Heather Hughes, CMC
              Victoria BC
heatherconsults@shaw.ca
   How can it help my
    organization?
   What do I need to do to
    meet with success?
   Who should steer the
    process?
   What is the process
    anyway?
   Is there one way or is it
    adaptable?
 Revolutionary
 Complicated
 Difficult
 Expensive
 Painful
   A way to reduce waste
            AND it is also a way to
 Unleash Innovation
 Improve Employee Engagement
 Reduce Stress and Absenteeism
 Save on Training Costs
 Enhance Customer Loyalty
 Expand into New Markets or Add Products
Three Aspects of the Improvement Process



Breakthrough        Achieving customer
                    requirements by            Innovation
changes in
                    entirely new means
performance
through the
application of                                         Improvement
                   Utilising current
lean principles    resources with
                   minimum waste

                                                             Standardisation
Step by step
incremental       Consistently applying
change            known best practice



                               •   PG550GL08
                                                                               8




   5
Quality Processes Yield Quality Results
 Kaizen® = People using Process to get Results


                                                    Desired
   People
                                                    Results

                Consistent Process

Traditional = People doing whatever they can to get results

                                          R1
                                               R2
                                                      Inconsistent
  People
                                     R3                  Results
                               R4

              Inconsistent Process

     “I don’t care how you do it, just get it done!”
The idea of ‘Kanban’ and the ‘Pull System’ was developed by Toyota
Machine Shop Manager, later Managing Director, Taiichi Ohno.
In the early 1950’s, Ohno’s machine shop was continually having problems
with shortages of parts. This prevented his team from keeping pace with car
production, so he began to look for an answer.
   Ohno visited the US
    in 1953. During his
    stay, he went to a
    Supermarket.
   He saw products
    available on the
    shelves, for
    customers to buy
    as they needed
    them.
   Could this be done
    for machine parts?
The Story of ‘Kanban’
• Ohno made ‘Supermarket’ shelves for parts boxes in the
machine shop.
• He attached a card to each box
• Operators would the take any of the parts they needed.
• As they used a box, its card was sent to the work station to call
another.
• These cards were called ‘Kanban’ (meaning ‘signboard’) cards.




                                   Appendix KT1 - Kanban Systems
                                                         Training
Request      Review        Check
product       order      Inventory



Receive                  Source
           Place order
 goods                   Product



 Ship to
customer
Waiting for:
 ◦   people to complete a step in a project
 ◦   Approvals to proceed
 ◦   Reports to be read
 ◦   Budgets to be allocated
 ◦   Supplies to arrive
 ◦   Staff to come back from breaks
 ◦   Computers to spit out something

 This waiting is unproductive time and a
 HUGE cost = WASTE
   too   many   steps to complete something
   too   many   people connected to a task
   too   many   levels of approval
   too   many   signatures on papers
   too   many   places where goods are stored
   too   many   steps to get the things you need

   Talking of too…
Their insatiable curiosity is fantastic, especially
there ability it ask…
                 WHY? WHY? WHY?
   Challenges every step, each action, each
    process and causes deeper, more creative
    thinking
sales

          shipping

finance
   Read the case
   Identify the waste
   Actions, people, waiting
   Decide what to cut without
    damaging results

   What benefits are there
    for the customer?
   What impact could the
    changes have for the
    employees?
Far too often people
make it overly complex
- then the LEAN project
itself could benefit from
a LEAN consultant!
The benefits from
the employee’s and
customer’s point of
view

They want to
know…

How will this help
me?

Why should I get
involved?
LEAN Thinking is Different

         “old” way of thinking             “new” way of thinking




                                   We need to ask the Customer
                                   what they want.
                                   This is translated into
                                   Quality
                                   Cost
We Know what the customer wants,   Delivery
We have Made it.                   We need to detect trends before
Someone Must buy it                our competitors.
DO NOT exceed
                  the maximum
                    speed limit

       STANDARD WORK




  VISUAL           STANDARD
MANAGEMENT        MANAGEMENT
   Probably – usually does
   May encounter resistance
   Challenges current practices
   It’s an opportunity to explore alternatives
   Sometimes seen as a threat
   Frees employees from low value procedures
   Saves $$$


   Questions?

Lean for success

  • 1.
  • 2.
    How can it help my organization?  What do I need to do to meet with success?  Who should steer the process?  What is the process anyway?  Is there one way or is it adaptable?
  • 3.
     Revolutionary  Complicated Difficult  Expensive  Painful
  • 4.
    A way to reduce waste AND it is also a way to  Unleash Innovation  Improve Employee Engagement  Reduce Stress and Absenteeism  Save on Training Costs  Enhance Customer Loyalty  Expand into New Markets or Add Products
  • 5.
    Three Aspects ofthe Improvement Process Breakthrough Achieving customer requirements by Innovation changes in entirely new means performance through the application of Improvement Utilising current lean principles resources with minimum waste Standardisation Step by step incremental Consistently applying change known best practice • PG550GL08 8 5
  • 6.
    Quality Processes YieldQuality Results Kaizen® = People using Process to get Results Desired People Results Consistent Process Traditional = People doing whatever they can to get results R1 R2 Inconsistent People R3 Results R4 Inconsistent Process “I don’t care how you do it, just get it done!”
  • 7.
    The idea of‘Kanban’ and the ‘Pull System’ was developed by Toyota Machine Shop Manager, later Managing Director, Taiichi Ohno. In the early 1950’s, Ohno’s machine shop was continually having problems with shortages of parts. This prevented his team from keeping pace with car production, so he began to look for an answer.
  • 8.
    Ohno visited the US in 1953. During his stay, he went to a Supermarket.  He saw products available on the shelves, for customers to buy as they needed them.  Could this be done for machine parts?
  • 9.
    The Story of‘Kanban’ • Ohno made ‘Supermarket’ shelves for parts boxes in the machine shop. • He attached a card to each box • Operators would the take any of the parts they needed. • As they used a box, its card was sent to the work station to call another. • These cards were called ‘Kanban’ (meaning ‘signboard’) cards. Appendix KT1 - Kanban Systems Training
  • 10.
    Request Review Check product order Inventory Receive Source Place order goods Product Ship to customer
  • 11.
    Waiting for: ◦ people to complete a step in a project ◦ Approvals to proceed ◦ Reports to be read ◦ Budgets to be allocated ◦ Supplies to arrive ◦ Staff to come back from breaks ◦ Computers to spit out something This waiting is unproductive time and a HUGE cost = WASTE
  • 12.
    too many steps to complete something  too many people connected to a task  too many levels of approval  too many signatures on papers  too many places where goods are stored  too many steps to get the things you need  Talking of too…
  • 13.
    Their insatiable curiosityis fantastic, especially there ability it ask… WHY? WHY? WHY?
  • 14.
    Challenges every step, each action, each process and causes deeper, more creative thinking
  • 15.
    sales shipping finance
  • 17.
    Read the case  Identify the waste  Actions, people, waiting  Decide what to cut without damaging results  What benefits are there for the customer?  What impact could the changes have for the employees?
  • 18.
    Far too oftenpeople make it overly complex - then the LEAN project itself could benefit from a LEAN consultant!
  • 20.
    The benefits from theemployee’s and customer’s point of view They want to know… How will this help me? Why should I get involved?
  • 22.
    LEAN Thinking isDifferent “old” way of thinking “new” way of thinking We need to ask the Customer what they want. This is translated into Quality Cost We Know what the customer wants, Delivery We have Made it. We need to detect trends before Someone Must buy it our competitors.
  • 23.
    DO NOT exceed the maximum speed limit STANDARD WORK VISUAL STANDARD MANAGEMENT MANAGEMENT
  • 27.
    Probably – usually does  May encounter resistance  Challenges current practices  It’s an opportunity to explore alternatives  Sometimes seen as a threat  Frees employees from low value procedures  Saves $$$  Questions?