Lean For Dummies
Lean For Dummies®, 2nd Edition Visit www.dummies.com/cheatsheet/lean to view this book's cheat sheet Table of Contents Introduction About This Book Conventions Used in This Book Foolish Assumptions How This Book Is Organized Part I: Lean Basics Part II: The Lean Culture Part III: Understanding Flow and the Value Stream Part IV: The Lean Toolbox Part V: The Lean Enterprise Part VI: The Part of Tens Icons Used in This Book Where to Go from Here Part I: Lean Basics Chapter 1: Defining Lean What Is Lean? The logic of Lean Where is Lean? What Lean is not What makes Lean so special? The Lean Pedigree Toyoda and Ohno The Toyota Production System Lean and the World of Continuous Improvement Six Sigma Lean Six Sigma Business Process Management (BPM) Chapter 2: The Foundation and Language of Lean Understanding Lean Basics Creating the foundation Learning from TPS Building on the foundation Waste Not, Want Not Muda, muda, muda All in the family Part II: The Lean Culture Chapter 3: Lean in the Organization: Principles, Behaviors, and Change Assessing Organizational Culture Will the real principles please stand up? Getting the culture to the starting line Measuring the gap Changing the Organization Going through the five phases of change Hurdling roadblocks to success Lean State of Mind Chapter 4: Power to the People The Human Side of Change Change and the individual Change and the team Change and the managers Chapter 5: Go Lean: Implementation Strategy, Startup, and Evolution Preparing to Go Lean Starting from the top Creating the Lean infrastructure Finding the Master and Developing the Students The Lean sensei Lean students Beginning the Journey: The Lean Rollout Minding the big picture Picking the starting point Creating awareness Avoiding program-of-the-month syndrome Measurements: The enterprise at a glance Living Lean The Lean evolution Unleashing the mindset of kaizen Facilitating with finance Now I am the master Part III: Understanding Flow and the Value Stream Chapter 6: Seeing Value through the Eyes of the Customer What Is Value? To Add Value or Not to Add Value, That Is the Question Defining value-added Defining non-value-added When non-value-added seems like valueadded Understanding How the Customer Defines Value Uncovering the elusive customer Considering customer value Understanding How the Consumer Defines Value Responding to the consumer Understanding what consumers value Chapter 7: You Are Here: Mapping the Current State Introducing the Value Stream Visualizing the value stream The Fundamentals of Value-Stream Maps Map reading 101 The purpose of a value-stream map The people who use a value-stream map The elements of a value-stream map Pack Your Bags: What You’ll Need to Get Started Identifying the natural owner Gathering the crew Using mapping tools Gathering supporting information Premade gourmet salads: A value stream case study Hitting the Road: Creating the Current-State Value-Stream Map Identifying the activities Qualifying and quantifying Determining the information flow Summing Up the Process The box score Takt time Check the Chart: Validating the Value-Stream Map Chapter 8: Charting the Course: Using ValueStream Maps Investigating the Value-Stream for Clues Rounding up the usual suspects Analyzing from different perspectives Evaluating the evidence: An analyzed example Painting a Picture of the Future Creating the ideal-state value-stream map: Long-term vision of possibilities Stepping closer to perfection: The futurestate value-stream map Creating the Mosaic of Continuous Improvement: Setting the Stage for Kaizen Looking toward the annual horizon Future-state implementations Chapter 9: Flowing in the Right Direction: Lean Projects and Kaizen Kaizen: A Way of Life Kaizen: The philosophy Kaizen in action Improving the Value Stream with Kaizen Selecting projects Project methodology Individual projects Group projects Kaizen: The Workshop Planning the kaizen workshop Conducting the kaizen workshop Sustaining the kaizen-workshop gains Part IV: The Lean Toolbox Chapter 10: Customer and Value-Stream Tools Communing with the Customer Capturing the voice of the customer Understanding customer satisfaction Sizing up the competition Working with the Value Stream Quantifying the value stream On the case like Sherlock: Investigating The Manufacturer Magazine (www.themanufacturer.com; subscription: free; 12 issues/year) Industry Week (www.industryweek.com; subscription: free; 12 issues/year and yes, it’s called Industry Week, but it comes out monthly) Lean Directions, an SME e-publication (www.sme.org/leandirections; subscription: free; 12 issues/year) Target, an online AME publication (www.ame.org; free access; 4 issues/year) The Superfactory online newsletter (www.superfactory.com; subscription: free; 12 issues/year) Software Providers Technology vendors are building increasing knowledge in the methods and tools of Lean In addition to their products — which have considerable online help and tutorials — they provide education and support services Software AG (www.softwareag.com) is an enterpriseclass provider of tools for integrating information and processes across extended value-chains Software AG’s ARIS includes a value-stream mapping capability, along with SIPOC, Fishbones, and process analytics iGraphx (www.igrafx.com) provides business process analysis tools, including value-stream mapping Systems 2 Win (www.systems2win.com) provides Microsoft© Excel templates for a variety of Lean tools, including standard work, gemba interviews, spaghetti maps, and more eVSM (www.evsm.com) provides simple value-stream mapping tools as extensions to Microsoft© Visio and Excel A variety of software companies offer information display and visualization tools and provide toolkits that help you build your own add-ons and displays You can search the Internet or ask your Lean sensei for more information Practitioners Chances are you know someone who has been involved in Lean, perhaps even a specialist of some type If you’re working in a Lean company, you’re surrounded by experienced professionals They have the expertise and reference material available for you Even if you don’t know of anyone personally, you may be surprised by just how few degrees of separation lie between your interest and a Lean expert Ask colleagues in professional organizations, go to your local university, search for connections via social media like LinkedIn or search the web Before engaging in a relationship with a Lean practitioner, be sure they are the right fit for your organization Related Genres Lean is so broad and all-encompassing that it touches and affects many related disciplines and genres Conversely, Lean in and of itself does not have all the answers You must maintain a broad perspective to and a complete picture Look into these related disciplines for important supporting information: Ergonomics and industrial engineering: How consumers use products and services, and how workers use machinery and tools • Usernomics: www.usernomics.com/ergonomicsstandards.html • The Institute of Industrial Engineering: www.iienet2.org Supply chain and logistics: Optimizing supply, delivery, inventory, and readiness • The Council of Supply Chain Management Professionals: www.cscmp.org • The Association for Operations Management: www.apics.org Project and program management: Controlling project scope, schedule, and resources; configuration management; getting the most out of project teams • The Project Management Institute: www.pmi.org • The Project Manager’s Homepage: www.allpm.com Statistical analysis: In-depth understanding of the behaviors that influence outcomes • The American Society of Quality: www.asq.org • The Online Statistics Textbook: www.statsoft.com/textbook/stathome.html Six Sigma community: Because defects are a form of waste • The Online Six Sigma Forum: www.isixsigma.com • The International Society of Six Sigma Professionals: www.isssp.com Business Process Management: A rapidly growing field that is becoming a clearinghouse of all things process • The Business Process Management Initiative: www.bpmi.org • Business Process Trends: www.bptrends.com One Page Business Plan: Concise descriptions of goals, mission, and strategies; not just for small, startup businesses anymore — it’s applicable as the one-page description of any project or program plan • The One Page Business Plan: www.onepagebusinessplan.com Organizational Development (OD) and Training: Training, facilitation and Organizational Development resources and professionals • Organizational Development Network: www.odnetwork.org • American Society of Training & Development: www.astd.org • International Association of Facilitators: www.iaf-methods.org • Free Management Library — OD Information: www.management help.org/org_chng/org_chng.htm Glossary 3Gen: Derived from three Japanese words — genchi (like gemba), genbutsu, genjitsu — it is the practice of going to where the action is, observe what is happening and get real data/facts to solve problems and improve processes Sometimes the words are written with “gem” rather than “gen” because of the transliteration from Japanese characters 3P: Production Preparation Process is the act of applying Lean concepts in the design phase, usually involving a crossfunctional team to bring all perspectives and eliminate waste before a process implementation 5S: The principle of waste elimination through workplace organization Derived from the Japanese words seiri, seiton, seiso, seiketsu, and shitsuke, which have been translated into English as sort, straighten, scrub, systematize, and standardize Safety is often included as a sixth S 5 Whys: A method of root-cause analysis that entails the progressive asking of “Why?” at least five times or until the root cause is established andon: A signal to alert people of problems at a specific place in a process; a form of visual management A3: A one-page reporting format, named for the international paper size (11" x 17" in US sizes) It contains, on one page, critical information about an issue, such as description, cost, timing, data, planned solution, and planned resolution consumer: The person or entity who obtains goods and services for his or its own use See also customer continuous flow: The ideal state where products move through a manufacturing process — or people move through a service process — one at a time, without stopping or waiting current-state value-stream map: A value-stream map that depicts things as they currently exist within the value stream See also value-stream map customer: The person or entity who is the recipient of what you produce, either within your organization or outside your organization See also consumer cycle time: The total amount of elapsed time from the time a task, process, or service is started until it is completed future-state value-stream map: A value-stream map that depicts an improved view of the value stream, which advances toward the ideal-state gemba: Where the action occurs See also 3Gen genchi genbutsu: Go and see See also 3Gen heijunka: The technique of smoothing or leveling schedules heijunka box: A tool used to control the volume and mix of production through the controlled distribution of kanban at standard, fixed intervals of time hoshin: A system of planning, forms, and rules that engages everyone in addressing business at both the strategic and tactical levels It is also known as policy deployment or hoshin kanri hoshin kanri: See hoshin ideal-state value-stream map: a value-stream map that depicts a value stream composed of only value-added activities information flow: The uninterrupted progression of supporting data and instructions along the value stream jidoka: Transference of human intelligence to machines via automation The automation enables the equipment to detect defects and stop until someone comes to fix the problem This supports quality at the source and the prevention of defects from progressing along the value stream Additionally, the person in charge of the step in the value stream is responsible to resolve the issue or stop the flow to get outside assistance just-in-time (JIT): Providing what is needed, when it is needed, in the quantity needed, and the quality level needed kaikaku: Radical improvement activity to reduce waste kaizen: Incremental continuous improvement that increases the effectiveness of an activity to produce more value with less waste kanban: A signal that triggers replenishment or withdrawal in a pull system Kanban is often in the form of a card on a container in production environments The signal regulates the production flow in the value stream Lean: An improvement methodology based on a customercentric definition of value, and providing that value in the most effective way possible, through a combination of the elimination of waste and a motivated and engaged workforce muda: Any activity that consumes resources, but creates no value Muda is categorized in two forms: Type-1 muda is necessary for the process, but non-value-added; type-2 muda is both unnecessary and non-value-added mura: Waste due to unevenness or variation muri: Waste or stress on the system due to overburdening or unreasonableness non-value-added: Any activity, product, or process that does not meet the value-added criteria See also value-added Plan-Do-Check-Act (PDCA) or Plan-Do-Study-Act (PDSA): An iterative improvement scheme at the core of the kaizen process This four-step process includes (1) defining the objectives, issues, and potential solution; (2) carrying out the plan in a trial mode; (3) verifying and studying trial results; (4) fully implementing and standardizing the solution It is also called the Shewhart cycle or Deming cycle poka-yoke: A device to prevent the production or occurrence of defects Respect for People: The engagement of and investment in people, including training, empowerment, safety, job security, contribution and respect of ideas, and morale It is foundational to Lean and essential for the creation of a culture where kaizen thrives sensei: Master or teacher, in this context, of Lean seven forms of waste: Transportation, waiting, overproduction, defects, inventory, motion, and excess processing are the seven forms of waste identified by Taiichi Ohno, one of the pioneers of the Toyota Production System, as waste normally found in mass production Also known as the seven wastes or the seven mudas Sometimes includes an eighth form — an unengaged workforce single minute exchange of die (SMED): Term used to describe the compilation of tools and techniques used to dramatically reduce the time required to complete the changeover of production and support of one “product” to another Think Indy pit-crew tire changes SIPOC: An acronym for Suppliers, Inputs, Process, Outputs and Customers It is a form of defining a process that includes the relationship between these entities; often depicted graphically standardized work: The definition of a process step characterized by takt time, a set work sequence, and established in-process inventory Deviations to standardized work constitute an abnormality, which is then an opportunity for improvement takt time: Takt is the German word for “beat.” In Lean, takt time is the pace of production based on the rate of customer consumption It is calculated by taking the available minutes of work divided by the units required by the customer in that period of time value: The worth placed upon goods or services, as defined by the customer See also customer value-added: Defined by the customer and must meet all of the following criteria: The customer must be willing to “pay” for it Payment is generally thought of in monetary terms, but could also include time or other resources The product or service must be done correctly the first time The product or service must be transformed value stream: The flow of materials and information through a process to deliver a product or service to a customer value-stream map: A graphical representation of how all the steps in any process line up to produce a product or service, and of the flow of information that triggers the process into action voice of the customer (VOC): The collective needs, wants, and desires of the recipient of a process output, a product, or a service, whether expressed or not The VOC is usually expressed as specifications, requirements, or expectations waste: Any activity that uses resources, but creates no value for the customer Usually expressed as muda, mura, or muri To access the cheat sheet specifically for this book, go to http://www.dummies.com/cheatsheet/lean Find out "HOW" at Dummies.com ... Where to Go from Here Part I: Lean Basics Chapter 1: Defining Lean What Is Lean? The logic of Lean Where is Lean? What Lean is not What makes Lean so special? The Lean Pedigree Toyoda and Ohno... The seven forms of service waste Improving services the Lean way Transactional Lean Lean in Healthcare Improving healthcare through Lean Defining waste in healthcare Lean in Government Lean in Retail Lean Everywhere... Trademarks: Wiley, the Wiley logo, For Dummies, the Dummies Man logo, A Reference for the Rest of Us!, The Dummies Way, Dummies Daily, The Fun and Easy Way, Dummies. com, Making Everything Easier, and related trade