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LeanSigma ® Facilitator Training. Module 10 – Process Smoothing. Topics. Process Smoothing 5S……………………………………………………………………………………….5 – 8 Capacity and Demand management……………………………….9 – 27 FMEA (risk analysis)……………………………………………………....……15 - 16

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module 10 process smoothing

LeanSigma® Facilitator Training

Module 10 – Process Smoothing

topics
Topics

Process Smoothing

  • 5S……………………………………………………………………………………….5 – 8
  • Capacity and Demand management……………………………….9 – 27
    • FMEA (risk analysis)……………………………………………………....……15 - 16
    • Routing standardization……………………………………………………….21 - 23
    • Capacity (workforce) studies……………………………………………….24 – 27
  • Standard Operations………………………………………………………28 - 32
this module will focus on process smoothing aspects of the toyota production system
This module will focus on Process smoothing aspects of the Toyota Production System.

Principles

of LeanSigma®

Just

in

Time

Just

Just

Just

Just

Jidoka

Jidoka

in

Jidoka

in

Jidoka

Jidoka

in

in

Time

Time

Time

Time

Process Smoothing

Process Smoothing

Process Smoothing

Process Smoothing

Without all the elements, the house falls!

Process Smoothing

  • 5S
  • Capacity & Demand management
  • Standard Operations
5s is a powerful technique to improve productivity

Process Smoothing

  • 5S
  • Capacity & Demand management
  • Standard Operations
5S is a powerful technique to improve productivity.

IKEA video

  • A process and method for creating and maintaining an organized, clean, high-performance workplace
  • A conditioning discipline for improvement
  • The 5 Steps
    • Step 1: Seiri - Segregate & Discard
    • Step 2: Seiton - Arrange & Identify
    • Step 3: Seiso - Clean & Inspect Daily
    • Step 4: Seiketsu - Revisit Frequently
    • Step 5: Shitsuke - Motivate To Sustain
example
Example

After

Before

how is 5s done
How Is 5S Done?

5S is accomplished by following all of the steps.

Don’t skip a step!

5S is a team orientedprocess between themembers of the workarea.

ims examples of 5s

S

IMS examples of 5S

S

S

S

S

How could you apply 5S to EZ Money?

  • What examples do you see at IMS for each of these techniques?
    • Step 1: Seiri - Segregate & Discard
    • Step 2: Seiton - Arrange & Identify
    • Step 3: Seiso - Clean & Inspect Daily
    • Step 4: Seiketsu - Revisit Frequently
    • Step 5: Shitsuke - Motivate To Sustain
smoothing techniques help us adapt our responses to variable demand

60

40

30

20

10

Smoothing techniques help us adapt our responses to variable demand.

Variable volume

Time

1

2

3

4

5

6

7

8

9

10

11

12

Customer or Request

slide10

Process Smoothing

  • 5S
  • Capacity & Demand management
  • Standard Operations

Ideally, we should be able to match capacity to demand.

capacity

demand

a lack of balance creates issues
A lack of balance creates issues.

Capacity > Volume

No Waiting

High Error Rates

High Costs

Capacity < Volume

Customers Waiting

High Error Rates

Low Costs

Missed Expectations

Capacity = Volume

Good Customer Flow

Fewer Errors

Costs are Justifiable

overburden reduces productivity
Overburden reduces productivity.

Surprisingly, underutilization can be as frustrating as overburden.

  • Occurs when process resources are pushed beyond the natural/designed limits or capacity:
    • Human Resources – overtime; inadequate training
    • Technical Resources – running at unrated speeds; no maintenance
  • Characteristics:
    • High Stress/Low Morale
    • Poor Quality
    • System Breakdowns/Outages
    • Reactionary Management
    • Consistent Overtime to Meet Schedules
  • Causes:
    • Inflexible Processes
    • Poor Capacity Management/Utilization/Scheduling
    • Improper Training (at all levels)
    • Lack of Process Capability
forecasting demand timing and variation is critical
Forecasting demand timing and variation is critical.

demand

capacity

Historical data and sales estimates are key inputs to forecasting.

When does the work arrive to be processed?

What is the variation over the year, month, week, day?

How does the volume flow through the process?

in some cases we can influence the demand for work
In some cases, we can influence the demand for work.

demand

capacity

  • Perform internally-driven work at times when client demand is low
  • Reduce requirements for internally driven work
  • Plan new services that can be delivered in off-peak times
  • Offer customers incentives to order work in off-peak times
example reduce requirements for internally driven work
Example: Reduce requirements for internally-driven work

We often assume activities are necessary just because we’ve always done it that way.

An IMS team in the U.S. was checking 100% of work for errors.

By using an FMEA (Failure Modes Effects Analysis) tool, they analyzed how often an error occurs and the impact of the error.

The team realized an error occurred on average once every two years and the impact of the error was low.

They decided to significantly reduce the amount of quality assurance and were able to eliminate the team’s overtime work.

the fmea tool helps you assess risk
The FMEA tool helps you assess risk.

Click here for FMEA Template

example develop off peak services
Example: Develop Off-peak Services

A snow shovel company had tremendous demand in fall and winter months.

They decided to make garden shovels to generate demand in spring and summer.

when you can t modify demand you must change capacity
When you can’t modify demand, you must change capacity.

demand

capacity

  • Capacity or workforce management determines the efficient allocation and scheduling of resources
  • Useful for highly complex and variable environments to maximize performance, while containing costs.

Capacity = Resources * Time * Productivity

you can influence any component of the capacity equation to change your capability
You can influence any component of the capacity equation to change your capability.

Capacity = Resources * Time * Productivity

How many people are working on each activity?

How can we eliminate waste, flow, etc. to make work more efficient?

How many shifts should we have?

How can we optimize how work is grouped and assigned?

we ve reviewed several techniques that can improve productivity
We’ve reviewed several techniques that can improve productivity.

Capacity = Resources * Time * Productivity

TIM WOOD (waste reduction)

Flow and Pull

5S

another productivity technique is routing standardization
Another productivity technique is Routing standardization.

Similar kinds of work are grouped together to improve efficiency.

routing standardization examples
Routing Standardization Examples

Grouping similar work together can eliminate bottlenecks. What happens if the same team works on huge projects and very small projects?

  • Auto industry – Vehicles with similar engines are built on the same platform rather than creating another line. Skills and processes are similar.
  • At IMS:
    • Simple customer questions are handled by a different team than complex customer questions.
    • In Offering Development, short development efforts are handled by a different group than large development efforts.
    • In Client Service, ad hoc work was separated from recurrent work.
rationale for grouping work together
Rationale for grouping work together

Peaks and valleys in demand are complimentary

Grouping would eliminate a bottleneck

Equipment or skill sets are similar

Optimizes a team’s utilization

Helps keep pace with customer demand (e.g. the takt time v. cycle time bar chart)

formal capacity management studies review all pieces of the capacity equation
Formal capacity management studies review all pieces of the capacity equation.

Capacity = Resources * Time * Productivity

What activities does the team perform?

How many people are performing each activity? (resources)

What is the sum of the available work time on the team? (productive work hours)

How much time does it take to create a unit of work? (productivity)

capacity studies are frequently used when significant business changes occur
Capacity studies are frequently used when significant business changes occur.

Contact your Lean Lead if you think a capacity study is needed.

A re-organization occurs, changing work activities or the number of people on the team

An acquisition is integrated into the business.

New services are developed, increasing a team’s workload.

Demand changes sharply.

capacity studies are complex often done by teams of lean practitioners
Capacity studies are complex, often done by teams of Lean practitioners.

Click here for Detailed Capacity Study Guidelines

Steps in a Capacity Study:

  • Understand volume requirements
    • Data is collected and analyzed for variation
  • Understand tasks, # employees, available work times, and cycle times per activity
    • Interviews and process observation are critical
  • Build a picture of the current process (the value stream map)
  • Suggest changes to improve productivity (e.g. re-grouping work, eliminating some work)
  • Build a capacity model showing ranges of FTEs needed to handle various levels of demand
capacity models provide guidance not exact numbers

Input

Process

Output

Critical Success Factors

Process

Resource

Requirements

Existing Schedules

Customer Deadlines

LeanSigma

®

Customer Arrival Pattern

Workforce

Volume

Management

Limiting Resources

Controllable Factors

Non

-

Resource

Scheduling

Productivity

Training Curve

Capacity models provide guidance, not exact numbers.
standard operations

Process Smoothing

  • 5S
  • Capacity & Demand management
  • Standard Operations
Standard Operations

The best way to complete a process with the most efficient use of resources…

Articulated clearly so that employees can follow and sustain the process.

standard operations1

Pacing to takt time

Establishing the activities and order of activities assigned to each associate

Step

1

Step

2

Step

3

Standard Operations
standard operations are the culmination of many lean techniques
Standard Operations are the culmination of many Lean techniques.

Waste elimination

Flow and Pull

Takt time

5S

Resource (Capacity) management

Routing Standardization

standard operations2
Standard Operations
  • Why implement standard operations?
    • To make it possible to identify and eliminate variations in associates work
    • To sustain the gains achieved from past kaizen activities
    • To provide a baseline for future kaizen activities
  • How do you use standard operations?
    • Document each standard process
    • Display the documentation
    • Ensure that all associates are trained