Download Common Causes - Lean Manufacturing PDF

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Hussain Yasin Al-Ahmed
@hyahmed
Management Consultant
@hussain_alahmed
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Lean is NOT ...
Clearing confusions
It is not a magic wand or
silver bullet to fix everything
It is not a diet program
It is not rocket science.
It is simple
It is not a system to
reduce headcount
It is not only for factories.
It works everywhere
It is not a solution to
personnel or performance
issues
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2
What is Lean?
Basic definitions
Lean is simply is:
“ A systematic approach to continuously eliminate waste within a process ”
It may be referred to as:
• Continuous Improvement
• Kaizen
• Operational Excellence
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3
What is Lean
The Five Principles
Identify
Value as
Percieved
by
Cusotmer
s
Map the
Value
Stream
Create Flow By
Eleminating
Waste
Produce - only what the customer wants,
- only in the quantities they want,
- only when they want it,
- only by doing the tasks that add value.
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Esatblish
Customer
Pull
System
Seek
Perfection
Through
Kaizen
History of Lean
Over 60 Years of Continuous Improvement
1903
1908
1911
1913
Model T
Ford built the first
moving assembly line
Henry Ford
Model A
manufactured the first
Frederick Taylor
Ford established its
developed scientific
first assembly line
commercial fuel engine car
1970
management principles
1950
1946
Toyota suffered from
1933
1939 to 1945
World War II
post war depression
Taiichi Ohno
Edward Deming
finished buidling the
made the PDCA
by Kiichiro Toyoda
Toyota Production
improvement cycle
and his son
System (TPS) after
popular
and the great strike
Toyota was founded
WWII
1990
1980
2000
1984
Continouos Improvement, LSS and
The rise of
Operational Excellence Strategies are
Motorola initiated Six
Total Quality Management
Jack Welch
Sigma Quality
(TQM) Theroy
adopted by many organizations in
created Six Sigma and the
different fields
Center of Exellence at GE
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5
Movie Time
Formula 1 Pit-Stop Evolution
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7
Why Focus on Process?
Why not something else?
80%
Outputs
Inputs
•
•
•
Material
Information
Customers
•
•
Products
Services
•
•
•
Material
Information
Customers
Process
•
Resources (people, facilities, equipment)
•
Steps and decisions
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8
Process Waste
Is the step value added?
Value-Added (VA) Step
Lead time = 7 Hours
Before
Non-Value Added
(NVA) Step
(Waste)
After
Lead Time = 3 Hours
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9
Value Added vs Waste
Waste is Everywhere
Ask these 3 questions to know if the step is value added:
1
Is the customer willing to pay for this specific step?
2
Does the step transform the product or service?
3
Non-Value Added
but Necessary
30%
10%
60%
Was the step done first time correctly?
Value
Added
Non-Value Added
(Waste)
If one if the answers is NO, then the step is waste.
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10
Photo Credit Tim and Selena Middleton
The 8 Types of Waste
Muda (Surface wastes)
1
D
Defects
2
O
Over Production
3
W
Waiting
4
N
Non-Utilized Talent
5
T
Transportation
6I
Inventory
7
M
Motion
8E
Extra Processing
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11
The first step is
seeing the waste!
Photo Credit Hussain Al-Ahmed
Overproduction
Every years billions of
dollars are lost because
of excess medicines
prescribed by doctors.
Doing more than required
Producing more products or services than the
customer needs or downstream process can
use right away.
Examples:
• Oversupply
• Wasted raw material
• Too many meetings
• Not required work
• A report that no one reads
• Sending unnecessary e-mails
Common Causes:
• Unclear customer demand
• Push production system
• The production line cannot be stopped
• Long and complicated changeovers
• Unbalanced work flow
• Poor worker distribution
• Batching
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12
12
Inventory
Storage
Unnecessary storage of information and
material
How much is needed?
• Physical Inventories
• Queues of customers
• Digital Information in database
Examples:
• Too much stock in the warehouse
• High backlog or WIP (Work In Process)
• Customers waiting to be served
• System transactions waiting for actions
• Unread and undeleted e-mails
• Old and outdated documents
• Duplicate files
Common Causes:
• Overproduction
• Batching
• Late inventory updates
• Material replenishment system problems
• Disconnected storage locations
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13
Photo Credit Wikipedia
High Inventory
Inventory
Why is it a problem?
Cost
• Phyical invnetory ties up working capital
• Time-Cost to the waiting customer
• Cost of system setup access, update and
miantenance
Space
• Items requires storage space
• Customers require waiting area
• IT system requires memory, security and
Inventory hides
problems
special environment
Quality
• Physical items may deteroriate over time
or obselete
• Customers may get upset if they wait for
too long
Reducing
Inventory
• Data may get corroupted or lost
Operations
• Physical inventories may hide problems
• Waiting customers may put undue
pressure on the staff causing quality
issues
• Databse needs constant management,
acess control and maintenance
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14
Source: adapted (Slack etl, 2009)
Photo Credit Garry Knight
Transportation
Moving things
Moving products, equipment, material,
information, or people from one place to
another.
Examples:
• Shipping products
• Mobilizing equipment and people
• Moving material in the shop
• Moving spare parts
• Forklifts and cranes
• Moving marketing material for tradeshows
Common Causes:
• Poor facility layout (distance and sequence)
• Poor planning and communication
• Not leveraging technology
• Overproduction and high inventory
• Improper storage solutions
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15
Will he add value by
moving the books?
15
Motion
Searching
Unnecessary movement of people or
machines that takes time and uses energy
and may create health and safety risks.
Examples:
• Searching for hand tools or material
• Going to the supervisor office
• Excessive reaching or bending
• Walking to find people or information
• Trips to copier machine or printer
• Extra computer clicks
• Looking for specific files in computer
• Searching in the web
Common Causes:
• Facility layout
• Shared hand tools
• Workstation design
• Poor workplace organization and housekeeping
• Manual processes and not leveraging technology
• Ineffective information sharing
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Are they working?
16
16
Photo Credit Hussain Al-Ahmed
Defects
Rework / Correction/ Errors
The efforts involved inspecting for and fixing
errors, mistakes.
Examples:
• Failed outgoing equipment inspection
• Quality problems and failures
• Corrections and rework
• Scrap and junk
• Returned documents and invoices
• Rejected paperwork
• Incorrect approval chain
• Unsaved computer work
Common Causes
• Lack of standard work
• Training problems
• Unclear or complex process
• Voice of the customer is absent
• Missing or incomplete information
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17
How much will it cost
to fix this! 17
Photo Credit Hussain Al-Ahmed
Waiting
Delays
Idle time created when material, information,
people, or equipment is not ready
Examples:
• Operator waiting for machines to finish cycling
• Waiting for Forklift
• Products waiting for people
• People waiting for material
• People waiting for other people
• Waiting for information, decisions or approvals
• Waiting for customer specifications
• Waiting for supplier confirmation
• Slow or broken computers or internet
Common Causes
• Unbalanced work flow
• Lack of workers
• System down time
• Machine breakdowns
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18
Keep Calm and Just
Wait!
18
Extra Processing
Overdoing it
Ready to cut the apple
in half?
Process steps that do not add value to the
product or service, including doing work
beyond a customer’s specification.
Examples:
• Complex checklists with unused fields
• Highly sophisticated machines for simple tasks
• Curing material longer than engineering
requirements
• Doing maintenance more often than necessary
• Approval queues
• Printing every e-mail
• Collecting unused data
Common Causes
• Not questioning the status quo
• Unclear customer requirements
• Lack of trust and control issues
• Poor communication
• Lack of effective and creative problem solving
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19
Photo Credit Hussain Al-Ahmed
Non-Utilized Talent
Not involving people
Not adequately leveraging peoples’ skills and
creativity
Examples:
• Technicians spending time doing paperwork
• Engineers not trusted
• Not involving people in improvements
• Not utilizing people’s indirect skills
Common Causes
• “The boss knows everything” thinking
• Misusing position power
• Narrowly defined jobs and expectations
• No effective suggestions and improvements
procedures
• Boundaries between different levels of the
organizations
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OFF
20
Switch off during
work hours!
The 8 Types of Waste
Do you remember them?
Defects
Transportation
Inventory
Overproduction
Motion
Waiting
Non-Utilized Talent
Extra Processing
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21
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www.zulfadev.com
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[email protected]
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@zulfateam