Lps02 lthinking

8/13/2018 LEAN THINKING GVC ThS Nguyễn Như Phong nguyenphong.bksg@gmail.com; www.isem.edu.vn Kỹ thuật Hệ thống Công nghiệp ĐH BÁCH KHOA – ĐHQG TPHCM (Tài liệu giảng dạy cho ISE) 2018 Lean philosophy         Fast flexible flow Lean principles Lean characteristics Value Waste Cost Reduction Principle Time based competition Gemba 11 April 2003 Nguyễn Như Phong 8/13/2018 Fast, flexible flow   The basic lean in manu & service Combine them    The exact opposite of batch & queue operations The lean vision or goal   the best way achieve huge productivity & quality gains simultaneously Waste prevention & variation reduction – principle means Breaking down barriers bw traditional department Nguyễn Như Phong 11 April 2003 Fast, flexible flow  Fast   Speed – at the heart of lean Taichi Ohno   Removing NVA wastes reduce the time line Think economic of time not economic of scale 11 April 2003 Nguyễn Như Phong 8/13/2018 Fast, flexible flow  Flexible  The whole basic of TPS – low cost flexibility  The ideal state of flexibility - A batch size of one   Offer huge productivity gain from cust view point The best provider policy Nguyễn Như Phong 11 April 2003 Fast, flexible flow  Flexible  World condition batches     Manu – EPQ, EOQ Transportation – container Education – batch of students Holqueg types of flexibility     11 April 2003 Process flexibility Product flexibility Volume flexibility Labor flexibility Nguyễn Như Phong 8/13/2018 Fast, flexible flow  Flow   Keep-it-moving operation brings waste the surface Work steadily at the cust rate        not hurry up & wait as in batch & queue Concentrate on VA sec, ignore NVA hours Value added steadily Think takt time Manipulating demand & managing capacity Convert the JS the cell / line Pull sys encourage flow take place at the rate of demand 11 April 2003 Nguyễn Như Phong Lean principles  lean principles  Value Value stream Flow Pull Perfection Not sequential, one off procedure  a journey of continuous improvement 11 April 2003 Nguyeãn Nhö Phong 8/13/2018 Value   Specify value from cust view point Established marketing idea   Cust buy results, not product Manufacturer gives cust   what convenient the manufacturer deemed economic the cust 11 April 2003 Nguyễn Như Phong Value  New product design    constrained by existing manu facilities rather than by cust requirement Who is the cust ? 11 April 2003 Nguyễn Như Phong 8/13/2018 Value stream   Identify the VS The sequence of process all the way   from RM final cust from product concept market launch 11 April 2003 Nguyễn Như Phong Value stream  Concentrate on the view point of object / prod / cust     not on the view point of the department / process step Economies of time not of scales The VS should be mapped Focus horizontally, not vertically 11 April 2003 Nguyễn Như Phong 8/13/2018 Flow     Make value flow piece flow if possible Keep it moving Avoid batch & queue  Continuously reduce B&Q & the obstacles 11 April 2003 Nguyễn Như Phong Flow  Stalk & Hout golden rule    Never delay a VA step by a NVA step Try such step in parallel Vision   important guiding strategy move inexorably toward flow 11 April 2003 Nguyễn Như Phong 8/13/2018 Pull  Short term response the cust’s demand rate   not over producing level   Macro level Micro level 11 April 2003 Nguyễn Như Phong Pull  Macro level    Push up a certain point then response final cust pull signal Push the point further & further upstream Micro level  Response the pull signal from an internal cust  Kanban – next process step  DBR / CONWIP – important stage 11 April 2003 Nguyễn Như Phong 8/13/2018 Perfection   Not mean only quality Mean producing     exactly what cust wants exactly when at a fair price w waste Nguyễn Như Phong 11 April 2003 Perfection  Beware of benchmarking  Real benchmark   11 April 2003 Zero waste Not competitor doing Nguyễn Như Phong 8/13/2018 LEAN CHARACTERISTICS 10 Customer Simplicity Waste Process Visibility Regularity Flow Pull Postponement Prevention 11 April 2003 11 12 13 14 15 16 17 18 19 20 Time Improvement Partnership Value networks Gemba Variation reduction Participation Thinking small Trust Knowledge Nguyễn Như Phong Customer     The ext cust the starting & ending point Max value the cust Optimize around the cust not around internal operation Understand the true cust demand   in price, delivery, quality not what can be supplied 11 April 2003 Nguyễn Như Phong 10 8/13/2018 The new waste      Making the wrong prod efficiently Untapped human potential Inappropriate systems Wasted energy & water Wasted materials 11 April 2003 Nguyễn Như Phong Making the wrong prod efficiently   Womack & Jones 8th waste 1st lean principle 11 April 2003 Nguyễn Như Phong 38 8/13/2018 Untapped human potential  Eg     Not using the creative brainpower of employees Not listening Thinking only managers Ohno –  the real objective of TPS: create thinking people  Self directed work team  Worker empowerment    Utilizing the thoughts of all employee Ran several similar factories differentiated 50% more productive Nguyễn Như Phong 11 April 2003 Untapped human potential  Human potential   Not just need be set free Require    Commitment & support Culture of trust & mutual respect Basic education necessary  What happens if   11 April 2003 Train & go ? Not train & stay ? Nguyễn Như Phong 39 8/13/2018 Inappropriate systems    How much software never used ? Remove waste before automating  Not automate, obliterate! How much record keeping, checking, reconciling  pure waste? 11 April 2003 Nguyễn Như Phong Inappropriate systems   Consume time & money  Not operation  Paperwork & sys People what best them not company  Dangers of    11 April 2003 Demand amplification Forecasting Measurement sys Nguyễn Như Phong 40 8/13/2018 Wasted energy & water  Sources of power:   electricity, gas, oil, coal, sun, wind, … World’s finite resources of most energy sources  Wasting resources   not only cost but moral obligation also Nguyễn Như Phong 11 April 2003 Wasted energy & water  Energy mana sys    Still remain human, common sense element JIT not waste energy when done correctly Institutionalized waste reduction  Good foundation for waste awareness  Get into the habit  11 April 2003 begins w everyday wastes Nguyễn Như Phong 41 8/13/2018 Wasted materials  Conservation of materials    Environment responsible Beginning be profitable Reduce waste of materials   LC approach needed Conserve material during     Design Manufacture Cust usage Recovery & remanufacturing 11 April 2003 Nguyễn Như Phong The service wastes  Wastes seen from    Organization perspective Cust’s perspective service wastes        Delay Duplication Unnecessary movement Unclear communication Incorrect inventory Opportunity lost Errors 11 April 2003 Nguyễn Như Phong 42 8/13/2018 The service wastes  Delay  Cust waiting      service, delivery In queues response Not arriving as promised Duplication     Reenter data Repeat details of forms Copy info across Answer queries from several sources 11 April 2003 Nguyeãn Nhö Phong The service wastes  Unnecessary movement     Queuing several times Lack of one-stop Poor ergonomics in the service encounter Unclear communication    Seeking clarification Confusion over service use Wasting time finding a location 11 April 2003 Nguyễn Như Phong 43 8/13/2018 The service wastes  Incorrect inventory    Opportunity lost     Out of stock Unable get exactly what required Retain / win cust Failure establish rapport Ignoring cust, unfriendliness, rudeness Errors   Service transaction Lost or damage goods 11 April 2003 Nguyễn Như Phong COST REDUCTION PRINCIPLE  C pressure    Reduce cost & lead time Maintain the highest quality Traditional thinking: Cost + profit = price 11 April 2003 Nguyễn Như Phong 44 8/13/2018 Cost Reduction Principle  Competitive market - Customer     set the price demand price reduction Lean thinking: Price – cost = profit Cost reduction principle  The only way remain profitable  11 April 2003 Eliminate waste thereby reducing cost Nguyeãn Nhö Phong Cost Reduction Principle   Eliminate waste –  the primary mean of maximizing profit Implementing lean  Survival strategy  Mandatory cost reduction – a fact of life 11 April 2003 Nguyễn Như Phong 45 8/13/2018 Cost Reduction Principle  Resources  Focused on installing the proper sys  To achieve    cost reductions Highest standards quality & on-time delivery VSM  Ensure resources committed in the right place at the right time Nguyeãn Nhö Phong 11 April 2003 TIME BASED COMPETITION  The reduction of lead time  in     manu, supply chain, design central in lean 11 April 2003 Nguyễn Như Phong 46 8/13/2018 Time based competition  Competing against time    Stalk & Hout The important of time the competitive edge rules of response     The 0.05 to rule The 3/3 rule The ¼-2-20 rule The 3*2 rule 11 April 2003 Nguyễn Như Phong Time based competition  The 0.05 to rule   Across many industries Value actually being added bw 0.05% and 5% of total time 11 April 2003 Nguyễn Như Phong 47 8/13/2018 Time based competition  The 3/3 rule  The wait time  no value added  Split ways   Each accounting one third of time Waiting  Completion of batches  Physical & intellectual rework  Mana decision send the batch forward Nguyễn Như Phong 11 April 2003 Time based competition  The ¼-2-20 rule  Every quartering of total completion of time   11 April 2003 A doubling of productivity A 20% cost of reduction Nguyễn Như Phong 48 8/13/2018 Time based competition  The 3*2 rule  Time based competitor   Growth rate of times the average Twice the profit margin 11 April 2003 Nguyễn Như Phong GEMBA    Gemba  Place of action , not nec the workplace  No means confined the factory Taiichi Ohno –  management begins at the workplace Traditional way  Remain in the office & discuss OPINION 11 April 2003 Nguyễn Như Phong 49 8/13/2018 Gemba  Gemba way  Go to the workplace of action & collect the FACT  actuals     Go to the actual workplace Look at the actual process Observe what actual happening Collect the actual data Nguyễn Như Phong 11 April 2003 Gemba  Problem / decision    Go the gemba first Not attempt resolve problem away from gemba Japanese management practice  Not let the operators come the manager,   let the manager go to the workplace Spend time on the factory floor / at the service counter 11 April 2003 Nguyễn Như Phong 50 8/13/2018 Gemba  Ohno chalk circle approach    Drawing a chalk circle on the factory floor Requiring a manager spend several hours inside it Observing operations & taking note of wastes 11 April 2003 Nguyễn Như Phong Gemba  Western way  Gemba way – implementation       Based on Change agent, simulation, computer / info sys By every one At the workplace Face face Based on in-depth knowledge Low cost 11 April 2003 Nguyễn Như Phong 51 8/13/2018 Gemba  Gemba  combined w other elements:        5W, Muda, Kaizen, 5S, tools, … the glue all of these  Gemba Kaizen central part of TQ 11 April 2003 Nguyễn Như Phong 52