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Hands-on Execution of Lean
Principles - (H.E.L.P.)
1
Luis Loya
Director, Operational Excellence MBB Program
Master Black Belt
May 14, 2014
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Agenda
Background / Structure
5S: A Visual Management System
Lean Standard Work: SOS
Takt: A Plan vs. Actual Control
Lean 5S Game
Q&A
2
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Background (FY 2009 – 2010)
• Quarterly to semi-quarterly series of
conference calls about Lean
concepts.
– Templates and instructional materials developed
by MBBs and posted to Warehouse Operations
SharePoint site.
– Sites designated a “Champion” for each topic
prior to national calls.
5S
• Limitations
– Conference call format limited depth of coverage
and no one-on-one teaching.
– With no “live” environment training – Operations
teams were left to apply material on their own.
3
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Standard
Work
Takt
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Background (FY 2011) : How Do We Learn?
Presentation - 5%
Teaching
Techniques
Reading - 10%
Retention
Rate
Audio-Visual - 20%
Demonstration - 30%
Discussion Group - 50%
Practice with Feedback - 75%
Teach Others / Immediate Use - 80%
4
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Learner Focused
& Interactive
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Background (FY 2011) : The Goal
• Develop & pilot an interactive hands-on learning
experience for targeted Lean concepts:
– 5S
– Standard Work
– Takt
Standard Work
Understand
5
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Background: The House of Lean
Business Profit
Impact
Shareholder Satisfaction
Customer Satisfaction
Employee Engagement
Goals:
Greatest Safety
Highest Quality
Lowest Cost
Results
Shortest Lead Time
Lean Roadmap To Success
Right Item
Right Time
Right Quantity
• Takt Time
• Pull System
• One-Piece Flow
• Min Batch Size
• Value Stream Map
• Process Map
People &
Teamwork
Ergonomics
Empowerment
Gemba 3
Level Scheduling 4 Standard Work
• Managed Inventory
• Smoothed demand
• Build to order
• Visual Management
• SOS
• 5S
Built-In-Quality
Jidoka 1
• Poke-Yoke 2
• Process Stability
• Design-for-Lean
• 5 Why’s
• Andon Signals
• Control Charts (SPC)
• PDCA
Leadership
• Kaizen / JDI / BB
• Waste Reduction
• Genchi Genbutsu 5
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Foundation
Culture
Daily Management
(1) Automation with human interaction, (2) Error proofing, (3) Go to where the value is, (4) Heijunka, (5) Go see the problem
6
Pillars
DMAIC
Stability
Philosophy
Continuous Improvement
Continuous Flow
Just-In-Time
Assessment
HOL-FY13 – Rev2
(LL)
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Background (FY 2011 - 2012) : The Plan & Execution
• Classroom 1-2 hrs. by topic
• Leads and above
• One department at a time
Topics and Lead
Trainers
• 5S – Paul Scheuer
(Coach: Frank
Limones)
Content
Development
• Expand on existing
lean templates
Proof-of-Concept
Training Delivery
(Black Belt /
MBB)
• April – May, 2011
• Sacramento FDC
• June 13-24, 2011
• 2 Sessions
-
Rx Outbound
• Training materials:
• Standard Work –
Luis Loya &
Craig Shockency
(Coach: Tom
Morgan)
- Module
Presentations
- Town Hall decks
- Hands-on Exercises
• Takt – Luis Loya
7
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• Field onsite black
belts serve as
primary training
source
• Bring in other
regional black belts
or MBBs as needed
Sequential
Rollout by Area
• Each DC required to
implement four
areas in FY12
• Rx
• OTC
• Receiving
• Other
HELP Tracker
• BB’s will update
Tracker monthly
• Operations
Scorecard
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Background (FY 2013) : The Evolution
-
8
New exercise = Letter’s Game
New Audit & Results Report
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Time (seconds)
• Updated 5S:
65
60
55
50
45
40
35
30
25
20
15
10
5
0
Letters Game
54.6
32.0
23.4
17.9 16.0
Goal
9.3
5.1
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Background (FY 2013) : The Evolution
• Updated SW:
- New SOS format
9
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Background (FY 2014) : The Evolution
• Updated Takt:
- Added case studies to link Standard Work & Takt
10
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Class Size & Room Setting
• 8 to 16 Participants
• U-shape setting with a spacious conference room
11
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The Agenda
Time
Day 1
Day 2
8-9 am
8:30 am Start
8:30 am Start
Introductions
Expectations
5S Module
with Letters Game
Exercise
Boeing Video
Review 5S & SW
SOS Exercise
create standard work
Leader Standard Work
draft personal LSW
Lunch
Lunch
9-10am
10-11am
11-12pm
12-1pm
1-2pm
2-3pm
3-4pm
Standard Work Module
Takt Module
with Draw a House
Exercise
Takt Time Challenge
Group Ex. Observation
Group Ex. Stop Watch Takt Tools & Exercises
Cycle Time Exercise bringing 5S, SW & Takt
Time Observation Form
together
4-5pm
4:30 pm End (estimated)
12
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4:30 pm End (estimated)
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13
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5S Module: with Exercise Game
WIIFM
Presentation
Sort
Set in Order
Shine
Standardize
Sustain
No 5S
Exercise
1S
2S
Exercise
Exercise
3S
Exercise
Practice and Discussion
14
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4S
Exercise
5S
Exercise
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Sorting: Red Tag
Syracuse:
Forward
Distribution
Center
15
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Sorting: Red Tag
Little Rock’s 1st SemiAnnual Red Tag Event
• Do you have unnecessary items on,
in or around your desk?
• The next week is your opportunity
to remove these unnecessary items
-
16
What is a Red Tag Event?
What could be considered?
How should I determine?
Where do I take these?
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17
Pit Stops From 1950 & 2013: Video
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Shine:
• Key component to Preventive Maintenance
• Clean to Inspect
• 5S Responsibility Board
18
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19
RCPS: Closing the Loop
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20
Boeing 5S: Video
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21
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Standard Work
“Where there is no standard,
there can be no kaizen.”
- Taiichi Ohno
Businessman: father of Toyota Production System
22
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23
The True Meaning of Kaizen: Video
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24
Why Standard Work: The Wedge to Sustain
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25
Why Standard Work: Promotes Teamwork
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Draw a Lean House: Exercise
VOC
Customer
Requirements:
Practice and Discussion
Round 1
• Draw a house centered
on the page. (front
profile only)
Round 2
• Create detailed SOS
Standard Operating Sheet
Step
• The house must be
large enough to touch
all four inner edges of
the graph area.
Description
Instructions
1
Foundation
Draw a rectangle starting at point (A,0) then (A,1), to (K,1), to (K,0),
back to (A,0)
2
Left Wall
Draw a line from point (B,1) to (B,5)
3
Right Wall
Draw a line from point (J,1) to (J,5)
4
Door
Draw a line from point (E,1) to (E,3) to (G,3) then end at (G,1)
Round 3
• Create SOS with visuals
Standard Operating Sheet
Finish
7
Step
Desc.
1
Foundation
Draw a rectangle starting at point (A,0) then
(A,1), to (K,1), to (K,0), back to (A,0)
Left Wall
Draw a line from point (B,1) to (B,5)
Instructions
5
Roof
Draw a triangle starting at point (F,7) to (A,5) to (K,5) then end at (F,7)
2
6
Chimney
Draw a line starting near (C,6) to (C,7), (D,7) then end near (D,6)
3
Right Wall
Draw a line from point (J,1) to (J,5)
4
Door
Draw a line from point (E,1) to (E,3) to (G,3)
then end at (G,1)
5
Roof
Draw a triangle starting at point (F,7) to (A,5)
to (K,5) then end at (F,7)
6
Chimney
Draw a line starting near (C,6) to (C,7), (D,7)
then end near (D,6)
Sta rt
6
5
4
3
2
1
0
5
6
2
4
A
B
C
D E
• The house must have a
chimney.
• The house must have a
door centered.
• Quality counts
• Takt Time = 60 sec.
No
Standard
Exercise
26
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SOS
Exercise
3
1
SOS
Exercise
F
G H I
J
K
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The Power of Observation
•
•
•
•
•
One of our best tools = our eyes
Gemba
Genchi Genbutsu = go see the problem
Gemba Walks
Waste Walks
* Where the action
takes place
27
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Time Observation Form
Time Observation Form
Process Name: ______________________
Product Name: ______________________
Process WIP:
______________________
(Common Unit of Measure)
Step
No.
Operator: ______________________
Observer: _____________________
Step Elements
1
2
3
4
Obervations
5
6
Total for 1 cycle:
28
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Shift/Time: _________________________
Average
time
7
8
9
Average
Number of
times in 1
process cycle Total time
for 1
for the
designated
process
cycle
Process WIP
Notes
10
Total process time for 1
process cycle
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Time Observation Form
• To Average or Not to Average?
1986 Geography Graduates from UNC
Mean: $250,000
Median: $22,000
“The Michael Jordan Effect”
29
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SOS: The Structure
Heading:
Approvals
Document Control
Legend
• Cycle Time Data
• Takt
• WIP
Visual / Diagram
Repeatable Steps
Area
Equip/Tools Required
Periodic Functions
30
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QRA Change
Approval
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SOS: Audit & Change Control
Document
Change Control
Record section
Audit Record
section
31
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Change Details
Observations
Notes
Comments
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Batch vs. 1 Piece Flow: Exercise
Batch Process
Customer needs 10 envelopes delivered.
Process:
Stuff 10, then
Standard Operating Sheet
Step
•
•
Seal 10, then
Stamp 10
Desc.
Instructions
1
Fold
Get paper & fold in thirds. 10X
2
Stuff
Get envelop & stuff folded paper 10X
3
Seal
Simulate sealing envelope 10X
4
Stamp
Get stamp & place on envelope 10X
5
Finish
Place envelope 10X
Start
Paper
1
2
3
Stamps
4
5
Mail
•
Finished
Fold 10, then
Envelopes
•
Finish
32
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Batch vs. 1 Piece Flow: Video & Exercise
Batch Process
Customer needs 10 envelopes delivered.
Observations:
33
•
Waiting
•
Inventory (WIP)
•
Defect potential
•
Large batching = Chaos
•
5S
•
Cycle Time: 4:25
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Batch vs. 1 Piece Flow: Video & Exercise
1 Piece Flow Process
Customer needs 10 envelopes delivered.
Observations:
34
•
Waiting
•
Inventory (WIP)
•
Defect potential
•
Large batching = Chaos
•
5S
•
Cycle Time: 3:29
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Full Cycle Time
Cycle Time
Start
Start
Finish
Walking
Waiting
Setting Up
35
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The Stopwatch: Exercise (practice)
Time Observation Form
Process Name: Stuffing Envelopes
Product Name
Process WIP:
Step
Operator:
Observer:
Avg Time
time
Obervations
Step Elements
No.
Shift/Time:
1
6
Number
Total time
of times
for 1
in 1
process
process
cycle
cycle
2
3
4
5
7
8
9
1
Fold:
10.1
8.6
8.7
9.0
8.9 10.7
9.0
9.7
8.8
9.7
9.3
10
93.2
2
Stuff:
10.5
6.2
6.6
7.6
6.8
6.9
9.0
8.5
7.1
7.7
7.7
10
76.9
3
Seal:
5.3
4.4
3.8
3.2
3.5
3.5
3.4
3.4
3.4
3.4
3.7
10
37.3
4
Stamp:
8.5
5.4
5.2
4.9
6.2
4.2
5.0
4.5
4.9
4.7
5.4
10
5
Finish: Place envelope aside
10
53.5
#DIV/0!
#DIV/0!
6
#DIV/0!
#DIV/0!
7
#DIV/0!
#DIV/0!
8
#DIV/0!
#DIV/0!
9
#DIV/0!
#DIV/0!
10
#DIV/0!
#DIV/0!
11
#DIV/0!
#DIV/0!
12
#DIV/0!
#DIV/0!
Total for 1 cycle:
Notes
260.9
34.4 24.6 24.3 24.7 25.4 25.3 26.4 26.1 24.2 25.5
Total process time for 1
process cycle
Total for 1 cycle:
36.0
34.0
32.0
30.0
28.0
26.0
24.0
22.0
20.0
1
36
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2
3
4
5
6
7
8
9
10
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The Stopwatch: Exercise (Pack-out Station)
100
90
80
70
60
50
40
30
20
10
0
1
37
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3
5
7
9 11 13 15 17 19 21 23 25 27 29 31 33 35 37 39 41
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Leader Standard Work
Role
Director of
Operations
Leads
10%
25%
50%
80%
Employee
95%
Managers
Supervisors
38
% time spent
daily on Standard
Work
Focus
Time on the production floor to verify the chain of
standard work is upheld and the production process
is stable and improving.
Monitor and support supervisors in their ability to
carry out their standard work.
Monitor and support leads in their ability to carry out
their standard work.
Maintain production and ensure standard work is
followed by employees.
Perform production activities described in standard
work.
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Leader Standard Work
Leader Standard Work
Pos i ti on:
Year:
Month:
2014
If compl eted, pl ace a n "X" or "√" i n the box bel ow the da y #
Frequency
Ta s k
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31
1
2
Dai l y
3
4
Daily
5
Ta s k
Frequency
Weeks
If compl eted, pl ace a n "X" or "√" i n the box bel ow the week #
1 2 3 4 5
Notes
1
2
Weekl y
3
4
Weekly
5
Frequency
Ta s k
Wk
If completed, pl a ce an "X" or "√" i n the box bel ow the week #
1 2
Notes
Semi-Weekly
1
Semi -Weel y 2
3
If compl eted, pl a ce an "X" or "√" i n the box
Ta s k
Frequency
Notes
1
2
Monthl y
3
4
Monthly
5
Frequency
Ta s k
Qua rter
If compl eted, pl a ce a n "X" or "√" i n the box bel ow the qua rter #
1 2 3 4
Notes
1
2
Qua rterl y
3
4
Quarterly
5
If completed, pl a ce a "X" or "√" in the box
Frequency
Ta s k
1
Annua l
2
3
Notes
Annual
Lea der Sta nda rd Work Revi ews & Si gna tures
Date
Ma na ger
Manager Reviews
39
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Notes , Comments , Observa tions
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40
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Pre-Readings
1. Plan vs. Actual – The
Swiss Army Knife of
Charts
2. Takt Time vs. Cycle Time
3. Does Your Cycle Time
Have A Weight Problem?
4. Ban the Stop Watch!
5. Takt Time in Service
Operations
41
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Takt Time Challenge: Example
Assumptions:
•
•
•
•
•
Produce 1 Product
Run 1 Shift
Work 5 Days / Week
Work 9 Hours / Day
75 min of Non-Productive Time
30 min Lunch
30 min Break
15 min Planned Down Time
What’s The
Takt Time?
42
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The Formulas
Exit Rate =
Work-in-Process
Process Lead Time
Net Available Time
Takt Time =
Customer Demand
Takt Rate =
Customer Demand
Net Available Time
Labor =
43
= Little’s Law
Takt Rate x Cycle Time
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The Basics
Process
Takt Rate = 10 units/Hr
Takt Rate = 0.167 units/min
SOS A
4 min
SOS B
5 min
SOS C
3 min
Labor =
8
Minutes
units/min
Takt Time = 6 min
6
5
3
Kaizen
5min
4min
3min
2
1
Labor (A) =
Labor (B) =
Labor (C) =
Labor (D) =
0.167
0.167
0.167
0.167
min/cycle
x
x
x
x
4
5
3
8
Total Labor =
A
44
Takt Rate x Cycle Time
8min
7
4
SOS D
8 min
B
C
D
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=
=
=
=
0.667
0.833
0.500
1.333
3.3 Operators
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Takt Time vs. Cycle Time: Example
(Resource Requirement)
Customer
Demand
40
8
160
20
45
Takt
Times
0.2 hr
12 min
1 hr
60 min
0.05 hr
3 min
0.4 hr
24 min
8 hrs.
Independent
Processes Cycle Labor
#
Time
A
Available Working
Time
480 min
30 min
2.5
Dependent
Processes
30 min
B
0.5
15 min
C
5
0.04 hr
2.11 min
E
2.5 min
228
1.2
90 min
D
3.8
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Theoretical
Actual
12.94
14
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46
Standard Work & Takt: Case Study
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47
Q&A
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Reference Material
48
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8:30
8:45
9:00
9:15
9:30
9:45
10:00
10:15
10:30
10:45
11:00
11:15
11:30
11:45
12:00
12:15
12:30
12:45
13:00
13:15
13:30
13:45
14:00
14:15
14:30
14:45
15:00
15:15
15:30
15:45
16:00
16:15
16:30
49
H.E.L.P. Workshop Detailed Agenda
H.E.L.P. Overview (Purpose & Objective)
Roundtable Introductions. (What do you expect to gain from workshop?)
5S Module (with Letter's Group Exercise)
BREAK
Review 5S Audit & Tracking toolkit. (allow for discussion)
View Boeing 5S video (25min)
LUNCH
Lean Standard Work Module (with Lean House Exercise)
SOS, Time Observation Form, Audit
Floor Tour (focus on 5S, Standard Work, Takt, Visual Mgmt at the Gemba)
BREAK
Batch vs One Piece Flow video
Stop Watch use
Cycle Time Exercise (with Stop Watch)
Create Batch process SOS
Review Day 2 objectives
© Copyright 2010, Cardinal Health, Inc. or one of its subsidiaries. All rights reserved.
8:30
8:45
9:00
9:15
9:30
9:45
10:00
10:15
10:30
10:45
11:00
11:15
11:30
11:45
12:00
12:15
12:30
12:45
13:00
13:15
13:30
13:45
14:00
14:15
14:30
14:45
15:00
15:15
15:30
15:45
16:00
16:15
16:30
Brain Teasers / The True Meaning of Kai Zen (video clip)
Review any 5S or Standard Work Q&A
SOS Exercise (Cycle Time at the Gemba, Time Observation Form)
Create / Document the SOS
BREAK
Review SOS results
Leader Standard Work
Create personal LSW
LUNCH
Takt Module / "I Love Lucy" - Chocolate Factory (video clip)
Takt Time Challenge
Review individual results
BREAK
Takt Time Case Study Excercises
H.E.L.P. Worshop Q&A (SharePoint site)
Wrap-up
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TOPIC SUMMARY
Topic: Hands-on Execution of Lean Principles (H.E.L.P.)
Presenter: Luis Loya, Master Black Belt, Cardinal Health
Level: Beginner
Many corporate Lean Six Sigma training programs do an excellent job with teaching
six sigma methodologies and tools but sometimes fall short of providing an in-depth
fundamental understanding of practical lean concepts and principles. At Cardinal
Health, a supplemental workshop style training has been developed for the purpose
of closing this gap and to expand lean skills in 5S, Standard Work and Takt in a
hands-on environment. This session will examine the strategy, content, tools and
the exercises from this two day workshop style training. Attendees will also have an
opportunity to participate and experience an abbreviated version of the interactive
hands-on exercise for 5S.
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