Post on 22-Jun-2020
Learning to See Waste
Everything you do in your Company is accomplished through a process.
OrderMaterials
SetupEquipment
Issue paychecks
– Even the smallest activities are accomplished through processes.
Definition :
Process: A series of actions or steps toward achieving a particular end.
1. Scope Starting point and ending point.
2. Purpose: Reason why it is being performed.
3. Steps: Actions performed by operators or equipment.
4. Sequence: Order in which the actions are performed.
5. Operators: Operators or equipment that perform the actions.
6. Outcome: A specific result, product or state.
7. Customer: Next process, requestor or end user.
Characteristics :
TYPES OF
WASTE
Over-Production
Over
Processin
g
MaterialMovement
Waiting
Inventory
Correction
Motion
+ Underutilization of Employees !!!
Taichi Ohno’s Seven Forms of Process Waste
Some CausesLarge Batches
Poor CommunicationLong Changeover Time
Low UptimesLack of Consistent Schedules
Forecasts vs. Customer Demand
Definition:Producing More Than NeededProducing Faster Than NeededProducing Sooner than Needed
Some CharacteristicsInventory StockpilesExtra Racks, ContainersBuilding AheadLong Lead TimesExtra / Oversized EquipmentUnbalanced Material FlowExcessive Capacity / InvestmentSafety Concerns
Some CausesIncapable ProcessesIncapable SuppliersInsufficient Training
Inadequate Tools / EquipmentPoor Layouts / Handling Issues
Processes Not Under ControlHigh Inventory Levels
Some CharacteristicsRepair and Rework AreasIncreased InspectionMissed Shipments / DeliveriesPoor Customer / Supplier RelationsReactive OrganizationLost CapacityScrapPremium FreightReactive Organization
Definition:Repair of a Product or Service to Fulfill Customer Requirements
Some CausesLarge Lot Processing
Inconsistent SchedulesLong Changeover Times
Lack of Work Place OrganizationImproper Facility Layout
Excess Inventory
Definition:Inconsistent Material Flow.Unnecessary Movement of Parts.
Some CharacteristicsMultiple Storage LocationsComplex Material FlowsWasted Floor SpaceLarge Tanks & WarehousesInventory ErrorsUnbalanced Drive ScheduleHeavy Duty Barriers & Protection Devices
Definition:Effort Which Adds No Perceived Value to a Product/Customer.
Some CharacteristicsBottlenecksLack Boundary Samples or Clear Customer Specifications
Endless RefinementRedundant ApprovalsExtra Copies / Excessive Information
Excessive approvalsRedundant processes
Reports with too much informationReports that you don’t use
Some CausesEngineering Change w/o Process Change
Decision Making at Inappropriate LevelsIneffective Policies & Procedures
Lack of Customer Input Concerning Requirements
EngineeringChanges
Some CausesIncapable Processes
Uncontrolled BottlenecksIncapable Suppliers
Long Changeover TimesLocal Optimization
Inaccurate ForecastsSub-optimized Raw Material Ordering
Efficiency Measures
Definition:Any Supply in Excess of Customer Requirements.Any Supply which is not having value added to it.
Some CharacteristicsFISH instead of FIFOSMOILong Lead Time for Engineering ChangesOff Line Storage AreaExtra Material Handling Resources (People, Equipment, Racks, Storage, Tanks, Space / Systems)Slow Response to Customer Demands Low Inventory Turns
Some CausesInconsistent Work Methods
Long Machine Changeover TimesDowntime/Breakdowns
Poor Machine / People EffectivenessLack of Proper Machines
Some CharacteristicsPeople Waiting for MachinesMachines Waiting for PeoplePeople Waiting for PeopleWaiting for MaterialsUnbalanced OperationsLack of Concern for BreakdownsUnplanned Equipment Downtime
Definition:People or parts waiting for a work cycle to be completed. Idle time resulting when two dependent variables are not fully synchronized.
Definition:Any movement of people that does not add value to the product or service.
Some CausesPoor Housekeeping
Equipment, Office & Plant LayoutLack of Work Place Organization
Poor Machine / Operator EffectivenessInconsistent Work Methods
Large Batch Sizes
20 ft.20 ft.
20 ft.
Hint: Don’t confuse motion with work.
Some CharacteristicsLooking to Find ToolsWalking for MaterialsExcessive Reaching / BendingWalking Around ThingsMoving Thing Out of the Way Machines / Material too Far Apart
TYPES OF
WASTE
Over-Production
Over
Processin
g
MaterialMovement
Waiting
Inventory
Correction
Motion
Can you spot examples in your work area?
+ Underutilization of Employees !!!
Value Stream Mapping:A descriptive analysis that helps you to see and understand the complete flow of material and
information towards the final product.
“Whenever there is a product for a customer, there is a value stream. The challenge lies in seeing it.”
Womack and Jones
Why is Value Stream Analysis so important for Lean Processing?
Supports process thinking.
Takes a big picture view – improve the whole vs optimize individual steps.
Shows the connection of material, people, and information flows.
Standard for management to document the whole process.
Single value stream – factory order to shipMulti-value stream – order to cashEnterprise value stream – design, sales, order, produce, ship, bill
Supplier Customer
Raw-materialinventory
Finished-goodsinventory
Productdelivery
Supply-chaindataRaw-
materialshipments
Product-demand
data
Process 1data
Process 2data
Process ndata
Inventoryquantity
Inventoryquantity
Inventoryquantity
Inventoryquantity
I I
Raw-materialinventory
Finished-goodsinventory
I IProcess 1 Process 2 Process n Shipping
Supplier Customer
Productdelivery
Supply-chaindata
Demand-pattern
data
Process 1data
Process 2data
Process ndata
Inventoryquantity
Inventoryquantity
Inventoryquantity
Inventoryquantity
Production control
Productionschedule
ProductionscheduleProduction
schedule
ForecastsRaw-MaterialForecasts
Orders
Raw-materialorders
Raw-material
shipments
I I
Raw-materialinventory
Finished-goodsinventory
I IProcess 1 Process 2 Process n Shipping
NVANVAVA VA VA
NVAVA
NVA
Totals
Completed Future-State Map
Supplier Customer
Productdelivery
Raw-materialsupermarket
Process 1 Process 2 Process n ShippingProcess 3SupermarketIP kanban
Changeover Downtime Std WorkScrapStd Work
Std WorkStd WorkStd WorkC/T reduction
Prod ControlDaily orders Daily orders
CustomerrequirementRaw-
materialshipments
max. 5 pieces
FIFO
max. 5 pieces
FIFO
Supplier Customer
Productdelivery
Raw-materialsupermarket Finished-goods
supermarket
Process 1 Process 2 Process n ShippingProcess 3SupermarketIP kanban
Changeover Downtime Std WorkScrapStd Work
Std WorkStd WorkStd WorkC/T reduction
Prod ControlDaily orders Daily orders
CustomerrequirementRaw-
materialshipments
Customer LoopSupplierLoop
Process Loop 1 Process Loop 2
Current-statemapping
Lean future-state design
Implementationplanning & execution
Map the current value stream showing the material and information flowsMeasure / observe lean-implementation process data
Identify Opportunities for ImprovementDesign the future lean stateMap future-state material & information flows
Segment the flow into “loops” for implementation planning Develop implementation plan with schedule, owners and measurable milestones and resultsExecute plan
Top-Level Mapping, Lean Design and Implementation Process Map
Brown PapersSpaghetti Diagram (product, people & information movement)Swim LaneStandard Work Layout
Describes a process in a more informal way
Usually done in groups or teams
Shows the “big picture”
Is high touch, low-tech
Identifies strengths and opportunities
Captures the complexity and disconnects of key operational issues
Gets stakeholders involved in process
Yes (10%)
No (90%)
•
•
•••
•
• •
No (70%)
Yes (30%)
Order Scheduling Process
Strengths
• ----• -----• ------• ---
Receive copy of Customer Order Report
Customer OrderPrioritization Process
Print machine schedule
Develop labor rqmts for schedule
OT Graph
OTRequired?
OvertimeScheduling Process
2
1
Call Area Manager to schedule overtime
Enter orderinfo. into scheduling system
Orders>
Capacity?
Enter laborrqmts intoscheduling system
Opportunities
1. ----------------------
2. -----------------
Builders:
Reviewers
Print schedule and distribute
1 - 2 hours 2 hours 1 hour .5 - 4 hours
Time = 88 Days From Request to Configured-to-User … Suppose the “Users”Were Satisfied?
Frictional InterfacesToo Many StepsLots of Rework
“Brown Paper” Flow Chart
New (“To-Be”) Flow
Time = 11 to 17 Days (varies w/user needs)
Saved US$1.3M; 784K Was Annual Labor
Flow Simplified
Standardized Configurations
Steps Removed
Friction Removed
Decisions Pushed to Lowest Level
Real Benefits From One BE Event including Robust Follow-Up & Sustainment
Work Flow (Spaghetti) Diagram Example
Receiving
Stores 1
Stores 2
Stores 3
Sub-assembly 1 Sub-assembly 2 Sub-assembly 3
Sub-assembly 4
Machine Operation
In-process Stores
In-processInspection
Rework 1
Rework 2
In-coming Kits
WIP
WIP
WIP
Objectives:- record product flow- record process steps- record traffic pattern- identify queues, files, tool areas, etc.
Assembly Aids
Drawings &Parts Lists
Tools
Work Flow (Spaghetti) Diagram Example
Receiving
Stores 1
Stores 2
Stores 3
Sub-assembly 1 Sub-assembly 2 Sub-assembly 3
Sub-assembly 4
Machine Operation
In-process Stores
In-processInspection
Rework 1
Rework 2
In-coming Kits
WIP
WIP
WIP
Objectives:- record product flow- record process steps- record traffic pattern- identify queues, files, tool areas, etc.
Assembly Aids
Drawings &Parts Lists
Tools
Inspection
FinalAssembly
Sub-Assembly
MaterialControl
Part Number 001Process Flow Diagram
ReviewSchedule Release Kit
Check Kit Complete? Yes
No
Correct Kit
Sub-assembly
Step 1
Sub-assembly
Step 2
FinalInspection Correct?
In-processInspection Correct? Yes
FinalAssembly
Step 1
FinalAssembly
Step 2
No No
Send ToStoresYes
No No
Business Travel Expense ReportingGathers receiptsEnters in Excel spreadsheetTapes receipts to printer paper
• Prints 2 copies of Excel Spreadsheet
Photocopies Excel spreadsheet and receipts.
Puts Expense Report in outgoing mail. Files 2nd copy.
Mail goes to Accounting.AP clerk opens and sorts mail.AP clerk verifies numbers, receipts and policy compliance on Expense Report. 25% are returned for correction.AP Clerk puts in mail to Payroll.
Payroll enters data into payroll system.Payment appears on employee’s next check.
Sales Accounting
Payroll
Time LineVANVA
$
$
Accounts Payable
Information Systems
Sales
CollectsReceipts
Receipts
Enters expenses in Excelspreadsheet.
Prints 2copies of
spreadsheet
Receipts
Pastesreceipts on
printer paper
PhotoCopies
Receipts
Payroll
10 min 20 min 3 min 5 min 3 min
Time LineVANVA
$
$
Accounts Payable
Information Systems
Sales
Combinesspreedsheet& receipts.
ExpenseReport
Sends 1 copyto AP & filesbackup copy.
ExpenseReport
ExpenseReport
AP In- Box
Sorts ExpenseReports forprocessing.
ExpenseReportExpense
ReportExpenseReport
Verifies math,receipts & policy
Payroll
5 min3 min
300 min 12 min 10 min
Time LineVANVA
$
$
Accounts Payable
Information Systems
Sales
Expense ReportAccepted?
Revise &Return
Approve ER forPayment &
Send to Payroll
Enters ER in PayrollSystem
PR In- Box
Pay to $
Paycheck
Payroll
2 min0 min / 480min
Yes
No
300 min2 min
Totals
670 / 1150 min5 min
Date: Page of STANDARD WORK SHEETManager Or Team Leader Area Or Process Name Person Preparing This Sheet
QualityCheck
SafetyPrecaution
Standard WorkIn Process
Takt Time RequiredOutput Net Time Operator
Number
Packing TableFinished Goods Labels
Flat Boxes
1 2 4 5
3
7 6
Test Table
Main Work Station
8 feet
Electronic Phone Switch – Final Assembly
65 Sec.
A Standard Worksheet is :
•A scaled diagram of a work area that : • shows the locations of all relevant equipment and work steps• Identifies work steps in sequential order and travel path of worker.
• Most useful when designing jobs or work cells.
Date: Page of Manager Or Team Leader Area Or Process Name Person Preparing This Sheet
QualityCheck
SafetyPrecaution
Standard WorkIn Process
Takt Time RequiredOutput Net Time Operator
Number
Core Boring
3
5
6
RawMaterial
B10
B20
B30B40
B50
Inspection FinishedGoods
1
2
8
4
7
A S I S M A P
H. DavidsonB. Foot
Date: Page of Manager Or Team Leader Area Or Process Name Person Preparing This Sheet
QualityCheck
SafetyPrecaution
Standard WorkIn Process
Takt Time RequiredOutput Net Time Operator
Number
Core Boring
1
8
34
5 6 7
RawMaterial
B10B20
B30
B40 B50
Inspection
FinishedGoods
12
84
7
H. Davidson
A S I M P R O V E D M A P
B. Foot
Focus on the physical work steps that are performed, not the outputs.Maps do not loop back because the time marches on.◦ The customer is still waiting for the output. ◦ Work time cannot be erased and redone. Gather factual data based on current observations.