training lean

TEMPUS LeanEA LEAN Training Course

May 23-27 2011

Course Leader: Associate Professor Dr. Kim Hua Tan

TABLE OF CONTENTS

Introduction Lecture Notes: Session 1 Introduction Workshop Session 2 Toyota History And Background Session 3 Lean Philosophy and Principles Session 4 Tabletop Game Session 5 5S Visual Management Session 6 Data and Root Cause Analysis, Analyzing Process Performance Session 8 JIT Lego Game Session 9 SMED and Poke Yoka Session 10 Heijunka, High-Mix Low-Volume and OEE Session 11-12 Operations and Process Improvement Session 13-14 The Theory of Constraints Session 15 Web Lean Game Session 17 Mindset, Behaviour and Coaching

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TEMPUS LeanEA Project

Lean Training Course in Nottingham (23-27 May 2011) AIMS OF THE MODULE: This module aims to give participants: an understanding of Lean, and the analytical skills to achieve incremental and step changes in performance: the skills to develop and apply work standards in manufacturing and service planning and control. In particular, the module addresses the concepts, tools and techniques that are essential to creating world class lean manufacturing and service organizations. LEARNING OUTCOMES: After completing this module, the participants should gain following benefits: • Understand Lean as a system, not just as a collection of tools and techniques • Develop skills, tools and concepts to analyze, manage, and improve operations • Understand and apply hands-on application of Lean principles • Learn and internalize Lean principles for sustainable operations transformation • Understand how to apply Lean to develop own operations transformation action plans • Bring home potential outlines for Lean teaching in the university ORGANISATION: In this 5-days module, participants will learn about Lean through a series of discovery exercises, case studies, games, videos, and guest lectures. In day 1, participants begin to develop a language and lens for a Lean way of thinking. In days 2, 3 & 4, participants will learn, apply, and reflect on Lean principles and tools through videos, lectures, games and exercises. Guest lectures will be organized to enable participants to interact with practitioners and understand the issues and challenges in Lean implementation. Finally, in day 5, participants will look at Lean and their operations in a wholly new way. Participants will learn and understand the leadership and mindset required to make Lean happen. CONVENER/TEACHER: • KH Tan • J Guinery • K Pawar • P Marzec • M Tse • Guest speakers

o Bojana Militunovic, Procurement Specialist, KBR o Lina Zabaliunaite, Manufacturing Manager, Westmill Foods

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TEMPUS LeanEA Project

Lean Course in Nottingham (23-27 May 2011) COURSE SYLLABUS:

Sess-ion

Time Tutor Topic

May 23 (Monday): Introduction to Lean 1 09:00-

10:00 JT/ KH Tan

Introduction and welcome to Nottingham • 5-day program outline

2 10:30- 12:00

KH Tan Toyota history and background • TPS house • Toyota video

3 13:00-14:30

Mike Tse/KH Tan

Lean philosophy and principles • 8 wastes, MUDA, exercises • Pull versus push

4 15:00-17:00

KH Tan Tabletop game Process redesign, one piece flow

May 24 (Tuesday): Introduction to Lean Techniques 5 09:00-

10:30 KH Tan 5S, Visual management

• Examples from cases • Name card exercise

6 11:00- 12:30

Mike Tse

Data and root cause analysis, analyzing process performance • Run charts, Histograms, Fishbone diagrams, 5 why exercises,

etc. 7 13:30-

15:00 Guest lecture

Lean implementation examples (Westmill Foods) • Making it happen

8 15:30-17:00

KH Tan LEGO game • Pull versus Push • Floating bottleneck

May 25 (Wednesday): Introduction to Lean Techniques 9 09:00-

10:30 KH Tan SMED and Poke Yoke

• SMED Game 10 11:00-

12:30 Peter Marzec

Heijunka, High Mix Low Volume and OEE • Heijunka exercise

11 13:30- 17:00

K Pawar

Gemba kaizen • Examples

12

May 26 (Thursday): Putting Lean into Practice 13

09:00- 12:30

Jane Guinery

Lean in practice - Theory of Constraint (TOC)

14

15 13:30-15:00

Mike Tse

Lean game (IT base ) • Web game for larger class size • Teaching Lean in classroom/training center

16 15:30-17:00

KH Tan Course exam preparation

3

May 27 (Friday): Putting Lean into Practice 17 09:00-

12:00 KH Tan Peter Marzec

Leadership, mindset, behaviour, and coaching • Old maid game, attention test • Managing continuous improvement • Video: American vs Japanese suggestion programs

18

12:00-12:30

KH Tan Examination

19 13:30-15:00

Guest lecture

Lean implementation examples (KBR) • Service operations • Issues and challenges

20 15:30-16:30

KH Tan Concluding discussion & Award ceremony

ASSESSMENT: Assessment will be by means of an examination (100%), to be held on 27th May 2011. COURSE TEXTS: Core texts

Books Rother and Shook (2003) Learning to See: Value Stream Mapping to Add Value and

Eliminate Muda, Lean Enterprise Institute Jones and Womack (2003) Seeing The Whole, Lean Enterprise Institute Smalley (2004) Creating Level Pull, Lean Enterprise Institute Harris, Harris, and Wilson (2003) Making Materials Flow Creating, Lean Enterprise

Institute Rother and Harris (2001) Creating Continuous Flow, Lean Enterprise Institute Nicholas, J.M. (1998) Competitive manufacturing management, McGraw-Hill

International Bicheno, J. (2004) 'The New Lean Toolbox: Towards Fast, Flexible Flow' (3rd ed)

Picsie Press, England. Womack J., Jones D. (1996) Lean Thinking: Banish Waste and Create Wealth in your

Corporation, Simon & Schuster, New York. Imai (1997) Gemba Kaizen: A Commonsense, Low-Cost Approach to Management,

McGraw-Hill Liker, J. (2004). The Toyota Way: 14 Management Principles from the World's

Greatest Manufacturer, McGraw-Hill Womack, J.P. & Jones, D.T., (2003). Lean Thinking: Banish Waste and Create

Wealth in Your Corporation, New York: Free Press. Spear (2008) Chasing the Rabbit: How Market Leaders Outdistance the Competition

and How Great Companies Can Catch Up and Win, Foreword by Clay Christensen, McGraw-Hill

Drew, McCallum and Roggenhofer (2004) Journey to Lean: Making Operational Change Stick, Palgrave Macmillan

Miller and Schenk (1993) All I Need to Know About Manufacturing I Learned in Joe's Garage

Satoshi Hino(1996), Inside the mind of Toyota : management principles for enduring growth. Productivity Press.

PMI (2000) The Process Manager: Transforming Goals into Results, Process Management International

Lean Manufacturing Advisor (2006) Visual Tools: collected practices and cases, Productivity Press, New York

Hiroyuki Hirano (1995) 5 Pillars of the Visual Workplace, Productivity Press, New York

Mahoney, RM (1997) “High Mix Low Volume Assembly”, Prentice-Hall,

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Englewood Cliffs, NJ Lane, G (2007) “Made-to-Order Lean: Excelling in a High-Mix, Low-Volume

Environment”, Productivity Press “TPM: Collected Practices and Cases”, 2005, Productivity Press Shook, J (2003) “Lean lexicon: a graphical glossary for lean thinkers”, Lean

Enterprise Institute The Productivity Press Development Team (2002) Standard Work for the

Shopfloor, Productivity Press Imai , M (1997) “Gemba kaizen: a commonsense low-cost approach to

management”, McGraw-Hill Kaizen for the shopfloor (2002), Productivity Press Cellular manufacturing: one-piece flow for workteams(1999), Productivity Press Drury, C. (2005). Management Accounting for Business, Thomson Learning. Sutherland, J. & Canwell L, D. (2004) Key concepts in Strategic Management,

Basingstoke, Palgrave. Dweck, C.S (2007) “Mindset: The Psychology of Success”, Random House

Publishing Harding, S. & Long, T. (2008) MBA Management models, Aldershot, Gower

Publishing. Rother, M (2009) “Toyota Kata: managing people for improvement, adaptiveness,

and superior results”, McGraw-Hill Drury, C. (2005). Management Accounting for Business, Thomson Learning. Sutherland, J. & Canwell L, D. (2004) Key concepts in Strategic Management,

Basingstoke, Palgrave. Simon (2000), Performance Measurement and Control Systems for Implementing

Strategy, Prentice Hall.

Journals Spear and Bowen (1999), Decoding the DNA of the Toyota Production System,

Harvard Business Review, September-October Shah, R. and Ward, P.T. (2007), Defining and developing measures of lean

production, Journal of Operations Management, Vol 25, pp 785-805 Ahmad, A., Mehra, S. and Pletcher, M. (2004), The Perceived impact of JIT

implementation on firms’ financial or growth performance, Journal of Manufacturing Technology, 15(2), pp 118-130

Bokhorst, J., Slomp, J (2010) “Lean Production Control at a High-Variety, Low-Volume Parts Manufacturer”, Interfaces, 40(4), p303-312

Choobineh, F (1988) “A framework for the design of cellular manufacturing systems”, International Journal of Production Research, 26(7), p1161-1172

Wemmerlov, U., Hyer, N (1989)”Cellular manufacturing in the U.S. industry: a survey of users”, International journal of production research, 27(9),p1511-1530

Choo, A. S. (2010) 'Impact of a Stretch Strategy on Knowledge Creation in Quality Improvement Projects'. IEEE Transactions on Engineering Management, PP, 99, 1-10.

Ferdows, K. (2006). "Transfer of Changing Production Know-How." Production & Operations Management 15(1): 1-9.

Gosling, J., Mintzberg, H (2003) “The Five Minds of the Manager”. Harvard Business Review, Nov, 81(11) p54-63

Hamel, G. & Prahalad, C. K. (1989) 'Strategic Intent'. Harvard Business Review, May/June, 63-76.

Hamm, J (2006). “The Five Messages Leaders Must Manage”, Harvard Business Review, May

Inkpen, AC (2005) “Learning through alliances: GM and NUMMI”, California management review , 47, p114-136

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In addition there are number other articles/additional material which provide useful supporting information, these will be provided during the workshop.

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Agenda� Fire Exit

� Campus Map

� Wifi Point

� Catering and Coffee break

� Schedule

� Nottingham Staff

2

Lecture room in normal day

Computer lab (on Thursday)

3 4

1

2

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Walk Path to Victoria Center (Bus stop)

5

Days Hotel

Go to Jubilee 28, 30, 31

From Jubilee:All the bus with Destination - Victoria Center is suitable

Hotel to Jubilee Campus

6

Bus stop at city centre – for buses to Jubilee Campus

Bus Routes (1)� There are two ways to get into

Jubilee Campus:

(1) Pink line: 28,30,31 to the MAIN ENTRANCE at Wollaton Road A609, Take off at "Jubilee Campus"

Information: http://www.nctx.co.uk/pink/times.php

Route map in City Center: http://www.nctx.co.uk/pink/route.php

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Getting off point at Jubilee Campus

Bus Routes (2)� (2) Orange line 36,35,36,37 to the back

entrance (go through a Pedestrian/cycle route) at Derby Road A6200, Take off at "Hillside"

� Information: http://www.nctx.co.uk/orange/Route map in City Center: http://www.nctx.co.uk/orange/route.php

All fair is £1.6 single, no weekly ticket1 Day ticket is £3.2http://www.nctx.co.uk/fares/onthebus.php

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Take off at Hillside

Pedestrian

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How to Connect to UoN-guest

Wireless � Some laptops have a switch on the side of the laptop to activate the wireless adaptor. Make sure this is

switched on

� If you are in range your laptop should automatically connect to the UoN-guest network. If not, find UoN-guest in the list of networks available, then double click to connect. If it is not listed you are not within range of the hotspot. Please move the laptop until you are in range

1. Open your web browser, then go to any website that is not the University of Nottingham (see next page)

2. The UoN-guest wireless login page will appear

3. Enter your email address

4. Select, I accept the terms and conditions of this service , to confirm you have read the terms and conditions on this page

5. A small pop-up window will appear. This is for you to use later to logout

6. You are now connected to UoN-guest and can browse the internet

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Wireless Access Point

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Day 1 – Day 2

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May 23 (Monday): Introduction to Lean

1 09:00-

10:00

JT/

KH Tan

Introduction and welcome to

Nottingham

• 5-day program outline

2 10:30-

12:00

KH Tan Toyota history and background

• TPS house

• Toyota video

3 13:00-

14:30

Mike

Tse/KH

Tan

Lean philosophy and principles

• 8 wastes, MUDA, exercises

• Pull versus push

4 15:00-

17:00

KH Tan Tabletop game

Process redesign, one piece flow

May 24 (Tuesday): Introduction to Lean Techniques

5 09:00-

10:30

KH Tan 5S, Visual management

• Examples from cases

• Name card exercise

6 11:00-

12:30

Mike Tse Data and root cause analysis,

analyzing process performance

• Run charts, Histograms, Fishbone

diagrams, 5 why exercises, etc.

7 13:30-

15:00

Guest

lecture

Lean implementation examples

(Westmill Foods)

• Making it happen

8 15:30-

17:00

KH Tan LEGO game

• Pull versus Push

• Floating bottleneck

Day 3 – Day 4

12

May 25 (Wednesday): Introduction to Lean Techniques

9 09:00-

10:30

KH Tan SMED and Poke Yoke

• SMED Game

10 11:00-

12:30

Peter

Marzec

Heijunka, High Mix Low Volume

and OEE

• Heijunka exercise

11 13:30-

17:00

K Pawar Gemba kaizen

• Examples

12

May 26 (Thursday): Putting Lean into Practice

13 09:00-

12:30

Jane

Guinery

Lean in practice - Theory of

Constraint (TOC)

14

15 13:30-

15:00

Mike Tse Lean game (IT base )

• Web game for larger class size

• Teaching Lean in

classroom/training center

16 15:30-

17:00

KH Tan Course exam preparation

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Day 5

13

May 27 (Friday): Putting Lean into Practice

17 09:00-

12:00

KH Tan

Peter

Marzec

Leadership, mindset, behaviour, and coaching

• Old maid game, attention test

• Managing continuous improvement

• Video: American vs Japanese suggestion programs18

12:00-

12:30

KH Tan Examination

19 13:30-

15:00

Guest

lecture

Lean implementation examples (KBR)

• Service operations

• Issues and challenges

20 15:30-

16:30

KH Tan Concluding discussion & Award ceremony

Catering1) Morning tea (10.00-10.30)

- Tea, coffee and mineral water

2) Lunch (12.30-13.30) A Selection of Freshly Prepared Sandwicheson Wholemeal, Malted & Farmhouse BreadsA Selection of Freshly Filled WrapsMini Indian Selection with Mango ChutneyChicken SataySavoury Lattice Pastry (v)Herb Sausage BitesFresh Crunchy Vegetables (v)Fresh Fruit PlatterPlum Tomato & Parmesan Tart (v)Cajun Chicken SkewersCrispy King PrawnPaneer Tikka Pizza (v)A selection of Bite Sized Cakes& Exotic Fresh Fruit Slices

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3) Afternoon Break (15.00-15.30)- Tea and coffee

4) Dinners- Monday: Marrakesh Morrocan Bar and Restaurant

Nottingham Staff

Dr. Kim Hua Tan

Mike Tse Peter Marzec

Mobile: 07904802221Email: [email protected]

Mobile: 07975511327Email: [email protected]

Mobile: 07598950267Email: [email protected] 15

Prof. Kulwant PawarEmail: [email protected]

Dr. Jane GuineryEmail: [email protected]

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Agenda� Why Learn From Toyota?

� Background and History of TPS

� TPS System

2

Why Learn From Toyota?� Reached 10% market share in 2000, and Toyota was

number one in global automobile sales for the first quarter of 2008

� Consistently maintains top productivity

� Consistently achieves winning quality levels (before the recall scandal ☺ )

� Has triggered a global transformation of traditional manufacturing to “Lean Manufacturing.”

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Revenue Of Toyota

Source: http://www2.toyota.co.jp/en/news/11/index.html 4

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� Background And History Of TPS

� TPS System

5

Background of Lean And TPS

� The core concept of Lean originates from the Toyota Production System (TPS)

� Toyota began car production in 1933

� TPS was developed in Japan in the post war period after the 2nd world war

� It was established under certain geographic, economic, political and cultural circumstances as an attempt to increase Toyota’s competitiveness

6

1933start car product

line

1937 1st A

model

1946Major strike

1950Start of

TPS

1960sSupplierdevelop-

ment

1980sTrans-plants

•Low volume made mass production inflexible

•Low productivity

•Lack of resources

Movie clip play

Important Persons In Toyota� Sakichi Toyoda, the founder of the Toyota group of companies, started Toyota as a textile machine company.

� Kiichiro Toyoda, son of Sakichi and founder of the Toyota automobile business..

� Taiichi Ohno, Toyota's chief of production in the post-WWII period. He was the main developer of Toyota Production System (TPS).

� Dr. Shigeo Shingo: A consultant to Toyota.Shingo Prize is the highest manufacturing excellence award in the U.S. The prize is given both to companies and individuals who contributed to the development of manufacturing excellence.

7

History Of Manufacturing Management

Source: http://www.strategosinc.com/lean_manufacturing_history.htm8

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Waste Reduction By Lean Manufacturing

Customer placed

the order

Completed the

order

Customer placed

the order

Completed the

order

Lead time

Lead time

NO

WASTE

WASTE

Finished Product

delivered

Finished Product

delivered

Definition:

Lean is a

manufacturing

philosophy

which shortens

the production

lead time by

eliminating

sources of

waste.

9


� Background And History Of TPS

� TPS System

10

Toyota Production System (TPS)� Definition: The production system developed by Toyota

Motor Corporation to provide best quality, lowest cost, and shortest lead time through the elimination of waste.

� TPS is comprised of two pillars, Just-in-Time and Jidoka(autonomation) , and is often illustrated with the "house" shown on the next slide.

� TPS is maintained and improved through iterations of standardized work and kaizen (continuous improvement), following Plan–Do-Check-Act (PDCA Cycle from Dr. Deming), or the scientific method.

11

House Of Toyota

Goal: Highest Quality, Lowest Cost, Shortest Lead Time

Just-in-Time

Continuous FlowTakt Time

Pull System

Stability

Heijunka Standardized Work Kaizen

Stop and notify of abnormalities

Separate man’s work & machine’s

work

Jidoka

Toyota Production System “House”

12

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13

Another e.g. The Ceva Lean HouseGoals

Principles

Foundation

*Emphasis is on operating system

Fast response Low cost Zero defectsPhysical &

mental safetyChallenge Empowerment

Customer Satisfaction Human Development

Excellence

Flow Quality

Pull Kanban

Sche-duling Takt time

One-piece-flow

JIT Leveling

“Stop the line”

Built-in-quality

5 why’s Poka yoke

Problem solving

Go and see

LEAN audit TPM 5SWork

instructionCross training PDCA Kaizen form

Standard operations

Training KPIsWaste

eliminationVisual

managementTask

descriptions

Standardized Work Stability Continuous Improvement

The Toyota Way

Challenge � Long-term vision,

courage and creativity!

Kaizen � Innovation and

evolution!

Genchi Genbutsu � Go to the

source to find the root cause!

Respect � Respect, take

responsibility and mutual trust!

Teamwork � Growth and

performance!

Continuous Improvement

Respect for People

14

The 4P Model of Toyota Production

System (TPS)

TPS

Problem Solving

People and Partners

Process

Philosophy

15

The Categories And The 14 Management

Principles Of The Toyota WayCategory Management principles

Philosophy (long-term thinking) Base management decisions on a long-term philosophy, even at the expense of short-term financial goals

Process (eliminate waste) Create process “flow” to surface problems

Use pull systems to avoid overproduction

Level out the workload

Stop when there is a quality problem

Standardize tasks for continuous improvement

Use visual controls so no problems are hidden

Use only reliable thoroughly tested technology

People and partners (respect, challenge, and growthem)

Grow leaders who live the philosophy

Respect, develop and challenge your people and teams

Respect, challenge, and help your suppliers

Problem solving (continuous improvement and learning)

Continual organizational learning through Kaizen

Go see for yourself to thoroughly understand the situation

Make decisions slowly by consensus, thoroughly considering all options; implement rapidly 16

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Toyota Production System (TPS):

Related Terms� Ohno System

� MAN (Material as Needed) - Harley Davidson

� MIPS (Minimum Inventory Production Systems) -Westinghouse

� Stockless production - Hewlett Packard

� Zero inventory production system

� Lean Manufacturing/Production - MIT

17

Lean Application In Other Areas

� Lean management in Office

� Lean in fastfood restaurant - McDonald

18

ReferenceBook

� Liker, J; Meier, D. (2005). The Toyota Way Fieldbook: A Practical Guide for Implementing Toyota's 4Ps. McGraw-Hill.

� Satoshi Hino(1996), Inside the mind of Toyota : management principles for enduring growth. Productivity Press.

Journal

� Spear and Bowen (1999), Decoding the DNA of the Toyota Production System, Harvard Business Review, September-October

Website

� http://www2.toyota.co.jp/en/news/11/index.html

� http://www.strategosinc.com/lean_manufacturing_history.htm

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Purpose StatementPrevious session:

� We know where is “lean” originated from… We know Toyota has developed an amazing management philosophy……

This session:

� We will cover the core philosophy in of Lean management, for instance, 8 Muda (wastes), JIT, Kanban, Toyota DNA….

2

Agenda� MUDA

� 8 Wastes

� Pull Versus Push

� Toyota DNA

� 10 JIT Elements

3

Three Types of Waste In Lean

Manufacturing

Unreasonableness

Inconsistency

Operations/activities that do not add any customer value

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Muda - Introductory Quotation

Shoichiro Toyoda (豊田章一郎), Chairman of Toyota (1992–1999)

Waste (“Muda” in Japanese) is ‘anything other than the minimum

amount of equipment, materials, parts, space, and worker’s time, which are absolutely essential to add value to the product.’

5 6

Non-ValueAdded

Non-Value Adding Process:

Those process steps that take time, resources, or

space, but do not add value to the product or

service itself.

?%

Value Adding Process:

A process step that transforms or shapes a

product or service towards that which is

sold to a customer.

?%

Value

AddedVs

7

Identify V.A. vs. N.V.A.Ask:

Is this something the customer would be willing to pay for?

Ask:

Does this activity change the form, fit or function of the product or service?

N.V.A. but necessary – those that add no value to the customer but must be done.

8

Traditional ApproachTraditional Approach LeanLean

Value

added

Non-value addedNon-value added

Value

added

Lean Versus Traditional Approach

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Muda Elimination Perspective

Father of TPS - Taiichi Ohno (大野耐一)

“This is the manufacturing system developed by Toyota which pursues

streamlining throughout the entire system through the elimination of

Muda, and aims to build quality in at the manufacturing process while

recognizing the principle of cost reduction. It also includes all the

accompanying technology necessary to accomplish those aims.”

9

Elimination of Muda� Toyota perspective on waste is substantially different from the

perspective adopted by the rest of other

� E.g. it is common knowledge that inventory is waste, however, when we actually see inventory on the shopfloor, we might think:

� 1)we tend to see either something necessary for production to run smooth, or

� 2) it is evidence of healthy manufacturing

� What’s the difference in Toyota perspective?

� Toyota does not view inventory in terms of productivity but in terms of cash flow

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Smooth?

Productive?

Agenda� MUDA

� 8 wastes


� Toyota DNA

� 10 JIT Elements

11

Waste� TWO DIMES – A method to

remember the 8 forms of waste� Transportation

� Waiting

� Over production

� Defects (Correction)

� Inventory

� Motion

� Excess (over) processing

� Shared knowledge

Some lean expert raised 7 wastes

12

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13

The 7 Wastes

Source: Hines & Taylor, 2000

Waste Description

1. Overproduction Producing too much or too soon, resulting in poor flow of information or goods and excess inventory

2. Defects Frequent errors in paperwork, product quality problems, or poor delivery performance

3. Unnecessary

inventory

Excessive storage and delay of information or products, resulting in excessive cost and poor customer service

4. Inappropriate

processing

Going about work processes using the wrong set of tools, procedures or systems, often when a simpler approach may be more effective

5. Excessive

transportation

Excessive movement of people, information or goods resulting in wasted time, effort and cost

6. Waiting Long periods of inactivity for people, information or goods, resulting in poor flow and long lead times

7. Unnecessary

motion

Poor workplace organisation, resulting in poor ergonomics, i,e, excessive bending or stretching and frequently lost items

Caused by non-value

added movement of

people and machines

• Unnecessary walking, bending, twisting

• Searching through database, files, manuals

• Extra clicks or keystrokes14

• Work in process waiting for input/ information

• Awaiting Approval

• Wait for meeting to start

• Waiting for systems to start

WAITING

Waiting for Upstream

process to provide

inputs

MOTION

What might it look like

Caused by the

unnecessary movement

of material , information

TRANSPORTATION

• Moving documents from place to place in the process

• Manual workflows

• Office Moves

This type of waste

occurs whenever we

have rework, defects or

audit

• Incorrect reports/data entry errors

• Information not right the first time

15

• More finished product than the customer needs

• Emails/ requests to be read or handled

INVENTORY

This waste is work in

process or finished

product

DEFECTS/ CORRECTION


Caused by

unnecessary

processes & operations

OVER PROCESSING

• Unnecessary hands-off

• No decision rights

• Complicated approvals

Producing more product /

information than the customer

wants and before the customer

wants it

• Printing extra copies of reports

• Reports or information nobody uses

• Back ups between departments

16

OVER PRODUCTION


Do not fully utilize our

employees or transfer learning

KNOWLEDGE

• Repeating the same mistake

• Specialists, not all employees solving problems

• Best Practices not shared across organization

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Agenda� MUDA

� 8 Wastes


� Toyota DNA

� 10 JIT Elements

17

Push versus Pull

� Push system: material is pushed into downstream workstations regardless of whether resources are available

� Pull system: material is pulled to a workstation just as it is needed

18

Just-in-Time (pull and flow)

19

Push approach

buffer inventory

stage Cstage A stage B

buffer inventory

•Goods are produced and handed off to downstream process•Creates excess inventory•The production of items at times required by a given schedule planned in advance

JIT approach

stage A

orders

deliveries

stage B stage C

orders

deliveries

•Driven by demand (customer pull)•Coordinated production•Use kanban cards

Kanban� Japanese word for card (看板)

� Authorizes production from downstream operations

� ‘Pulls’ material through plant

� May be a card, flag, verbal signal etc.

� Used often with fixed-size containers� Add or remove containers to change production rate

20

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Triangular Kanban

Part #

Trigger (Reorder) Point

Part Description Location

Date Triggered Lot Size

Tool #

Machine #

21

Triangular Kanban Application

22

Kanban System

The function of Kanban

≈ (is similar to)

The function of Inventory Reorder Point (ROP)

� Single card

� Move only containers with C (Conveyance)-kanban)

� e.g.: Kawasaki

� Dual card

� Move only container with C- kanban

� Produce only when authorized by P (Production)- kanban

� e.g.: Toyota23

� Traditional: inventory exists in case problems arise

� JIT objective: Eliminate inventory

� JIT requires

� Small lot sizes

� Low setup time

� Containers for fixed number of parts

� JIT inventory: Minimum inventory to keep system running

Inventory

24

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A

A A B B B C

JIT Small Lots

Large-Lot Approach

Time

Time

A A B B B C

A A A B B B B B B C C

JIT produces same amount in same time if setup times are lowered

Small Vs Large Lots

Small lots also increase flexibility to meet customer demands

25 26

Less Inventory Exposes Problems

Agenda� MUDA,

� 8 Wastes


� Toyota DNA

� 10 JIT Elements

27

Toyota’s DNA - The four rules � Rules 1: All work shall be highly specified as to content ,

sequence, timing, and outcomes� Rules 2: Every customer-supplier connection must be direct, and

there must be an unambiguous yes or no way to send request and receive response

� Rule 3: the pathway for every product and service must be simple and direct

� Rule 4: Any improvement must be made in accordance with the scientific method, under the guidance of a teacher, at the lowest possible level in the organization.

�All the rules require that activities, connections, and flow

paths have built-in tests to signal problems automatically

�It is the continual response to problems that makes this

seemingly rigid system so flexible and adaptable to changing

circumstances

Source : Spear and Bowen (1999), HBR 28

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8

Toyota’s DNA

Source: http://www.strategosinc.com/toyota_corporate_culture.htm29

Rule Implied Hypotheses Problem Signals Responses

How People

Work

Specifications document

all work processes and

include content,

sequence, timing and

outcome.

•The person or machine can

perform the work as specified

•If the work is done as specified,

the product is defect-free.

•The work procedure

varies from specification

•Defective Products

•Improve training

•Improve Process Capability

•Modify the work specification

How Work

Connects

Connections with clear

YES/NO signals directly

link every customer and

supplier.

•Customer requests have

a known, specific volume and

mix.

•The supplier can respond to

requests.

•Responses do not keep

pace with requests.

•Supplier is idle waiting

for requests.

•Determine true mix and demand.

•Determine true supplier capability.

•Retrain/improve/modify.

The Physical

Arrangement

Every product and

service travels a single,

simple and direct flow

path.

Every supplier in the flow path is

required and suppliers not on

the flow path are not required

•A person or machine is

not needed.

•Unspecified supplier

performs work.

•Determine why supplier was

unnecessary; redesign flow.

•Determine reason for unspecified

supplier; redesign flow.

How To Improve

Workers at the lowest

feasible level, guided by

a teacher (Sensei),

improve their own work

processes.

A specific change causes

a specific, predictable

improvement in productivity,

quality or other parameter.

Actual result varies from

expected result.

•Determine why the actual result

differed from the prediction.

•Redesign the change.

Agenda� MUDA,

� 8 Wastes


� Toyota DNA

� 10 JIT Elements

30

The JIT Island

31

Setup time

reduction

Small lot size

Quality

control

JIT purchasing

JIT facility

layout

Kanban

Heijunka

5S campaignMulti-skill

employee

Total productive

maintenance

Ref: Ahmad et al. (2004), Shah and Ward (2007)

10 JIT Elements

32

1. Setup time reduction Setup time reduction is also called quick c handover, its function is to reduce the time involved in changing from producing one product to other products.

2. Small lot size Reduce lot size enables JIT systems to operate effectively so that it benefits from less WIP inventories, less space required, and increased flexibility.

3. Quality control Infrastructure element of JITHave another names, such as “Total quality control” “quality circle”, “quality management programs” and “Total quality management”,

4. JIT purchasing It is a supplier participation and partnership program. This program would involve suppliers in long-term mutually rewarding cost-reduction efforts. Usually it requires frequent or JIT delivery and quality certification, sole sourcing and developing a long term relationship based on close work with supplier

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10 JIT elements

33

5. JIT facility layout In JIT system, equipment layout, such as U-shape layout is notably different from Ford system. This kind of manufacturing cell and other smaller equipment designed for flexible floor layout, can eliminate operator’s motion waste and have flexibility in responding to demand variations.

6. Total productive maintenance

This element attempts to establish and routine preventive maintenance and replacement programs to reduce waste of machine breakdown and failure.

7. Kanban and visual management

In JIT system, the original meaning of Kanban is a signalingdevice (usually is a card) to regulate material flowsIn practice, the definition of Kanban has been extended; it is used to denote all kinds of visual management tools.

8. Level scheduling(Heijunka)

Requires materials to be pulled into final assembly in a pattern uniform enough to allow the various elements of production to respond to pull signals. Attempts to stabilize and smooth the production workload, reduce the waste of WIP and obtain high flexibility to respond to diverse demand.

10 JIT Elements

34

9. Five S campaign Sometime it is called “housekeeping”. usually viewed as an important prerequisite for implementing JIT.

10. Multi-skill employee “flexibility of worker’s skill” “cross-functional workforce”, “cross-functional training”The basic idea is to train employees on several different machines and in several functions, and ultimately reduce waste of human resource.

ReferenceBook

� Liker, J; Meier, D. (2005). The Toyota Way Fieldbook: A Practical Guide for Implementing Toyota's 4Ps. McGraw-Hill.

� Satoshi Hino(1996), Inside the mind of Toyota : management principles for enduring growth. Productivity Press.

Journal

� Spear, S. and Bowen, H.K. (1999), Decoding the DNA of the Toyota Production System, Harvard Business Review, September-October

� Shah, R. and Ward, P.T. (2007), Defining and developing measures of lean production, Journal of Operations Management, Vol 25, pp 785-805

� Ahmad, A., Mehra, S. and Pletcher, M. (2004), The Perceived impact of JIT implementation on firms’ financial or growth performance, Journal of Manufacturing Technology, 15(2), pp 118-130

Website

� http://www.strategosinc.com/toyota_corporate_culture.htm

35

2011/5/18

1

Session 4

Tabletop Game

Purpose Statement� Last session

� Lean philopshy and TPS

� This session

� A hands-on game to learn the ‘seed’ of TPS

Overview� There are 4 “evolutionary” experiments

� Craft Production

� Division of Labour

� Improved Lot Size, Layout and Workers

� Balancing the process

� They are related to the cellular layout principles of lot size, production smoothing, one piece flow etc…

Setup: Worksheets� Each sheet has 3 problems

� Each problem has 8 operations

� Each step uses results from the previous stages

� To start, pick an integer between 1 and 19 to feed into Operation 1

� Example� Seed = 9

� Op 1: (Seed) + 13 …… 22

� Op 2: (1) x 2 ………. 44

� Op 3: (2) / 11 ………. ???

1. ………..

2. ………..

3. ………..

4. ………..

5. ………..

6. ………..

7. ………..

8. ………..

1. ………..

2. ………..

3. ………..

4. ………..

5. ………..

6. ………..

7. ………..

8. ………..

1. ………..

2. ………..

3. ………..

4. ………..

5. ………..

6. ………..

7. ………..

8. ………..

2011/5/18

2

Setup: The Players

8 operators8 operators

2 observers2 observers

1 transporter1 transporter

The operators complete the task. Workers are not allowed to move worksheet- That is transporters role

Observe 1: The task time- the time from one operator to the next

Observe 2: The lead time- the time from start to end

The transporter moves all the worksheets

Set-up: The Layout1. Craft Production 2. Simple specialisation

3. Reduction of lot size,

improved layout and selection

of suitable workers

4. Balancing the process

1 2 3 4

8 7 6

5

(1,2) (3) (4) (5) (6,7) (8)

A B

C

D E G H

F

All All All All

All All All

All

1 7 4 25 3 8

6

Record Form

ExperimentExperiment 11 22 33 44

Observer 1: Observer 1:

Average task Average task timetime

Observer 2:Observer 2:

Average lead Average lead timetime

Experiment 1: Craft Production� Operators

� Complete all 8 stages FOR All 3 problems

� Operator to time from start to finish

� No transporters

� Seed =1

2011/5/18

3

Experiment 1: Discussion� Both the task time and the lead-time are the same.

� What is the average time?

� Under this scheme, major pieces of equipment (such as the calculators) have very low rates of utilisation.

� Furthermore, all the workers must be skilled at all the jobs, mental, pencil and calculator calculations

� There is a set-up time between different work elements

� Variation in times and errors in work is high

� Now dividing the task up- operators arranged as follows

� Operators: only do the step allocated, but for all 3 problems

� Observer 1: Follow a worksheet from start to finish, timing each operator from when they start till when they finish

� Observer 2: Time worksheet to when operator 1 starts till when operator 8 finishes

� Transporter: Move worksheets between operators- Note the layout! WARNING: workers cannot move/pass worksheets!

Experiment 2: Division of Labour

1 7 4 2

5 3 8

6

Experiment 2: Division of Labour

� Work Sequence� Operator 1 gets all 8 sheets. Each sheet gets a different seed number

� Operator 1 completes ONLY THE FIRST STEP for all three problems

� When the a worksheet is completed the transporter takes it to Operator 2 who completes ONLY THE SECOND STEP for all three problems and so on..

� Notes� Only the transporter can move worksheets around as per the layout above

� If you have worksheets, do them- DON’T STOP! (especially Operator 1!)

1 7 4 2

5 3 8

6

Experiment 2: Discussion� What is the average task time and the average lead-time with

simple specialisation?

� We should see that simple specialisation reduces the task time because the workers can get adept at the simpler tasks and there are reduced set-up time.

� This means more product can be produced in a fixed period of time

� BUT, lead-time soars because flow is interrupted due to imbalances in the process: Stock builds up before slow operations and after fast ones.

� SO specialisation increases the capacity of a process at the expense of the lead-time

2011/5/18

4

Experiment 2: Discussion� Also lead-time is increased due to the “lot size” of 3

problems per worksheet

� And the transporter is now required. If the transporter has too much work to do, then the benefits of specialisation can be lost. Also transporter can also make errors

� Summary of effect of Simple Specialisation� Pros: Improved ability to do work

� Pros: Increased equipment operating rates

� Cons: need for a transporter

� Cons: increase production lead-time

Experiment 3: Improved Lot Size,

Layout and Workers� Improvement 1: Improved layout- create a linear flow

remember: only the Transporter can move worksheets!!

� Improvement 2: Allocate Operators based on peoples strength, that is, those that are best at mental calculations, do those, etc.

� Improvement 3: Reduce lot size- Instead of having 3 problems per worksheet (ie Batch = 3), cut them into 3 individual problems and now move them (ie “one piece flow”)

� Format same as previous: 2 observers; work sheet flow only by transporter; Each problem gets a different seed.

1 2 3 4

8 7 6

5

Experiment 3: Discussion� What is the average task time and the average lead-time with

improved layout and selection of suitable workers?

� The better selection of personnel should reduce the task time (about 10%)

� Also the improved layout should have reduced the lead-time

� Transporter errors should be reduced

� Transporter workload should be been reduced

� Because of this workers have less “idling”

� The lot-size reduction should have also reduced the lead-time

� But the lead-time is still greater than in Experiment 1 because of the “imbalances” in the process.

Experiment 4. Balancing the

Process� You would have found that some operations are more difficult

then others- now we will balance them out

� Operators� Step 1 and 2 are done by A

� Step 3 is shared between B and C

� Step 4 is done by D

� Step 5 is shared between E and F

� Step 6 and 7 are done by G

� Step 8 is done by H

� Observers- same

� Eliminate the transporter

(1,2) (3) (4) (5) (6,7) (8)

A B

C

D E G H

F

2011/5/18

5

Experiment 4: Discussion� What is the average task time and the average lead-

time with improved layout and selection of suitable workers?

� There is no real change in the task time, except for a slight “learning curve” effect, but the lead-time should be drastically reduced

� Lead-time should be the quickest yet!

� Improved balance reduces queuing and waiting in the process

� This experiment show that we should both assign people the the right tasks and balance the process

What Have We Learnt?� Simple division of labour, if done thoughtlessly can

cause a bad layout and greatly increase the transportation overhead

� Balancing the process has the greatest effect on lead-time

� Reducing the Lot-size has a large effect on lead-time

� Re-arranging the process in the order of operations has some effect on lead-time

How Does This Fit In?� JIT?

� Kaizen?

� Muda?

� TOC?

� Heijunka?

� VSM?

� Etc.

18/05/2011

1

Purpose Statement� Previous session:

We discussed the history of TPS, elements of TPS,….

� This session:

Where to start with lean initiative after we know there are “wastes” in our operation? Thus, we can simplify and improve our firm’s operation?

2

Think It In Lean� 5S visual management – a first tool of lean transformation !

� If you don’t know where to start “lean”, where would it be? Go 5S!

� To build teamwork and produce immediate result (you can view it visually!!)

� 5S can be more than a starting point, in fact, it is the critical part of overall initiative.

3

Agenda� 5S

� Visual management

� Name Card exercise

4

18/05/2011

2

5

� The physical work environment is critical as the key driver for high quality, low cost and rapid delivery.

� Will product improvements see the light of day in filthy plants?

� Can we expect people in dismal environments to work at their maximum potential?

� Can uncluttered minds with fresh ideas function in cluttered workplaces?

Foundation For Improvement

As managers, we demand the best from the people who work

with us. But in order to get the best performance, we must

provide the best working environment.

6

– To ensure a clean, orderly, safe and productive workplace.

5S is a Foundation for Improvement

5S For Improvement

1S

Sort

4S

Standardize

3S

Shine

2S

Set

5S

Sustain

整理（せいり、Seiri）整頓（せいとん、Seiton）清掃（せいそう、Seisou）清潔（せいけつ、Seiketsu）躾（しつけ、Shitsuke）

7

What Is 5S?

� 5S is a methodical approach to improve workplace efficiency through organisation.

� The aim is to reduce clutter, expose waste so that you can eliminate it and prevent it from recurring in the future

� Improve workplace orderliness – a place for everything and everything in its place

� 5S relates to the Organisation of the Workplace (Workplace Organisation), and is foundational to Lean Manufacturing.

8

5S Elements

� Sort (Get rid of everything you don’t need)

� Set in Order (Properly locate necessary stuff, set inventory limits)

� Shine (Clean everything inside and out)

� Standardize (Create the rules for maintaining the first 3 S’s)

� Sustain (Ensure adherence)

5S in the US: Sort, Straighten, Sweep, Standardize, Self Disciple

5S + 1S (Safety) = 6S

5S + 2S (Safety and Security) = 7 S (Agilent Technology that was

part of Hewlett Packard)

18/05/2011

3

9

• To eliminate the wastes that result from “uncontrolled” processes.• To gain control on equipment, material & inventory placement and position.

Why 5S? 5S In Visual Management

� Visual Management are simple signals that provide an immediate understanding of a situation or condition. They are efficient, self regulating, and worker managed. Examples include:

� Pictures, diagrams

� Color coded dies, tools, pallets

� Lines on the floor to delineate storage areas, walk ways, work areas, etc.

� Improved lighting

10

11

• Color-coded areas• Clear aisles• Increased visibility of non-conformances

The Good – After 5S Visual Management

Working procedures are mentioned clearly on

the board with pictures and instructions

Visual ManagementAndon Lamp

Red - line stoppage

Yellow - call for helpGreen - normal operation

• link to Visual management

12

18/05/2011

4

View Of Shopfloor

The Great Wall Five Foot Standard

Sight is blocked !

• Link to McDonald example video13 14

5S Example

Before 5S

After 5S - Cleaned, organized and drawers labeled (less time and frustration hunting)

15

Sort (Seiri)� Identify and remove clutter

� Classify everything by frequency of usage

� Throw out what is not used (red tag exercise)

Sorting Criteria

Frequency of use Action

Never (unneeded)

Once a year

Less than once a month

Once a week

Once a day or more

Throw away

Place in storage

Store in factory or office

Store in general work area

Carry or keep at workstation

Questions to ask:

What is this item used for?

How often it is needed?

Is it needed in this location? Anywhere else?

How many are needed?

Who uses it?

Are there any other reasons why this item should be kept here?

SORT

16

Red Tag Process

1. Identify clutter, unused equipment, etc

2. Fill out and attach red tag

3. Note in red tag log

4. Red tags must be dispositionedwithin 30 days

Source: www.superfactory.com

One-time activity to remove or disposition clutter

Red tag attack: A red tag attack is the strategy of a team going through the plant and putting red tags on everything that has not been used within

the last 30 days. The items that people feel are necessary to "hold on to"

must be justified to their superior, or the item is taken out of the plant!

18/05/2011

5

17

Set In Order (Seiton)

� Locate what is used in the right place

� Clearly indicate where things belong i.e. lines, labels, signs, colours.

� A place for everything (using boards, tools and dies on trolleys or at the right height, and color matching to link associated tools)

� Everything in its place

SET

18

5S Examples - Sort, Set In Order

See the difference?

• Sort - All unneeded tools, parts and supplies are removed from the area

• Set in Order - A place for everything and everything is in its place

Source: www.tocforme.com/ppt/5sbasictrainingppt.ppt

19

Shine (Seisou)

� Eliminating all sort of contamination i.e. dirt, dust, fluids, and other debris.

� Cleaning is checking!

� Check for abnormality and its root causes

� Physical tidy up and visual sweeping (look out for anything out of place)

� To improve safety, product quality, and working environment

Shine

20

5S Example - Shine

The area is cleaned as the work is performed (best) and\or there is a routine to keep the work area clean.

Source: www.tocforme.com/ppt/5sbasictrainingppt.ppt

18/05/2011

6

21

Standardize (Seiketsu)� Develop standard for the first 3 S’s.

� Share information among teams so that there is no confusion or errors regarding

� Locations (tools, aisles)

� Delivery

� Destinations

� Quantities

� Schedules (cleaning)

� Downtimes (maintenance)

� Procedures and standards

� Make the standards known (visual)

Standardize

22

Sustain (Shitsuke)� Keep the steam going! Daily 5-mins 5S activities

� Everyone participates in 5S on an ongoing basis (training)

� Encourage and recognise achievements

� Carry out audits regularly

Sustain

23

With an Organized Workplace

� Defects are reduced

� Cleanup time is minimized

� Inventory is reduced

� Maintenance is improved

� Safety is improved

� Workers are more efficient

24

ExerciseCabinets � Cabinets are part of the business environment, in the

workshops or office. These pieces of furniture have to be part of the 5S discipline, and not be considered as convenient hiding places for leftovers and scrap!

� From visual management and 5S point of view, cabinets have one weak point: solid doors. These doors hide the cabinet content, its state of orderliness and restrain quick access to documents, tools, or other items stored. Closed doors do not allow to see from remote place nor immediately, if a needed item, tool or document is at its. It is then necessary to move to the cabinet, open it and... discover.

How would you tackle this?

18/05/2011

7

25

Exercise (answer)

26

Exercise (answer)

Business Card Exercise

� While we attend conference/workshop/, we are routinely exchanging business card whenever the people first meet. Unfortunately, few people organize their collection of business cards rationally.

� In fact, about half of the business cards that people received are useless from the beginning. They are exchanged merely as a formality with neither party intending to use the card at a later date.

� In this exercise, we assume that there are loads of unorganized business cards, how can we apply 5S to manage these business cards, transform them from MUDA to an useful resource to our company? Form a groupof 6.

27

Business Card Exercise (Answer)

18/05/2011

8

ReferenceBook

� Lean Manufacturing Advisor (2006) Visual Tools: collected practices and cases, Productivity Press, New York

� Hiroyuki Hirano (1995) 5 Pillars of the Visual Workplace, Productivity Press, New York

29

18/05/2011

1

1

Purpose StatementPrevious session:

� Overview the lean philosophy, 8 waste, JIT……

This session:

� For implementing lean, it is necessary to figure out the waste before eliminating it� For instance:

� Too much defects (waste!)?

� Too much rework (waste!)?

� Introduce techniques and tools for analyze the root cause of waste

2

Think It In Lean

� We want to know what exactly the problem is

� We need to identify the expensive problem and solve it

� We need to use that time wisely. We only want to solve them in once…solving the same problem twice is a MUDA!!!

3

Agenda� Run Chart

� Histograms

� Pareto Diagram

� 5 Why

� Fishbone Diagram

4

This covers 4 of the 7 Quality Control Tools, the rest of them are data collection sheets, control charts, and scatter diagram

7 Quality Control Tools

Collection sheets

�Run Chart

�Histograms

�Pareto Diagram

�Fishbone Diagram

Control charts

Scatter diagram

18/05/2011

2

Run ChartPurpose:

� As a process improvement tool, run charts allow for the observation of a process characteristics while preserving the time order of data

� Run-charts show changes in a process over time by giving an indication of:� The centre and the spread of process

� Recurring cycles, trend, or shift

� The effect of change over time

5

Trend Example� A trends can be

indicated in the figure

� There is a special cause when a sequence of 7 or more points are steadily increasing and decreasing of no change direction

0

100

200

300

400

500

600

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18

Pie

ce

Finished product

Centerline = 467.5

6

Remarks: Centerline is the median of the data

Run Example� A run having two or more

consecutive data point on one side of the centreline

� A run indicates a special cause is one that show 9or more consecutive data points on one side of the centreline

� Then should be an unusual event that needs further investigation

0

5

10

15

20

25

30

1 3 5 7 9 11 13 15 17 19 21 23 25

No

of

de

fect

Quality of finished product

Centerline = 19

7

Cycle Example� There is signal of special

cause variation: Repeating patterns

� A cycle must recur at least 8 times before it can be interpreted as a signal of a special cause of variation

0

5

10

15

20

25

30

35

1 3 5 7 9 11 13 15 17 19 21 23

un

it

Centerline = 10.5

8

18/05/2011

3

Agenda� Run Chart

� Histograms

� Pareto Diagram

� 5 Why

� Fishbone diagrams

9

Histogram� Can describe a data set with

respect to shape, center and spread

� Help identifying sorting, rework, or multiple sources of variation in a process

�Histogram alone cannot indicate whether the process that generate the data is stable, since there is no time element

�When the original data is grouped in classes, some information is loss

10

Shape and Spread in HistogramShape

� Having an understanding of the shape of the data produced by the process � helps in the development of theories to explain what is happening,

� diagnosing problems

� identifying sources of variation

Spread

� Measures of spread provide an indication of the magnitude of variability in a dataset

� The control limit can be constructed by the measure of spread

11

Agenda� Run Chart

� Histograms

� Pareto Diagram

� 5 Why


12

18/05/2011

4

Pareto Diagram� Pareto diagram indicates priorities for

problem investigation or the main sources of variation

� The basis for prioritization can take various forms, such as cost or frequency of occurrence

� Pareto’s Law states that 20% of causes give 80 percent of the effect (e.g. 20% of customer generate 80% of turnover, sure it is just a guideline, not a rigid rule )

� A Pareto diagram is a bar chart that summarized the items by their frequency and order them in decreasing frequency. The height of the diagram is the total frequency

13

Pareto Diagram (2)Benefits

� It provides a graphical method for prioritising issue

� It helps to separate the vital few from trivial many

� It provides the meanings to view the issue from different perspectives

� Can be used to compare the rank of problems

� Usually will employ before Value Stream Mapping (VSM)� There are loads of production and operation in my firm, which one

should be mapped in VSM? Use Pareto diagram to rank and illustrate it!!

14

Levels Of Analysis

LEVEL 1. IDENTIFICATION OF MAIN

CONCERN BY

CHECKING THE OVERALL

PERFORMANCE

LEVEL 2. BREAKDOWN MAIN

CONCERN

BY OTHER CATAGORIES, SUCH AS

AREAS, TYPES, ETC.

LEVERL 3. BREAKDOWN BY

REASON

Drill-d

ow

n to

the

actu

al p

rob

lem

15

Case Example - Level 1

Centerline = 19

Week

MechCo is a large machinery manufacturer that provides machinery parts to variety industries. The project manager, Mr. X, is reported by the repairing department that the number of repairing request by clients has leaped in these two months. Even in some cases, the same item has been returned to MechCo twice in a month .

Mr. X has plotted a run chart and find there should be a special cause for these return. What’s make him to have this implication?

_________________________

16

0

5

10

15

20

25

30

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22

No

. o

f c

ase

Customer Defect Return

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5

Case Example - Level 2Week Total Product A Product B Product C Product D Product E

12 27 2 9 6 9 1

13 20 2 5 5 5 3

14 22 1 6 3 10 2

15 25 1 10 4 10 0

16 27 1 5 5 15 1

17 28 2 5 1 17 3

18 28 3 7 5 11 2

19 25 1 10 2 7 5

20 27 3 10 3 11 0

21 21 0 5 7 8 1

Mr. X gets the product repairing data in week 12-week 21, and he has plotted a histogram. However, the plotted histogram does not give a clear information . He needs a useful diagram that can really represent the situation more obviously. So, he can bring it to quality team for further discussion.

Can you help him to re-plot it to a Pareto diagram? (Remarks: You may plot it to another histogram, and follow with Pareto diagram)

17

Level 2- Plot the Pareto Diagram

100%

50%

250

0

100

50

150

200

0%

80 %

18

Case Example – Level 3

No. of case

Motor breakdown 73

Cover melt 26

Overheat 49

Cover crack 15

Physical damage 5

ESD 5

Others 2

Mr. X focuses on the repair cases of Product D and B. He groups the defective information of this 2 product into a table, and plots another Pareto diagram.

175 100

50

0

75

25

80%

01020

304050607080

He finds that most of the problems are related to motor. i.e. the motor is breakdown because of overheat, even the cover melting is another consequence of it. Thus, he brings these figures and shows to the quality team to discuss the problems.

19To be continue…

Agenda� Run Chart

� Histograms

� Pareto Diagram

� 5 Why


20

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6

21

Root Cause Analysis Tools

ProblemRoot

Cause

Corrective

Actions

Root Cause analysis Tools:� 5 Why’s�Ishikawa Charts (Fish Bone, Cause & Effect Diagram.)

Identify the problem from data

5 Whys?

� Failing to address the deeply rooted seed of the problem means it will likely recur.

�The problem-solver simply asks a why question approximately five

times in series.

�Experience has shown that stopping at 2 or 3 why’s usually means that

the inquiry has not gone deep enough.

� 5 why’s is a Root Cause Analysis Tool.

� NOT a problem solving technique.

� The output of a 5 Why’s analysis is :

� one or several root causes that ultimately identify the reason why a problem was originated.

22

5Whys: An Effective Problem-solving

Technique – Example 1� Why is our client, unhappy?

Because we did not deliver our services when we said we would.

� Why were we unable to meet the agreed-upon timeline or schedule for delivery?

The job took much longer than we thought it would.

� Why did it take so much longer?

Because we underestimated the complexity of the job.

� Why did we underestimate the complexity of the job?

Because we made a quick estimate of the time needed to complete it, and

did not list the individual stages needed to complete the project.

� Why didn't we do this?

Because we were running behind on other projects. We clearly need to

review our time estimation and specification procedures.23 24

Five Why’s Preparation� It is not always necessary to reach 5 before the root cause of a problem is fully

explained

� It may take more than 5 why’s to get to the bottom of it. It will depend on the complexity of the process or the problem itself.

� In any case, 5 has been determined, as a rule of thumb, as the number at which most root causes are clearly identified.

� Do not worry about not meeting or exceeding this number though. Just follow your thought process and let it decide how many Why’s you require to get to the point where the root cause is evident.

18/05/2011

7

25

Five Why’s – The First Why�Clear statement of the reason for the defect or failure to occur, understood even by people that are not familiar with the operation where the problem occurred.

� Often this first Why must be a short, concise sentence that plainly explains the reason.

�Don’t try to justify it, there will be time to do that later on in the following why’s if it is pertinent to the thought process.

�It is fine to write the questions down even if it seems too obvious for you (It may not seem that obvious to other staff that will read the document).

26

Five Why’s – The Second Why

�A more concise explanation to support the first statement.

�Get into the technical area, the explanation can branch out to several different root causes here.

�It is fine to follow each of them continuing with their own set of remaining 3 why’s and so forth.

27

Five Why’s – The Third Why�Do not jump to conclusions yet, follow the regular thought process even though some underlying root causes may start surfacing already.

�This 3rd why is critical for a successful transition between the obvious and the not so obvious.

�The 1 and 2 why’s have prepared you to focus on the area where the problem could have been originated; the 3, 4, 5 why’s will take you to a deeper comprehension of the problem.

�Visualize the process where the product went through (process mapping) and narrow down the most likely sources for the problem to occur.

�You do not need to answer all the why’s at the same time, it is an investigation activity and it will sometimes require you to go to the process and see things you could have missed at first.

Remarks: You may be missing the obvious by rushing into “logical” explanations”.28

Five Why’s – The Fourth Why�Clear your mind from preconceived explanations and start the fourth why with a fair approach.

�You may have two or more different avenues to explore now, explore them all. Even if one or several of them turn out not to be the root cause of the problem, they may lead to continuous improvements.

This is a good time to include a Cause and Effect analysis and look at the 5 M’s.�Method

� Material� huMan

� Machines� environMent

18/05/2011

8

29

Five Why’s – The Fifth Why�When you finally get to the fifth why, it is likely that you have found a systemic cause.

� If you have reached the fifth why and you are still dealing with process related cause(s), you may still need one or two more why’s to deep dive into the systemic cause.

30

Five Why’s – Conclusion�A good way to identify if the 5 Why’s was done properly is to try toorganize the collected data in one sentence and define it in anunderstandable manner.

�If this cannot be done or the sentence is fragmented or meaninglesschances are that there is a gap between one or several of the why’s. Youthen must revisit the 5 Why and identify those gaps to fill them in.

�If there is coherence in the way that the sentence is assembled, it showsconsistency on the thought process.

�Something like:

“Problem Description” occurred due to “Fifth Why”. This was caused by

“Fourth why” mainly because “Third Why” was allowed by “Second

why”, and this led to “First Why”.

31

Five Why’s – Conclusion�Do not forget that the sought outcome of a 5 Why exercise is a root cause of a thedefined problem, not the resolution of the problem itself

� 5 Why’s is not a standalone Problem Solving technique but more of a tool to aid inthis process.

� Pro’s� easy to understand� can be done quickly� get us to something that needs to be fixed

� Con’s

� not good for complex problems� can be done too quickly – not enough data collection� wrong answer will take you down the wrong path

32

1. Why did the motor burn out?Answer: The shaft seized.

2. Why did the shaft seize?Answer: There was no lubrication.

3. Why was there no lubrication?Answer: The line filter was clogged.

Root Cause?

Root Cause?

4. Why was the line filter clogged?Answer: It was the wrong size.

5. Why was it the wrong size?Answer: We receive the wrong size.

5Whys: case exampleWhile Mr. X is discussing with the quality team, they have started a 5 Why’s root cause analysis process….

18/05/2011

9

Agenda� Run Chart

� Histograms

� Pareto Diagram

� 5 Why


33 34

� Also known as Ishikawa or Fish Bone diagram

� Used to identify and analyze “all” possible causes of a situation or problem

Output

environMent

Material

Methods

Machines

huMan

Cause and Effect Diagram

35

Brainstormed ideas become the small bones of the fish

Output

environMent Methods huMan

Material Machines

Variable that affects output

Filling Out the Fish BoneFishbone – How To Do It Practically

GoalIdentifies possible root causes (inputs) associated with a specific effect (output)

Steps:1.Select a specific effect (tightly defined, small in scope)

2.Brainstorm the possible causes of the problem onto individual “post-it notes”

3.Establish major cause categories, most frequently used are:HuMan , Machine, Materials, Method/Process, EnvironMent

4.Construct the fishbone. This will become a living map of the process towards resolving the effect:

36

18/05/2011

10

5.Transfer Problem Post it notes to the diagram, placing each cause under the appropriate cause category

6. List causes in order of priority

Fishbone – How To Do It Practically

HUMAN MACHINE MATERIAL

ENVIRONMENTMETHOD

EFFECT

Eliminate causes in order of priority37

Fishbone: Case Example 2

38

Purchaser ordered the wrong parts

Receive and use the wrong size line filter

Human

Opportunistic behaviour from supplier

Method

Improper purchasing process

Machine

Environment

Materials

No facility to assist to discover the wrong size before hand

The outlook of the wrong part is so similar to the correct one

Do you think this is a good fishbone diagram? Why?

The product ion leadtime is too short

Poor incoming inspection

Insufficient/wrong inspection in finished products

Fishbone: Case Example Suggested

Answer

39 40

� Pro’s

� looks at lots of potential causes

� more systematic than 5 Why’s

� better for dealing with more complex problems

� Con’s

� takes some time; not a quick fix

Cause and Effect Diagram

18/05/2011

11

Link the Fishbone to 5 Whys ?

7. Establish which are the most likely causes. Circle these and develop them further by asking 5 Whys to reach root cause

8. Substantiate each “Why” step with real data to confirm. This may take some time depending on data availability but will prove to be entirely worthwhile in resolving any doubt within or external to the team and in justifying possible expenditure

9. Agree corrective actions and begin trials.

Data Data

5thWhy

DataData Data

3rdWhy2ndWhy

Root Cause

4thWhy1stWhy Cause

Cause

Cause

Cause

HUMAN

41

ReferencesBook

PMI (2000) The Process Manager: Transforming Goals into Results, Process Management International

Nicholas, J.M. (1998) Competitive manufacturing management, McGraw-Hill International

Website

http://www.balancedscorecard.org/Portals/0/PDF/runchart.pdf

42

2011/5/18

1

JIT LEGO Game� Designed to compare the two different modes of

production

� Push

� Pull (JIT)

� We will be operating a production line making seaplanes out of LEGO blocks

� Firstly, we will run the line in the Push mode of production, and then we will run the line in thePull mode of production

2

3

Push approach

buffer inventory

stage Cstage A stage B

buffer inventory

•Goods are produced and handed off to downstream process•Creates excess inventory

Pull approach

stage A

orders

deliveries

stage B stage C

orders

deliveries

•Driven by demand (customer pull)•Coordinated production•Use kanban cards

Just-In-Time (pull and flow) Overview

4

Stage 1

Undercarriage

Stage 2

Fuselage

Stage 3

Wings &

Engines

Stage 4

TailInspection

4 operators 2 dismantlers 1 inspector

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2

The Set-up

Operator � Responsible for assembling a particular part of

the product

Inspector � Inspect every product for defects and record

the amount of products that are produced

� Record timing that is indicated on the

Record Sheet

Dismantler � Dismantle the finished products and replenish

the raw material supplies

5

The Set-up� Production duration = 12 minutes

� Lead time block inserted after 5 minutes

� Tea break after 7 minutes

� Count inventory

� At the end of the production the inspector will count up the number of products made (including defects, etc.)

6

Experiment 1: The Set-up

� Push Mode

� Operate with a ‘batch system’ with a ‘lot-size’ of 3

� As soon as the ‘batch of 3’ has been completed it can be pushed to the next stage

� No split batches can be moved

7

Lead Time Block

1 2 3 4

• During the game play, Kim / instructor will give a

“lead time block” (can be yellow or white)to

workstation 1, plug it into your working product

• Inspector please start your timer

Start

Timer

Stop

Timer

• Inspector please Stop your timer once you get

this “special” product. The time you recorded

down is the “production lead time”

Lecturer/instructor

Inspector

2011/5/18

3

Record Form

Time product with lead-time block is

delivered

Amount of WIP in the pipeline during

Tea Break

Good product

Defect product

Total production quantity

9

Experiment 1: Discussion

� What is the time product with lead-time block is delivered?

� What is the amount of WIP in pipeline at Tea Break?

� Where is the position of the bottleneck?

� What is the stress level of the operators?

10

Experiment 2: The Set-up

� Pull Mode

� Operate with a ‘Kanban system’ with a ‘lot-size’ of 3

� Empty squares will be used as the Kanbancard to trigger assembly

� Operators will only work when they receive a Kanban, other they will remain idle

11

Record Form

Push Pull

Time product with lead-time

block is delivered

Amount of WIP in the pipeline

during Tea Break

Good product

Defect product

Total production quantity

12

2011/5/18

4

Experiment 2: Discussion

� What is the time product with lead-time block is delivered?

� What is the amount of WIP in pipeline at Tea Break?

� Where is the position of the bottleneck?


13

What Have We Learnt?

14

More rapidresponse to

customer ordersLess warehousespace needed

Reducedinventory

costsGreater

customersatisfaction

Higher qualityproducts

Benefits of a Pull SystemBenefits of a Pull System

Dice game

WS1 WS2 WS3 WS4

� 4 persons form a production line

� Each player acts as the operator of the work station (WS)

� LEGO block is the stock in the whole production line

� Each person starts with 4 stocks (except the WS1, WS1 has infinite raw materials)

� Each person has a dice

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5

Steps To Run Dice Game

In each round

1. Each person rolls the dice at the same time at the start of each round.

2. WS1 operator takes the number of LEGO blocks equal to what he has rolled to WS2. If he does not have enough LEGO blocks, the he passes all he has.

3. Operator needs to record the current stock in his WS in every round

4. Step 2 and 3 is repeated for everyone in turn

5. At the end of the round, WS4 operator passes the number of LEGO blocks to the finishing line

6. Step 1 to 5 repeat 20 rounds

Discussion

1. The number of LEGO blocks in the queue will be the measure of WIP and the total number of LEGO blocks that passed finished line is a measure of the throughput

2. Plot a graph to show the WIP and throughput in each round

So, what does the graph tell?

2011/5/18

1

Session 9

SMED and Poke Yoka

Purpose statement� Previous session

� Disscussed wastes in operations, and various tools to analyze them

� This session

� Introduces two tools for improve these identified opportunities:

� Improving changeover time with SMED

� Defect reduction with Poke Yoka

Agenda� What is SMED?

� Four Stages of SMED

� SMED Game

� What is Poke Yoka?

� Mistakes VS Errors VS Defects

� Poke Yoka Devices

4

What is SMED?� SMED – Single Minute Exchange of Dies

� Changeover to a Single Digit Minute, i.e. less then 10 minutes

� Developed by Toyota and expanded by Shigeo Shingo

� Why SMED?• Idle time is non-value adding process (Muda/Waste)• Increase machine utilization• Improve Cost and Delivery

2011/5/18

2

What is a Changeover?� Includes

• Removing the old tool/dies

• Attaching new tool/dies• Adjustment time

� Changeover = the time taken from the last conforming piece until the first conforming piece of the next run

Acceptable

Production Change-Over Tooling ScrapAcceptable

Production(New Product)

Time

Output

Wasted Time

Set-Up Time Production TimeProduction Time

Start Process

Acceptable

Production

Acceptable

Production

Quick changeover...IKEA style

http://www.youtube.com/watch?v=_GZUM87rNrg

Why Quick Changeovers?� Flexibility: more often changeovers

� Improve service levels

� Smaller batch sizes means � less likelihood of large scale defect problems in inventory

� Lower inventory- Reduces the need for on-hand inventory

� Better Quality: Reducing quality defects and yield losses due to machine adjustments

� Reduce lead time

� Better On-Time Delivery

� Increase machine capacities

Where is Time Spent?10% - Centering and dimensioning new tooling

20% - Preparation of materials such as Jigs and Tools

20% - Removal of Tooling

50% - Trial processing and adjustment

2011/5/18

3

Changeover Activities� External Activities

� The activities which currently take place when the machine is switched off, but could be performed whilst it is still running

� Collecting toolsAdjusting jigs and fittings

� Finding shims etc

� Internal Activities

� work that must be done while the machine is shut down

� Changing the blade on a band saw

� Changing the head of a spray gun

� Removing the tool from a press

� SMED Principle- convert Internal activities to External activities



� SMED Game




Four Stage Approach

1. Observe and record

2. Separating internal and external setup

3. Converting internal to external setup

4. Streamlining all aspects of the setup

Stage 1: Observe� Observe: every activity of the changeover

� Clipboard

� Video

� Stopwatch

� Record: Time the steps

� Identify Non-Value Added Activities

� TIMWOODThe camera never lies

2011/5/18

4

INTERNAL EXTERNAL

Stage 2: Separate � Allocate each activity into internal and external set up

� Challenge whether some of the internal activities should be external

Stage 3: Convert� Study the internal activities and look for opportunities where

operations could be:

� Simplified

� Use pre-set jigs and fixtures

� Pre-heat molds or dies

� Standardized fixtures, mounting plates, bolts

� Question

� What preparations need to be made in advance?

� What tools and parts need to be on hand?

� Where do tools and parts need to be placed?

� Are tools and parts in good repair, cutters sharp?

� Where should tools be placed after removal?

� How will tools and parts be transported?

Stage 4: Reduce• Reduce Internal and External Set-up Time

• Use other Devices

• Quick clamping devices (toggle clamps)

• Pneumatic tools

• Eliminate-combine-reduce

ELIMINATE ? Yes

No COMBINE ? Yes

No REDUCE ? Yes

Golden rules for SMEDPoint 1: 5S

� Establish defined storage places for dies, jigs, tools etc

� Create checklist and standardize terminology

� Arrange items according to their frequency of use or the process undergoing during SMED

� Color code as required

Point 2: Move Arms Not Legs

� Change layout or procedure as to minimize walking

� Remove walking waste caused by a central control panel

2011/5/18

5

Golden rules for SMEDPoint 3: Bolts As Enemies

� Devise a lever-type fastener.

� Devise a cam-type fastener.

� Devise auto-clamp devise.

Point 4: Standardization Of Dies, Jigs, and Fixtures

� Die height.

� Die sizes.

� Clamp height.

� Clamp position.

� Locators or stops for one touch setting.

� Color coding to assure correct dies, jigs, and fixtures.

Golden rules for SMEDPoint 5: Adjustment Is Waste

� Set up guideposts or SOPs� Eliminate adjustment for setting the feed pitch.� Eliminate adjustment of material feed devices.� Eliminate adjustment for positioning.

Point 6: Can SMED Be Eliminated?� Can SMED be mechanized?� Integrate the press into the production line.� Use rotary press.� Mechanize the die replacement process (auto-feed and or auto-stop

devices.)



� SMED Game




�Tasks:�Changeover from the large tool to

the small tool, and�Change raw material from large disks

to small disks as quickly as possible

�Current Job:�Large tool on machine�Pin filled with 5 large disks (raw matl)

�Next Job:�Small tool on machine�Pin filled with 9 small disks (raw matl)

2011/5/18

6

Before SMED

5mm ± 1mm

Perpendicular to 3

sides ± 1mm

30mm

30mm

35mm

Assembly Conditions

Game Setup

�1 Operator

�1 QA

� (tool centered ± 1mm, 5mm

between tool and clamp)

�1 Time-keeper

Assembly Rules� Loosen & tighten nuts with spanners & allen keys only

� Don’t use ‘hands’ as adjusting spanners

� Don’t write on the material

� Tools can’t fall out when the changeover is completed

� Only the operator is qualified to make the changeover

2011/5/18

7

� Material

� Ruler

� Set of Spanners

� Set of Allen keys

� New tool

� New raw material

First Trial ChecklistFirst Trial Checklist� Operating Procedure

� Adjust & tighen clamp

� Adjustment of 2 perpendicular sides/ edge

� Small tool: 30mm on both sides & 35mm from edge

� Measurement 5mm while disk can’t fall out

� Change the raw material (9 small disks)

Results - Before SMEDTask Time

Get and open toolbox

Find allen key from the pile of hand tools

Loosen tool

Remove ‘Large’ tool

Get new tool

Find the right size spanner

Loosen and lift clamp

Put ‘Small’ tool onto the machine

Find ruler

Adjust and tighten clamp by spanner

Adjust tool position

Tighten tool with allen key

Remove old raw material

Put new raw matl in place

QA intervenes

TOTAL

Before SMED - Discussion� What is the total changeover time?

� What is the time spent on searching for hand tools?

� What is the time spent on loosening and tightening the tool?

� What is the time spent on adjustment?


� Variation in times and errors in work is high

2011/5/18

8

Second Trial Checklist� Material

� Ruler

� Spanner 19

� Allen keys 5

� New tool

� New raw materal (9 small disks)

� Shim & guide pins

� Butterfly nut

Results - After SMED

Task Time

Loosen tool using butterfly nuts

Remove ‘Large’ Tool

Put shim & guide pins on machine

Put ‘Small’ Tool onto the shim

Tighten tool with butterfly nuts

Take away raw matl, supply new raw materal

QA intervenes

Loosen tool using butterfly nutsTOTAL



� SMED Game




What is Error-Proofing?� Technique to minimise the possibility

� For mistakes/defects to be made AND

� Passed on to customers

� Not on identifying and counting defects

� Emphasis on the eliminating the cause

� Can reduce the time/cost of inspection to near zero

2011/5/18

9

Poke Yoka and Shingo� Also known as Poke-yoke, Japanese for “avoiding inadvertent errors”

� avoid (yokeru) mistakes (poka)

� Technique formalized by Shigeo Shingo.

� The use of process and/or design features

� Build into� Product design� Tool design� Process design

� Poke-yoke “devices” are mechanism that

� Prevents a mistake from being made

� Makes the mistake obvious

Everyday Examples

� Auto-shut off – Irons, Coffee Makers, Sinks in public places

� Electrical outlets

� Two handed start buttons

To err is HumanHave you ever…

� Driven to work and not remembered it?

� Forgot to stop at a store?

Workers do the same…

� Workers finish the shift and don’t remember what they have done.

� After building green widgets all morning, the workers put green parts on the red widgets in the afternoon.



� SMED Game




2011/5/18

10

Poke Yoka vs Statistics

Pro

ba

bil

ity

omitted

operation

Normal

Variation

� Control Charts/Statistics/SPC is good at detecting shifts in the process mean or variance.

� Human errors tend to be rare, intermittent events. They are not readily detected by control charts.

Mistakes� Mistakes are….

� Nobody’s fault

� The execution of a prohibited action

� The failure to correctly perform a required action

� The misinterpretation of information essential to the correct execution of an action

� Due to variation in a process not people in the process

� Traditionally viewed as

� Natural, but blame the people who make them

� Inevitable, and avoid the pain of understanding the process

Defects and Errors� Defects are results

� Errors are the cause of results

� Error prevention not defect detection

� Humans make errors (Cause) and defects arise because errors are made (Effect)

� Errors will not turn into defects if action takes place at the error stage.

Prevention Detection

What Causes Defects?

� Process Defects

� Process Failure

� Operational or Procedure Failures

� Process Error

� Incorrect or Imprecise

� Product Defects

� Incomplete Product

� Substandard Product

2011/5/18

11



� SMED Game




What would you do to stop trucks

from hitting this bridge?

Levels of Mistake Proofing Some Common Poke Yoka Devices� Guide pins (capture or limit the movement of parts,

tooling during the assembly process)

� Blinking lights and alarms (detects errors)

� Limit/Proximity switches (show presence/absence of components and their proper position)

� Counters (count the number of passengers)

� Checklists (graphical reminders of tasks, materials, etc.)

2011/5/18

12

Where do you look for opportunities to

mistake proof?� Where do you look for opportunities to mistake proof?

� Customer complaints/rejects

� Material Review Board Data

� Process yield data

� Inability to maintain cycle time

� Safety/EHS issues

� Audit findings

Types of mistake proofing

devices� 1) Prevent vs Detect

� Devices used to either prevent mistakes

� i.e., floppy disk

� OR Detect error/defect at start up or during process

� i.e., proxy sensor to detect punch


devices� 2) Physical vs Audio/Visual

� Physically introduce safeguards that prevent mistakes from occurring

� i.e., guide pins

� Visual/Audible Warnings to notify that a mistake is about to occur, or has occurred

� i.e., buzzer when car headlights are left on


devices� 3) Regulatory vs Setting

� Regulatory: Devices that either control a process or give warning about it

� i.e., Shuts down the process when it detects an abnormality

� Setting: Ensures proper settings or counts in a process

� i.e., SOPs

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13

The Six Steps of Poke Yoka

1. Understand the process

2. Identify possible opportunities for mistakes

3. Prioritise the risks associated with them

4. Tackle the highest risks

5. PDSA possible mistake proofing solutions

6. Implement mistake proofing solutions

Examples

Switches

Proximity Sensor Detects Broken Bit

broken bit

proximity sensor

warning lamp

Limit Switches on Jig

A New Attitude Toward

Preventing Errors� Make wrong actions more difficult

� Make it possible to reverse actions —to “undo” them—or make it harder to do what cannot be reversed.

� Make it easier to discover the errors that occur.

� Make incorrect actions correct.

Which processes should be mistake proof?

� Which processes should be mistake proof?

� High error potential

� Complex processes

� Routine “boring” processes

� High failure history

� Critical process characteristic

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14

Ideal mistake proofing solution

� The ideal solutions are:

� inexpensive

� simple and easy to implement

� specific to the need

� involve process operators

References and Reading� The Complete Lean Kit (Learning to See, Seeing The Whole, Creating

Level Pull, Creating Continuous Flow, Making Materials Flow, Lean Lexicon), Lean Enterprise Academy (www.leanuk.org)

� Bicheno, J. (2004) 'The New Lean Toolbox: Towards Fast, Flexible Flow‘ (3rd ed) Picsie Press, England.

2011/5/18

1

Purpose StatementPrevious session

� SMED and Poke Yoka

This session

� Builds on the JIT/kanban system with Heijunka, a technique that smoothens production by controlling the flow of kanbans, especially useful in high-mix low-volume production. Subsequent improvement can be measured by Overall Equipment Effectiveness

Agenda� What is Heijunka?

� The Heijunka Process

� High- Mix Low-Volume

� OEE and the 6 Big Losses

� Combining Lean and OEE

What is Heijunka?� Heijunka (平準化) is a Japanese term for “make flat

and level”

� Tool to Leveling (Smoothing) Production Schedules

� It is a technique to combat mura ("unevenness")

� Instead of producing in large batches, produce smaller evenly distributed batches over time (e.g., 7/day)

� Level both mix and volume

� I.e. At Toyota you will see Camrys and Avalons being produced on the same production line at the same time

� Balance the work load within the cell and the supply base

2011/5/18

2

Why is it Important?� Key method to control kanbans and JIT

� It is a simple way to visually manage the process of giving customers exactly what they need when then need it…

� Benefits

� Does not need to maintain large inventory buffers

� Improved flexibility and lowered finished goods inventory

� Production to better meet customer demands � need for SMED?

� Avoids batching which results in minimum inventories, capital costs, manpower, and lead time

� Flow is improved

� Smaller demand signals are transmitted up the value stream � bullwhip effect?

---The Lean Lexicon

---Learning to See

Heijunka Box� A method used to intercept the batches of information (Kanbans),

organize them and regulate the distribution

� Just as we do not want to batch materials, we do not want to batch information

� A heijunka box has a row of kanban slots for each product type, and column of kanban slots for each time interval

Paced Withdrawal � The practice of simultaneously releasing new instructions and

withdrawing completed products.

� A material handler performs a fixed route through a facility at fixed time intervals

---Learning to See

2011/5/18

3

Paced Withdrawal � As the products are withdrawn from the supermarket, the signal is

given to load the Heijunka box

� Material handler takes the production instruction from the Heijunka box to the assembly area

� Material handler then withdraws the previously completed work

� ...and supplies to supermarket

---Learning to See






� Level Production Volume.

� Level Production Variety.

HEIJUNKA

PRODUCTION

PLANNING

Two Main Elements of Heijunka

Production Planning: The Heijunka Process- Step 1� 1) Level Volume of Finished Goods

� A) Requirement = =

� B) Takt Time = =

PIECES PER MONTH

SHIFTS PER MONTH

Customer Requirement

Minutes per Shift

9600

20

460

460

Product Total A B C

Requirement 9200 4600 2300 2300

Shifts/Month 20 20 20 20

Pieces per Shift 460 230 115 115

= 460

= 1 minute

2011/5/18

4

The Heijunka Process- Step 22) Level Variety of Finished Goods

Traditional Batch Method

A 230

B 115

C 115

1 2 3 4 5 6 7 8 9 10 11 12 13 ..... 460

TOTAL 460

The Heijunka Process- Step 22) Level Variety of Finished Goods

Heijunka Method

A 230

B 115

C 115

TOTAL 460

1 2 3 4 5 6 7 8 9 10 11 12 13 ..... 460

PRECEDING

PROCESS

OPERATION

FINAL

LINE

OPERATION

The Heijunka Process- Step 33) level Proceeding Processes

Produce Requirement

Cycle time

Takt Time

A 230 2 min 2 min

B 115 4 min 4 min

C 115 8 min 4 min

A

B

C

Final Production Schedule (Lot)

3) level Proceeding Processes

Operators Required: Manual Cycle Time 2 min./piece

Takt time 2 min./piece


Takt time 4 min./piece


Takt time 4 min./piece2

Delivery 2 min.

Process A

Delivery 4 min.

Delivery 4 min.

1

1

==

==

==

Process B

Process C

The Heijunka Process- Step 3

A

B

C

Final Production Schedule (Lot)

2011/5/18

5

Another example

http://membres.multimania.fr/hconline/lean/heijunka2_us.htm

Heijunka in Practice1. Calculate daily requirements

2. Decide time interval (1HR…10MIN.) and establish route

3. Heijunka runner picks up the available Kanban delivery cards (at the specified time) and proceeds to finish goods rack at cell

4. Heijunka runner pulls finish goods from rack and detaches Kanban build from product- This will schedule the cell to start

5. Heijunka runner takes product with Kanban delivery cards back to Heijunka board.

6. After product has been completed by the last operation in cell, a Kanban build card for that product is attached and both are returned to the cell’s finish goods rack.

7. After each trip to the cell, the Heijunka runner is responsible for

1. Getting finish goods to the Heijunka delivery board.

2. replenishing raw material to cell.






HMLV vs HVLM� high-volume low-mix

manufacturers

� Ie Ford

� win business on the cost and quality of products

� high-mix Low-volume manufacturers

� Ie toyota

� earn business based on agility/flexibility in how quickly they can deliver what the customers wants

2011/5/18

6

Issue� JIT is feasible in high-volume, low-mix

production but difficult in HMLV

� HMLV enhances issues such as

� The work times for each product are unequal

� Not all employees have the same level of competence, hence job shifting and rotation is difficult

Solution1. Divide each incoming order into

batches that can be assembled in roughly the same amount of time

2. Use Heijunka principles to smoothen batch production

3. Use SMED principles to reducing setup time

4. Used Standard Work principles to standardise work and improve ease of training






What is OEE?� Overall Equipment Effectiveness!

� How effectively does your equipment run when you plan to run it?

� OEE = Availability X Efficiency X Quality

� 80% x 80% x 80% = 51.2% OEE!!!

� Benefits

� Identify major losses

� Road map to find problems

� Enhance capacity

� Benchmark equipment

2011/5/18

7

DefinitionsPlanned Availability

“If you planned to use it, could you”

Performance Efficiency

“Is it running at the desired output level”

Quality

“Are you producing 100% good product “

Net Operating TimeNot

scheduled

Running TimeDowntime

losses

Target Output

Actual OutputSpeed

losses

Actual Output

Good OutputDefect

lossesF

E

D

C

B

A

Total Operating Time

100E/FC/DA/BOEE ×××=

Availability Performance Quality

Overall Equipment Effectiveness (OEE)

• Breakdowns

• Setup & Adjustment

• Idling & Minor Stoppages

• Startup

• Reduced Speed

• Quality Defects & Rework

The Six Big Losses Breakdown

Changeover

Idling & Minor Stoppage

Reduced Speed

Scrap & Rework

Start up

Available Run Time

Net Operating Time

Valuable Operating Time

Downtime Losses

Speed Losses

Defect Losses

2011/5/18

8






Combining Lean and OEE1) Improving the Availability Dimension� Changeovers

� SMED

� Standard Work

� Technology

� Control System

� Breakdowns

� Pareto Analysis

� Problem Solving Techniques

� TPM

� 5S

0

10

20

30

40

50

%- Jams

- Other

- Inserts

- Chips

Combining Lean and OEE2) Improving the Performance Dimension� Idling and Minor Stoppage Loss.

� Pareto Analysis

� Problem solving

� TPM

� Heijunka

� Takt Time

� Reduced Speed Losses.

� Kaizen events

� 5S

� SPC

Combining Lean and OEE3) Improving the Quality Dimension� Non Conformance Losses

� Variability Reduction techniques i.e. SPC

� Poke Yoke

� Training

� Standard Work

� Start Up / Set-up Losses.

� SMED

� Design of Experiment

� Re-design and Implementation

2011/5/18

9

AVAILABLE

TIME

DOWNTIME

LOSSES

SPEED

LOSSES

NON -

CONFORMANCE

LOSSES

VALUE

ADDED

RUNNING

TIME

AVAILABILITY % =

# AVAILABLE TIME - DOWNTIMEx 100# AVAILABLE TIME

PRODUCTIVITY % =eithereithereithereitherCYCLE TIME x QUANTITY PRODUCED x 100

## RUNNING TIMEororororTAKT TIME x QUANTITY PRODUCEDx 100

## RUNNING TIME

QUALITY % =

QUANTITY PRODUCED - NON CON. ITEMSx 100QUANTITY PRODUCED

O.E.E % = AVAILABILITY % x PRODUCTIVITY % x QUALITY %

'SIX' BIG LOSSES

BREAKDOWN

CHANGEOVER

IDLING & MINOR STOPPAGES

REDUCED SPEED

NON-CONFORMING ITEMS

SET-UP SCRAP

Summary ReferenceBooks

� Mahoney, RM (1997) “High Mix Low Volume Assembly”, Prentice-Hall, Englewood Cliffs, NJ

� Lane, G (2007) “Made-to-Order Lean: Excelling in a High-Mix, Low-Volume Environment”, Productivity Press

Articles

� Bokhorst, J., Slomp, J (2010) “Lean Production Control at a High-Variety, Low-Volume Parts Manufacturer”, Interfaces, 40(4), p303-312

1

Professor K S Pawar

Session 11-12

Operations and Process

Improvement

Kulwant S PawarProfessor of Operations Management

Email: [email protected]

Nottingham University Business School, UK

Professor K S Pawar

Overview

• Why Benchmark?

• External vs internal benchmarking

• Consulting methodology

• Kaizen (CI)

• PDCA Cycle

• Kaizen versus Innovation

• Summary

Professor K S Pawar

Why Benchmark?• To understand the current status

• To identify potential areas of weakness

• To be able to compare and contrast with others

(internal or external comparisons)

• To make strategic & informed decisions for

improvements

• To be competitive

• Often rating, what is important to customers needs to

be analysed and understood

• Importance-performance matrix useful way of

examining order winners and order qualifiers

Professor K S Pawar

Betterthan

Sameas

Worsethan

Less

important QualifyingOrder

winning

1

2

3

4

5

6

7

8

9

123456789

IMPORTANCEFOR

CUSTOMERSLOW HIGH

PE

RF

OR

MA

NC

EA

GA

INS

T

CO

MP

ET

ITO

RS

GO

OD

BA

D

URGENTACTION

IMPROVE

APPROPRIATE

EXCESS ?

X

X

The importance – performance matrix

Slack et al, 2010

2

Professor K S Pawar

Historical evolution of Quality and CI

Excellent -sustainable organisation(Competitive Continuous Improvement, Breakthrough and Sustain business excellence)

World-Class(Continuous Improvement to become and sustain being the best)

Learning(Keeping ahead of change)

Total Quality(Adaptive)O

rganisational

Development

Time1960 1970 1980 1990 2000

TQCJIT Kaizen

TQM

MBNQA

Re-

Engineering

Organisational

Learning

KM

Zero Defect

ISO9000EFQM

Deming Prize

1995 2005

American initiatives

European initiatives

Japanese initiatives

QCCLean Production

BSC

Six-Sigma

Professor K S Pawar

World

Class

Country

Class

Above average, but think they are

good or very good

Below average, but think they are

average or better

Slipping

Organizations

Troubled

Organizations

Winners

Survivors

Losers

“High Performance Benchmarking: 20 Steps to Success” H. James Harrington

Best in Class

How Do Organizations Respond?Organizations Rated By Performance

Professor K S Pawar

Benchmarking (External)• Competitive Benchmarking - comparison with

competitors

• Functional Benchmarking - other organisations who

operate in a similar area of work, e.g., similar production

processes, and may be quite willing to co-operate

• Generic (or process) Benchmarking - Main processes

are similar in every industry. e.g. A high level process such, as

staff appraisal is likely to have similarities in all organisations.

• Best Practice Benchmarking - compare yourself to the

best companies in your industry

Professor K S Pawar

Internal Benchmarking

• .. is simply setting an internal target, which a

company wants to or aspires to achieve.

• Questionnaires are developed and participants

are asked to rate their current performance and

where they would like to be (‘as-is’ to ‘to-be’).

• Comparison between different departments is

also possible.

• Compared to external benchmarking this

method will enable companies to quickly and

easily identify areas for improvement.

3

Professor K S Pawar

0

0 .5

1

1 .5

2

2 .5

cost

dependability

flexibilityquality

speed

0

0 .5

1

1 .5

2

2 .5

cost

dependability

flexibilityquality

speed

Time

Performance of the operation Requirements of the market

Customers’ needs & how the performance might change over time

Slack et al, 2010 Professor K S Pawar

Different standards of comparison give different messages

40

50

60

70

80

90

100

Time

Absolute performance = 100%

Strategic goal = 95%

Actual performance = 83%

Competitor performance = 75%

Last year’s average performance = 60%

Performance by historical standards is GOODPerformance against improvement goal is POORPerformance against competitors is GOODAbsolute performance is POOR

Slack et al, 2010

Professor K S Pawar

Benchmarking Supply-Chain Management

Typical

Firms

Benchmark

Firms

Administrative costs as a percent of purchases

3.3% 0.8%

Lead time (weeks) 15 8

Time spent placing an order 42 minutes 15 minutes

Percentage of late deliveries 33% 2%

Percentage of rejected material 1.5% 0.0001%

Number of shortages per year 400 4

Professor K S Pawar

IATA number of employees Data

AirlinePilots and co-

pilotsCabin

attendantsMaintenance and

OverhaulTicketing, sales and promotion Airport handling

Total (employees)

Air Canada 2551 5912 3687 3394 3914 23714

Ratio to Pilots 2.32 1.45 1.33 1.53 9.30

Air India 421 2028 3208 3072 232 15111

4.82 7.62 7.30 0.55 35.89

British Airways 3537 14568 6831 5761 10467 48748

4.12 1.93 1.63 2.96 13.78

Lufthansa 4607 13472 11795 0 0 90673

2.92 2.56 0.00 0.00 19.68

United Airlines 6455 15460 8430 3488 18191 61248

2.40 1.31 0.54 2.82 9.49

Singapore Airlines 2129 6856 475 2321 735 14713

3.22 0.22 1.09 0.35 6.91

BMI 618 1365 633 0 0 4555

2.21 1.02 0.00 0.00 7.37

4

Professor K S Pawar

Example: Consulting System - An Overview

1

CE Assessment

Module

2

Solution

Identifier

3

Tool

Selection

Module

O1I1

O2

I2

O3

O4I3

Target CE

Improvement

Request

Request for

Tool Selection

Request for

Assessment

Request for CE

Solution

Request for CE Tool

Selection

Target CE Improvement

Request

CE Solution

CE Tools

Implementation

Guidelines

Benchmarking

Request

(Optional)

Benchmarking

Request

(Optional)

Professor K S Pawar

Assessment Module

1

Request

Director

2

Awareness

Raising

3

Initial

CE Screening

4

Target

Data

Collection

I1

I2

O1

I3

O2

Request for

Awareness

Raising


Request

Request for

Assessment

Benchmarking Request

(Optional)

Target CE

Improvement

Request

Benchmarking Request

(Optional)

Improved CE

Understanding

Area of CE

Improvement

Request for Initial CE

Assessment

Request for Target

CE Assessment

Professor K S Pawar

Areas & Criteria for Assessment

• Organisation– Organisational Structure

• Internal & External; Horizontal and Vertical

– Business Strategy• Goal Sharing, Strategy

deployment, Focus on key competencies,...

• Technology

– Manufacturing Processes• Process structure, key operations,

...– Processing Equipment

• Suitability, Functionality, Flexibility• Human Factors

– Knowledge & Skill Base• Available knowledge and skills

– Human Empowerment • Knowledge Sharing, Training,

Motivation

• Integration

• Parallelism

• Standardisation

• Continuous

Improvement

• Customer/Supplier

Focus

• Information Flow

Assessment CriteriaAssessment Areas

Professor K S Pawar

Perf

orm

an

ce V

alu

es

Company CE Profile (CEP)

Company CE Profile (CEP) – an overview

5

Professor K S Pawar

Assessment Module - Initial Screening

1

Interactive

Questioning

2

Analysis

3

Benchmarking

4

Reasoning

I1

I2

I3

O1

Improved CE

Understanding

Area of CE Improvement

Benchmarking Request (Optional)

Company Specific

Information on CE

CE Profile (CEP)

Comparative

CE Status

Request for

Initial CE

Assessment

Professor K S Pawar

CE Profile ( current)

CE Profile ( desired)

CE Profile ( focus)

40 32 35 32 5040

60 40 57 65 5063

0 0 0 1 00

Key Process Areas

Perf

orm

ance v

alu

e Current state

Desired state

Selected area of improvement

Initial Screening-Identifying Critical Area(s) of Improvement

V(c)CEP

V(d)CEP

V(F)CEP

Professor K S Pawar

Assessment Module - Target Data Collection

1

Target

Interactive

Questioning

2

Target

Analysis

3

Target

Benchmarking

4

Target

Reasoning

I1

I2

I3

O1

O2

Area of CE

Improvement

Target CE

Improvement Request


Request

Benchmarking Request (Optional)

Area Specific CE

Information

Area CE Status

Area

Comparative CE

Status

Request for

Target CE

Assessment

Professor K S Pawar

Performance Values

Target Area Assessment

Target Data Collection - Investigation of Critical Area(s) of Improvement

Company CE Profile (CEP)

pc1 pc2 pc3 pc4 pc6pc5

pd1 pd2 pd3 pd4 pd6pd5

0 0 0 1 00

V(c)CEP

V(d)CEP

V(F)CEP

Company Area CE Status (CES)

CE Status (current)

CE Status (desired)

CE Status (focus)

sc1 sc2 sc3 sc4 sc6sc5

sd1 sd2 sd3 sd4 sd6sd5

0 0 1 0 00

V(c)CES

V(d)CES

V(F)CES

6

Professor K S Pawar

Target Data Collection - Results

Professor K S Pawar

What is Kaizen?

Professor K S Pawar

Continuous Improvement (CI): Definition

• CI is also known as Kaizen (Japanese word)

• Masaaki Imai – ‘Kaizen means improvement in

personal life, home life, social life and work life.

When applied to workplace. Kaizen means

continuing improvement involving everyone –

managers and workers alike’

• ‘an effort to continuously seek and make

changes for the better through the processes

which are characterised by either

incremental or radical transformation, and to

maintain the results.’

Professor K S Pawar

Business process

reengineering (BPR)

Six Sigma

Lean Total quality

management

(TQM)

End-to-end

processes

Radical/

breakthrough

improvement

Evidence-based

decisions

Systems and

procedures

Improvement

cycles

Perfection

is the goal

Reduce

variation

Customer

centric

Emphasis on

education

Include all

people

Customer

relationships

Waste

identification

Synchronized

flow

Process based

analysis

Continuous

improvement

Some of the elements of improvement approaches

Emphasis on

solutions – whatto do

Emphasis on

methods – howto do it

Emphasis on gradual

change

Emphasis on

rapid change

7

Professor K S Pawar

The ‘elements’ that are the building blocks of improvement include:

•Radical or breakthrough improvement

•Continuous improvement

•Improvement cycles

•A process perspective

•End-to-end processes

•Radical change

•Evidence-based problem-solving

•Customer-centricity

•Systems and procedures

•Reduce process variation

•Synchronized flow

•Emphasize education/training

•Perfection is the goal

•Waste identification

•Include everybody

•Develop internal customer–supplier relationships.

What are the key elements of operations improvement?

Professor K S Pawar

Features KAIZEN (CI) INNOVATION (breakthrough improvement)

Effect Long-term and long-lasting but undramatic Short-term but dramatic

Pace Small steps Big steps

Timeframe Continuous and incremental Intermittent and non-incremental

Change Gradual and constant Abrupt and volatile

Involvement Everybody Select few “champions”

Approach Collectivism, group efforts, systems approach

Rugged individualism, individual ideas and efforts

Mode Maintenance and improvement Scrap and build

Spark Conventional know-how and state of the art Technological breakthroughs, new inventions, new theories

Practical requirements

Requires little investment but great effort to maintain it

Requires large investment but little effort to maintain it

Effort orientation People Technology

Evaluation criteria Process and efforts for better results Results for profits

Advantage Works well in slow growth economy Better suited to fast growth economy

Features of Continuous & Breakthrough Improvements

Source: M. Imai 1986

Professor K S Pawar

Kaizen v Innovation

Kaizen (Japanese)

• Large number of small incremental improvements

• ‘Bottom-up’

• Based on people working in improvement teams/QCC

• Company-wide

Innovation (Western)

• Large scale, infrequent

• Top-down, ‘deployed’

• Step change in quality performance -Breakthrough

• Often technology-based

Per

form

ance

Time

KaizenInnovation

Professor K S Pawar

The plan–do–check–act, or ‘Deming’ improvement cycle, and the

define–measure–analyze–improve–control, or DMAIC six sigma

improvement cycle.

The concept of CI literally implies never ending cycle

Define

Measure

AnalyzeImprove

ControlPlan Do

CheckAct

Plan

Two improvement cycles

8

Professor K S Pawar

PDCA Cycle (Western)

Plan(Management)

Check(Inspectors &

Management)

Fight

P

D

C

A

Do

(Worker)

Fire

Source: M. Imai 1986 Professor K S Pawar

Define–identify

problem, define

requirements and

set the goalMeasure–gather

data, refine

problem and

measure inputs

and outputs

Analyze–develop

problem

hypotheses, identify

‘root causes’ and

validate hypotheses

Improve–develop

improvement

ideas, test,

establish solution

and measure

results

Control–establish

performance

standards and

deal with any

problems

The DMAIC

cycle

The DMAIC cycle

Professor K S Pawar

Per

form

ance

Time

PDCA cycle repeated to create continuous improvement

Continuous improvement

Plan

Do

Check

Act

Continuous improvement

Professor K S Pawar

Incremental and Breakthrough Improvement

Processes

QA

IncrementalImprovement

Breakthrough Improvement

Qu

ality

Perfo

rm

an

ce

Time

Continuous Improvement = (Incremental Improvement + Radical/Breakthrough Improvement) + Maintain

Maintain Performance

Improving

steps

(PDCA,

DMAIC) Declining quality performance without maintenance

9

Professor K S Pawar

Kaizen includes:

• Customer orientation

• TQC (Total Quality Control)

• Robotics• QC circles

• Suggestion system

• Automation• Discipline in the workplace

• TPM (Total productive maintenance)

• Kanban• Quality improvement

• JIT

• Zero defects• Small- group activities

• Cooperative labour management relations

• Productivity improvement• New product development

Professor K S Pawar

Ten Kaizen sayings

• Get rid of all old assumptions

• Don't look for excuses, look for ways to make things happen

• Say "NO" to the status quo

• Don't worry about being perfect - even if you only get it half right " start NOW!

• It does not cost money to do KAIZEN

• If something is wrong "Fix it NOW”

• Good ideas flow when the going gets tough

• Ask "WHY" five times - get to the root cause

• Look for wisdom from Ten people rather than one

• Never stop doing KAIZEN!

Professor K S Pawar

Cause & Effect

Diagram with CNX/SOP

Pareto Diagram

Run Chart

Histograms

Process Flow Charts

5 Why’s Root Cause

IPO Diagram

Normal Distribution

First Pass Yield (FPY)

COPQ

Design of Experiments

(DOE)

Method for Organizing ideas (Fishbone

Diagram).

Separates the vital few from the trivial many.

Organizes data from highest value to lowest.

Method of graphing trends.

Data collection and presentation tool for

frequency of occurrence.

Pictorial representation showing all steps of a

process

Method of breaking down the problem to the

root cause.

A visual presentation of capturing Inputs that

affect Outputs in a process

The distribution characterized by the smooth, bell

shaped curve.

Percent of first time passers throughout a system.

The costs associated with any activity that is not

doing the right thing right the FIRST TIME.

The discipline of using a structured approach to

interrogate a process and optimize it via data

When you need to identify and explore and display the possible

causes of a specific problem or condition

When you need to apply the relative importance of all conditions in order to:

• Choose the starting point for problem solving.

• Monitor success.

• Identify the basic cause of a problem.

When you need to do the simplest possible display of trends within

observation points over a specified period.

When you need to discover and distribute data by bar graphing the number

of units in each category.

When you need to identify the actual and ideal path that any product or

service follows in order to identify problems.

When you need to implement corrective action on a problem and want to be

sure your actions will address the root cause and not just the symptoms of

the problem.

When you need to identify the inputs that comprise a process yielding to the

desired output(s) of any product or service

The foundation of statistical engineering and KISS.

Helps identify products or processes to focus improvement efforts on.

Same statement as Pareto Diagram above.

Purposeful changes of the inputs (factors) in order to observe corresponding

changes in the output (response).

Why?

Why?

Why?

Why?

Why?

$

Y1 Y2

FPY = Y1*Y2...

IP

O

Fac tor A B C D E F G

Row # Pul l Ba ck a ng le Stop an gl e Pin He ig ht Cu p h ei gh t Rub be r b an d po si t io n Ba l l typ e Ope ra tor Y1 Y2 Y3 Y4 Y b ar S

1 1 62 2 2 4 2 -1 -1 2 6.2 5 25 .2 5 25 25 .5 2 5.5 0.5 400 62

2 1 62 2 2 4 2 1 1 42 .5 4 2.5 41 4 3 42 .25 0.8 660 25

3 1 62 2 3 5 3 -1 -1 37.8 75 3 6.5 36 3 7.8 75 3 7.0 625 0.9 601 43

4 1 62 3 2 5 3 -1 1 7 1 72 71.5 70 .5 71 .25 0.6 454 97

5 1 62 3 3 4 3 1 -1 9 6 96 .7 5 96 95 .5 9 6.0 625 0.5 153 88

6 1 62 3 3 5 2 1 1 9 6 95 .2 5 95 .25 9 5.25 9 5.4 375 0 .3 75

7 1 80 2 3 5 2 -1 1 7 5 74 72.5 7 2 73 .37 5 1.3 768 93

8 1 80 2 3 4 3 1 1 1 03 .5 10 2.5 10 2.5 1 01 .5 10 2.5 0.8 164 97

9 1 80 2 2 5 3 1 -1 94 .5 94 .2 5 94 9 4 9 4.1 875 0.2 393 57

10 1 80 3 3 4 2 -1 -1 8 1.2 5 83 82 8 2 8 2.0 625 0.71 80 7

11 1 80 3 2 5 2 1 -1 9 8.7 5 97 96 .25 9 6 97 1.2 416 39

12 1 80 3 2 4 3 -1 1 8 0 77 .7 5 79 .25 79 .5 79 .12 5 0.9 682 46

Problem Solving Tools

Professor K S Pawar

Summary• Important to develop internal and external benchmarks

• Need to develop systematic processes

• Human centred approach with advisory support and guidance built in as integral component of most assessment tools

• Generic methodology needs to be developed which can be adapted to specific situations/scenarios

• Kaizen widely practiced and embedded in many Japanese companies & increasingly accepted more widely

• Extensive debate between Kaizen vs innovation

18/05/2011

1

Dr Jane Guinery

The Theory of Constraints (TOC)

� The Goal: a process of ongoing improvement by Eliyahu M. Goldratt and Jeff Cox (2006)� Starts with Alex Rogo’s dilemma - the ‘typical’

factory from hell

� The Race by Eliyahu M. Goldratt and Robert E. Fox (1994)

2

Session content09:00-10:30

� Introducing TOC

� A simple application

� Principles from “The Goal”

� Rogo’s business scenario

� The Goal’s analogies

� Drum-buffer-rope

� Includes dice game simulation

� Buffer management

11:00-12:30� What is The Goal?

� Accounting for TOC

� Business decisions� exercise

� Implementation issues� The Precision Tool room

� The Chain Manufacturer

SLIDES FOR THE 2nd PART OF THE SESSION WILL BE PROVIDED IN CLASS

3

Production operation based on JIT

Process A

Process B

Process C

DEMANDSUPPLY

KANBAN

Instruction

BUT, What happens if:

• You manufacture a high variety of product

• Demand is not repetitive

• Process routes and processes are not standard

• Product focused or cell layout is not sustainable

DO YOU HAVE ANY CONCERNS WITH APPROACH?4

18/05/2011

2

Why TOC?Impact of variety and variation

Variation due to� Demand fluctuation

� Process times change with different products

� Supply disturbances

Variety

� Low volume of each product – may not have repeat orders

� Flow layouts not feasible as routes vary

� Batch sizes make flow lumpy

Need to manage and smooth

demand

Need a different type of approach to PULL Need to protect supply

5

What is TOC?

Takes a whole system perspective

� All systems have constraints which dictate performance

� Constraint Management Improvement Process

1. Identify the constraint2. Exploit the constraint3. Align/subordinate everything else to

support the constraints4. Elevate the constraint5. Prevent inertia – go back to step 1

� Align decisions� IMPACTS ON WHOLE BUSINESS

X

6

An illustrative case:

Towel manufacturer invests in new machinery

Processes:

� Spinning

� Warping

� Weaving

� Bleaching

� Dying

� Cutting and Hemming

� Finishing and labelling

7

What are Constraints?

�Internal resource constraints

�Market constraints

�Policy constraints

8

18/05/2011

3

A bottleneck is a physical constraint

Analysis of this example leads to the following two principles:

(1) An hour of production time lost at a bottleneck subtracts one hour of output from the entire production system

(2) An hour of time saved at a non-bottleneck only adds an hour to its idle time

A bottleneck is defined as any department, work station, or operation that restricts the flow of product through the production system.

An illustration of its significance

9

A closer inspection of the constraint

management improvement process

� Identify the system's constraints

� Determine how to exploit the system's constraints

� Subordinate everything else to the constraint )

How do you make sure the constraint is not ‘wasted’?

� Elevate the constraint so a higher performance level can be reached

� If the constraint is eliminated go back to step 1

� Do not let inertia become the new constraint

10

Identify the constraint

What is controlling flow?� What is the rate limiting

factor?

� Material

� Resource

� Skills

� Sales

� If external, select an internal control point

Are all constraints the same?

� NO!� Physical constraints

� Policy constraints

� Paradigm constraints

� Ask yourself which is the most common?

There is a constraint, but how do we “see” it?

11

Sno. Relation Effect

1 Y→ X Excess inventory in front of X

2 X→Y Y would have idle capacity or would be starved for parts

to process (which is acceptable)

3 X→ Assembly

Y→ Assembly

Y parts would accumulate at the assembly

4 X→ Product X

Y → Product Y

Y’s capacity is greater than the market demand,

accumulation of finished goods inventory of Product Y.

Common bottleneck (X) and non bottleneck (Y) scenarios

12

18/05/2011

4

Exploit the constraint

How can we get more money faster through the constraint without spending more money

� Eliminate constraint waste

� Time

� Unsold product

� Scrap

� Set-up

� Unneeded work

� Identify and use process alternatives to offload� SMED, Poka-Yoke, TPM, SPC, Schedule, Cloud technique

� How can we select the most profitable work?13

Subordinate to the constraint

How do we ensure the rest of the company does not waste the constraint capacity?

� Ensure smooth flow of work to constraint through lean principles e.g. low inventory, small batch sizes

� Introduce Drum-Buffer-Rope production control

WHICH

� Concentrates on Protective Capacities (buffers)

� Makes the goods we can sell – Schedule� includes Buffer Management which helps focus

improvement efforts on processes impacting on constraint

14

University of Nottingham

Transfer batch size ≠ process batch sizeTransfer batch size ≠ process batch size

20

Drum

Rope

Buffer?

Drum – Buffer – Rope

16

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Production operation based on TOC (and Drum-Buffer-Rope)

Process C

Process D

Process E

DEMAND

Process A

Process B

Process D

Process F

Re

lea

se W

ork

Drum – constraint process

Buffer

Rope – release work based on bottleneck hours!

ABCSchedule

17

The Buffer

Buffer size?Buffer content?

Hours of work available to constraint

A25 pcs5 hrs

B5 pcs3 hrs

B5 pcs3 hrs

C5 pcs5 hrs

C2 pcs5hrs

D2 pcs6 hrs

Days1 2 3

4

8

Are other buffers needed?

How is it managed?

18

Network Flow Diagram of a more complex system

with one Bottleneck

Network Flow Diagram of a more complex system

with one Bottleneck

19

D-B-R: The Benefits

� Reduced Lead Time

� High Due Date Performance

� Reduced levels of inventory

� Reduced expediting

� Capability for increasing sales significantly

� Fewer materials/parts shortages

� Improved bottom-line performance (typically within 6 - 8 weeks)

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Elevate the constraint� How do we increase the capable rate of the constraint?

� Management question

� Where should the constraint be located?

� How do we move it there?

To most effectively apply the tools of constraint manufacturing

Prevent inertia

21

Questions� Does TOC theory make sense in your business?

� Are you already using some of the principles discussed?

� If not, how might you apply them?

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Introduction

2

� It supports large scale class, up to 70-100 players

� It integrates both physical lean game. i.e. JIT LEGO game and Dice game

� Please open the web-game http://www.nottingham.ac.uk/~lizkht/

Basic System Requirements

3

� User need a computer/laptopwhich is already connected to internet

� The game supports any browser with Flash Player PlugIn.

� The web game needs Javascript enabled in your browser setting. (The default settings of your browser is already enable this functions)

To Start� Follow the instructions

step by step

� The games consists of three levels.

1. Push demo

2. Pull demo

3. JIT production game

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18/05/2011

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Level 1 - Demonstration of Push

System� Click the “Start Simulation”

button to run the simulation

� The simulations will stop at turn 200.

� Record the number of finished goods and number of WIP

� If your facility is connected with printer, you can print the results as well

5

Level 2 - Demonstration of Pull

System

6

� The setting is the same as level 1, it is only enhanced with Kanban

� Record the number of finished goods and number of WIP

� Is there any difference between these two simulation results? Why?

Level 3 – JIT Production Game� The Pull simulation is

improved in this level that you can change some parameters of the game

� The parameters are: � Kanban batch size

� Resource allocated in improve quality variance

� Assign number of staff in each work station

7

Level 3 – JIT Production Game� The game will stop at 1000 rounds

� Please configure your production line that can achieve maximum output

� Print the screen, or drop down your production line setting while you run the game each turn

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Discussion1. The production target now is changed to - "manufacture 100 pieces

of finished item within 10 working days", what are the parameters changes? (you can try it by yourself to run the simulation again)

2. What does the Kanban system affecting the production? in terms of cost? in terms of performance?

3. What is the critical factor affecting the performance?

4. Does the changes of Kanban batch size affecting the performance?

5. Are there major parameters about Kanban system that is neglected in this simulation? What's that?

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Session 17

Mindset, Behaviour and Coaching

Purpose statement� Previous session

� The DNA of Lean is PEOPLE...

� This session

� Lean is as much about process improvement as people improvement and development

� Understanding behaviours, mindset and coaching is fundamental in developing people for successful Lean implementation

Agenda� Mindset and Behavior

� Kata Coaching

For most companies, doing businesses as

usual is not an option

2011/5/18

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Most ‘lean’ attempts fail for 3 reasons

5S

Inflexibility

Variability

WasteFail to address performance inhibitors

Only tackle the technical elements

Take a piecemeal approach, which can deliver results at micro-level but doest not deliver significant impact to the customer or shareholder

Barriers to lean transfer� The case of Toyota and GM: NUMMI (Inkpen, 2005)

� Managers assigned to NUMMI gave little preparation and training

� Absorptive capacity of the recipient – resistance of GM to implement lean

� Lack of relationship between the source and recipient

� On average 27 month duration of knowledge transfer

� TPS deeply embedded in Toyota context and tied into an integrated system

On barriers to transfer� Firm culture that values technical expertise &

knowledge creation over sharing

� An over-reliance on transmitting “explicit” rather than “tacit” information

� Not rewarding people for learning and sharing knowledge

� Capacity to facilitate knowledge transfer and assimilation

Attention Test

http://www.youtube.com/watch?v=vJG698U2Mvo

2011/5/18

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Transfer approaches� Manufacturing

� Adaptation

� Cloning

� Intel’s Copy exactly

� Practices� Global (McDonald)

� Polycentric (BAT)

� Ethnocentric (traditional family enterprises)

� Issues such as:� Process appropriateness

� Transferability

� Life cycle effects

Source: Manufacturing Mobility, University

of Cambridge

Transfer mechanisms for

operations know-how

Ferdows (2006)

Form of operations know-how

Speed of change of operations know-how

Slow Fast

Tacit

Codified

Moving people(Club Med)

Projects(AOL)

Manuals and systems(Mcdonald’s)

Joint development(Intel)

We believe transfer needs to be

approached at three levels

Aftertransfer

Management infrastructure

Lean system

Mindsets,Capabilities &behaviours

Before transfer

Ensuring that the operating system is followed in a habitual way (hard-wired) without any form of extraordinary effort

Aligning the mindsets and behaviours of workers with business objectives, and build self-standing capability

Configuring resources to educate workers on lean thinking and techniques

The dimensions of Lean knowledge� What are the different levels of lean knowledge ?

� What knowledge are general or ‘sticky’ ?

� How to identify them?

� What are the stages in lean practice transfer?

Aftertransfer

Management infrastructure

Leansystem

Mindsets,Capabilities &behaviours

Before transfer

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Sustaining change depends on... � Aligning mindsets, capabilities and behaviours to the

business goal

(McKinsey & Co)

What is Mindset?� People fall into two types of mindsets:

� Fixed

� Growth

� The fixed mindset sees limitations on intelligence, personality, opportunities, etc.

� The growth mindset views challenges as opportunities for improvement.

To change mindset

Role of motivation in changing

behaviour� Traditional management = extrinsic motivation

� External forces such as

� Rewards and incentives

� Punishment

� Company targets

� Lean management and quality teams = intrinsic motivation

� Motivation driven by internal force such as

� interest

� Enjoyment

� Self efficacy

� “Challenges”

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Agenda� Mindset and Behaviour

� Kata Coaching

What is a Kata?� A way of doing something

� A pattern, form, routine or method

� Originally a set of sequences in martial arts

What is the Toyota Kata?� Toyota Kata

� Day-to-day management, methods and routines

� Behavioural rules for people

� Taught to all organization members and repeated in daily work

� Two forms of Kata

Improvement Kata

� Step 1: establish long term vision

� Step 2: Current state, where are we now?

� Step 3: what is our next target in order to reach our vision?

� Step 4: what are the barriers to the target? Use PDCA to overcome

2

Current condition

1

Vision

3

Target

4

Barriers

PDCA

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Improvement Kata1. What is the target condition? (the challenge)

2. What is the actual condition now?

3. What obstacles are now preventing you from reaching the target condition? Which one are you addressing now?

4. What is your next step? (start of next PDCA cycle)

5. When can we go and see

Coaching Kata� Purpose

� For the mentor to assess the current status of

� the process

� the learner

� To get the learner to build a chain of PDCA cycles (what is learned from one PDCA cycle leads to the next PDCA cycle)

� To help teach the improvement kata pattern through repetition

� Train for short time frequently, then long time once

� Hence use of incremental improvements

� “We build people before we build cars”- Toyota

Coaching kata� The stakeholders

� The mentor (the Coach)� Everyone has a mentor

� Knows the details

� Asks questions

� Teaches the improvement kata

� Focuses on learning NOT results

� The Mentee (The learner)� Owns the target and works to achieve it

� The Process or the focus of the Improvement Kata

� A secondary Mentor to “Coach the Coach”

Lessons learnt about Coaching kata� Usually targets are set too ambitious

� Do coaching at beginning of a shift as a kind of check

� It requires practice

� A coaching cycle is not a surprise check, so preparation is the key

� Relies on up to date facts and data

� Coaching cycles are for improvement, not monitoring

� Its not “When can you have it done?” rather “What are we learning?”

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Coaching for Performance

http://www.youtube.com/watch?v=0ScHWylEDgA

References and ReadingBooks

� Dweck, C.S (2007) “Mindset: The Psychology of Success”, Random House Publishing

� Harding, S. & Long, T. (2008) MBA Management models, Aldershot, Gower Publishing.

� Rother, M (2009) “Toyota Kata: managing people for improvement, adaptiveness, and superior results”, McGraw-Hill

Articles

� Choo, A. S. (2010) 'Impact of a Stretch Strategy on Knowledge Creation in Quality Improvement Projects'. IEEE Transactions on Engineering Management, PP, 99, 1-10.

� Ferdows, K. (2006). "Transfer of Changing Production Know-How." Production & Operations Management 15(1): 1-9.

� Gosling, J., Mintzberg, H (2003) “The Five Minds of the Manager”. Harvard Business Review, Nov, 81(11) p54-63

� Hamel, G. & Prahalad, C. K. (1989) 'Strategic Intent'. Harvard Business Review, May/June, 63-76.

� Hamm, J (2006). “The Five Messages Leaders Must Manage”, Harvard Business Review, May

� Inkpen, AC (2005) “Learning through alliances: GM and NUMMI”, California management review , 47, p114-136

� Mueller, C.M., Dweck, C.S (1998) “Praise for Intelligence Can Undermine Children's Motivation and Performance”, Journal of Personality and Social Psychology, 75(1), p33-52

Advanced Material

(Not covered)

Five Minds of the Manager1. Managing self: the reflective mind-set

2. Managing organizations: the analytic mindset

3. Managing context: the worldly mindset

4. Managing relationships: the collaborative mindset

5. Managing change: the action mindset

(Gosling & Mintzberg, 2003)

training lean

Documents