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CONTINUOUS IMPROVEMENT

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Continuous Improvement

on 25 January 2016

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Transcript of CONTINUOUS IMPROVEMENT

Our ability to improve the ways we do things depends on defining and shaping our daily habits of mind and practice — our "standard work.“

We need to do away with the notion that standards necessarily mean rigidity. Rather, standard work can help people do their jobs consistently and reliably, and improve how they do it.

The traditional view that efficiency requires bureaucracy and that bureaucracy impedes flexibility needs to be replaced with a new model: clever application of standard work allows you to have efficiency and flexibility. Lean Standard Work – Why should we bother?
Surgeons at Brigham and Women's Hospital in Boston, make the case for the simple checklist as a way to avoid failures and manage complexity, especially when human lives are at stake.
"Must Do" Procedures Avoidable failures continue to plague us in almost every realm of organizational activity.
Airplane pilots developed the checklists they use for takeoffs and landings to make sure that planes don't fall out of the sky due to avoidable mistakes.

Checklists help with memory recall and clearly set out the minimum necessary steps in a process.

"Under conditions of complexity, not only are checklists a help, they are required for success. There must always be room for judgment, but judgment aided — and even enhanced — by procedure." "Must do" procedures also require permission for deviation. Lean Standard Work – When is it Needed?
May Do" Discretion

To build an organisation's capabilities, and to increase people's overall engagement and motivation, leaders should give team members every opportunity to take initiative and be creative. People want autonomy to master their work and fulfill the organisation's purpose. Therefore, an organisation should be explicit about where it encourages initiative.


For example, "When customers need service in real time, employees who are empowered to be flexible within standards can better meet those needs ... because you can't anticipate each one — or write a script in advance! Putting decision-making closest to the people who touch the customer is key.“

"May do" discretion helps employees do what they probably should do, not what they must do. Lean Standard Work – When is it Needed?
Lean Standard Work – Agenda

The History of Lean Manufacturing
The Five Lean Principles
Lean and The Seven Wastes
Lean Standard Work – Introduction, Objectives, Benefits
Three Basic Requirements of Lean Standard Work
Lean Process Study – Template, Takt & Cycle Time, Work Balancing
Lean Process Capacity – Template, Quick Changeover
Lean Standard Work Chart – Template, Work Sequencing
Lean Standard Work-In-Process – Kanban
Lean Standard Work Combination Table – Template
Summary
Specify value from the
Customer perspective.
Define Value
Map the Value Stream
Identify the value stream for each product or service and challenge all of the non-value adding steps (wastes) currently necessary to create and deliver this product or service. Add nothing than value
Create Flow

Establish Pull

Introduce pull between all process steps where continuous flow is possible.
Make the product or service creation and delivery process flow through the remaining value-added steps.
Manage toward perfection so that the number of steps and the amount of time and information needed to create and deliver this product or service.
Pursuit Perfection

The Five Lean
Principles
Inventory
Waiting
Over Processing
Over Production
Defects
Transport
Motion
Waste elimination is one of the most effective ways to increase the profitability of any business. Processes either add value or waste to the production of a good or service. The seven wastes originated in Japan, where waste is known as “Muda."
The Seven
Wastes
(TIMWOOD)
Waiting = Process delay
Anytime there’s down time created because materials, machines, inspection or information are not ready for people. This waste is usually less visible than the others because it’s often replaced by overproduction or busy work.


Waiting
Defects = Doing the wrong thing
Work that is less than the level the customer – both internal and external – has requested. Sometimes referred to as the waste of correction. When something is done twice it is REWORK no matter what part of the process it occurs in. The root cause needs to be established, controlled and ideally eliminated or else it becomes a normal part of the process. Everything that can be done, should be done to minimise all rework. e.g. Rework, scrap, missing parts, wrong parts and yield loss at startup.
Over-Production
Transportation = Movement of materials
The movement of materials that adds no value to the product.
Another way of saying this is that transportation is the movement of material using carts, trucks, forklifts and vehicles.
e.g. Moving finished goods to storage, moving work in progress to the next step, moving between functional areas and moving supplys to site from compounds.
Transport
Inventory = Stock of material
Inventory is any material or work on hand other than what’s needed right now to satisfy customer demand.
e.g. Excess raw materials, work in progress, finished goods, supplies and spare parts.
Inventory
Motion = Movement of people
The movement of people that doesn’t add value to the product. By nature most motion is in fact waste. Consequently, by closely studying motion and the time it takes to do a task, it’s often possible to improve manual operation times by 30% to 50%. In addition, eliminating motion waste is a key part of reducing changeover times.
e.g Walking, reaching, searching, lifting, choosing, arranging, and turning and applicable to all environments.
Motion
Over Processing = Doing too much
When something’s designed in such a way that uses more resources, such as space, energy, or people, than is truly required… sort of like using a sledgehammer to smash a peanut. The hardest waste to understand and learn to see.
e.g. Machines that are slower or faster than needed, equipment that uses more energy than needed, redundant work such as copying information, drilling a hole instead of punching it and delivering more than the scope requires.
Over Processing
The 7 Wastes

Summary In the latest edition of the Lean Manufacturing classic Lean Thinking by James P. Womack and Daniel T. Jones, Underutilization of Employees has been added as an eighth waste. Organizations employ their staff for their nimble fingers and strong muscles but forget they come to work everyday with a free brain.

It is only by capitalizing on employees' creativity that organizations can eliminate the other seven wastes and continuously improve their performance. Many changes over recent years have driven organizations to become Process Excellence organizations. One of the first step in achieving that goal is to identify and attack the seven wastes.
Value vs Non-value adding Work
Process Start
Process End
It is not uncommon, when analyzing a process or process step, to recognize that 60 to 70% of the total work time is actual non-value added work – waiting, transportation, walking, and unnecessary motions.

Organizations often focus on the value added activities to further improve productivity and efficiency, ignoring the often huge opportunities if they would focus on eliminating non-value added activities. Process Start Process End
Work time
Wait time
Walking time
A typical Process or Process Step
Taiichi Ohno (February 29, 1912 – May 28, 1990) was a prominent Japanese businessman. He is considered to be the father of the Toyota Production System (TPS), which became Lean Manufacturing in the U.S. He devised the seven wastes (or muda in Japanese) as part of this system. He wrote several books about the system, including Toyota Production System: Beyond Large-Scale Production.
"Where there is no standard, there is no improvement.“ Taiichi Ohno

Definition & Objectives

A definition of Lean Standard Work is
"the most effective combination of manpower, materials and machinery to complete a specific task".
Standard Work results in a formally defined and documented process to produce or perform a task at a specified pace. Standard Work consists of three elements or objectives:

First, does the rate at which the task is currently been performed meet Customer demand and requirements?
Second, does a precise work sequence exist in which an operator performs the tasks?
Third, are standard work-in-process inventory levels defined required to keep the process operating smoothly?
The coffee making process
The Coffee Making Process that we are using in some of our training modules and workshops, also works to integrate exercises into this Lean Standard Work module.
The process could start when the requirement to brew x cups of a specific coffee has been received.
The process could end when the brewing process is completed and the appropriate amount of fresh brewed coffee is in the coffee pot.
Takt Time
could be calculated based on average daily consumption (in cups of coffee), the time available, and the number of coffee brew machines.
Cycle Time
can be reduced by workplace organization, pre-kitting, use of hot vs. cold water, … . Try it out to see if it would work for your organization !
Identify Product or part
Identify Process or Process Step
Identify Process Steps or Work Elements
Determine Takt time
Determine cycle times for each process step or work element
Create standard work process study sheet
Identify and implement work balancing opportunities
Create standard work process capacity sheet
Identify and implement changeover reduction opportunities
Determine work sequence
Create standard work chart
Determine standard work-in-process inventory
Identify and Implement Kanban opportunities
Create standard work combination table
Implementation Process
Defects
Over Production = Making more than required
The mother of all wastes which occurs when we make more products than the customer needs right now. Called this because it often leads to all the other wastes in one form or another. For example, overproduction multiplies the other wastes such as inventory and covers up problems such as waiting or variability in demand, and it makes it harder to understand our true capacity.
e.g. Making extra parts to cover for scrap, forecast production, economic order quantity lot sizes, piece rate production and production done simply to maximize utilisation or absorption.
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