Documenti di Didattica
Documenti di Professioni
Documenti di Cultura
For more information on this or other training services please contact: Drew Locher, Change Management Associates Phone: (856) 235-8051 Email: drewlocher@comcast.net Web Site: www.cma4results.com
Training Material provided by Change Management Associates. All rights reserved. Reproduction of this material expressly forbidden without written permission of CMA.
Table of Contents
Welcome The Complete Lean Enterprise Workshop Agenda Course Objectives Lean Thinking Why Go Into Office & Services? How Does Office & Service Differ? Lean and Eliminating Waste Office & Service Waste Identifying Office & Service Waste Project Phases Outline Project Preparation (Scoping) Identifying Product/Service Families SIPOC Decision Panel Roles and Responsibilities Scoping the Process Value Streams Value Stream Improvement vs. Process Improvement Purpose of Value Stream Mapping Mapping to Meet Business Objectives Value Stream Managers VSM Example Mapping Icons Levels of a Value Stream Lean Project Phases Current State VSM for Office & Service Processes Select Data Attributes Office & Service Process Data Attributes Typical Steps for Current State Mapping Case Study Cabbies Cable Service Data Set Current State Reflections Lean Project Phases Future State Future State Questions Cabbies Cable Service Create Future State Map Lean Project Phases - Planning Prioritizing Office & Service Kaizens Completing the Implementation Plan Documentation Sources of Additional Information Terms & Definitions 1 2 3 4 5 6 7 8 9 10 13 14 15 16 17 20 21 22 23 24 25 26 27 29 30 31 32 34 35 38 39 41 42 58 60 61 64 67 RR-1 GL-1
Class Exercise
Participant Workbook
Workshop Agenda
1. Introduction 2. Scoping a Lean Project 3. Mapping the Current State 4. Creating the Future State 5. Achieving the Future State
Participant Workbook
Course Objectives
Introduce value stream mapping in a hands-on manner. Develop your ability to view work from a system perspective. Develop your ability to organize and facilitate lean projects. Develop your ability to create eyes for waste and eyes for flow. Enhance your ability to create an operating strategy and an implementation plan to support your business strategy.
Change Management Associates
Participant Workbook
Lean Thinking
Fundamental Objective: To create the most value in the most effective and efficient way. Define value from the customers perspective. Identify which process steps create value and which are only waste (muda). Work to eliminate the root causes of the waste and allow for one-piece, continuous flow.
Participant Workbook
Office & Service processes are often a major percentage of the total lead time in a manufacturer Ultimate Goal: 400% improvement in productivity over 10 years Untapped opportunities in business processes How do we document, measure, communicate, and, more importantly, realize these opportunities?
Change Management Associates
Participant Workbook
In manufacturers, many functions are not on the traditional shop floor value stream map Many office & service functions support several value streams without clear boundaries Harder to identify customer, product or service, and customer value What do we track/map? Waste in office & service processes is much harder to see - more entrenched and hidden
Change Management Associates
Participant Workbook
Overproduction Wait Transportation Non-Value Added Processing Excess Inventory Correction Excess Motion Underutilized People
Participant Workbook
Overproduction Inventory Waiting NVA Processing Correction Excess Motion Transportation Underutilized People
Printing paperwork too soon Filled In-boxes System downtime Re-entering data Order Entry errors Walking to/from copier Movement of paperwork Limited functional responsibilities
Change Management Associates
Participant Workbook
Break into groups of 4-6 people Select 3 of the wastes to discuss Brainstorm examples and list on flip chart Present results the class Times: Waste Development: 15 minutes Presentation: 15 minutes
Change Management Associates
Participant Workbook
10
Participant Workbook
Communication
Change Management Associates. All rights reserved.
Sharing effort and new knowledge within the organization. Change Management Associates
11
Participant Workbook
Workshop Agenda
1. Introduction 2. Scoping a Lean Project 3. Mapping the Current State 4. Creating the Future State 5. Achieving the Future State
12
Participant Workbook
Select and rationalize potential project with sponsor or Steering Committee Scope effort with functions represented in the selected value stream Confirm business objective Identify measures of success Identify Service Families Identify Participants and Decision Panel Develop SIPOC Confirm scope with Decision Panel Walk the flow!!!!
Change Management Associates
13
Participant Workbook
X X X X X X X X
X X X X
14
Participant Workbook
SIPOC - Example
[Insert Title] Value Stream Mapping Project
Objectives: To Improve existing Product Development Process Workshop Dates: October 21 to October 23, 2006 Goals: Reduce Product Development Lead Time by 50% Reduce Warranty Costs by 75% Reduce Product Development Cost by 30% Suppliers: Tool Design Firms Inputs: Lead Time Capabilities Quality tooling Lead Time Capabilities Quality parts & materials Customer Requirements - Price - Lead Time - Quality Expectations - Competitive Information Project Name: New Product Development Process VS Owner: Joe Smith, Engineering Manager Sponsor: Diane Jones, VP of Research & Development Leadership/Decision Panel: Jerry, VP of Operations, Diane, VP of R&D, Connie, VP of Finance, John, VP of Procurement Workshop Location: Main Building, Conference Room A Outputs: Start:
Design Concept
End:
Release to Product.
Customers: External: New Customer Existing Customer Internal: Production Purchasing Cost Accounting Sales & Marketing
Material Suppliers
Product Develop.
Develop. Prototype
Product. Validation
Issues/Problems: Losing potential new business due to long product development time. Losing repeat customers due to design quality issues.
Benefits: Estimated increase of $10MM in additional annual sales revenue. Estimated decrease of $1MM in annual warranty costs.
In Scope:
Out of Scope:
Participants: Steve, Tool Engineer Bill, Design Engineer Eileen, Design Engineer Pat, Supplier A John, Supplier B Rick, Process Engineer Jane, Test Engineer Bob, Engineering Services
Data to Collect: Lead Times from previous projects. Process Times from previous projects. Information Quality issues. Warranty information. Cost information.
Re-design of existing products New products using new New Product using existing technology & requiring research technology
15
Participant Workbook
VSM Workshop decisions after review of the future state map and the implementation plan Implementation reviews at regular intervals Roadblock removal during implementation: Resource constraints Political issues Technical barriers
16
Participant Workbook
Break out into groups of 5 - 6 Use the case study as a basis for the exercise Add your personal knowledge of the subject, as appropriate Develop a completed SIPOC for the case study Timing: 30 minutes to develop 10 minutes for all report outs
17
Participant Workbook
18
Participant Workbook
The Assignment
Scoping To begin this case study, discuss the following points with your team members: Whats the business objective? Whats the scope of the effort? What processes are in and out of the scope? Where does the value stream begin and end? Who, in your opinion, should be included in the value stream redesign? What data will be necessary? How will success be measured?
19
Participant Workbook
Value Streams
Whenever there is a product (or service) for a customer, there is a value stream. The challenge lies in seeing it. Physical Transformation - Manufacturing Problem Solving - Engineering Information Management including Support Processes
20
Participant Workbook
PROCESS
Customer Service
PROCESS
Engineering
PROCESS
Purchasing
Production Scheduled
Value Stream = ALL steps, both value-added and non value-added, required to complete a product and/or a service from beginning to end.
Change Management Associates
21
Participant Workbook
Point to problems (from a system perspective) Focus direction (so the system benefits as a whole) Not to examine a specific function or department, but the information process that cuts across functions or departments
Change Management Associates
22
Participant Workbook
What is the market telling you in terms of the cost, service, and quality of your products/services? What objectives and goals have been established by your company to address market needs? What information processes immediately impact the performance of these products and services? What managers need to support this effort? How can the business objectives be used to garner support? How will you position Value Stream Management?
23
Participant Workbook
Kaizen
rt a t ts n Do
Customer
ne ! o t u o h wit
For product and/or service ownership beyond functions Assign responsibility for the future state mapping and implementing lean value streams to managers with the capability to make change happen across functional and departmental boundaries.
The Value Stream Manager
Value Stream Managers should make their progress reports to top management.
Change Management Associates
24
Participant Workbook
Schedule
IN
Finalize
1 order
X2 MRP
Order
2 orders
MRP
P/T=5 min
Supplier
L/T=4-6wks
Job Packet
Customers
Shipping Schedule
46 orders per day
Slit
X3
Finish
X4
Ship
X5
2 days
8.5 days
25
Participant Workbook
Mapping Icons
Process Box
Receive Order
IN
In Box (Queue)
Wait-Time
Withdrawal (Pull)
Supermarket
Iterations
Standard Work
XOXO
Load Leveling
FIFO
Change Management Associates
26
Participant Workbook
single site
process level
Change Management Associates
27
Participant Workbook
Workshop Agenda
1. Introduction 2. Scoping a Lean Project 3. Mapping the Current State 4. Creating the Future State 5. Achieving the Future State
28
Participant Workbook
Agreeing on a shared vision of a Lean future state. Agreeing on how to implement the future state vision
Change Management Associates
29
Participant Workbook
Identify process boxes where flow stops and batch and queue occurs Formatting examples: Closed loop Mono-flows, left to right Inventory is information in queue (e.g. paper or electronic) Information flow can be formal or informal: how is work prioritized?
Change Management Associates
30
Participant Workbook
What to measure? Should support a companys objectives for cost, service, and quality Should highlight waste Be flexible Revise as necessary as the process tasks are defined Select ones you may already be using If there is time, seek out some baseline measures
31
Participant Workbook
Process time Available time Set-up time Lead time Typical batch size or frequency % Complete and Accurate information (% C&A) Rework/revisions (e.g. design changes) Number of people involved Downtime (e.g. information systems) Inventory queues of information (e.g. electronic, paper) Demand Information Technology Used
Change Management Associates
32
Participant Workbook
Mapping Icons
Process Box
Receive Order
IN
In Box (Queue)
Wait-Time
Withdrawal (Pull)
Supermarket
Iterations
Standard Work
XOXO
Load Leveling
FIFO
Change Management Associates
33
Participant Workbook
Document customer information & need Identify main processes (in order) Select data to collect Perform value stream walk through and fill in data boxes, including inventory and resident technology Establish how each process knows what to process next (how they prioritize) Calculate lead-time (e.g. batch sizes) vs. process time, calculate First Pass Yield and/or other Value Stream summary measures
Change Management Associates
34
Participant Workbook
Break into groups of 5 - 6 people Review the data set provided Create a Current State Map for the case study Reflect on the exercise Youll develop a Future State Map later
35
Participant Workbook
36
Participant Workbook
37
Participant Workbook
38
Participant Workbook
What do you see? What does the process do well? Where are the wastes? What problems are pointed out? Can you identify some lean opportunities?
39
Participant Workbook
Workshop Agenda
1. Introduction 2. Scoping a Lean Project 3. Mapping the Current State 4. Creating the Future State 5. Achieving the Future State
40
Participant Workbook
Agreeing on a shared vision of a Lean future state. Agreeing on how to implement the future state vision
Change Management Associates
41
Participant Workbook
What does the customer really need? How often will we check our performance to customer needs? Which steps create value and which are waste? How can we flow work with fewer interruptions? How do we control work between interruptions? How will work be prioritized? How will we balance or level the work load and/or different activities? What process improvements will be necessary?
Change Management Associates
42
Participant Workbook
Who needs the output of the process? What/how much do they need? When/how often is it required? Can we establish a pace or rhythm for completing these requirements?
43
Participant Workbook
What service level does the customer need? Desired response or turnaround time Expected quality level of the output What is the demand for the process? Expected demand rate Expected variation in the demand rate Required resources to meet demand rate(s)
Change Management Associates
44
Participant Workbook
= 10 minutes/order
What will be the desired cycle time or service level for each activity? What resources will be needed to meet demand?
Change Management Associates
Change Management Associates. All rights reserved.
45
Participant Workbook
At what frequency will the system be reviewed to verify it is satisfying customer needs and the desired cycle time or service level?
Example: Six Sales Orders an hour will be processed, with all orders processed within 1 hour of receipt.
46
Participant Workbook
What is really needed by the customer? Why are the current steps performed? What can be done differently or not at all? Is the order of steps creating waste? Where should decisions be made? What assumptions underlie the current process? Are existing controls and administrative guidelines appropriate? What knowledge and skills are truly required to perform the step(s)?
Change Management Associates
47
Participant Workbook
Process B
IN
Process C
Flow Processing
Process A / B / C
48
Participant Workbook
Customer Service (e.g. from Order to Invoice) Technical Support Order Processing (e.g. Design-to-Order) Product Design (e.g. Concurrent Engineering) Bidding and Proposal Teams Warehouse and Distribution Contract Administration
49
Participant Workbook
Important:
Eliminate all reasons to batch! Discipline to flexible processing!
Even Better: Every Type Every Hour
8AM: 3A, 2B, 3C 9AM: 4A, 2B, 2C
Change Management Associates
50
Participant Workbook
51
Participant Workbook
Process A / B / C
IN
Process D / E / F
52
Participant Workbook
Non-production examples: Order Processing Work Order and Picking processes Job Packet Creation Product Design
Change Management Associates
53
Participant Workbook
How can existing tribal knowledge be brought out in the open for everyones use and understanding? Examples:
Enhanced decision making tools (e.g. pull systems) z Define desired sequence (e.g. FIFO) z Visual procedures
z
54
Participant Workbook
Does the volume (e.g. demand variation) impact the system in any way?
Does the mix (e.g. order type) impact the ability of the system to flow, or impact the responsiveness of particular steps in any way?
55
Participant Workbook
Identify all process improvements that will be necessary to implement the future state
System Uptime New Technology
56
Participant Workbook
What does the customer really need? How often will we check our performance to customer needs? Which steps create value and which are waste? How can we flow work with fewer interruptions? How do we control work between interruptions? How will work be prioritized? How will we balance or level the work load and/or different activities? What process improvements will be necessary?
Change Management Associates
57
Participant Workbook
Break into groups of 5 - 6 people Review the Current State Map Create a Future State Map for the case study Use the future state questions to guide the discussion Begin by marking up the current state map
58
Participant Workbook
Workshop Agenda
1. Introduction 2. Scoping a Lean Project 3. Mapping the Current State 4. Creating the Future State 5. Achieving the Future State
59
Participant Workbook
Agreeing on a shared vision of a Lean future state. Agreeing on how to implement the future state vision
Change Management Associates
60
Participant Workbook
Sales Check-list
Standard Work
Cross Train
61
Participant Workbook
Eliminate NVA steps first that dont require new IT efforts Address information quality issues first Simplify steps that require minimal IT effort (e.g. minimize transactions entering and within the Value Stream) Establish standard work to reduce variability Implement flow (e.g. change office layouts) Implement IT solutions (e.g. e-business) Identify loops, as appropriate
Change Management Associates
62
Participant Workbook
MRP
Ship Schedule
Shipping
Finance cross-train
Shipping cross-train
63
Participant Workbook
Establish the main objectives Kaizen bursts from the future state Create the master plan Create a detail plan for each kaizen Can be done in break out groups Establish project review dates Within the team With the Decision Panel Present the plan to the Decision Panel
64
Participant Workbook
Implementation Plan
Value Stream: Quoting and Order Entry Value Stream Manager: John Overall Timeframe: 90 days Overall Loop Objective Measurable (optional) Goal(s)
Quoting Create standard protocol 2 day turnaround Create std. input form(s) Review forms with sales Dedicate phone and fax numbers Train sales and quoting Pilot and measure Roll out to all quotes Use Engin. to quote twice as many quoters Communicate std. protocol Train pilot engineers on standards Develop scheduling/pitch board
Change Management Associates. All rights reserved.
Plan Details
Team Lead
Support Team
Week 1
Ted Rick
John
Archie,
65
Participant Workbook
Workshop objective, scope, participants, decision panel members (SIPOC) Current state map Current state reflections Future state map Implementation Plan Before / After Measures
66
Participant Workbook
67
Participant Workbook
What services will be consolidated into this specific service family? What is the full scope/boundary of your initial value stream assessment? Where does it begin and end?
68
Participant Workbook
Overall objective & goal for the future value stream (3-6 month timeframe)
69
Participant Workbook
APPENDICES
Recommended Readings Glossary
RECOMMENDED READINGS
The Complete Lean Enterprise By Beau Keyte and Drew Locher Productivity Press, 2004 Beau Keyte and Drew Locher's new book, The Complete Lean Enterprise: Value Stream Mapping for Administrative and Office Processes, offers a step-by-step approach to applying lean initiatives to the administrative and office environment. This book is a valuable tool in applying value stream mapping (VSM) to non-production areas, identifying office wastes, establishing performance metrics, speeding up administrative workflow, and improving office efficiency. Value Stream Mapping for Lean Development A How-To Guide for Streamlining Time to Market By Drew A. Locher Productivity Press, 2008 Savvy business people know that time to market can mean the difference between being one more little fish or the big fish in the pond full of competitors. Crafted by Drew Locher, one of the world's most respected consultants on lean, this work presents a methodology that is appropriate for any organization, whether it is service or product oriented. In his new book, he provides an accessible, enjoyable, how-to guide to value stream mapping that highlights its tremendous impact on development and accompanying processes. Becoming Lean: Inside Stories of U.S. Manufacturers By Jeffrey K. Liker Productivity Press, 1998 Becoming Lean uses first-hand accounts, performance records, and real numbers to show how actual U.S. manufacturers have gone lean. Learn what they learned about the logistical and people issues related to a Lean transformation and what the results of that transformation meant to these businesses. Lean Thinking By James P. Womack and Daniel T. Jones Simon & Schuster, 1998 In Lean Thinking, Womack and Jones show how the principles of Lean production, described in The Machine That Changed the World, have been successfully applied outside the automobile industry. They document the transformation of 25 U.S., Japanese, and German companies through the application of Lean thinking. (The description of the arrival of the Japanese sensei at the Porsche plant in Germany alone is worth buying the book.) The Machine That Changed the World By James P. Womack, Daniel T. Jones, and Daniel Roos HarperCollins, 1991 The authors, who directed MIT's five-year study on the future of the automobile, explain the development and the principles of Lean production. The descriptions of the application of the process show not only how it works, but also why Lean manufacturing results in more cost efficient products and is transforming manufacturing around the world.
Recommended Readings
RR-1
GLOSSARY
TERM 5S System DEFINITION
A system designed to organize and standardize a workplace and consisting of five component parts: Sort, Set in Order, Shine, Standardize, and Sustain (see five component parts definitions). Wastes addressed by Lean manufacturing that include: overproduction, waiting, transportation, non-value added processing, excess inventory, defects, excess motion, and underutilized people The eight-step Ford methodology for problem solving. Producing more than one piece of an item and then moving those items forward to the next operation before they are all actually needed there. Thus these items need to wait in a queue. Also called Batch-and-Push. Contrast with continuous flow. A resource whose capacity is less than the demand put on it. The strategically placed inventories which protect the material flow and whose consumption set the schedules in a pull system. Finished goods available to meet Takt Time when variations in customer demand exist. An approach to calculating batches on a setupintensive resource which is based on the capacity of the resource, not on unit cost. The handing back and forth of information between workers and management and the subsequent feedback.
8 Wastes
Glossary
GL-1
Cell
Operating a true continuous flow on machines and workstations placed close together in the order of processing, sometimes called a U shape. Cell operators may handle multiple processes, and the number of operators is changed when the customer demand rate changes. The U shaped equipment layout is used to allow more alternatives for distributing the work elements among operators, and to permit the leadoff and final operations to be performed by the same operator. Linking of manual and machine operations into the most efficient combination to maximize value-added content while minimizing waste. When a piece of equipment has to stop producing in order to be fitted for producing a different item; for example, the installation of a different processing tool in a metal working machine, a different color paint in a painting system, a new plastic resin & mold in an injection molding machine, loading different software, and so on. A document that clearly defines the focused kaizen team mission, scope of activities, risks, and deliverables (if required by management to provide additional details). The process by which items are produced and moved from one processing step to the next one piece at a time. Each process makes only the one piece that the next process needs, and the transfer batch size is one. Also called single-piece flow or one-piece flow. Contrast with batch-and-queue processing. Constant Work In Process. This is another way of defining FIFO (see FIFO). The designated group of people primarily responsible for completing the details of the plan. How frequently an item or product is actually completed by a process, as timed by direct observation. Also, the time it takes an operator to go through all of his or her work elements before repeating them. Inspection and repair of material in inventory.
Cellular Manufacturing
Changeover
Charter
Defects Waste
Glossary
GL-2
Also commonly referred to as Takt Time (see Takt Time). A kanban approach which replenishes an inventory buffer in the quantities withdrawn, thus allowing any variability in customer demand to propagate through the supply chain. Refers to every-part-every-interval, which is a basis for production batch size. For example, if a machine is able to change over and produce the required quantity of all the high-running part types dedicated to it within three days, then the production batch size for each individual part type is about three day's worth of parts. Thus this machine is making every part every (EPE) three days. Any supply in excess of a one-piece flow through your manufacturing process. An individual who provides expertise to the project team, but will not have the responsibility of implementation. Segments of the value stream that respond to requirements from internal customers. Fabrication processes are often characterized by generalpurpose equipment that changes over to make a variety of components for different downstream processes. Compare to pacemaker process. Stands for first-in, first-out, which means that material produced by one process is used up in the same order by the next process. A FIFO queue is filled by the supplying process and emptied by the customer process. When a FIFO queue gets full, the supplying process must stop producing until the customer process has used up some of the inventory. FIFO is sometimes called CONWIP, or Constant Work In Process. A production cycle in which goods must be produced in a fixed sequence. A main objective of the entire Lean production effort, and one of the key concepts that passed directly from Henry Ford to Taiichi Ohno (Toyotas production manager after WWII). Ford recognized that, ideally, production should flow continuously all the way from raw material to the customer and envisioned realizing that ideal through a production system that acted as one long conveyor.
GL-3
EPEI
Fabrication Process
FIFO
Glossary
Heijunka
The act of leveling the variety and/or volume of items produced at a process over a period of time. Used to avoid excessive batching of product types and/or volume fluctuations, especially at a pacemaker process. A physical device that visually displays the product family. Pitch and work orders for meeting daily demand are represented by Kanbans. All of the money invested by purchasing goods intended for sale. A quantity of inventory located at a specific point in the value stream to protect the flow of material and to provide replenishment schedules. Producing or conveying only the items that are needed by the next process when they are needed and in the quantity needed. Continuously improving in incremental steps. A signaling device that gives instruction for production or conveyance of items in a pull system. Can also be used to perform Kaizen by reducing the number of Kanban in circulation, which highlights line problems. The replenishment quantity of material authorized by a kanban. The time required for one piece to move all the way through a process or value stream, from start to finish. Envision timing a marked item as it moves from beginning to end. A systematic approach to identifying and eliminating waste (non-value added activities) through continuous improvement by flowing the product at the pull of the customer in pursuit of perfection. The organization that fully understands, communicates, implements, and sustains Lean concepts seamlessly throughout all operational and functional areas. The process or method used to distribute work within the value stream to maximize material and information flow efficiency.
Heijunka Box
Just-In-Time
Kaizen Kanban
Lean
Lean Enterprise
Leveling
Glossary
GL-4
A process in which work elements are evenly distributed within the value stream to meet Takt. A type of red tag that shows where an item belongs. These include lines, arrows, labels, and signboards. Production-support persons who travel repeatedly along scheduled routes within a facility to transfer materials, supplies, and parts in response to pull signals, and to make paced withdrawal of finished goods at pacemaker processes. A computerized system typically used to determine the quantity and timing requirements for delivery and production of items. Using MRP specifically to schedule production at processes in a value stream results in push production, because any predetermined schedule is only an estimate of what the next process will actually need. Manufacturing Resource Planning (often called MRPII) expands MRP to include capacity planning, a finance interface to translate operations planning into financial terms, and a simulation tool to assess alternative production plans. Routing a delivery vehicle in a way that allows it to make pickups or drop-offs at multiple locations on a single travel loop, as opposed to making separate trips to each location. An approach to scheduling final production processes which smoothes out demand on the supply chain by producing some of each item over the shortest possible time horizon. (See Heijunka) Any movement of people or machines that does not add value to the product or service. See waste. A resource whose capacity exceeds the demands put on it. Independent demand which does not require inventory buffers to meet customer service requirements. Any activity that does not add market form or function or is not necessary. (These activities should be eliminated, simplified, reduced, or integrated.)
Milk Run
Mixed-Model Scheduling
Non-Value-Added
Glossary
GL-5
The total amount of money spent to convert inventory into throughput. A seven-step process used to meet customer demand or Takt through optimal human and equipment efficiencies. The buffer inventory level at which a replenishment order must be placed. The amount of a replenishment order. Making more than is required by the next process. Making earlier than is required by the next process, or making faster than is required by the next process. A timed sequence of withdrawal of finished product from the pacemaker process. Paced withdrawal is a tool for pacing an assembly process and becoming aware of production problems within a pitch increment. A series of production steps, frequently at the downstream (customer) end of the value stream in a facility, that is dedicated to a particular product family and respond to orders from external customers. The pacemaker is the most important process in a facility because how you operate here determines how well you can serve the customer, and what the demand pattern is like for upstream fabrication processes. The number of units/parts that can be moved throughout the value stream to ensure flow efficiency. Pack-out quantity may or may not be customer driven. When Takt Time is too short for a reasonable paced withdrawal, it can be adjusted upward to a consistent increment of work called pitch, which becomes the basic unit of your production schedule for a product family. Pitch represents the frequency at which you withdraw finished goods from a pacemaker process as well as the corresponding amount of schedule you release to that process. Pitch is often calculated based on the customers ship container quantity. Raw material stored at the workstation where it is used. The amount of time taken to produce one good part before it continues to the next process in the value stream.
GL-6
Paced Withdrawal
Pacemaker Process
Pack-Out Quantity
Pitch
Glossary
Improvements made at an individual process or in a specific area. Sometimes called point Kaizen. The time a product is actually being worked on in a machine or work area. Effort that adds no value to the product or service from the customers viewpoint. A group of products that goes through the same or similar downstream or assembly steps and equipment. A printed card indicating the number of parts that must be produced to replenish what has been consumed from the supermarket. See heijunka. An information system for controlling and improving the flow of materials and information and for allocating resources based on actual consumption, not forecasted demand. A system where resources are provided to the consumer based on forecasts or schedules. When operators are given the means to perform inspection at the source, before they pass it along. A final inspection station is not required when quality at the source is used. The time a product spends waiting in line for the next processing step. Changing over a process to produce a different product in the most efficient manner. A visible way to identify items that are not needed or in the wrong place. Independent demand which requires inventory buffers to support required customer service levels. The time interval between the receipt of replenishment orders into an inventory buffer. A person on the production floor that paces the entire value stream through the pick-up and delivery of materials through Kanban utilization.
Production Kanban
Queue Time Quick Changeover Red Tag (for 5S) Repetitive Demand Replenishment Interval Runner
Glossary
GL-7
Extra buffer inventory to cover fluctuations in customer demand within the replenishment lead-time. Step 2 of the 5S System. To identify the best location for remaining items, relocate out of place items, set inventory limits, and install temporary location indicators. Step 3 of the 5S System. To clean everything, inside and out and to continue to inspect items by cleaning them and to prevent dirt, grime, and contamination from occurring. A printed card indicating the number of parts that need to be produced at a batch operation to replenish what has been consumed from the supermarket. Step 1 of the 5S System. To perform Sort through and Sort out, by placing a red tag on all unneeded items and moving them to a temporary holding area. Within a predetermined time the red tag items are disposed of, sold, moved or given away. When in doubt, throw it out! Step 4 of the 5S System. To create the rules for maintaining and controlling the first 3 Ss and to use visual controls. Operations safely carried out with all tasks organized in the best-known sequence and using the most effective combination of resources (people, materials, methods, machines). A visual representation of all the main activities of a Lean project from start to finish. A controlled inventory of items that is used to schedule production at an upstream process. Step 5 of the 5S System. To ensure adherence to the 5S standards through communication, training, and self-discipline. Improvement aimed at an entire value system. The time frame or window that prevails throughout the value stream acknowledging, identifying, and communicating a certain quantity of parts that should have been produced.
Signal Kanban
Standardized Work
Glossary
GL-8
Takt Time
The rate of customer demand: how often the customer requires one finished item. Takt Time is used to design assembly and pacemaker processes, to assess production conditions, to calculate pitch, to develop material handling containerization and routes, to determine problem-response requirements, and so on. Takt is the heartbeat of a Lean system. Takt Time is calculated by dividing production time by the quantity the customer requires in that time. A management approach that is based on identifying system constraints, exploiting the constraints, subordinating everything else to the constraints, improving on the constraints, and then repeating the process. The rate at which money is generated through sales. The total individual processing time of a particular process or for the product throughout the value stream. Total product cycle time would ideally be equal to total value-added time. A systematic approach to the elimination of equipment downtime as a waste factor The waste of unnecessarily transporting parts and materials around the plant. The waste of not using peoples mental, creative, and physical skills and abilities. U-shaped, product-oriented cell layouts that allow an operator(s) to produce and transfer parts one piece, or one small lot, at a time. A product or services capability provided to a customer at the right time, at an appropriate price, as defined in each case by the customer. Any activity that increases the market form or function of the product or service. (These are things the customer is willing to pay for.) Time for those work elements that transform the product in a way the customer is willing to pay for.
Theory of Constraints
Total Productive Maintenance (TPM) Transportation Waste Underutilized People Waste U-Shaped Cells
Value
Value Added
Value-Added Time
Glossary
GL-9
Value Stream
All activities, both value added and non-value added, required to bring a product from raw material into the hands of the customer, a customer requirement from order to delivery, and a design from concept to launch. Value stream improvement usually begins at the doorto-door level within a facility, and then expands outward to eventually encompass the full value stream. Segments of a value stream whose boundaries are typically marked by supermarkets. Breaking a value stream into loops is a way to divide future state implementation into manageable pieces. The person responsible for creating a future state map and leading door-to-door implementation of the future state for a particular product family. This person makes change happen across departmental and functional boundaries. A pencil-and-paper tool used in the following two stages: 1. To follow a products production path from beginning to end and draw a visual representation of every process in the material and information flows. 2. To then draw a future state map of how value should flow. The most important map is the future state map. A sequential process used to implement Lean concepts and tools derived from the Toyota Production System for the purpose of attaining a waste-less flow of product throughout the value stream. Simple signals that provide an immediate understanding of a situation or condition. They are efficient, self-regulating, and worker managed. Idle time created when waiting for anything in a manufacturing process. Any activity that consumes resources but creates no value for the customer. Stands for work in process. Any inventory between raw material and finished goods. A printed card indicating the number of parts that will be removed from the supermarket. A safe, clean, neat, arrangement of the workplace that provides a specific location for everything, and eliminates anything not required.
GL-10
Visual Controls
Glossary
Please take a few minutes to fill out this course evaluation. It will help us determine the value of the training to you and continuous improvement activities. Please circle one 1. 2. 3. 4. How would you rate the content of this training program? How would you rate the case study? How would you rate the instructor? How would you rate the course overall? Poor Poor Poor Poor 1 1 1 1 2 2 2 2 3 3 3 3 4 4 4 4 5 5 5 5 Excellent Excellent Excellent Excellent
Course Content:
5. 6. 7. 8. In general, what did you think of the course content? Was the content too light or too deep? What content areas should we spend more time covering? What content areas should we spend less time on?
Overall:
12. What did you enjoy about the course? 13. What did you dislike about the course? 14. How long should the course be? 15. What changes would you like to see made to the course? 16. How well did the classroom curriculum and the case study tool work together? Do you have ideas for improvement'? 17. What is still unclear about the course material after this training?
Name (Optional)_______________________________________________________________________________