The Fast Eat The Slow!

Typical results from lean:

Key Tools Lean
Simplified
„ 90% reduction in lead times Voice of the Customer: Systematically
„ 90% reduction in all inventories explores and links customer requirements
„ 100% increase in productivity to design, parts, and production character-
„ 50% reduction in errors istics.
„ Fewer injuries How to Double Your Speed,
Line Graph: Show data trends over time.
Productivity and Profitability
Core Ideas
1. Determine and create value. The Y-axis (left) shows the defects, time,
2. Use "pull" systems instead of "push" sys- cost and the X-axis (bottom) shows time
tems to avoid overproduction. (minute, hour, day, week, etc.).
3. One piece flow—Make the work "flow," one
piece at a time; minimize interruptions. Flowchart or Value Stream Map: Show
4. Eliminate the seven speed bumps using the the flow of work through a process: all
five S's (see list on reverse side). activities, decisions, and measurements.
5. Use the "five whys?" of root cause problem
solving to eliminate defects.Lean thinking will Value Added Flow Analysis: Systemati-
invariably free up cash, people, and space. cally identifies delays and rework opportu-
The most difficult step is the first one. nities in a process.

Demand immediate results. Pick a pilot area

that's open to change and jump right in. Line up Glossary
the machines and work steps. Eliminate delays.
Slash the inventories. Dramatic reductions in lead Cell: a close arrangement of people and machines in
times, inventories, space, and defects should be a processing sequence to facilitate flow.
possible in six to twelve months.
Kanban: Japanese word for card, ticket, or sign. It's
Set big, hairy audacious goals (BHAG) a key tool for managing flow in a pull system. In a
• 50% reduction in defects every year grocery store, it's the card at the back of the shelf
• 100% on-time delivery indicating the product is sold out or back ordered.
Quick Reference Card
• Reduce order-to-ship time to less than a day Andon: Visual signal that alerts workers to problems. $3.00
• Increase Inventory turns per year Andon is like a dashboard with warning lights to alert © 2008 Jay Arthur
• Reduce time-to-market by 75% you to problems. KnowWare® International, Inc. (dba Lifestar)
• Reduce costs (hours/widget) 2696 S. Colorado Blvd., #555
Heijunka: Level out the work load.
Denver, CO 80222
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• Reorganize your company by product and value (888) 468-1537 or (303) 756-9144
Takt Time: a German word for rhythm or meter. In (888) 468-1536 or (303) 753-9675 (fax)
stream. Topple the silos and implement flow. lean, takt is the rate of customer demand. It's like a
• Move machines and people into product cells. [email protected]
speedometer. Takt Time = Available hours worked
• Help your remaining suppliers implement "lean." per day/Required production to meet demand. To learn more about Lean, consider our
• Improve each value stream multiple times. Lean Simplified Training Video
Poka-Yoke: Mistake-proofing a process so that a www.qimacros.com/store/lean-training-video
• Right-size your machines and tools. person cannot make an error.
 The Five S's The Seven Speed Bumps Design for One-Piece Flow
Purpose: To remove the waste, we turn to the five Purpose: To accelerate flow, you will want to Purpose: Stop producing big batches of product;
S's. The principles of reorganizing work so that it's eliminate the seven speed bumps all of which are Start producing one piece at a time.
simpler, more straightforward, and visually man- considered "Muda"—non-value added waste—it is 1. Focus on the part, product or service itself.
ageable are: any activity which absorbs money, time, and people Follow the product through its entire production
1.Sort — keep only what is needed. Pitch every- but creates no value. cycle looking for opportunities to reduce delay,
thing else. The workplace often becomes 1. Over production (the most common type of inventory, waste, and rework.
cluttered with products, tools, and waste waste) which creates inventories that take up In a hospital you would follow a patient from
materials that don't really belong there. Get rid of space and capital. admission to discharge.
them. 2. Excess inventory caused by over production. In a printing company, you'd follow a job from
2.Straighten — A place for everything and 3. Waiting—Don't you hate standing in line? So do start to delivery.
everything in its place. Establish standardized your products or services. So do employees.
places for incoming raw materials, tools, etc. In a manufacturing plant, you'd follow the
Are they always waiting for something? product from order to delivery.
3.Shine — clean machines and work area to 4. Unnecessary movement of work products.
expose problems. 2. Ignore traditional boundaries, layouts, etc. In
When you break the silos into cells, the products other words, forget what you know.
4.Standardize — develop systems and proce- don't have to travel so far between processes.
dures to monitor conformance to the first three 3. Realign the work flow into production "cells" to
5. Unnecessary movement of employees. Are eliminate delay, rework, and scrap.
rules. (This includes the define and measure
parts and tools too far from where they're 4. "Right size" the machines and technology to
aspects of Six Sigma's DMAIC.)
needed? Walking is waste. support smaller batches, quick changeover, and
5.Sustain — maintain a stable workflow. (This
6. Unnecessary or incorrect processing. Why one-piece flow. This often means using simpler,
includes the Analyze, Improve, and Control
have people watch a machine that can be taught slower, and less automated machines that may
phases of Six Sigma.)
to monitor itself? actually be more accurate and reliable.
7. Defects leading to repair, rework, or scrap. The goal of flow is to eliminate all delays, inter-
Lean Production vs Mass Production
Lean thinking will help you reduce or eliminate ruptions and stoppages, and not to rest until you
Build to Order Make and Sell numbers 1-5. Six Sigma will help you reduce 6-7. succeed. Focus the improvement effort to avoid
Economies of Speed Economies of Scale wasting valuable time and money.
When you rearrange your production or service floor
Effective Efficient into production cells with right-sized machines and Focus on mission- and profit-critical processes
Pull (from Customer) Push (to Customer) quick change over, you can quickly reduce most of and issues first!
these common kinds of waste by 50-90 percent.
Small Lots Large Batches Common measures of flow:
Get Started: • Lead (or cycle) time: time product stays in the
Quick changeover Changeover unimportant
1. Flowchart the value stream; add times to each system
Production Cells Functional Silos
step, decision or arrow. • Value-added ratio:
Right-sized Machines Big, Fast Machines (Value-added time)/(lead time)
2. Analyze each element for non-value added
Interchangeable parts
work—delay or rework. • Travel distance of the product or people doing
Fast to respond Slow to change the work
3. Redesign the flow to eliminate as much of the
Adaptive Rigid, inflexible non-value added work as possible and standard- • Productivity: (people hours)/unit
General knowledge Specialized knowledge ize the ongoing process. • Number of handoffs
• Quality rate or first pass yield