Continuous Improvement

Methodologies

Overview of Lean

6
What is Lean?
• Operating philosophy:
Eliminate waste through continuous improvement:
– Define value from the client’s perspective
– Identify the value stream
– Only make what the client pulls
– Keep the flow moving continuously
– Always improve the process

• Goal:

Increase value-added time within the value stream (approx. 2-5%)

ADAAP
WHAT IS LEAN?

• Lean Thinking is a mindset

• Lean is about REMOVING WASTE, and increasingg
• customer value.
• Lean is about smooth process flows,
• Lean is doing only those activities that add customer
value and eliminating all other activities that don’t
add value to the customer.

ADAAP
What is Lean

• Lean is basically all about getting the right things, to the

right place, at the right time, in the right quantity while
minimizing waste and being flexible and open to change.

• More importantly, all of these concepts have to be

understood, appreciated, and embraced by the actual
employees who build the products and therefore own the
processes. The cultural aspect of lean is just as important
as the actual tools or methodologies.

ADAAP
Lean Principles
• 'Specify what creates VALUE from the customer's
• perspective
• Identify all the steps across the whole value stream
• Make those actions which create value flow
• •Only make what is pulled by the customer just-in time
• Strive for perfection by continually removing successive
layers of waste

ADAAP
Evolution of Lean
Lean originates in the Toyota production System
Late 1940s
Focus: Toyoda & Ohno built on Ford’s continuous flow
and Introduced speed & flexibility

‘The Machine that Changed the World’ by Womack,

Early 1990s Jones, and Roos
Focus: Lean manufacturing system

Lean Manufacturing adopted TPS concpets

Mid 1990s Focus: Improve profitability

Dozens of other companies (service,

2000+ transactional & manufacturing) follow suit
Focus: A way of doing business

ADAAP
What is Value?
• Right product provided to a Client at the right
time and the right price…as defined by the Client
• Clear understanding of who the Client is, is
critical
• In Flow, value is addition, modification or
screening of useful knowledge or information
that facilitates a commercial transaction.
• Activities that add no value to the client are by
definition “waste”

ADAAP
 What is a Value Stream?

• Time Series of all activities & steps (Both

Value Add And Non-value Add) required to
bring a Product, Service or Capability to
the Client
• Value Streams cut across Functional
Boundaries
• Value Streams are usually mapped out by
product or product family

Most Value Streams have 2-5% Value Added Time

ADAAP
What is Flow?
• A perfect process has continuous flow as
products, services and knowledge are
transformed continuously without delay from
step to step
• Flow is created by eliminating queues and
stops and improving process flexibility &
reliability

ADAAP
 Implementing Lean will address waste and
its root causes

Waste

Overburden Unevenness

••Waste
Wastepoints
points us
usto
to problems
problemswithin
withinthe
thesystem
system
••Unevenness
Unevennesscreates
createsoverburden
overburdenthat
thatundercuts
undercutsyour
your
efforts
effortsto
toeliminate
eliminatewaste
waste

ADAAP
MURA-MURI-MUDA

• Mura in its simplest form means “unevenness.”

• For example, mura results when your operators are told to
work like crazy early in the morning only to stand around and
do nothing late in the day.
• Muri means to “overburden” equipment or operators.
• For example, if your entertainment center is only meant to hold
10 kg and you place your new 15 kg super duper HD Ready
TV on it we have muri.
• Muri and Mura lead to Muda
• Example : 12 tons of material to be shipped in a 4 ton-truck

• pp

ADAAP
 Lean Method Model

In order to increase output:

Traditional Model: Lean Model:

• Increases the workforce • Eliminates waste
• Increases working hours • Focuses on efficient use
of equipment and people
• Minimizes issues by
standardizing work

Lean focuses on simplifying complexity and providing the right

product in the right amount at the right time

ADAAP
Deep dive into Lean
•Waste
•Value stream mapping
•5S
•Pull vs Push
•One piece flow
•Load levelling
•Error proofing
•Visual management

6
Types of Work

• Value-Added Work:
– Customer is willing to
Value-
pay for it
Added – It physically alters the
Work product or service
Waste
– It’s done right the first
Other time
Necessary
Work

ADAAP
8 types of waste - Ohno (Toyota Production System)

Waiting Correction

Motion Over-production
Huma
n Mind

Conveyance Inventory

Over-processing

ADAAP
Examples of Waste in our Organization
Waste Type Definition Example
QC / Checking inputs, outputs or intermediate steps Associate A reviewing Associate
Validate Confirming with customer (internal or external) B’s work for errors
Correct / Fixing mistakes, either discovered internally or Rerunning or reworking a
Rework externally database
Over- Having more (output, supplies, etc) on hand Maintaining a market that is no
production / than is needed to meet customer demand longer used
Inventory
Over- Performing unnecessary processing that the Adding information “just in case”
processing client does not want the client wants it
Transport Movement of people, information, documents, Sending hard copies via inter-
etc office mail
Prep / Set- Preparation that does not physically alter the Setting up mainframe extract in
up work usable (Excel) format
Waiting Process stops when an input, decision, etc is Waiting for client to decide on
not available new item placement in sub-total
Human Mind Underutilized or misapplied human resources Level 2 Help Desk support
resetting passwords

ADAAP
Drivers of Waste: Overburden / Unevenness
Driver Overburden Unevenness
What is it? • When the work is difficult to do • When the work runs at an uneven
• When one or more parts of the pace
process work harder than can be • When the process is busy some time
maintained while achieving and less so at other times
consistent results
Example • Picking up extra work due to • All reports worked in week following
turnover within group update, idle the week before

Where does it • Poor process design • Poor planning / scheduling (or lack of
come from? • Inadequate tools planning)
• Poor planning / scheduling • Product / process design
• Excessive waste in the system (e.g., • Policies / procedures
over-processing) • Unbalanced flow of orders (may be
due to policies)
What does it • People get hurt or sick • People resources are stressed
lead to? • Resources get stressed • Difficult to plan – how many people,
• More unevenness how much resources?
• Excessive waste (e.g., correction) • Excessive waste (e.g., waiting,
correction)

Unevenness
Unevennesscreates
createsoverburden
overburdenthat
thatundercuts
undercutsyour
yourefforts
effortstotoeliminate
eliminatewaste
waste

ADAAP
Unevenness is often built into processes

• Uneven process
– Billing dept sends out all bills on one day of the month
Z Z
Z Z
Z Z

• More even process

– Splits bills throughout month

ADAAP
Unevenness in one process often creates
unevenness downstream
Billing
Sends out all bills on the 15th
All bills due on the 30th

Accounts receivable
Incoming receipt peaks on the 30th

Collections
Delinquent payment
queue peaks on the 1st

ADAAP
Sample Value Stream SIPOC
Data Inquiry Process

Suppliers Customers
Client “Order” mechanism Client
Client service Client service

Supplier
Inputs requirements Outputs CTQ
Emails Completed Response form Accurate, timely
inquiry form DI ticket response

Investigate Identify Implement Validate Close Data

Root Cause Resolution Solution Solution Inquiry

Process

ADAAP
Add data to Value Stream SIPOC
Suppliers Customers
Client Client
Client service Client service

Supplier
Inputs requirements Outputs CTQ
Emails Completed Response form Accurate, timely
inquiry form DI ticket response

Identify Implement Validate Close Data

Investigate
Resolution Solution Solution Inquiry
Root Cause
X1 X2 X1 X2
X1

TT = 1 hr TT = 1 hr TT = 0 hr TT = 1 hr TT = 30 mins
UPCs = 15 UPCs = 15 UPCs = 15 UPCs = 15 UPCs = 15
JCL = 2 hrs JCL = 0 hrs JCL = 2 hrs JCL = 0 hrs JCL = 0 hrs
WT = 8 hrs WT = 8 hrs WT = 8 hrs WT = 8 hrs WT = 8 hrs

Process

ADAAP
Lead Time is the total time taken for a product or
service to completely move through the value
stream
How long something
Wait Time waits to be worked on

How long a person

Touch Time works on it

How long a machine

+ Machine Time (computer) works on it

How long the process

Lead Time takes to make it

Lean
Leanliterature
literatureoften
oftenrefers
refersto
to‘touch
‘touch&&machine
machinetime’
time’as
as“cycle
“cycletime”
time”

ADAAP
Waste Analysis
• Lead time by step
– Where are the longest lead times?
– What is the critical path for your process?
– Are they value-added steps?
– If not, can you eliminate or moderate them to save time?
• Non-value-added work
– What type of non value-added steps dominate your process?
– How much time in your process do they account for?
– Why are these steps done?
– What is the wait time between the steps?
• Other necessary work
– What amount of time in your process comes from other necessary work steps?
– Challenge the “necessary” aspect of these steps
– Ask yourself if there is any potential savings to eliminating these steps if you could
– If the answer is yes, then look for ways to persuade others to eliminate this step without causing
problems in the process

ADAAP
Spaghetti Map Example
Order Fulfillment Process
FAX

Order Processing

Order Entry

Printer

Order Invoicing

ADAAP
5S – Sort, Set in Order, Shine, Standardize & Sustain

• 5S can either stand alone as a set of concise Kaizen

activities or it can be used selectively to prepare an area
for additional improvements.

• 5S is a systematic method to organize, order, clean, and

standardize a workplace - and to keep it that way.
Pillars of 5S

SORT SHINE SUSTAIN

SET IN ORDER STANDARDIZE

ADAAP
Vision of 5S

• No . . .
– Wandering/ Searching – A work environment that is self-
explaining, self-ordering, self-
– Waiting/ Delays
regulating and self improving . . .
– Secrets
– Obstacles/ Detours – Where what is supposed to happen
– Extras does happen, on time, every time,
– Injuries day or night . . .
– Waste/ Red Ink

ADAAP
 5S: Sort
The First Pillar: SORT!
 Remove all items from the
workplace that are not needed
for current production or clerical
operations

• Defective or excess quantities of small

inventory items and office supplies
• Damaged parts and equipment
• Outdated forms
• Outdated or broken tools and inspection gear
• Electrical equipment with broken cords
• Outdated posters, signs, notices, and memos

““ When
When in
in Doubt,
Doubt, Move
Move ItIt Out
Out !! ””

ADAAP
 5S: Set in Order
The Second Pillar: Set In Order!

 Arrange needed items so that

they are easy to use
 Label items so that they are
easy to find and put away
 Determine how many of each
item will be stored in each
location
 Make it easy for anyone to
find, use and return items

““AAPlace
Placefor
forEverything
Everythingand
andEverything
Everythingin
inIts
ItsPlace
Place!”
!”

ADAAP
 5S: Shine
The Third Pillar: Shine!

 Make sure that everything in the

facility stays clean
 Clean to inspect, inspect to detect,
detect to correct and correct to
prevent

““ Cleaning
Cleaning with
with Meaning!
Meaning! ””

ADAAP
 5S: Standardize
The Fourth Pillar: Standardize

 Maintain first 3 pillars:

 SORT
x Sor
 SET IN ORDER
t
x Set  SHINE
in O rd
x er  Prevent setbacks in the first pillars
Shi
n e  Make 5S standards a daily habit,
mini 5S (5 min)

““Maintain
Maintain and
and Monitor
Monitor the
the First
First Three
Three Pillars!”
Pillars!”

ADAAP
 5S: Sustain
The Fifth Pillar: Sustain

 Make a habit out of properly

maintaining correct procedures
 Integrate these procedures into daily
routines

““Sustain
Sustain the
the Gains!”
Gains!”

ADAAP
5S – Electronic File Management

 5S can be applied to computer files too!

 This prevents shared drives from getting
clogged with unnecessary data and it helps
you to find the right data, more quickly.
 For paper files, if you’ve not looked at it for a
month, should it be at your workplace?
 Isn’t that what archives are for?
 Plan out a logical folder structure for storing
documents and begin sorting the files into the
right places.

ADAAP
Lean – Push vs. Pull

• A “push” system is where work is created or assigned

regardless of the requirements rather than a "pull"
system which reacts to the demand of the user for the
next work.
• Batch or static workload distribution and assignments can
lead to overburden and/or overproduction.

ADAAP
Lean – Push vs. Pull example

ADAAP
One Piece Flow

• The concept of One Piece Flow is to move one

piece of work, one at a time, between different
steps in the process.
• Prevents the build-up of work-in-process (WIP)
between processes
• Allows for faster detection and correction of
errors
• Aides in balancing workload and defining
resource requirements.

ADAAP
 Example – Processing Multiple Projects
Multiple Projects in Process Single Project in Process

Week 1 Week 2 Week 1 Week 2

M T W R F M T W R F We Wecan
caneither
eitherwork
workon
on44
M T W R F M T W R F
1 1 3 5 7 9 11 different studies and delivery
different studies and delivery 1 1 9 5 1 9 5

them
themallallon
onMonday
Mondayofofweek
week2.2.
2 2 4 6 8 10 12 2 2 10 6 2 10 6

3 1 3 5 7 9 11
OR
OR
3 3 11 7 3 11 7

4 2 4 6 8 10 12 4 4 12 8 4 12 8
We can work one study at a
5 We can work one study at a 5
1 3 5 7 9 11
time and exceed expectations 5 1 9 5 1 9
time and exceed expectations
6 2 4 6 8 10 12 on 3 of the studies, and meet 6 6 2 10 6 2 10
on 3 of the studies, and meet
7 the delivery requirements on 7
1 3 5 7 9 11
the delivery requirements on 7 3 11 7 3 11

the 4 th
thstudy! 
the 4 study! 
8 2 4 6 8 10 12 8 8 4 12 8 4 12

Study Hours MP Complete Date SP Complete Date

Study 1 12 Day 6 Day 2
The same number of
Study 2 12 Day 6 Day 3 The same number of
resources and the same
resources and the same
Study 3 12 Day 6 Day 5 amount
amountofofTouch
TouchTime,
Time,
Study 4 12 Day 6 Day 6 but with different results!
but with different results!
AverageComplete: AverageComplete:
Day 6 Day 4

ADAAP
Level Loading

• A technique used to balance

production throughput according
to the needs of customers.
Provides comparable workflow
across an organization or
department.

ADAAP
Error Proofing Continuum
Warning Shutdown Control
Good Better Best

PASSIVE ASSERTIVE AGGRESSIVE ABSOLUTE

• Addresses • Lights • Expected record • Separate
• ID Labels • Alarms counts workflows
• Directions • Visual Displays • SLA & SLO • Segregation
• Instructions • Production • Shelf Height of Duties SOX
• Maps Control Boards • Shelf Width • Detectors
• Displays • File Size • Sensors
• Limits

ADAAP
Lean - Autonomation
• Autonomation describes a feature of machine design to
effect the principle of "Jidoka" used in the
Toyota Production System. Autonomation, or Jidoka, may
also be described as "intelligent automation'" or
"automation with a human touch."
– The purpose of autonomation is the rapid or immediate address,
identification and correction of mistakes that occur in a process –
without disrupting the flow of non affected parts of the process.

ADAAP
Autonomation Processing Example

Total
Totalprocessing
processingcontinues
continuesevenevenwhen
whenone
onedata
datasource
sourcefails;
fails;end
endusers
users
are
areautomatically
automaticallynotified
notifiedofoferror
errorconditions
conditionstototake
takecorrective
correctiveaction
action

ADAAP
Visual management shares information, promotes
prevention and supports continuous improvement
• Information sharing:
– Real time view/status of the process: Daily/hourly update of work-
in-process
– Key performance indicators show progress against targets
– Signal system that alerts associates of a problem

• Prevention:
– Visible standards to prevent variation & abnormalities
– Work instructions/checklists to simplify process

• Continuous improvement:
– Easy to identify downward trends, opportunities for improvement
– Communication of project team results to recognize and
encourage continuous improvement

ADAAP
 Lean Method Model

In order to increase output:

Traditional Model: Lean Model:

• Increases the workforce • Eliminates waste
• Increases working hours • Focuses on efficient use
of equipment and people
• Minimizes issues by
standardizing work

Lean focuses on simplifying complexity and providing the

right product in the right amount at the right time
ADAAP
Lean is often used for process flow
issues; Six Sigma for more complex,
larger issues
Lean Six Sigma
• Speed and flexibility • In-depth root cause analysis and
• Involves all employees solutions
• Builds highly trained and skilled
• Positive results in short time-
staff
frame
• Used for solving more complex,
• Focused on smaller scale larger issues
projects
• Strong, positive results take
• Less scientific: Often trial and longer to achieve
error • Robust infrastructure
••In
Inmany
manycases
casesBusiness
BusinessImprovement
Improvement projects
projects leverage
leverage
aacombination
combinationofof Lean
Lean&&Six
SixSigma
Sigmaapproaches
approachesand and
tools
tools
••Lean
Leanleverages
leveragesthe
theexisting Six
SixSigma
existingADAAP Sigmainfrastructure
infrastructure