the principles of the lean business system: #5 prevention · kaizen blitz vs. lean management ty...

25 September, 2013© S A Partners

The Principles of the Lean

Business System:

#5 Prevention

Lean in the 21st Century ™ Series

Professor Peter Hines


• Welcome

• Webinar will last about 1 hour

• We will invite you to complete

a few Polls

• Q&A session

Our Webinar

Lean in the 21st Century™


• Frederick Taylor invented the business system used by

organizations throughout the 20th Century

– Cost is the focus

– Scientific Management System

– Functionally organized by expertise

– Built for internal efficiency

– Not fit for the global , competitive environment of the 21st century

– Relies on traditional management to be effective

– Objective is to minimize the time it takes to do value added

processes

• Peter Hines has invented a business system of the 21st

Century

– People are the focus

– Value Management System

– Organized by value delivered

– Built for productivity in an extended enterprise

– Fit for the global, competitive environment of the 21st century

– Relies on leadership disposition and language to be effective

– Objective is to reduce or eliminate non-value added activities

Welcome!

• Co-founder Lean Enterprise Research Centre, Cardiff University

• Chairman, S A Partners• Adjunct Professor, University of

South Australia

Professor Peter Hines

90% of problems in business are caused by management, 10% by the workman. F. W. Taylor, 1912


• Research conducted by Professor Peter Hines identified 5 key elements of success:-

• Link business system to a one to two year strategy through Policy Deployment

• Dismantle traditional, siloed, functionally-focused business processes

• Deploy human resources aligned to value to be delivered

• Develop leadership to be effective in a 21st century business system space

• Synchronize business systems with suppliers and customers

We encapsulate this in an evolutionary business model rooted in time tested customer, quality and lean thinking

The Lean Business Model

How we see creating a 21st

century business system…


The Lean Business Model ®

Original source: Professor Peter Hines

Benchmarking Toyota’s Supply Chain: Japan vs U.K.

Long Range Planning, February, Volume 31, Number 6, pp. 911-918, 1998, ISSN 0024-6301


The Principles


Muda, Mura and Muri

Mura

(unevenness)

Muda

(waste)

Muri

(overburden)


• Are your Continuous Improvement activities:

• Mostly focused on removing Muda or waste

• Mostly focused on removing Mura or un-evenness

• Mostly focused on removing Muri or overburden

• Well balanced between the three

• Please select one option

Poll #1


• Prevention

– Standards and stability

– Quality at source

• Risk

– Zero Defect Thinking (ZD) using PFMEA

• Variation Reduction

• Local Problem Solving

Prevention


Kaizen Blitz vs. Lean

Management

Imp

rove

me

nt

Op

po

rtu

nit

y

Time

Short term

gains made

Lost and repeated results

due to no sustainability

Results could be lost entirely

if organizational structure not

aligned to support and education

level of all employees not increased.

Improvement leveled off and

eventually stopped due to lack

of realizing “true” lean

opportunity

Greater, sustained

results achieved

Awareness, education,

organisation structure

created to support lean Source: C. Craycraft, Whirlpool

Utilization of Lean tools will deliver

performance improvement. However,

behaviors focused on Continuous

Improvement / Pursuit of Perfection

will provide sustainable long term

improvement


Creating Sustainable

Improvement

System of Thinking & Behaviour

System of Improvement

System of Work

Re

active

Fo

rma

l

De

plo

yed

Au

ton

om

ou

s

Wa

y of life

Mo

bilis

atio

n

Be

ne

fit

Time


Demand Amplification: Food Supply Chain

32%

26%

34%

44%

544%

12000

17000

22000

27000

32000

RetailSales

Retail orders to producer

Packed at producer

Actual Steaks supplied by meatpacker


The Lean Tools Model of

Excellence


• Why Has Lean often Over-Focused on Delivery Pillar?

• Lean has a functional home & tradition in Operations / Engineering rather than Quality

• We have been led by the text books

• We have been led by Lean training courses

• It is easier to be very focused in one area

• Please select one or more options

Poll #2


Standardised & Stable

Processes


A Brief History of CI and PDCA

Tools

In the 1950’s W. Edwards Deming recommended that business

processes be placed in a continuous feedback loop to identify and change the parts of that process that need

improvement.

This continuous process is now commonly known as the Plan, Do,

Check, Act cycle:


Workplace Organisation


Why clear up?

Remove

clutter

Free up

space

Start to

organise


Why organise?

Easier Safer Quicker


Why shine?

Eliminate

dirt and

grime

Cleaning is

checking

Maintain

Optimum

conditions


Standardised & Stable Processes


• OEE (Overall Equipment Effectiveness)

Overall Equipment Effectiveness

Availability Performance Quality

OEE World Class Benchmark = 85%

X X90 % 99 %95 %

An Example : @ A=50% / P=50% / Q=50% What is OEE?


• To understand the current situation

• To identify the variation in performance

• To identify the focus area for improvement

• To know the benefits of the improvements

In Summary

• A simple visual method for measuring and then acting on the equipment effectiveness

• It’s purpose is to sustain and continuously drive the improvement of all aspects of equipment effectiveness

Why the Need to Measure by OEE


Traditional Manufacturing

THIS RESULTS IN AN UNSTABLE, VARIABLE AND UNRELIABLE PROCESS


Phase 4 -

Consolidation

Phase 3 -

Implementation

Phase 2 - Introduction

Phase 1 - Preparation

The 4 Phases and Twelve Steps

to Successful TPM

Ref: TPM – in Process Industries by Tokutaro Suzuki (1994)


TPM - Production Systems


TPM – Maintenance Systems


Quality


• What order is it best to apply tools:

• Standardised & Stable Processes, Quality, Delivery

• Standardised & Stable Processes, Delivery, Quality

• Quality, Standardised & Stable Processes, Delivery

• Quality, Delivery, Standardised & Stable Processes

• Delivery, Standardised & Stable Processes, Quality

• Please pick one answer

Poll #3


The Lean Model of Excellence


STEP 1 STEP 2 STEP 3 STEP 4

Objective Process Flow Cause & Effect Mapping Plan

ProblemStatement:………………………………………………………………

Target: ………

Results:

Team:

What How……… ……….……… ……….……… ……….……… ……….……… ……….……… ……….……… ……….……… ……….……… ……….……… ……….……… ……….……… ……….

Problem Solving Methodology

Crimp Terminals

Assemble

harness

Crank to motor

Set up

Go No

Go

EFFECT

MENMETHODS MATERIALS

ENVIRONMENTMEASURE MACHINES


champion

Master Black Belt

Black Belt

Green Belt

Yellow Belt

Six Sigma “Expert” Tools – DOE


• Define

• Measure

• Analyse

• Improve

• Control – Maintain the gain!

• Transfer – Transfer the benefits!

• Each step has common tools

and methods

• Generates a common

organisational language

12 Project Steps

• Project Selection

• Performance STD’s, units, defect rate

• Measurement Validation

• Process Capability

• Performance Objectives - Targets

• Identify Variation Sources

• Screening Potential Sources

• Eliminate Defect Sources

• Establish Operational Tolerance

• Measurement System Validation

• Determine Process Capability

• Implement Process Controls

Six Sigma –

A Methodology for Improvement


Process Thinking


Zero Defect Performance

RPN Reduction

Single piece flow

Reduce MuraTakt Time

Heijunka

Reduce MuriOEE

Line BalancePoka Yoke 5 step evaluation

Standard work

Shift start-up checks

Process audit

PDCAPersonal & team

discipline

Internal Defect reduction

Tester Capability Check process

Andon / Jidoka Problem solving

5 Why

Window Analysis

CEDACStandard Work Process audit

Poka Yoke 5 step evaluation

ZERO DEFECTS – Toolkit

Configuration


Potential Failure Effect

SEV

ERIT

Y

Potential Cause

OC

CU

RR

ENC

E

Current Control

DET

ECTI

ON

Original RPN

What is the impact on the Key output

variables (Customer or internal

requirements)

Ho

w s

ever

e is

th

e ef

fect

to

th

e cu

sto

mer

?

What causes the key input to go

wrong?

Ho

w o

ften

do

es c

ause

or

failu

rem

od

e go

wro

ng?

What are the existing controls or

procedures (inspection and

test) that prevent the cause or the

failure mode? Should include an

SOP number Ho

w w

ell c

an y

ou

det

ect

cau

se

or

failu

re m

od

e?

Cleaning of housing (as well as checking dimensions) is not proof of assemblingprocess!

8

Wrong sequence of operation and cleaning method is not effective

10No control to make sure there is no dirt in valve

10 800

Leakage, waste of compressed air

6Wrong step sequence

5Functional test can barely pick it up

8 240

Loss of set pressure 6No Standard in place

3 No control 6 108

Loss of set pressure 6No Standard procedure

8 No control 2 96

PFMEA process


Poka Yoke – Error Proofing

Mindset

Don’t accept a defect

Don’t make a defect

Don’t pass ona defect

Ideally design the product so that it can’t be assembled incorrectly

Your supplier You Your customer


Autonomous problem solving


• What further activity would you like?

• Please select one or more answers

Poll #4


• If you would like to discuss anything coming out of the webinar please contact me at: [email protected]

or +44 (0)7974 416660

• Please also link up with me at: uk.linkedin.com/in/profpeterhines/

• Or join me at my Lean Business System LinkedIn group: http://www.linkedin.com/groups/Lean-Business-System-1801885?trk=myg_ugrp_ovr

• See also the previous webinars at: http://www.sapartners.com/webinars-2/

Further Questions

mailto:[email protected]

http://uk.linkedin.com/in/profpeterhines/

http://www.linkedin.com/groups/Lean-Business-System-1801885?trk=myg_ugrp_ovr

http://www.sapartners.com/webinars-2/


• Lean & Green – Greencore (Nottingham, UK) Factory tour

– 17-18 October 2013

– http://www.sapartners.com/book-launch-of-creating-a-lean-green-business-system/

• Accelerating Business Performance – How to create Culture of Business

Improvement, (Dublin, Ireland)

– Date: 12 November 2013

– http://www.sapartners.com/accelerating-business-performance-create-culture-

business-improvement/

• Learn • Share • Grow – Achieve Lean Excellence at Aimia Foods,

Haydock, UK)

– 16-17 January 2014

– http://www.sapartners.com/achieve-lean-excellence-event/

For further information please contact [email protected]

Or visit http://www.sapartners.com/uk-events/ for our full event schedule

European Events

http://www.sapartners.com/book-launch-of-creating-a-lean-green-business-system/

http://www.sapartners.com/book-launch-of-creating-a-lean-green-business-system/

http://www.sapartners.com/accelerating-business-performance-create-culture-business-improvement/

http://www.sapartners.com/accelerating-business-performance-create-culture-business-improvement/

http://www.sapartners.com/achieve-lean-excellence-event/

http://www.sapartners.com/achieve-lean-excellence-event/

mailto:[email protected]

http://www.sapartners.com/uk-events/


• Cardiff University accredited training in Melbourne ,

Sydney and Brisbane . See more details on:

http://www.sapartners.com.au/wp-

content/uploads/2012/11/Lean-Awarness.pdf

• Or Contact our Australian Managing Director Chris

Butterworth on [email protected]

Australian events

http://www.sapartners.com.au/wp-content/uploads/2012/11/Lean-Awarness.pdf

the principles of the lean business system: #5 prevention · kaizen blitz vs. lean management ty...

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