VA
NVA
Original lead time
VA
NVA
VA
NVA
Minor improvement Major improvement
• •
Reducing value-added (VA) activities results in only minor gains Reducing waste results in major lead time reductions
New Lean Tools (e.g., 20 Keys)
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Constraint Management
Current “State of the art” Lean
Lean Employs A "Low-Tech" Approach
• • Focus Intently On The Elimination Of All Waste Maximize Productivity And Efficiency From Existing Processes, People And Systems Before "Buying" Technological Solutions - Use … Creativity Before Capital
PEOPLE
Motion Processing TYPES OF WASTE Waiting
Unnecessary Stock / Inventory Ties up capital, risk of changes Waiting Decreases productivity, wastes personnel resources Unnecessary Motion Increases production time, unnecessary operator motion Processing Poorly designed / incapable processes
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Critical Difference From Past CI Initiatives
Places A Focus on Non Value-Added Segment Targeting Lead Time Reduction
Typical company Traditional process improvement Kaizen waste reduction
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So… What’s Driving The Waste?
• • • • • • • Distance (plant layout) Long set-up times Incapable processes Poor maintenance Poor work methods Lack of training Adherence (or not) to processes • Supplier quality • Workplace organization • Historic supervisory roles • Ineffective performance measurements • Poor planning or scheduling • … What else?
• Among Technological Equals, Technology Is A Constant, Like Helmets In The NFL (You Suffer If You’re The Only One Without One; Having One Confers No Advantage If Everyone Else Has One)
•
•
Optimize Manual, Low-tech Systems Before Automating
Continually Pursue Improvement (Kaizen) Through The Aggressive Involvement Of Everyone
Lean is ‘High Touch & Low Tech’ Enabling the Involvement Of Everyone!
Group Dynamics Organization Dynamics
Insights From Mass Production Approaches
The “Low Tech” Approach
Toyota Production System
(SMED, kanbans, JIT, TPM,etc.) Ford Production System Chrysler Operating System
Value-Added

Non Value-Added

Transforms the product or the documentation in some way that meets customer requirements (and has not previously been attempted)
What is Lean?
Lean Implementation
11350 North Meridian St., Suite. 345 • Carmel, IN 46032 Tele: 1-317-818-2430 • Fax: 1-317-818-2434 • An Implementation Services Company
Don’ t make capital investments on improving VAs until the NVAs achieve equilibrium with the VAs
© 2003 Kaufman Global, LLC
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Benefits of Lean
• The Benefits Are There For The Taking • The Benefits Always Include Increased Market Share, Lowered Cost Higher Profits And Happier Customers (And Shareholders) • “Lean” Is The Only Answer Known That Provides These Benefits • “Lean” Never Fails If You (R-E-A-L-L-Y) Do It • Saying “Lean” Is Not Doing Lean • Every Successful Business That Competes In An Over-capacity Or Price-sensitive Market Is Doing “Lean” Whether They Know It Or Not
Fixing Defects
Inventory
Making Too Much
Moving Things
From Taiichi Ohno, Architect of the Toyota Production System
© 2003 Kaufman Global, LLC
Defects Scrap, rework, returns
Agenda
What is Lean?
• Description
• Leadership • Implementation
• Benefits
© 2003 Kaufman Global, LLC
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Objectives of Presentation
• Establish Awareness Concerning “Lean” • Outline Lean Implementation Focus & Priorities • Discuss Critical Work streams to Implement Lean
Does not transform the product or documentation Does not lead to fulfilling a Customer Requirement


Reworks a previous mistake or misunderstanding
Waste is Non Value-Added. Work constructs that “serve the configuration” (and not the customer) are enablers of waste
Lead time reduction is achieved by identifying and eliminating waste
Overproduction / Making To Much Ties up capital, diverts production from customer requirements, loss of inventories Transporting / Moving Things Unnecessarily increases production time, extra WIP
© 2003 Kaufman Global, LLC
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Where Does Lean Come From?
Not merely one philosophy or tool, but an evolving interdisciplinary knowledge base
Industry Best Practices
• Portray the Organization to Sustain and Further Promote CI