Lean Management Certification PDF

Lean Management Certification, Lean And Six Sigma For All Sectors, Including Manufacturing, 150k Certified, CPD Credits maanantai 26. elokuuta 2024 21.07 HISTORY OF LEAN...

Lean Management Certification, Lean And Six Sigma For All Sectors, Including Manufacturing, 150k Certified, CPD Credits maanantai 26. elokuuta 2024 21.07 HISTORY OF LEAN Six Sigma Academy Amsterdam, 20210 Introduction We have set up our video lectures in such a way that they provide adequate input for students who wish to apply the principles in their professional environment. Texts like this are intended for those who would like to have greater knowledge, beyond the required knowledge. As such, they are optional reading. Why optional? Because we believe in teaching students that which is required to function in the professional field. This text will shed some light on the history of Lean. This is not required for functioning in the professional field. Nevertheless, you might be interested and we facilitate your interest. 1924 Toyota was founded by Sakichi Toyoda. The company first produced automatic looms that were produced for weaving textile. Toyoda was not just a businessman, he was also an inventor and constantly modified his companVs products to be more competitive. Sakichi Toyodal introduces the concept of autonomation for the textile weaving machines of Toyoda Loom Works. What is autonomation? Before the autonomation, each weaving machine had to be manned by one person. If something broke, that person would spot the problem and call for a repair. Through autonomation, the machine would automatically stop when a production problem occurred. What was the main benefit? The main benefit was that person and machine would now be separated to a large extent. Rather than one machine being manned by one man, one man could supervise several machines. Currently, this idea seems very normal and far from revolutionary, but at the time, it was quite revolutionary and became one of the pillars of what later became known as the famous and often copied Toyota Production System. The Toyota Production System became known later on as 'Lean' outside Japan. 1945-1962 The war has been very difficult for Japan as a whole and the Japanese economy is hurt badly. At the end of the war, Toyoda has been rebranded as Toyota and has already started producing cars since 1936. While today, Japanese cars are seen as high quality reliable cars by the international community, this was hardly the case at that time and Japanese manufacturers were highly dependent on the internal market. After the war, Toyota saw itself confronted with two large problems: They were highly dependent on the Japanese internal market and this market had shrunk considerably. They had less access to resources than for instance American manufacturers. Toyota sent people on study trips to America to learn from the leaders of the automotive industry. The Americans were well known for their mass production technique which was popularized by Henry Ford in his Ford Motor Company. 1 Toyota is actually spelled with a D, but this particular spelling is a sign of bad luck when it is written in Japanese language and hence they changed the D into a T and thus we call the company Toyota now. However, it soon became clear that Toyota could not realistically copy the American way of working. Why? The previously mentioned two constraints made that very difficult. Toyota did not have a big international market and as such could not realistically rely on mass production. Second of all, the Americans used resources very liberally. The US had some of the best access to various resources, ranging from human resources to materials. This was not the case in Japan where resources were much more scarce. As such, Toyota decided to not copy the American producers but rather create a production model for itself which would have some big contrasts with the American production model. Toyota would: Let production be dictated by demand. This principle is called pull production and will be explained in detail during the course. Focus on detecting and eliminating waste during the production. Please note that Toyota defined waste in a different way than we define it in our everyday language. This too will be explained in more detail during the course. Do not view production as optimal at any point, but see it at suboptimal at any point and try to improve it on a daily basis. This was the Kaizen principle. We will explain Kaizen in detail during the course. At this point, words like Kaizen, and pull production might not really be clear for you. Do not worry, they shall be dealt with intensively during the rest of the course. But now you have a basic idea of the evolution of this Toyota Production System which became known as Lean outside Japan. 1962-present When the Toyota Production System became popular outside Japan, it became known as Lean. Lean Management and Lean Manufacturing are just offshoots of Lean, the former focusing on its applications in general management and the latter mostly focusing on its applications in a purely manufacturing context. It should be noted that our course has parts from Lean Management and Lean Manufacturing integrated in it and as such is suitable for all sectors. Lean has gone though somewhat of an evolution. Small additions have been made throughout the years to the original version which was derived from the Toyota Production System. It is important that you realize that Lean does not have an internationally agreed upon body of knowledge. Various universities, companies and training institutes have sometimes added little bits to it, removed little bits from it, or changed bits to better fit them. This is unfortunate, but it is fact that we have to just live with. However, the fact that we do not have an internationally agreed upon agreement on what Lean is, does not mean that every version is completely different. Roughly speaking, you could say that there is agreement on 80-90% of the content, whereas 10-20% of the content is different depending on the university, training institute, or company. 1.1 The Toyota production system AIM ○ Serve customer faster ○ At a lower cost ○ Without sacrificing quality It took several years before Toyota perfected it Superior quality ○ Faster ○ Cheaper It became popular outside Japan ○ It was called LEAN ○ The Toyota production system is LEAN Work Page 1 1.2 EXAMINATION AND CERTIFICATION PROCEDURE EXAMINATION AND CERTIFICATION PROCEDURE This course is not just a training course, but also a certification course. The procedure is simple. Finish the course. Make sure you make notes and feel comfortable with the subject. Then at the end of this course, there is a link to the free and optional exam which, if successfully completed, should provide you with a free and optional certificate from SSAA. The certificate is verifiable. The exam is free. Retakes are free as well. This course has a dual accreditation (UK CPD and Dutch higher education BKO). 1.4 How two brothers made their business more Lean SIX SIGMA ACADEMY AMSTERDAM Process Process: Set of linked activities Ordering process 1: Waiting in line Ordering Ordering process 2: Presenting Preparing Preparing Ordering food food Presenting food Fast foods was served outside to the cars ○ They used glass materials ○ And steel forks etc.. Richard and Maurice McDonald ○ They change the process ○ Revolutionize the fast food industry 1.5 Process lead time in Lean Work Page 2  PROCESS & LEAD TIME LEAD TIME PROCESS: RELATED ACTIVITIES WITH A GOAL SHORTER LEAD TIME = LESS & FASTER DELIVERY OF GOOD/SERVICE Process ○ For example ▪ Cleaning the storage ▪ Assembling a car ▪ Answering customer questions via email Why we aim to reduce lead time? ○ Customer is served quicker ○ Less time is needed for the process ○ Time is money ▪ Less time we need ▪ Less money it costs 1.6 McDonald Brothers' New Lean Process OLD VS NEW PROCESS OLD PROCESS ' Waiter walks to car. Gives menu. ' Waiter returns and takes order. ' Waiter walks back to kitchen. ' Food prepared. ' Waiter walks to customer. Serves food. ' Waiter returns to pick up the plates to wash. NEW PROCESS ' Customer places order at restaurant. Food prepared and served in bag. ' Customer eats. Throws away trash. 10 Shorter lead time Quicker and cheaper 1.7 Waste in Lean WAR ON WASTE IN LEAN, WE TRY TO SHORTEN LEAD TIME BY REMOVING 'WASTE' MUDA). a. WASTE b. NOT WASTE c. WASTE d. NOT WASTE e. NOT WASTE f. WASTE g. NOT WASTE Work Page 3  WASTE = NON-VALUE ADDING ACTIVITY VALUE ADDING ACTIVITY (VAA) 1. SOMETHING TRANSFORMED 2. CUSTOMER WILLING TO PAY FOR TRANSFORMATION 3. CORRECT THE FIRST TIME IF EVEN ONE OF THESE 3 DOES NOT HOLD: NON-VALUE ADDING ACTIVITY (WASTE OR MUDA) Waste is also known as Non Value Adding Activity Example of VAA ○ Potato is being cooked ▪ Boiling potatoes □ Something transformed ▪ Customers like to eat it □ They are willing to pay for transformation ▪ They like the taste of it □ Correct the first time Example of WASTE ○ Standing in line to place an order ▪ Something is not being transformed □ No need to even look at points 2 and 3 because this is WASTE already ▪ Customer not willing to pay ▪ Not correct the first time 1.8 Lean Game THE LEAN GAME YOU GET A NUMBER OF ACTIVITIES YOU DECIDE VAA OR NVAA (WASTE)? THE LEAN GAME THERE IS A TRANSFORMATION CUSTOMER IS WILLING TO PAY FOR TRANSFORMATION DONE CORRECTLY FIRST TIME Painting a car to red because customer wants this car in red ○ Something is transformed ▪ Yes ○ Customer is willing to pay for transformation ▪ Yes ○ Done correctly first time ▪ Yes ○ Therefore this is VAA Painting a car to red because customer wants this car in red but we have faulty equipment and inexperienced employees. Need to start over again 6 times before getting it done. ○ Something is transformed ▪ Yes ○ Customer is willing to pay for transformation ▪ Yes ○ Done correctly first time ▪ No ○ Therefore this is NVAA = WASTE You buy old vintage style television. Amazing television, but it need a few small repairs. You drive to a faraway repair shop and they do it first time correctly. ○ Something is transformed ▪ Yes ○ Customer is willing to pay for transformation ▪ Yes ○ Done correctly first time ▪ Yes Therefore this is VAA Work Page 4  ○ Therefore this is VAA ▪ Repair isn't always NVAA □ If the repair is the main operation of the business □ It is a repair shop ▪ Repair is WASTE if you do something and you should do it correctly on the first time but you do not. There is many cases where job is somewhere between VAA and NVAA ○ So it isn't always easy to pin point 1.9. ENVA in Lean Essential Non Value Adding Activity They add NO value, but we can't get rid of them ○ For example. Paperwork to the government Separating NVA and ENVA is not always easy. There are many borderline cases. 1.11. Relationship between Lean and Six Sigma Lean and Six Sigma are separate methodologies with different aims and histories Japan is the birth place of Lean from the earliest 20 century Toyota Production System or TPS became known in the West as Lean Aim Lean ○ Faster and cheaper delivery of products and services, without sacrificing quality by reducing non value adding activities or waste ○ Value adding step 1. Transform something and do it right in one attempt 2. Customer willing to pay for transformation Origin Six Sigma ○ USA 1980 Motorola starts experimenting methodology that later named Six Sigma Aim of Six Sigma ○ Reduce deviation from the norm ▪ Example □ Customer not wait more than 10 min This time need wait 20 min So they are not meeting the norm and therefore there is deviation ◊ When deviation is reduced -> Sigma score go up How are deviations reduced? ○ DMAIC ▪ Define phase: Define fundamentals ▪ Measure phase: Collect data ▪ Analyze phase: Root cause analysis ▪ Improve phase: Formulate solution ▪ Control phase: Keep problem under control SIG SIGMA PROJECTS END! LEAN NEVER STOPS. ○ You are always finding more and more improvements in Lean. So you're never 100% Lean. ○ Mastery of tools can be expressed in belt color ▪ White □ Lowest level of mastery ▪ Yellow ▪ Green ▪ Black □ Master at Lean □ Can supervise projects ▪ Lean has no belts □ Lean Six Sigma belt means that someone is Lean certified and top of that have Six Sigma belt Many Lean tools can be used in Six Sigma projects. Lean feeds Six Sigma. ○ They often used together = cheese sandwich ○ Can use separately as well = cheese or sandwich ○ Cheese sandwich always taste better 1.13. Kaizen in Lean SHOCKS TO THE SYSTEM SOME ALCOHOLICS EXPERIENCE SEVERE HEALTH PROBLEMS AFTER QUITTING THEIR BODIES CAN'T DEAL WITH THE SHOCK OF QUITTING KAI Z E N KAIZEN (OR KAI-ZEN) = CHANGING FOR THE BETTER CONTINUOUS AND LITTLE BY LITTLE WAY OF WORKING WEEKLY KAIZEN MEETINGS REFLECT ON THE PAST PERIOD AND SUGGEST SMALL IMPROVEMENTS FOR THE COMING PERIOD(S) Work Page 5  WAY OF WORKING WEEKLY KAIZEN MEETINGS REFLECT ON THE PAST PERIOD AND SUGGEST SMALL IMPROVEMENTS FOR THE COMING PERIOD(S) Small improvements, not too much at a time so there is no shock. People can cope with that. ○ Personal note: I have been doing this on my own for a while now 2.15 OEE in Lean 1 Overall Equipment Effectiveness (OEE) How effectively are you using your resources? Resources: Human or non-human Expressed as 0-1 OEE = o OEE = 0.5 OEE = 1 * SIX SIGMA ACADEMY AMSTERDAM Manufacturing and Services 10 products per hour SIX SIGMA ACADEMY AMSTERDAM 10 procedures per hour OEE We schedule 10 hours output, but get 8 hours output Our resource runs at 60% of max speed 70% of the output is good quality Availability (A) x Performance (P) x Quality (Q) All values 0-1 Perfect availability: Output during all scheduled time Perfect performance: Running at max speed Perfect quality: All output is good * SIX SIGMA ACADEMY AMSTERDAM If scheduled time is 8h but only 4h is done (50%) ○ 50 / 100 = 0.5 ○ Availability score would be 0.5 in this case ○ Formula for all availability, performance and quality ▪ Scheduled % / 100 Example scenario ○ We schedule 10h output, but get 8h output ▪ A = 8 / 10 = 0.8 ○ Our resource runs at 60% of max speed ▪ P = 60 / 100 = 0.6 Work Page 6  ▪ P = 60 / 100 = 0.6 ○ 70% of the output is good quality ▪ Q = 70 / 100 = 0.7 ○ OEE = 0.8 * 0.6 * 0.7 = 0.336 (34%) Benefit OEE Exact measure instead of vague Shows source of problem Comparison over time Comparison to industry benchmark * SIX SIGMA ACADEMY AMSTERDAM 1/11 Compare OEE to previous values ○ Aim to improve Compare to industry benchmark ○ It is available somewhere 2.19. OEE in Lean 4 Availability (A) = Run time / planned production time Performance (P) = Net run time / Run time Quality (Q) = ully productive time / net run time Machine Breakdown, changeover Speed loss: Wear and tear Quality loss: Wear and tear, wrong calibration All available time Planned production time Run time Nurse Illness, changeover Speed loss: Tired, distracted Quality loss: Tired, distracted Availability loss Schedule loss Net run time Fully productive time SIX SIGMA ACADEMY AMSTERDAM Performance loss Quality loss 2.16 OEE in Lean 2 The ob'ective of OEE OEE Combines three factors: 1. Availability (a) 2. Performance (p) 3. Quality (q) OEE = The Six Bi Losses Planned output Gross output Net output 1. Breakdowns 2. Set-ups & Changeovers Work Page 7  The Six Bi Losses Planned output Gross output Net output 1. Breakdowns 2. Set-ups & Changeovers 3. Idling 4. Reduced speed Valuable output 5. Start up scrap 6. Scrap Exam le What is the Overall Equipment Effectiveness (OEE) ? Workers scheduled 150 hours Waiting 7 Changeover and 8 hrs Speed 90% when set up time running Breakdowns 5 hrs Defect rate 5% Speed losses = 7 hours (idling) + ()(137-7) * 0 1) Net output = Gross output — speed losses = 137 -20 = 117 hrs Calculatin OEE Potential output Theoretical output 3.1dling Actual output 5. Startup Good product Theoretical output = Availability rate (a) Potential output l. Breakdowns 2. Set-ups & Changeovers Actual output = Performance rate (p) Theoretical output Good product = Quality rate (r) Actual output Work Page 8 Question 2: In Holland, the agency responsible for administering Covid vaccins is called GGD. A typical GGD nurse can process 5 Covid vaccins per hour if performing at their best. We know this amount based on historical, long term experience and data. Assume that the GGD has scheduled its nurses for 8 hours per day. However, on average, they were ill 20% of the time. They worked at top speed on average. Furthermore, 10% of their work was faulty which means that it needed to be performed again by another expert. Based on this information, what is the OEE? Answer: ○ A = 0.8 * 8 = 6.4 / 8 = 0.8 ○ P = 1.0 ○ Q = 0.9 ○ OEE = 0.8 * 1.0 * 0.9 = 0.72 Question 4: In a wood processing plant, an automated sawing machine is scheduled to process wood for 20 hours per day on average. On average, it needed 2 hour per day for changeover. It never broke down during the period which we measured its performance. Due to wrong calibration and wear and tear, the machine ran at 80% of its max speed. Of the wooden blocks it produced, 10% did not make it pass quality control and had to be thrown away. Calculate the OEE. Answer: ○ A = 18 / 20 = 0.9 ○ P = 0.8 ○ Q = 0.9 ○ OEE = 0.9 * 0.8 * 0.9 = 0.648 3.20 Lean wastes: 7 + 1 * SIX SIGMA ACADEMY AMSTERDAM 7+1 types of wastes Traditional 7 wastes (Muda): Motion Transport Overprocessing Overproduction Inventory Waiting Defects/inspections 8th waste: Wasted information/talent 7+1 types of wastes "So....my employees should stand still like statues all day?" Be reasonable and take context into consideration. Structure lessons We split the 7 + 1 types of waste in sections Each section Discusses the waste Work Page 9  Structure lessons We split the 7 + 1 types of waste in sections Each section Discusses the waste Discusses tools and techniques to reduce/eliminate it These techniques may also be useful for other types of waste 4. Lean waste: Overprocessing Offering to customer more than is needed OVERPROCESSING CAUSES YOU HAVEN'T ASKED NO CRM SYSTEM NOT MODULAR We want to offer what customer wants ○ No more ○ No less ○ Aim is to give exactly what they want (but cheaper) Number 1 reason by far is ○ You haven't asked ○ Most of the businesses do not ask specifics from customer ○ Solution: ALWAYS ASK FROM CUSTOMER CMR = Customer Relation Management ○ Keeps track on the customer ○ What are they buying, why, when etc… Not modular ○ Basic product ▪ You can add to it -> modules ▪ For example. You have a car -> you can add aircon, heated seats etc… ▪ Can also be software, service etc.. □ Basic version Modules could be versions or something you can add to it i Weight www.SixSigmaAcademyAmsterdam.com Competition Relationships: A Highly positive Positive o Negative v Highly negative Relationships + Strong relationship (10) * Medium relationship (5) Weak/no relationship (O) Importance factors Exercises+Q uality+Fu... Work Page 10  Six Sigma Academy Amsterdam 2016 Exercise Topic: Quality Function Deployment Exercise: Quality åunction deployment involves more than simply building the House of Quality: but that house is the most important part of it. Assume that you work TATA Motors, an Indian automotive company. Assume that the company intends to launch a new SUV vehicle: especially designed for the South East Asia market. The House of Quality should play an integral part in that design. The House of Quality below is what you ended up with. Do note that is for sure not complete. More can be added: but for the sake of overview, we leave it as it is and do not add too much. How many can there be added? As much as you vvish, but we generally limit it to 10 factors max in order to not lose the big picture. Please try to answer the fi)llowing questions below. Please note that the answers are provided at the end of the document QUESTION 1: Please explain why the value 35 is u.Titten below ' engine size. QUESTION 2: What is the main conclusion that you can draw from this House of Quality? Please note: the data itself is just a fictional example. In real life, surely other data might roll out. Please just focus on this case. QUESTION 3 What other 'controlled can you name that might be suitable to include in this House of Quality' s roofl QUESTION 4: In the top part of the roof, we show the relationships between the factors which we control. Why is a triangle used to indicate the relationship between engine size and amount of steel used? How should we interpret this? For answers: please check the bottom of the document. Work Page 11  ANSVÆRS QUESTION 1: We multiply the weights of the corresponding 'iüe ofcustomer' elements on the left with the symbol weights below the column ' engine size. From top to bottom we hawe: 1 x cross + 1 x cross + 1 x cross + 1 x asterisk. A cross has the value of 10 and an asterisk has the value of 5 _ As such: we obtain: (1 x x5) 35. QUESTION 2: It seems that the controlled factors that contribute most to satisfring the customer: are the number of entertainment options and the amount ofvoice controlled features. They get the highest scores (50 and 75). Does this mean that we can neglect the other controlled factors? Absolutely not But it does show us where the focus should lie when designmg this car. QUESTION 3: There are many other fictors which we can name. Please notice that in real life, we are quite pragmatic. There are literally hundreds of factors that you control in a car, from the diameter of the screws: to the size of the hood ornament. But we do not mention them all. We focus on the things we find most important. Typically: between 5-10 controlled factors are included in the House of Quality. Furthermore: onen try to cluster For instance, there is nothing wrong with clustering audio features and video features under one namely ' entertainment features. ' This being said, possible important åctors include production cost wheel size grams of carbon used for the exterior Work Page 12  grams of synthetics used for exterior number of safety features apart from airbags etc _ QUESTION 4: This one is likely to stir a debate amongst your group. This is just part of the game. Remember that you must fill this in with a multidisciplinary group so that there is less personal bias. Why is there likely to be a debate? Some might argue that a bigger engine means that you are dealing with a bigger car and this require more steel. They would argue that there is a strong positive relationship between these two and would opt for the triangle pointing up. Others might argue that while a bigger engine usually entails a bigger car: it does not always have to entail a bigger car. You could install a big engine on a relatively small car and thus enjoy benefits such as increased horsepower without having negative drawbacks such as high åLe1 consumption. Eventually: your group might settle on a compromise and characterize this relationship as just a normal positive relationship and use the circle with solid fill (second from the top in the picture above) as a symbol. Please note that this is just part of the game. You are not solving a mathematical puzzle here. You are using a tool which has given great benefits for decades: but is nel,7efihe1ess dependent on your mputs_ We compromise all the time when dealing with these tools. Compromise is good. It means that we do not let one person's personal bias dictate the process Work Page 13  QFD basically captures what the customer wants and then helps us decide what we have to do to serve that customer the best way with the factors that we have control over. In Lean, we like to give the customer what the customer wants. Not more. Not less. If we give the customer more, it is a form of waste. If we give less, it is insufficient. QFD identifies clearly what the customer wants and even ranks those demands so we can target the customer in the most efficient way possible. 5. Waiting Time is money ○ Wasting time is wasting money ○ WAITING IS WASTE 5.26 Waiting 1 Raw materials waiting for processing Clients waiting to be served Finished goods waiting to be bought Process waiting for a signature Process waiting for set-up Causes ○ Batch production ○ Formalities ▪ See what can you terminate without compromising integrity of the company ○ Neglecting modern technology ▪ This can reduce waiting time Solutions ○ Pull production ○ Technology ▪ using latest technology ○ SMED Waiting at barbershop Why would you spend 50% of your rent to facilitate waste? You should spend your waiting area to add VAA Embrace technology ○ Take their phone number ○ 10 minutes before seat is available we sent you a text message so you can go shopping or something ○ No need for large waiting area 5.27 Waiting 2 SMED (Single Minute Exchange of Die) In the 1950's Shigeo Shingo developed the concept of SMED to reduce waiting It can be used in many sectors ○ Manufacturing ○ Hospitals ○ Transportation ○ Restaurants etc. External set-up (can be performed while process is running) ○ Can prepare for product B while product A is running ○ Reduce waiting time because normally this would be done after A is finished Internal set-up (cannot be performed while process is running) We also want to stress that 'waiting' is not just something that applies to human. If you have a pile of work waiting to be finished, this is also a form of waiting. Waiting is simply the interruption of a process. Exercise+S MED+-+k... Six Sigma Academy Amsterdam 2020 0 Exercise topic: SMED Although Shigeo Shingo made SMED primary for manufacturing, Lean professionals have found out how useful it can be in all other industries. In the video, an example was used from manufacturing. However, Lean is not just a methodology for manufacturing. Lean can be used in every sector. As such, we are going to look at a completely different sector, namely the call center business. Context Microsoft has recently launched 2 new pieces of software which we call A and B. Customers Work Page 14  Although Shigeo Shingo made SMED primary for manufacturing, Lean professionals have found out how useful it can be in all other industries. In the video, an example was used from manufacturing. However, Lean is not just a methodology for manufacturing. Lean can be used in every sector. As such, we are going to look at a completely different sector, namely the call center business. Context Microsoft has recently launched 2 new pieces of software which we call A and B. Customers with questions about A and B can call the Microsoft call center in Seattle (US) if they have questions about A or 3 The primary language spoken at that call center is English, although there are many call center agents who speak another language Assume that as of yet, a typical call to the call center of a software company goes like this: CA: Hello Person Customer Call center a ent 1 Customer Call center agent 1 Call center a ent 2 Customer Call center agent 2 Customer Call center agent 2 The customer is calling from Montreal (Canada) and is a French speaker. He calls the number of the helpdesk and waits 5 minutes before he is connected to the next available call center agent. Greets customer and asks what the roblem is. Customer asks whether it is possible to speak French. Puts customer on hold and tries to connect him to a collea ue who ks French Greets customer and asks what the roblem is Poses his question and explains his problem. The software that he has bought does not seem to function. In order to be able to assist the customer, the agent asks for the software serial number. Call center agents always have to ask for the serial number before helping customers They do this so that they only help customers who have purchased the software legally instead of illegally downloaded it. Customer explains that he does not have the box near him and has to search for it. After some searching, he finds it and communicates the serial number. Explains the solution and with a polite greeting ends the conversation Time re uired 300 sec 30 sec 120 sec 120 sec 30 sec 60 sec 30 sec 180 sec 120 sec TOTAL 990 sec Take this process and apply SMED to streamline it Scroll down to the next page for the solution. Ansvær We have to make maximum use of the internal set up time. While the previous product (in this case each product that is produced is a customer who is helped) is being produced, we are preparing the process for the next product (the next customer in line). We do that during the waiting period of each customer. We already prepare the customer as much as possible for the process. By asking for his preferred language and prompting him to find the serial number, we slash valuable time from our cycle time Just compare the total time in the table above and the table below which shows the new situation. Person Customer Call center a ent 1 Customer Call center agent 1 Activ The customer is calling from Montreal (Canada) and is a French speaker. He calls the number of the helpdesk and waits 5 minutes before he is connected to the next available call center agent During the waitinq. the customer has to indicate which Ianquaqe he wishes to speak by pressing 1 for English. 2 for French. 3 for Spanish etc. Also during the waiting. an automatic message lets the customer know that he should have the serial number of the software ready at hand. Greets customer and asks what the roblem is. Poses his question and explains his problem. The software that he has bought does not seem to function. Explains the solution and with a polite greeting ends the conversation Time re uired 300 sec 30 sec 60 sec 120 sec TOTAL 510 sec Work Page 15  300 sec 30 sec 60 sec 120 sec TOTAL 510 sec 5.29 Takt time, cycle time, bottlenecks in Lean 5.30 Takt time in Lean Maximum time available per unit, if you wish to satisfy the demand Takt Time = Net time available to work / Excepted customer demand Example ○ Expected demand ▪ 1200 ○ Net time available ▪ 1 week (40h = 2400 min) ○ Takt time ▪ 2400 / 1200 = 2 min ▪ Meaning that you can't spend more than 2 min / unit 5.31 Cycle time and bottlenecks in Lean management Cycle time ○ Time required to produce one unit of production or service Lead time ○ Time that elapses from the moment that a customer places order until he/she receives product/service Bottleneck ○ Image below ▪ Takt time = 2 min ▪ Cycle time = 6 min because it is always the lowest part of the production line (also called bottleneck) 5.32 bottleneck optimization in Lean Work Page 16  To reduce cycle time ○ Add extra man power ▪ Makes sense only if it reduce subprocess (B) ○ Add extra equipment ▪ Extra men does not reduce freezing time, equipment will SIX SIGMA ACADEMY AMS How to meet takt time? Bring all processes to the level oftakt time (preferably well below) You can achieve this by: Extra manpower Extra machinery Rearranging staff How to meet takt time? Bring all processes to the level of takt time (preferably well below) You can achieve this by ○ Extra manpower ○ Extra machinery ○ Rearranging staff ▪ Example □ Person A is wasting time with only 2 min task □ So he will be using his time to help person B Work Page 17 Exercises+R eplacing+... Six Sigma Academy Amsterdam 2016 Exercise topic: Replacing push production Answers are to be found on the next page. Exercise 1 :Suppose that your plant is actiR 40 hours per week. Your client wants you to produce 1,200 cakes within 2 weeks. What is your takt time? Exercise 2: Assume that the process ofbaking each cake is depicted below As such: each cake must go through sub process A: B and C before it can be sold. Each sub process is either manned by one person: or consists of one machine. What is the cycle time? 2 min 2 min c 8 min Exercise 3: The cycle time is longer than the takt time. Explain what kind of problem it causes. Exercise 4: Solve the bottleneck issue so that we can meet the takt time of4 minutes. Work Page 18  Answers Answer exercise I : Takt time = net available time / demand in that time period As such takt time is 4 minutes because: 4 minutes = 4,800 minutes / 1,200 units Answer exercise 2 : Cycle time is equal to the slowest part of the chain which is refe1Ted to as the bottleneck. As such the cycle time is S minutes. This means that every 8 minutes: a cake is fmished_ Do note that the first cake that is baked, takes longer than 8 minutes to be fmished: but all the other thousands of cakes afterwards pop out every S minutes. As such: we ignore the first unit, which is just an exception to the general cycle time. Answer exercise 3 : Takt time is the max time per unit that you have at your disposal to meet total client demand. Since takt time was 4 minutes, it means that we can afford a maximum of 4 mmutes between each finished cake. However: right now: it takes 8 minutes to finish an additional cake. This is obviously a problem since we can't meet the total demand. We to bring down cycle time to at least 4 minutes. Answer exercise 4: The solution depends on the nature of sub process C. Suppose for instance that sub process C is glazing the cake. In that case: we can 'break down: the process. 1%at does that mean? That means that if we put additional people on the process: they can divide the task and the task will be completed sooner _ If I put two people on the task: each can glaze ofthe cake which means we now only need 50% ofthe time that we needed to glaze. In other words: the 8 minutes drops to 4 minutes and our cycle time becomes 4. We meet our takt time: but just barely. This is very dangerous since we have no buffer time in case somethmg goes "Tong and the production does not nan as smoothly. Preferably, our cycle time is way below takt time so that we even some buffer in case something goes wrong? What is a reasonable buffer? Depends on the industry: depends on the company, depends on the risk appetite of management However: not all processes can be 'broken down' by people. For instance, suppose that step C is baking and that baking lasts S minutes. Putting extra people there will not bring down the 8 minutes baking time. The extra person will just _ Join the first person in waiting 8 minutes. What a silly picture that would be. That is not a very productive thing to do. In this case: we need to 'augment' the process by adding extra machinery (extra ovens). How many extra ovens are needed? Let us start by adding one extra ovem The new situation is depicted below. 2 min 2 min c c 8 min Work Page 19 Work Page 20 5.34 Little's Law in Lean context L= Average number items in system = Average arrival rate W = Average wait time in system Gives relationship between WIP, lead time and customer demand rate Work Page 21  L= Avg number of items in system = Avg arrival rate W = Avg wait time in system Average 100 emails are inbox Average, 30 emails answered per day What is average waiting time for response? L= Avg number of items in system = Avg arrival rate W = Avg wait time in system Average customer demand 500 wafers p/d Lead-Time = 0.5 days What is average inventory level? How to reduced WIP? Steady State System ○ Same materials exit than entered the system WIP = Work In Process Little's Law ○ L = WIP ○ W = lead time ○ Lambda = Customer demand rate Exercises-Li ttles-Law+... Six Sigma Academy Amsterdam 2017 0 Exercise topic: Little's Law While governments are generally perceived to be somewhat inefficient by nature, there are a number of Dutch government institutes that are embracing the Lean philosophy Already, the municipality of Amsterdam, The Hague and Rotterdam have implemented some level of Lean reform in their operational activities A recent inspection of a Dutch municipality showed that on average, there were roughly 4,000 'bezwaarschriften' being processed by a Dutch municipality. 'Bezwaarschriften' are letters from citizens to the municipality in which citizens make use of their right to formally protests a municipality decision and asks for a new ruling The Dutch municipalities have an obligation to process those letters within a certain timeframe. Not complying to the deadline has serious (sometimes financial) consequences for the municipalities. Furthermore, an audit showed that on average, roughly 2,200 letters were answered per month. Question 1: What is the average waiting time for a citizen to get a response to his/her letter? Question 2: If the Dutch government norms are so that 'bezwaarschriften' should be answered within 18 months, how can the municipality achieve that goal? See next page for answers. Work Page 22  Answers: Question 1: All inputs (letters) lead to outputs (answers). As such, this is a steady state system and Little's Law can be applied. Little's law entails that L= Average number of items in system = +/- 4000 A = Average arrwa/ rate = +/- 2,200 W = Average wait time in system = ? W can be calculated by L/ = +1- 1.8 months Do note that we are dealing with approximations here. There are two reasons for this. First of all, our input was also given as approximation5 We had roughly 4000 letters and roughly 2,200 were answered per montm That is how lean management works in practice. You often work, due to time constraint: with rough numbers. We are not trying to land a spacecraft on the moon which requires enormous precisiom We are trying to cut away waste by a large %, whilst making sure that our fees are only a small fraction of the savings The second reason is simply that Little's Law is an approximating law by nature. Question 2: We can keep L constant and manipulate In that case: 4000 = v 1.5 2,667 Basically, this means that the number of letters answered per month, or exit rate, should be 2,667 to comply with a 18 month deadline Remember that exit rate and enter rate are treated the same in Little's Law because it assumes a steady state system. Altematively, we can keep constant and manipulate L _ In that case: L = 2,200 1.5 L = 3,300 Thus, they need to bring down L (the average number of letters in the system or WIP) down from the current 4,000 to 3,30C They would then be able to comply with the deadline norms, given their current processing capabilitw Bringing the WIP down seems such a bizarre goal to pursue. After all, is it not just a given with which they have to dean No' WIP is work that is stuck in your system Why was it stuck? Because they were (over)processing it over and over again! In this panicular case: almost all the 7 forms of waste were heavily present in the system. Most present was over processing which was caused by the size of the bureaucracy. Doing something about bureaucracy is something extremely difficult and can only succeed if you are heavily supported by a powerful management team AND you can somehow make the affected people believe that the reform is not going to go at the expense of their Generally, it helps to make the most vocal criticaster co-responsible for the implementation of the reforms. 6. Lean Waste: Transport Unnecessary movement of "transformed resources" Examples of transformed resources ○ Raw materials ○ WIP ○ Finished goods Caused by ○ Poor business unit layout ○ Poor geographical positioning Solution ○ Improve layout and/or position Example ○ Ryanair LCC ▪ Low cost airline ▪ They are known for avoiding large commercial airports that are inefficient □ Lots of waste on Taxi services □ Need wait long time to get a ride ▪ They prefer smaller regional airports Work Page 23  7. Lean Waste: Motion Welcome to the section about the Lean waste of motion. The waste of motion has to do with the unnecessary movement of workers in your business environment (factory, bank, hospital etc.) This is not the same as the waste of transport which mostly refers to unnecessary movement of for instance finished goods, work in progress and raw materials. The following videos explains so -called 'Spaghetti Diagrams' and will give you a good starting point to reduce the waste of motion. After that, we will introduce you to 5S, a method of working that for sure reduces the need fo r searching (and thus motion) for tools/equipment. Enjoy the lectures. SPAGHETTI DIAGRAM Trace movements Find movement clusters Reposition Can be done manually automated Reflection Lean wastes: Transport & Motion Reflection Spaghetti Diagrams and Transportation Matrix We have explained you the difference between the waste of transport and the waste of motion in an earlier written lecture. We have taught you to use the transportation matrix to reduce the waste of transport and use a spaghetti diagram to reduce the waste of motion. Some students ask: "What is the key difference between the transportation matrix and spaghetti diagrams? Why can't I just use one for both types of waste?" Transportation Matrix Use this one when you do not have the possibility to track each movement yourself. For instance, in a big factory or a big hospital, there might be thousands of movements of goods and 'work in progress' (which could be half finished goods, or a patient in the middle of treatment). You can't realistically follow them yourself. You just do not have enough eyes and legs. The place is just too big. So you ask those who move them, to report their movements to you. You then put those answers in a transport matrix. Spaghetti diagrams The spaghetti diagram is suitable in an environment where you can, to a reasonable extent, follow the movement of people. For instance, you have a medium sized factory hall, and twice per day, you seek a good position (preferably a bit higher) with a nice wide view and just trace how the factory workers move. They might make a hundred movements, but you are able to keep up with that, since all happens right under your eyes. You may also record them and then replay everything with high speed and then make the spaghetti diagram, but that does involve legal issues and you are not allowed to record people in every region without their permission. Ask your legal department first. Recording people might also lead them to behave differently than under normal circumstances, this is referred to as the Hawthorne Effect. So realize that this is a risk that you take. Choose wisely dear students. Lean Principles 5S 1. Sort 2. Set in order 3. Shine 4. Standarlize 5. Sustain Work Page 24 1. Sort a. Eliminate all unnecessary items 2. Set in order a. Eliminate search 3. Shine a. Clean and ready to use i. Employee moral b. If the place gets dirty faster than it can be cleaned, you need to find the root cause! 4. Standardize a. To prevent setbacks in the first three pillars i. SOPs ii. Color coding iii. Floor markings b. Who cleans what i. Some people might resist 1) Put them in charge of some area for example 2) He have skin on the game, so he don't try to sabotage 5. Sustain a. To make 5Ss a habit in the way we do our day-to-day activities. Self-discipline i. Training ii. Audits iii. Promotional materials iv. 5S contests Work Page 25 8. Defects / inspections Defect Test○ Small imperfection or not functional Dtrfhdtrf Waste of defect = Waste of inspection DfSometimes it is required by law to include ispections Hgdfs But Lean is opposed to inspections that could have been avoided if production or service was arranged in a different way which would have resulted no defects Hgsfd POKA YOKE H ○ Mistake proof sdfgh ○ Not need inspections or need much less Inspections ○ Defects ▪ NVAA ▪ Require Repair / rework POKA YOKE examples Work Page 26  There are some cases that inspections are needed but it can be very costly 9. Lean Waste: Overproduction Mass production is sometimes also called push production ○ Work with batches (large quantities of units) ○ Problems ▪ Trying to produce large quantities and then push them into the market 1. What if the demand change between start and finish? ○ You stuck with large quantities finished goods ○ What if there is an economic change? 2. Problem discovery ○ Defect pass the production line and end up in finish products and customers ▪ There is problem in big batch of goods ▪ Maybe need to do recall and repair 3. Inventory ○ Your money is locked in inventory ▪ No money for investment, paying debt etc. Pull production ○ Start production based on customer demand ○ All of the production is based on demand ○ If problems happened it's not affecting large quantities of units and can be fix quickly ○ Smaller inventory of finish goods ○ You don't need so big inventory of materials ▪ JIT (Just In Time) ▪ Working small quantities and replenish when there is need Extra explanation JIT in Lean manufacturing CHOOSING SUPPLIERS In our experience, the transition to JIT should be: a gradual transition, based on the kaizen principle. guided by consultants who have experience with the aforementioned transition. We advise you to spread the implementation of JIT over at least 3 months. During these 3 months, you can gradually reduce your inventory levels. A too quick switch to JIT has rarely given good results in our experience. Sure, in books Work Page 27 We advise you to spread the implementation of JIT over at least 3 months. During these 3 months, you can gradually reduce your inventory levels. A too quick switch to JIT has rarely given good results in our experience. Sure, in books and in lecture videos, it seems simple. In practice however, you have a number of challenges when opting for JIT. Why do you need at least 3 months? Because you need to screen your suppliers very carefully. What is JIT all about? JIT is all about reducing inventory levels. Rather than having enough raw materials to last for many months of production, you will reduce it to a level that maybe lasts you for a few days of production. This way, less money is tied in inventory. This does require a supplier of raw materials that is able to replenish your low level of raw materials when needed. You need very reliable suppliers in the context of JIT. What you do not want is to have low level of inventory/raw materials that get depleted and can't be replenished because your supplier is incapable of replenishing. In that case, JIT would do more harm than good. So you need to carefully screen your suppliers. It's that screening that lasts at least 3 months. Use the criteria below to screen suppliers and only accept them as JIT suppliers if they score excellent on all of these criteria: 1. Reliability: The supplier must have a proven track record of delivering materials and products on time, in the right quantity, and with consistent quality. Ask for some factual proof of reliability. We are not interested in empty marketing slogans such as "our customers are our number one priority." We want facts and figures. There is not one metric orone document for this purpose. It depends on region. It depends on industry. But good suppliers have facts and figures to back up their reliability. Ask for those. If they do no have them, interpret that as a signal of unreliability. 2. Financial health: Ask the supplier for proof of financial health. You do not want your supplier to go bankrupt while you are stuck with no inventory of raw materials. Trust us, these situations happen a lot, so make sure your partner is financially healthy. 3. Reliable suppliers: Most likely, your supplier also has its own suppliers. How reliable are those? Ask about that. From whichregion do they get those supplies? Is that a risky region? 4. Flexibility: The supplier should be able to adjust to changes in demand and production schedules quickly. 5. Quality: The supplier must provide high-quality materials and products to prevent defects and rework, which can disrupt the JIT system. 6. Proximity: The supplier should be located close to the organization to reduce transportation time and costs. 7. Communication: The supplier should have good communication skills to ensure smooth collaboration with the organization. 8. Capacity: The supplier should have sufficient capacity to meet the demand of the organization. 9. Cost: The supplier should provide materials and products at a reasonable cost to keep the overall cost of JIT implementation within budget. 10. Partnership: The supplier should be willing to work closely with the organization to continuously improve the JIT system and achieve mutual benefits. By considering these criteria, an organization can select suppliers that are best suited for JIT implementation and establish a strong and reliable supply chain. One last point of warning is that we advise against having one sole supplier. If we have learned one thing, it is that reliance on a sole supplier can be a disaster, even if that one supplier scored excellent on all the aforementioned points. So try to spread the risks and choose multiple suppliers. If one of your suppliers for instance sources a lot from a specific region (let's call that region X), try to find another supplier that sources from another part of the world. In that case, if something were to happen in region X, your supplies would not dry up. Trust us, you will be happy that you followed this advice if unforeseen events occur. Heijunka in Lean Manufacturing Hejunka: Production Leveling Produce based on demand ○ If you have 3 different customers, try to produce all of their requirements, not just 1 ▪ Spread them so every customer gets they products in time ▪ Use SMED (Singe Minute Exchange of Dies) ▪ Going to be explained in another lecture Heijunka in Lean Manufacturing 2 SHARING OUR EXPERIENCE WITH HEIJUNKA Heijunka is also known as production leveling or Every Product Every Interval (EPEI). The theory behind it, as it was already shown to you, is quite straightforward. The benefits of successful implementation of heijunka are numerous. You serve the customer faster and you can adapt to changes quicker. However, based on our experience, we can tell you that it is probably one of the most difficult Lean concepts to actually deploy in real life..... without making things worse, much worse. A successful implementation of this principle requires that your 'changeover time' (time needed to switch from producing one type of product to another) is so low that you lose very little time when switching between product types. In our previous example, we changed T-shirt colors frequently. But what if that change between colors required a long time? Would we still produce small batches? Or would we prefer to stick to our old method of mass production? You need to invest in reducing changeover time first. Let's refer back to our video with the different color T shirts. Your changeover time should be so low that it hardly matters whether you produce an orange T shirt after a green one, or another green one after initially producing a green one. If you can't realistically bring down changeover time, we advise you to stay away from the concept of heijunka because we have seen some terrible scenario's in which the organization implementing it actually starts performing worse on multiple fronts. 10. Lean Waste: Inventory Too much of the following is waiting to be processed further ○ Raw materials ○ WIP ○ Finished goods LEAN WASTE: INVENTORY 2 ○ The waste of inventory and overproduction are very strongly linked. You need a great deal of inventory of raw materials to fa cilitate your overproduction and because you have so much overproduction, you have a big inventory of finished goods. They are very closely linked. This also means that they are to be treated by means of the same techniques. So you may assume that the tools and techniques discussed for the waste of overproduction also apply here. Lean Principles Inventor Inventory locks capital and is subject to depreciation and complete write-offs! Cause: Bottlenecks, batch production Solution: ○ gating bottlenecks by extra machines or workers. Work Page 28  Cause: Bottlenecks, batch production Solution: ○ gating bottlenecks by extra machines or workers. ○ Pull / JIT production 11. 8th for of waste o Traditionally: 7 forms of waste oRecent 8th form: oWaste of talent oWaste of information oWaste of skills oUnutilized talent = waste oReason: o Lack of interest by management oPoor management o Lack of transparency oHow do we reduce this waste? 1m lementation Ti s oNot digital! oPrevent it from being buried ONO Dropbox! ONO sub-folder of sub-folder 1854-X on the M drive 1m lementation Ti s oProminent place!