Basic Lean Tools

The starting place for your lean journey.

 Class agenda
• Lean Principles and Waste
• Lean Tools overview
 Types of Waste

Waiting- Time spent waiting on items required to complete task (i.e.,

Information, material, supplies, etc.)
Unnecessary Motion- Any motion that does not add value to product or
service.
Processing- Effort and time spent processing information or material that is not
adding value
Inventory- Material or information that is waiting for processing
Moving items- Transporting information or material by mail, cart, conveyor, or
foot travel
Making too much -Producing more information or product than the ultimate
customer requires
Fixing defects- Time spent repairing or reworking material or information
 Course background
• A strong case was made for the integration of Continuous Quality
Improvement, Lean and Teaming tools
– Teaming, Lean and Quality Improvement seen as separate initiatives
and tools belonging to specific groups
– Lacked recognition that the tools were all enablers for Lean
transformation
– Systems approach to continuous improvement was needed
(combination of social and technical aspects of change)
• Tools used in combination provide greater impact to business results
• Tool integration creates clarity for users; Lean tools now include Teaming,
Quality, Change Mgmt and Process Redesign
 5S/Workplace Organization

 The purpose of 5S is to provide an organized work environment

where everything has a place, is in its place, and is ready for
use
 5S benefits include:

• Providing clean and • Reduced training

organized work areas • Freed up floor space
• Providing a safer workplace • Reduced supply costs
• Improved employee morale • Reduced equipment costs
and efficiency

5S is much more than good housekeeping

 5S/Workplace Organization
Sorting

Separating the Needed from the Not Needed

• Materials
• Supplies
• Equipment Simplifying
• Shadow Boards
• Locations
• Identification

A Place for Everything and Everything in Its

Place, Clean and Ready to Use
 5S/Workplace Organization

Systematic Cleaning - Sweeping

• Periodically scan work area and put everything in its place
• Only one work activity on a desk at any given time
• Clean and inspect all tools & equipment

Make area presentable to the Customer

 5S/Workplace Organization

Standardization Cross training record

in Accounts payable
• Work methods

Deb it B alan c es
Cha s e E x c ept.

Con trac t Labo r

G arnis hm ents
Com m B oard
Cas h Tie O ut

P aten t-Le gal

G RD -F reigh t
B loc k ed INV

Che c k Req s

M ic rofilm ing
Call Cen ter

E G P R A pp

F light O ps
B ank R ec
A uto P ay
A rc hivin g

Im agin g
• Labeling

E ditin g
Dall as

G R-IR
1099

CITS
ARA

E FT

M ail
A rc h am b eau , Jam ie

• Workplace layouts
Bu se, Tatu m
Co rkery , W an d a
Ed gerly , Craig

• Filing systems
Frith , Cath ey
M artz , Jo an
N o st, M arsh a
Pen ro d , Rh o n d a

(Centralized where appropriate) Po rter, Jan et

P rio r, K a re n

•Visual Controls
Ro b in so n , Lin d a
Stark, Ch ris
S tie fe l, S ha na
Su lliv an , D ian e
W eb er, M ary
Yo u n g, Lin d a
Z en o r, D ean n a

Prim ary T ask

C o m p letely C ro ss T rain ed

Partially Cro ss T rain ed

Developing Common
Methods for Consistency
 5S/Workplace Organization

Sustaining - Self-Discipline
• Maintain an organized workplace
• Establish responsibilities
• Continue to make daily improvements

Bef Afte
ore r
Holding the Gains and Improving
 Visual Control / Management

• Visual management is being able to manage a process by

monitoring visual controls and metrics within a work area
– Inventory, schedule, productivity, quality, cost, issue
resolution
• Empowers people
• Leadership can easily monitor the process and address sustainment
issues
• Reduces need for lengthy status meetings
• Immediately makes problems visible for root cause resolution

At a glance, know how you are doing!

 Visual Control

 Ask two key questions for Visual Controls:

— Are they used regularly?
— Do they control something?
Examples of Visual Management Tools
1. COMMUNICATION –schedule status board, issue
resolution, 5S Levels of Achievement
2. NUMBERS – performance measures, current and trend data
3. ROUTINES – checklists, maintenance schedules, standard
work methods/procedures
4. ALARMS – signals, shutdowns, etc.
5. LOCATIONS – shadow boards, labeling, floor marking,
color coding etc.
Where would you rather get your supplies?
 Establishing Flow
• The basis of Lean is to make value flow
through the value stream as quickly as
possible via an efficient process flow
– Requires problems to be identified quickly
– Problems must be resolved quickly
– Decisions are made at the lowest possible
level
– Information must be readily available
 Implementing Continuous
Flow
Traditional Functional Flow
• A meandering stream with many stagnant
pools, waterfalls, and eddies
• Non-predictable output that utilizes
expediting

Time ??
 Factors that Interrupt Flow

• Functional Layouts
• Poor Communication
• Unbalanced workloads
• Equipment Breakdowns
• Complicated Changeover
• Quality Problems / Rework
• Absenteeism / Turnover
• Resource constraints
• Expediting
• Approvals or inspections
 What is a team?

• An energetic group of people who are committed to achieving

common objectives, who work well together and who produce
high quality results.
• A team is two or more persons who must coordinate with each
other in order to get a job done.
• Groups become teams primarily because there is a task, which
requires that they interact with and influence each other, in order
to accomplish that task.
• Teams are empowered to accomplish goals
 Effective Vs. Ineffective Teams
Effective
• Teams are in close physical
proximity and able to meet regularly
• Appropriate skills are represented
on the team
• Team has appropriate level of
authority
• Team members are involved in
setting direction
• Objectives are understood by all
• Roles are clearly defined and do not
overlap
• Roles are understood and
supported by all
• Use Lean Tools to implement and
sustain process improvements
Ineffective
• Physical separation prevents
members from meeting frequently
• Team is not given adequate
resources to do the job
• There is no recognition of team effort
• Members do not participate in
setting goals
• Goals are unclear
• Everyone is doing his or her own
thing without attention to the team
goals
• Responsibilities are poorly defined
• No clear leader is identified
• Little or no process improvements
implemented or sustained
 Effective Vs. Ineffective Teams

Effective Ineffective

• Decisions are made by consensus • Decisions are always a crisis situation

• Meetings are efficient and task-
improvement oriented
• All members participate in discussions •
and meetings
• There is frequent feedback to
individuals regarding performance
• All members are kept informed
• There is team identity and pride
• There is tolerance for conflict, with and •
emphasis upon resolution
• Team members support each other
• Members enjoy each other
• Decision making is dominated by one
person
Communications are one way -top
down
• Minor points are debated endlessly
• Meetings are unproductive
• Actions are taken without planning
• Members are unwilling to be identified
There are severe personality conflicts
• Relationships are defensive
• Covert conflict between members
• Members are defensive
 Common Methods of
Making Decisions
Autocratic
The decision is made by one individual, often the
person in charge, the manager or the supervisor.
This individual could also be a technical expert.

Democratic
Very common. Also called “majority rules”.
Accomplished by voting. In simple form,
everyone gets a vote. The alternative with the
most votes wins.
 Common Methods of
Making Decisions
Unanimous
Everyone agrees the best possible decision has
been reached.

Consensus Decision Making

Occurs when a group reaches a conclusion that
they are all committed to support and defend to
outsiders.
 Consensus Decision Making

Characteristics of a consensus decision:

 Not necessarily the decision you would make on your own
 Does not violate anyone's values or ethics
 Each team member will support the decision and defend it
to outsiders
 Everyone does not have to agree it’s the best decision, but it
is one you can support
Note: If a team member is unwilling to support or defend the
decision, then the team has NOT reached consensus

Silence does NOT indicate consent!!!

 Benefits of Consensus
Decision Making
 More commitment to decisions that people participate in
making
 People can better support a decision that they
understand even though it isn’t their preferred choice
 In striving for consensus, there is usually room for
everyone to adjust a little
 There is usually more than one way to reach the same
result
 Implementation is generally quicker and less
troublesome
 Steps to Reaching Consensus
as a Team

 Define the decision to be made as a team

 Gather information
 Prepare your own thoughts regarding the issue
 Share your thoughts with your team
 Listen to the views of others on the team
 Make a decision as a team
 Implement and support the decision as a team
 Resolving Conflict
Is Conflict Good or Bad?

• It depends.

• Unresolved conflict can break down teams

and result in poor performance
• Resolved conflict can build trust, improve
relationships, and increase performance
 Types of Conflict

• What types of conflict did you experience in the simulation?

• What types of conflict have you experienced in your work
groups?
• How would you classify the conflicts you experienced:
– Potential classifications
• Internal between team members
• Individual with entire team
• Team with 1 team member
• Team with several team members
• Between teams
• With 1 person outside of team
 Steps to Resolving Conflict

1. Acknowledge the conflict

2. Gain common ground
3. Seek to understand the issue from all
angles
4. Attack the issue not the person
5. Develop an action plan
 Standard Work
• Principles
– Observe closely (see waste and eliminate it!)
– Expect a steady day’s work from everyone
– Level work loads
– Insist on rapid, root cause, complete problem-
solving
– See which tasks can be done in parallel
– Adjust staffing levels to meet customer
demand
 Standard Work
• Key concepts include:
– Takt Time
– Work Sequence
– Standard Work-in-Process (WIP)
 Takt Time

• Takt Time is the available working hours divided by the number of

units required by the customer
• Takt Time vs. Cycle Time
– Takt Time is a calculated figure that spreads the customer
demand evenly across the time available
– Cycle Time is the actual time for each person to complete their
process step
• All operations/activities within a process should be leveled or
balanced using the Takt Time

The drum beat of the process

 Work Load Leveling

• Eliminate the wasteful activities from each operators workload

• Compare workloads to Takt time using a loading diagram
– Use lowest repeatable time observation
• Determine staffing
– Total Manual Cycle Time/Takt Time
• Rebalance workloads so that they are less than Takt time
– Strive to load each step in the process slightly lighter than
the one before to create natural pull
 Work Sequence
• Represents the best, easiest, and safest way to do a job
– Establish the correct work sequence
– Document clearly
• Include key information (lessons learned) to preserve know-how and
expertise
• Use Diagrams
• Make documentation very visible
• Test it by training a new person

Reduces variability and improves quality

 Standard Work in Process (WIP)

• Establish the absolute minimum WIP needed at each step of the

process
– Replenishment Time
Takt time
• Don’t drain the cell at the end of the day
• Establish visual locations
• Burn off excess WIP
• Establish “one piece less” philosophy
• Primes the pump for Single Piece Flow
 Implementing Pull

• The basis of Lean is to pull value through the value stream at the
rate the customer needs their product
• Pull System vs. Push System
– A Pull System produces output at the consumption rate
of next process and should start with the customer
demand
– A Push System produces just as much output as it can
and sends them to the next process whether the next
process needs them or not
– A Push System is not synchronized with the customer
needs.
 Implementing Pull
Push

PROCESS PROCESS PROCESS

A B C
Help! Help!

Pull

PROCESS PROCESS PROCESS

A B C

Product Flow
 Kanban

• Kanban is a visual signal to perform a process step (examples:

cards, empty totes or shelves, electronic signals)
• Kanban is a process tool that ties activities together so they can
function as if they were connected
• Kanban only functions effectively in combination with other Lean
tools
– Leveled / Mixed product schedules
– Workplace organization
– Flow
 Changeover Reduction

• Changeover time is defined as the period between the

completion of one task and the start of the next task
• Quick changeovers make it possible to switch jobs easily and
avoid large batch processing
• Quick changeovers are critical for single piece flow
 Changeover Reduction
Three Stages of Changeover Reduction
• Stage 1: Separating internal and external setup
• Stage 2: Converting internal setup to external
setup
• Stage 3: Eliminating setup waste from the
process
Internal and Separate Convert Eliminating
External Internal and Internal waste from all
setup not External setup to aspects of
differentiated setup External setup

1 2 3
The key is to to convert as many operations
as possible from internal to external
 Problem Solving Process
• 8 Steps to follow that ensure positive root
cause corrective and preventative action
• Easy to follow
• Focuses on using teams, not individuals to
solve problems
• Shortens problem solving completion time
Problem Solving Process

Define and
Prioritize the
Follow-Up Problem(s) Define the
Ensure C/A is
Team
Effective

Corrective Corrective Action Effective and Immediate

Action
Problem Eliminated Corrective
Implementatio
n Date Action

Corrective
Action Root Cause Root Cause
Verification Corrective
Action
Problem Solving Process
Step 1 - Define Problem
Initial Data Collection - 5W2H
Is this a problem?
Is the problem systemic
(multiple products/processes)?
Step 3 - Immediate Action and
Containment
Quick Fix
Close the gates
Document actions taken to
prevent further problems
Step 2 - Define Team
Determine team membership
Who is team leader?
Team clearly defines problem
Step 4 - Define Root Cause
What cause(s) can we identify
that, if eliminated, would
prevent problem from
recurring
Detailed analysis using tools
Is root cause systemic?
Problem Solving Process
Step 5 - Root Cause Corrective
Action
Permanently eliminate root
cause
Mistake proofing
Implementation plan
established
Step 7 - Follow Up of
Corrective Action
Has the problem recurred?
If so, return to mistake in
process
Maintain corrective action
long term
Step 6 - Verify
Implementation Plan
Were action items
completed?
Establish criteria for
determining effectiveness
Effectiveness date
Step 8 - Communicate
Success
Systemic issues identified?
Spread the word (what
decisions were made and why)
Assess problem solving
process, teamwork
 Pareto

• A special form of vertical bar graph which helps us determine

which problems to solve in what order
• Pareto Diagrams can…
– Help utilize 80/20 rule - work on biggest problems first!
– Be most effective when used with other tools (control chart,
cause and effect, brainstorming)

WARNING: Pareto can not identify whether data is from a stable

process or not (see control charts)
 Cause and Effect Diagram
• Technique used to graphically depict and organize possible
causes of a situation
• a.k.a. Fishbone, Ishikawa
• Help generate and group causes of given problem
• Systematically evaluate the causes and determine which are
most likely to be root causes
• Creates consensus of team around the problem
• Breaks problem into smaller pieces that are easier to manage
and understand
 Cause and Effect Diagram

Machine Person / People

STAPLER TRAINING
SCISSORS
OPERATOR ERROR

Defects at
Inspection

SUPPLIER INSPECTION

WORK INSTRUCTIONS

Material Methods
 5 Why’s

• Constantly ask the question "Why?" until you get down to the
root cause
• Drives problem resolution beyond “human error” and into
process gaps and holes
• Resolves problem at a higher systemic level, not at product or
program level
• 5th why is not always the root cause, might be 3 or 10 why’s!
• Easy to use and create
 PROBLEM
5 Why’s
Staples placed incorrectly

WHY?

Operator error

WHY?
Hard to tell where
staple will end up
WHY?

Operator must guess location

Training won’t prevent defect, so create mistake proof

device for stapler that makes it easy to determine
where staple will be placed or guide for where paper
should be placed
 Error Proofing

• End of the line inspection or approval cycles cannot ensure 100

percent quality
• Error Proofing is a way to prevent an error from being created or
potentially passed to the next operation of a process
• The concept allows people to concentrate on their work without
paying unnecessary attention to preventing mistakes
 Error Proofing

• Develop Standard Work

• Rigorously train employees in job skills so they do not make
mistakes
• Continually focus on the elimination of the sources of errors
• Install a system that forces everyone to focus on improving
quality and reducing cost
 Error Proofing
• Examples of error proofing techniques
include:
– Templates
– Position Unique Fixtures
– Guide Pins
– Color Coding
– Log Sheets
– Checklists
– Alarms & Optics
– Counters
– Computer drop down menus
Successive Checks
Example
Station A
In
Build Check &
Check A C Out

A
Station B

B
Build
B

Check Build
B C

Station C
 Successive Checks
Benefits Include
• Reduces time to detect defects
• Reduces time to correct defects
• Reduces rework costs
• Improves communication
• Reduces inspection
• Increases employee ownership
Giving & Receiving Feedback

“ It is better to give than

it is to receive.”

In the case of giving and receiving

feedback, it is just as important to receive
as it is to give.
 Five Feedback Keys
1. State the purpose of the feedback
2. Describe observations and perceptions
3. Listen to the other person’s point of view
4. Jointly agree on action steps
5. Summarize the discussion and show
appreciation
 Lean Tools to Think About
• Problem Solving/5 Whys
• Continuous flow/Work cell development
• Decision Making
• Takt Time/Work Load Leveling
• Single Piece Flow
• Pull System / Kanban
• Visual Control
• Error Proofing & Successive Checks
• Standard Work / Standard WIP