October 26, 2011

The NEW Lean Consulting Group

1

Small Business Seminar: Lean for your small business

• NEW Lean Consulting Group– Provide Lean consulting services – To community businesses and not for

profits with a quality resource for their Lean journey.

• Certified Lean Lead Facilitators– Jamie Voster– Lisa Rothbauer– Amy Lauko – Project Lead

2

Welcome and Introductions

• Cutting time to process customer requests by 75%

• Reducing inventory by 75%• Improving quality by 50% – 200% • Increasing productivity by 50% – 75%• Reducing clutter • Reducing time it takes to find and do

things

3

Imagine……….

Lean -

A business system involving all employees which constantly pursues the elimination of waste to shorten the lead time of a process.

Not just for manufacturing! Lean principles can be applied to any business and every process.

4

Is Is Not

• A significant shift in thinking and performance

• A long term strategy• Applicable to any

organization and every process

• Focused on maximizing value – optimizing flow

• Culture changing

• A headcount reduction strategy

• Merely a cost reduction strategy

• A quick, one time fix

• A short term project

• Applicable only to manufacturing

5

Lean Is…. Lean Is Not

Learning to seeFocus on process not on peopleStandard workContinuous improvementOne piece flowError proofing (poka yoke)

6

Elements of Lean Thinking

LEAN Principles

Setup Reductions

Teams 5S

Error Proofing

TPM

Kanban

Work Cell

Standardized

Work

Kaizen

A3 Problem Solving

Value Stream Map

7

Lean Toolbox

• Change is required in – Thought– Culture – Perspective

• Change must occur to achieve success.

8

Lean Requires Change

9

Change is hard……...But stagnation is fatal.

Dr. Peter BishopUniversity of Houston

Critical success factors:• Leading• Training• Acting• Sustaining• Plan, Do, Check, Act (PDCA)

Implementing Change

10

11

Kaizen -

Japanese for improvement or

change for the better.

It refers to a philosophy or practice that focuses upon continuous process improvement.

• Cross functional team empowered to make rapid changes in a process

• Targets waste, variability, and non-value add activity

• All necessary resources are readily available• Look for immediate results that address

root cause.

12

Kaizen Events

Standardize

IMPROVEMENT

TIME

Ka

ize

n

Ka

ize

n

Ka

ize

nFrom “Kaizen”, Masaaki Imai

Standardize

Standardize

Ka

ize

n

Starting Process

13

Continuous Steady Improvements via Kaizen Events

An insatiable drive to increase value through the on-going elimination of waste.

14

Key Characteristics of a Lean Team

The focus of Lean is…

waste elimination.

15

Waste

Anything other than the minimum resources required to add value to an end product or service.

16

What is Waste?

Motion

Waiting

Transport

CorrectionOver-Processing

Over-Production

Inventory

Knowledge

VALUE ADDED WORK5%

12

345

6

7

8

17

Waste Wheel

Waste in the Office

18

Types of Waste Business Process Waste

Motion Walking, routing information

Waiting Delays and queues, decision making

Transportation Information hand-offs

Correction Defects, re-work, incomplete data

Processing Unnecessary steps, variation of methods

Overproduction Unnecessary reports and information

Inventory A task waiting to be started (inbox)

Knowledge Untapped skills and experience, routine non-value adding activities

• Sieri - Sort• Seiton - Straighten• Seiso - Shine• Seiketsu - Standardize• Shitsuke - Sustain• = 5S

19

Introduction to 5s

• Sort: removing the unnecessary• Straighten: a place for

everything• Shine: clean up, fix up• Standardize: everything is

consistent• Sustain: maintain, review

standards = 5S

20

5s

5S Before After

21

• A one page visual representation showing the flow of all processes, information and material

• Current state analysis (snap shot) shows – All current value added and non-value

added processes • Future state analysis shows

– Improved value added processes and eliminates as much non-value added work as possible

• Action plan for target state implementation

22

Introduction to Value Stream Mapping (VSM)

23

Getting the right things to the right place at the right time in the right quantity to achieve perfect work flow, while minimizing waste and being flexible and able to change.

• Reduced waste, costs, and lost opportunities

• Increased• Efficiencies• Ability to serve more customers in the same

time• Customer satisfaction• Timely customer access to goods and services• Quality• Employee empowerment

24

Benefits of Lean

Who have we helped Change?

• Housing Partnership • Medical Facility/Retirement Home• Temperature Controls Solution

Provider• Organic American Apparel Company• Collision Repair Shop• Public Library• Counseling Services Company• Homeless Shelter• Home Care Provider 25

We can help with:

• I need more help, I’m just too busy to keep up.

• I will start fixing it once I find my tool.

• I’m overwhelmed and don’t know where to start

• I’m too busy to train employees.• There must be an easier way, but

how?• Everyone has their own way of

getting it done.• I can’t find the part so express order

a new one.• There are not enough hours in the

day.

If we don’t change we will end up where we are headed…

Chinese Proverb

26

Are you ready to Change?

• Contact NEW Lean • Identify your problem/pain (1-3

focus areas)• Establish goals ex: (reduce wait list

by 50%)• Develop Plan• Identify Resources• Schedule your Event

27

Contact:

• Amy Lauko laukoamy@yahoo.com

• Lisa Rothbauer - lrothbauer@new.rr.com

• Jamie Voster jsvoster@gmail.com

• NEW Lean – newlean.org

29