Lean…Are you doing the right things?? John Reynolds, Lean Six Sigma Master Black Belt APICS Associate Lean Enterprise Instructor John.firstname.lastname@example.org
Great projects!? • Increased department production levels. • Faster handling of expedited orders. • Made rework center more productive. • Added more quality control personnel. • Increased employee utilization. • Improved speed of repairing broken equipment. So why aren’t we making any more money?
What is a problem? What Really Is What Should Be GAP
Identifying problems • You have to go… • Go to where the problem happens • Go to “Gemba” • You have to see… • Visual systems • Make problems visible • You have to ask… • Ask supervisors • Ask employees • Ask customers
Types of Waste • Defects • Overproduction • Waiting • Non-Utilized Resources • Transportation • Inventory • Motion • Extra Processing
Value Added? • Is it something your customer is willing to pay for? • Is it done right the first time? • Does it provide a fundamental change in the product? 50% reduction in NVA. Non-Value Added Value Added
Is this problem worth solving? • Have you asked your customer(s)? • Is this something that they care about? • Will this project solve that exact problem? • Have you gone to see the problem? • Do you understand the problem? • Do you think that this project will solve that problem?
Is this problem worth solving? • Do you know the root cause? If not, can you find it? • 5-why • Cause Mapping • Brainstorming, etc. • Does it make fiscal sense? • Do you have involvement from all levels of the organization?
Is this problem worth solving? • Does this problem affect your company’s goals? • Is it aligned with what your company wants to be and do? • Will it directly impact the bottom line? • Does it impact safety or environmental concerns? • Does it have management support? • Do they agree that this will help the company? • Will they provide the resources needed?
Is this problem worth solving? • Have you asked your employees? • Do they agree that this is a problem? • Do they agree that this project will solve this problem? • Will this project add value to your customers? • How? …and this needs to be from the customer’s perspective. • Do you know what the customer considers to be value-added?
Is this problem worth solving? • If this is your first attempt at a project… • Is it the right size? • Small enough to complete • Large enough to be worthwhile • Are you using data or anecdotes? • Are you focused on eliminating waste? • Are your people trained? • Lean Culture • Lean Tools
“Capacity” Problem • Long lead times • Stockouts • Considering moving this operation to another location.
“Product Damage” Problem • $3 million per year in damaged product. • Considering new support system that only costs $2 million.