we

learned

that

PB&Js

customer

sends

30

days

electronic

forecasts

as

well

as

electronicdailyorders.Conversely,PB&Jsendsitsbreadsupplieranelectronicweeklyforecast.

Page

47


48/74

Step10:Addinthetimeline.Wecannowaddthetimelinetothebottomofthevaluestream

map.Thissawtoothlookinglinehelpsusseparatethevalueaddedcycletime(takenfromdata

boxes)fromthenonvalueaddedtime(daysorhourssupplyinfo).

Thelaststepintheprocessistosumupallthevalueaddcycletimesandnotethematthe

end of the timeline. Likewise, we also sum up the inventory times and note that on the

timeline.

Inourexample,thetotalvalueaddcycletimesumsto97secondsandthetotalnonvalueadd

inventorytimesumsto2.39days!Wecallthetotalinventorytimetheproductionleadtime

(PLT).

Tocalculatetheprocesscycleefficiency(PCE)wedividethevalueaddtimebythePLT.When

we

do

this

we

get

a

PCE

of

0.15%.

To

gain

a

better

understanding

of

the

PCE

statistic

let

me

referyoutothisarticle.

Page

48
http://lssacademy.com/2007/09/23/a-new-lean-metric/http://lssacademy.com/2007/09/23/a-new-lean-metric/http://lssacademy.com/2007/09/23/a-new-lean-metric/http://lssacademy.com/2007/09/23/a-new-lean-metric/http://lssacademy.com/2007/09/23/a-new-lean-metric/http://lssacademy.com/2007/03/15/mysterious-process-cycle-efficiency/http://lssacademy.com/2007/03/15/mysterious-process-cycle-efficiency/http://lssacademy.com/2007/09/23/a-new-lean-metric/


49/74

Summary

Andthatsitmyfriends.Youjustcreatedacurrentstatevaluestreammap. Thismayseemabit

daunting initially, but with just a little practice you will be a current state VSM drawing

machine!

Upnext,wewillseewhat improvementsweenvisionforthisprocessaswedrawupafuture

statevaluestreammap.

Page

49


50/74

Chapter17:FutureStateValueStreamMapping

IHaveaDream!

Theprocessofcreatinga futurestateVSMcanbequiteexcitingascreativityandexcitement

mergetogether.Itstimetodreamalittleasweworktocreatebetter,safer,moreproductive

workplace.And,pleasebesuretohavesomefunduringtheprocess!

Inthelastarticlewedocumentedthecurrentstateprocessofourfictitiouspeanutbutterand

jellysandwichfactory.Welearnedthefollowing.

Wehaveaproductionleadtime(PLT)of2.39days

Thetotalvalueaddedtime(VA/T)is97seconds

Theprocesscycleefficiency(PCE)is0.15%

Obviously,wehaveroomforimprovement. Andwhilethisisacompletelyfabricatedexample,

Ithinkyouwillfindsimilaropportunitiesinyouroperation.

Letsseewhatimprovementsweforesee.

Step1:

Create

aCycle

Time

/Takt

Time

Graph.

Fromthedatacollectedandcalculatedduring

thecreationofthecurrentstateVSMweare

able to draw a cycle time / takt time graph.

This graph simply compares the individual

cycle times to the overall takt time of our

process.

This is an important step as it will help us

make decisions as to how and what to

improve in future steps. Click the above

picture to see what this looks like for our

example.

Page

50
http://lssacademy.com/2007/09/23/a-new-lean-metric/http://lssacademy.com/2007/09/23/a-new-lean-metric/http://lssacademy.com/2007/09/23/a-new-lean-metric/http://lssacademy.com/2007/09/23/a-new-lean-metric/http://lssacademy.com/2007/09/23/a-new-lean-metric/http://lssacademy.com/2007/03/15/mysterious-process-cycle-efficiency/http://lssacademy.com/2007/03/15/mysterious-process-cycle-efficiency/http://lssacademy.com/2007/03/15/mysterious-process-cycle-efficiency/http://lssacademy.com/2007/03/15/mysterious-process-cycle-efficiency/http://lssacademy.com/2007/03/15/mysterious-process-cycle-efficiency/http://lssacademy.com/2007/03/15/mysterious-process-cycle-efficiency/http://lssacademy.com/2007/09/23/a-new-lean-metric/


51/74

As you can see, both the peanut butter andjelly application steps are under takt time. The

packagingstep,however, isovertakttimeand iscauseforalarm. In itscurrentstate,weare

notcapableofmeetingcustomerdemandwithouttheuseofovertime.

Step2:

Decide

if

you

will

build

to

stock

or

make

to

order.

Next,

we

must

decide

what

type

of

distribution model we will develop. Will we build to a finished goods supermarket or ship

directlytothecustomer?

In

our

example,

we

only

produce

one

product

and

customer

demand

is

relatively

stable.

Therefore, itwouldmakethemostsense todevelopamake toordermodel.Thismeanswe

wouldonlyproducewhatthecustomerwanted,whentheywantedit.

Now, since most companies produce more than one product and battle inaccurate sales

forecasts,buildingtoafinishedgoodssupermarketoftenmakesthemostsense.

One normally asks, Isnt thisjust building up inventory one of the 7 deadly wastes? The

answer isyes.But,thekeydifference iswearecontrollingthe inventory levels insteadofthe

inventorylevelscontrollingus.

So,forsakeofexample,wewillassumethefolksatKB&R,Inc.decidedtoimplementafinished

good supermarket where they will hold 0.5 days supply of finished stock (a.k.a. PB&J

sandwiches)beforeshippingasdemonstratedinthepicture.

Page

51


52/74

Step3:CalculateOptimalCrewSizeandImplementOnePieceFlow.Currently,theoperators

at KB&R work in isolation. You could say they allwork to their own drum beat. Whenever

possible,ourgoal asleanpractitioners,shouldbetogetalloperationsproducingtothesame

beatnamelytakttime.

Aswelearnedinstep1,boththepeanutbutterandjellyapplicationcycletimesareundertakt

timewhilethepackagingstepisover.Thisneedstobeaddressed.

Thesolutionistorebalancetheworkandimplementonepieceflow.Theteamfirstdetermined

theoptimalcrewsizefortheentiresandwichmakingprocess.

Todothis,theteamtookthetotalcycletimetoproduceasandwich(97seconds)anddividedit

by

the

takt

time

(38.6

seconds).

This

resulted

in

an

optimal

crew

size

of

2.5

operators.

Since

we

cannothave0.5personstheyroundedupto3.

If the team is ever able to reduce the total cycle time to less than 77 seconds the crew size

couldbetrimmedto2persons,freeinguptheadditionalresourceforothervalueaddingtasks.

Next, the team worked with their lean sensei and designed a ushaped cell where all 3

operatorswouldworkinaonepieceflowmanner.Oncetheworkwasredistributedtheteam

wasabletoproduceaPB&Jsandwichapproximatelyevery32seconds.Thetotaltimeforthe

firstsandwich

to

be

complete

is

still

97

seconds.

TherearevariouswaystonoteaushapedcellinaVSM. Oneofthemostcommonistosimply

drawasmallUinsideaprocessboxasshownbelow.

Page

52
http://lssacademy.com/2007/09/30/why-flow-counter-clockwise/http://lssacademy.com/2007/09/30/why-flow-counter-clockwise/http://lssacademy.com/2007/09/30/why-flow-counter-clockwise/http://lssacademy.com/2007/09/30/why-flow-counter-clockwise/http://lssacademy.com/2007/09/30/why-flow-counter-clockwise/http://lssacademy.com/2008/02/18/one-piece-flow-versus-mass-production/http://lssacademy.com/2008/02/18/one-piece-flow-versus-mass-production/http://lssacademy.com/2008/02/18/one-piece-flow-versus-mass-production/http://lssacademy.com/2008/02/18/one-piece-flow-versus-mass-production/http://lssacademy.com/2008/02/18/one-piece-flow-versus-mass-production/http://lssacademy.com/2008/02/18/one-piece-flow-versus-mass-production/http://lssacademy.com/2007/09/30/why-flow-counter-clockwise/


53/74

Step4:PullwhenOnePieceFlowisnotPossible.Anytimewebuildtosupermarketswemust

haveawayofsignalingwhentoproduceandwhennottoproduce.Thereareavarietyofways

toaccomplishthis.Theeasiestwayistousekanban.

Withoutgoing intogreatdetailsonhowtosizeand implementkanban, letmeexplain itthis

way.

When a customer places an order for 10 PB&J sandwiches, which we will assumeis the

standard packout quantity, a withdrawal kanban for 10sandwichesis sent to the finished

goods supermarket. The shipping clerk pulls off a pallet of 10 PB&J sandwiches and ships

themtothecustomer.

Page

53


54/74

Thisnowleavesaholeinthesupermarket.Therefore,aproductionkanban(whiteonaVSM)

for10sandwichesissentbacktotheushapedcell.Thisproductionkanbanbasicallysays,Hey,

wejustshipped10sandwichesandneedtoplugthehole!Makeus10moreplease!

Additionally, the supply chain team has worked with their supplier and negotiated frequent

milkruns,orscheduleddeliveries.Thisallows theteamtoonlyhold0.5daysofbread ina

WIPSupermarketbeforetheushapedcell.Again,kanbanandakanbanpost(goalpostsymbol

onVSM)areusedtoreplenishthisWIPsupermarket.

Finally, the implementation of kanban has allowed the team to turn off the MRP portion of

theirERPsystemandleaguesofleanangelssangHallelujah!

Step5:ImproveCommunicationandScheduleaPacemaker.Sofarwehavegonealongway

toimprove

the

flow

of

material

and

manpower.

Now,

lets

zoom

in

on

the

information

side

of

theequation.

Rather than scheduling each process on an island the lean approach is to schedule one

process.Wecallthisprocessthepacemakerprocesssinceitsetsthepacefortheentiresystem.

Page

54
http://lssacademy.com/2007/04/19/toc-bottleneck-versus-lean-pacemaker_19/http://lssacademy.com/2007/04/19/toc-bottleneck-versus-lean-pacemaker_19/http://lssacademy.com/2007/04/19/toc-bottleneck-versus-lean-pacemaker_19/http://lssacademy.com/2007/04/19/toc-bottleneck-versus-lean-pacemaker_19/


55/74

merBy definition, the pacemaker is typically defined as the process step closest to the custo

wherebyeverythingafteritflows.Inourexample,thiswouldbeshippingsincethesupermarket

aftertheushapedcelltechnicallyimpedesflow.

So,wewillaim toscheduleproductionatshipping.Onceshippinggets the instructionsas to

whattodotheywillalerttheupstreamprocessesviakanban.

Additionally, the team has decided to ratchet up the communication with its customers and

suppliers.

This

twoway

communication

will

help

all

parties

prepare

for

things

like

demand

fluctuations.

Summary

On paper we have made some sizeable improvements. Production Leadtime (PLT) has gone

from2.39daysto1day,andtheprocesscycleefficiency(PCE)hasgonefrom0.15%to0.358%.

Next up, we will discuss action planning and how to go about closing the gaps between the

currentstateandfuturestate.

Page

55


56/74

Chapter18:IntroducingtheKaizenNewspaper

Here is a sobering fact short of uncovering lots of opportunities we havent accomplished

muchuptothispoint. Askepticcouldsayallwehavedonesofarisdrawsomenicepictures.

Withthissaid,themost importantaspectofthevaluestreammappingprocesshasyettobe

started. Thataspectisactuallymakingchangesandbridgingthegapbetweenthecurrentstate

andfuturestateVSM.

Therearemanyapproachestothisandevenmoretemplatesavailable. Iamasimpleman,and

thusprefertokeepthingsaseasyaspossible. Assuch, Iknowofnobettertooltohelpwith

thisphaseofthegamethanthekaizennewspaper.

Extra,ExtraReadallAboutit!

Thekaizennewspaperisasimpletemplatethatstatesthefollowing:

TheProblemStatement. Simplyput,whatistheproblemweareaddressing. To

helpensureyouarestatingyourproblemstatementproperlyIhighlyrecommend

youkeepthingsSMART.

TheObjective. Whatisthegoalorpointoftheinitiative? Again,thinkSMART

whenstating

the

objective.

Dont

just

say

we

want

to

make

it

better.

How

much

better? Whatdoessuccesslooklike?

TheOwner. Whoisleadingtheinitiative? Seeingyournameonahugepieceof

paperhungonthewallcanbeapowefulmotivator!

TheDueDate. Whenwilltheinitiativebecomplete? Sincekaizenneverendsyou

maychoosetosimplystatethedatetheact/adjustphasebegins.

ThePhase. Herewenotewhatphaseoftheplan,do,check,act/adjust(PDCA)we

arein. IfyouaremoreofasixsigmaorganizationyoucaneasilyreplacePDCAwith

DMAIC.

Dowhatever

works

best

for

your

business.

Hereisfreekaizennewspapertemplatetogetyoustarted. Feelfreetotweakitasyouseefit.

Someliketoaddinthingslikethetypeofwasteyouareattacking,etc.

Page

56
http://lssacademy.com/wp-content/uploads/2008/03/kaizen-newspaper.xlshttp://lssacademy.com/wp-content/uploads/2008/03/kaizen-newspaper.xlshttp://lssacademy.com/wp-content/uploads/2008/03/kaizen-newspaper.xlshttp://lssacademy.com/wp-content/uploads/2008/03/kaizen-newspaper.xlshttp://lssacademy.com/wp-content/uploads/2008/03/kaizen-newspaper.xlshttp://lssacademy.com/wp-content/uploads/2008/03/kaizen-newspaper.xlshttp://lssacademy.com/2007/02/01/be-smart/http://lssacademy.com/wp-content/uploads/2008/03/kaizen-newspaper.xlshttp://lssacademy.com/wp-content/uploads/2008/03/kaizen-newspaper.xlshttp://lssacademy.com/wp-content/uploads/2008/03/kaizen-newspaper.xlshttp://lssacademy.com/wp-content/uploads/2008/03/kaizen-newspaper.xlshttp://lssacademy.com/2007/02/01/be-smart/http://lssacademy.com/wp-content/uploads/2008/03/kaizen-newspaper.xlshttp://lssacademy.com/wp-content/uploads/2008/03/kaizen-newspaper.xls


57/74

RevisitingKB&RsPB&JSandwichFactory

The teamatKB&Rhas lotsofwork todo. Theyhavedecided to listout theirplan of attack

using a kaizen newspaper. Rather than showing the detailed kaizen plan, here are the

highlights.

First,theyaregoingtodesign,build,andthentestthenewcellthatwilloperateinonepiece

flow, paced to takt time. They will do this offline in such a way that production is not

impacted.

Next,theywillalsoworktoproperlysizetheFGandWIPsupermarketsandassociatedkanban.

They have hired a lean consultant to help them with this since this is very new territory to

them.

Duringthedevelopmentofthepullsystemtheproductionplanningteamwilldeterminehow

theywillmoveawayfromtheiroldMRPmannerofschedulingeachworkstation. Instead,they

willnowschedulethepacemakerprocess.

Finally, the way KB&R communicates with its customers and suppliers will change. To

accomplishthis,meetingshavealreadybeensetupinordertoworkthisprocessout.

The team has broken these tasks done and assignedowners using a kaizen newspaper. This

newspaperhasbeenprintedoutononaplottersizedpieceofpaperandhungonthewallfor

alltosee.

Summary

Takingaction isthemost importantpartofvaluestreammapping. Ifallyoudo isdrawupa

current and future state VSM and leave it sitting in drawer you have wasted an enormous

amountof

time.

Willthefinishedproduct(postkaizen)lookexactlylikeyourfuturestateVSM? Probablynot.

Butaslongasimprovementisbeingmadeyouareontherightpath.

Page

57


58/74

LastPieceofAdvice:BeSpeedy!

My last word of advice is this be speedy! A current state VSM can be done in 1 day. The

futurestateVSMshouldstartthatsamedayoratthelatestthenextmorning. Dont,Iplead

withyou,

think

you

will

get

to

the

future

state

VSM

next

week.

That

is

the

kiss

of

death!

Finally,oncethe futurestateVSM iscompleteandthepointkaizeneventsare identified,set

aggressivegoals. Ihaveseentremendoustransformationsoccurin4days! Theselightingfast

transformationsareculturechangingtosaytheleast.

RecommendedReading

TocontinueyourVSMlearningjourneyyoumayconsidercheckingouttheseresources. They

havehelpedmealotovertheyears.

LearningtoSee. Thisisthebibleonvaluestreammapping. Itteachesyouhowto

seewasteinanewway.

CreatingContinuousFlow.Afterlearningtoseewastewemustlearntomakevalue

valueflow. Learnallaboutcreatingcellsinthisworkbook.

CreatingLevelPull. Learnallaboutkanbaninthisexcellentresource.

Page

58
http://lssacademy.com/2007/10/28/two-types-of-kaizen/http://lssacademy.com/2007/10/28/two-types-of-kaizen/http://lssacademy.com/2007/10/28/two-types-of-kaizen/http://lssacademy.com/2007/10/28/two-types-of-kaizen/http://lssacademy.com/2007/10/28/two-types-of-kaizen/http://www.amazon.com/gp/redirect.html?ie=UTF8&location=htt

lssa guide

Documents

39page25212018 lssa

jidoka theforgottenpillar