Lean Principles Principle 1 Define Values - from customer prospective Define customers Understand customer needs Define Value

- Quality, schedule, and Taget Cost to fullfill customer needs Principle 2a Identify the Value stream - existing process condition Record Current state value stream Chart material and information flow Chart worker movement Collect baseline Data This is similar to the Define Phase of Six Sigma, but in greater details The Value streammap not only shows product or service flow, but also the communication path identifies non-value adding steps the processing time for each step rework loop and occurrence percentages inventories of WIP and their wait time. Principle 2b Map Develop new Process Develop a future state value stream map Identify Customer demand rate ( Takt time requirement) Review make/buy decisions and integrate suppliers Plan new Layout Apply 5S Design and implement Visual Control Systems Estimate and justify the cost of the change. Principle 3 Implement Flow Identify Pacemaker Balance Work content bwt different stages Design and Implement workstation Layout Define standard WIP Enhance resource Reliability Reduce set up Time Eliminate Variability Elimanate Fatigue Synchronise Process pulse against Takt Cross train workforce Principle 4 Implement Total system Pull Select appropriate production system control mechanism Strive for single item flow Level and Balance Production flow

Link with suppliers Draw down inventories Reassign People Re-deploy/ dispose assets Principle 5 Strive for Perfection This is a never ending phase, as each area uses SCORe, Kaizen to continually improve.

Benefits of Lean Comptetive advantage Reduction of Lead time Reduction of Cost Enhance Delivery Reliability Predictable Quality Engages all employee Enhanced Flexibility and Responsiveness Simplicity Obstacles Major Paradigm shift Inventory is considered an "asset" traditionally Empowered workers are threatening to some managers Process Owners who dont understand how to manage a process Lack of persistence Worries about job security Finding the time to work on Lean applications Lack of infrastructure and policies Wrong metrics resulting into creation of Silos within Organisation

fullfill customer needs

in greater details vice flow, but also

ORe, Kaizen to continually improve.

Kaizen is the application of continuous improvement to a specific, targeted process objectives a) Reduce Cycle Time b) Reduce Touch Time c) Reduce waste of wait time SCORE S C O R E helps in How to Plan and conduct kaizen events Select the process to be worked on Clarify the problem statement and project objective. Measure historical data to quantify the current capacity Organise the Team Members and train them on methods abt the scope of the project. Run the event (observe, brain storm, improvements, select improvements, test, implement). Evaluate the results, standardize the new procedure, and define future work.

SCORE saving Potential Reduced cycle time Increased Productivity Reduction in floor space needed Higher Quality Less Overtime Faster service to Customers Improved Profits Improved Moral Improved communication bwt management and workers Repect for each other S Getting Started View the value stream map Which area is nearest to customers? Which area can not meet Takt Time? Which area has the most Inventory? Which area has the most motivated customers? Which area is the bottleneck for the success of the other areas? *** A selection matrix with common selection criteria is recommended. Select a Team Leader The leader should not be from the event area. The role is to get the people to OPEN up, not to prescribe the solution. SCORE team responsibilities Before the event Clarify the Objective Organise the team and the process area Select the team members, train them, prepare work place. During the event Lead the efforts Chart results Coordinate final presentation Post Event Evaluate the results See that all follow up items are completed Liasion with process owner on sustaining the results with next team leader on the good and bad of their event

Clarify the Problem What, Where, when Write the problem statement Clarify the Project Objective How will success be measured? How much improvement is targetted? SMART (Specific, Measurable, Aggressive yet Achiveable, Realistic, Time bound) Clarify current performance Historical Data plotted in a run chart Capbility calculated (sigma level, % defect, Cpk, etc.)

Select the SCORE Team Members 5 to 8 members Have atleast 2 workers from the area Process knowledge Creative Respected by Peers Process Owners At least half the team should be from outside the process to provide new prospective Train the members on lean techniques to be used and on the SCORE method Time Study Spaghetti Diagrams Run Charts Takt Time Value add ratio Process Capability Standard Work combination sheets Standard Work layouts 5s work place organisation Prepare the Area The area should be unclustered. The time should be spent on implementing change not uncovering a mess. Consider the upstream and downstream areas. Will the effect affect other areas or shifts? If so, notify them in advance. Does there need to be a Inventory build up, alternate method of providing service while the event is ongoing Remember : Production or Service must continue. Ensure that proper material and equipment are available for the event. Create SCORE event kits with all that is needed for a SCORE team to be successful Camera, Tape Measure, Stop Watch COMMUNICATE,COMMUNICATE,COMMUNICATE,COMMUNICATE, To leadership To process owners To process workers To suppliers, customers, and resources.

Team Trianed Start Work Gather/ review data on the current situation Avoid Jumping to solutions Do not get bogged down in details.

Consider all ideas for improvement and select the ones that can be completed within existing constraints. Plan for RUN Compare all analysis done so far and compile an exhaustive " Action Plan for change" Implement Changes Run Processes in changed condition and monitering event metrics. Develop standard work for new process, and training concern team Develop sustenance Plan, devising Mistake proof, and final Presentation

RUN the fun part Model the change Team often make scale models or computer simulations of the improvements to refine the idea Make the change Move desks, machines, people, make checklists or whatever else the team has come up with Measure the results. Make sure they hit the goal. Always strive for as much as possible. But be done by the scheduled end of the SCORE event. Document a list of items still to be done. E Evaluate the results All affected employees must be trained in the new process. Verify that the process is actually running at the new measure of success. Complete the documentation Safety Improvements in place Evaluate short term and/or long term actions Cost/saving benefits calculations are completed. List of future improvements established

Completing the to do list shows everyone that the company is serious about implementing suggestions for impr

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