Lean Principles
Lean Six Sigma Awareness
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Lean Principles Definition
• Lean is a systematic approach to process optimization
based on the premise that anywhere work is done,
some amount of waste (non-value add effort) is
generated
• The goal is: Total elimination of waste (MUDA)
through:
• Identifying the sources
• Planning for waste elimination
Move
it!
• Use of Lean, Process Management and Six Sigma
• Establishing “permanent” controls that prevent
reoccurrence
• The first step toward waste elimination is identifying it
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Examples of the 7 Areas of Waste
Seven Areas of WASTE
1. Correction
Correcting or repairing a defect in
materials or parts adds unnecessary
costs because of additional
equipment and labor expenses. An
example is the labor cost of
scheduling employees to work
overtime to rework defects.
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Examples of the 7 Areas of Waste
2. Overproduction
Producing more parts than necessary.
Producing parts at a rate faster than required.
Doing this requires more raw product inventory than
necessary, over uses machines and people and
requires more storage area.
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Examples of the 7 Areas of Waste
3. Processing
Processing work that has no
connection to advancing the line
or improving the quality of the
product.
Examples include typing memos
that could be hand written or
painting components or fixtures
internal to the equipment.
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Examples of the 7 Areas of Waste
4. Conveyance
Conveyance is incidental,
required action that does not
directly contribute value to
the product.
It’s vital to avoid conveyance
unless it is supplying items
when and where they are
needed (i.e. just-in-time
delivery).
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Examples of the 7 Areas of Waste
5. Inventory
Inventory is a drain on an organization’s use of capital. The
greater the inventory, the higher the carrying costs.
If quality issues arise and inventory perishes, defective material
may be hidden in finished goods.
To remain flexible to customer requirements and to control
product variation, we must minimize inventory.
Excess inventory masks unacceptable
change-over times, excessive
downtime, operator inefficiency and a
lack of organizational sense of urgency
to produce product.
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Examples of the 7 Areas of Waste
6. Motion
Any movement of people
or machinery that does not
contribute added value to
the product; i.e.,
programming delay times
and excessive walking
distance between
operations.
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Examples of the 7 Areas of Waste
7. Waiting
Idle time between
operations or events,
i.e. an employee
waiting for machine
cycle to finish or a
machine waiting for the
operator to load new
parts.
Lean Six Sigma Awareness
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Lean Value Stream
Analysis
Lean Six Sigma Awareness
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Lean Value Stream Map
Best
Metal, Inc
Dellex
A way of viewing the overall
Value Stream, from supplier to
the customer, on one sheet of
paper.
500 Ft Rolls
Tue. &
Thurs
Pieces/Mo
Tray=
Shifts=
Delivery DPMO=
Quality DPMO=
Mon &. Wed
Enabling you to “see what is
actually happening.”
Stamping
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Coils
5 days
C/T =
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Lean Six Sigma Awareness
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Why a Value Stream Analysis is Essential
Best
Metal, Inc
500 Ft Rolls
Tues. &
Thurs.
1. It helps you visualize more than the just the single process
level, i.e. order entry, invoicing, shipping, assembly, test,
welding, etc. You can see the complete flow.
2. Value Stream Analysis is a qualitative process that allows you
to understand in detail how your business should operate to
achieve breakthrough performance levels.
3. It helps you see sources of inefficiency and problems in the
complete generation and delivery of your service or product.
4. It forms the basis of an improvement vision and plan by helping
understand how door-to-door flow should be performed to
optimize costs, cycle times and quality.
5. It conceptualizes Six Sigma projects as well as other
improvement efforts.
6. Value Stream Analysis is good for describing what you will do
to change business-performance levels.
Dellex
Pieces/Mo
Tray=
Shifts=
Delivery DPMO=
Quality DPMO=
Mon &
. Wed
Stamping
1 Person
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Coils
5 days
C/T =
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Lean Six Sigma Awareness
Person
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Value-Stream Analysis Summary
• Value Stream Analysis puts the pertinent information about the total
work effort of a product or service on one sheet of paper, the currentstate map.
• The human mind loses continuity and clarity when information is
fragmented across multiple places and sheets of paper.
• We can also map the information flow, i.e. customer and supplier
ordering, production control, etc., to complete the picture.
• Overall performance and process-specific problem areas become
visible for improvement actions.
• This analysis can be done as a part of the overall characterization
of a process.
• The next step is to identify efficiency and effectiveness targets for the
process.
• The end result is a future-state map with a vision/plan that is
achieved through Six Sigma projects and other actions.
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Applying the
5S Principles
Lean Six Sigma Awareness
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5S - Workplace Organization
• 5S means the workplace
is clean, there is a place
for everything and
everything is in its place.
• 5S is the starting point for
implementing
improvements to a
process.
• To ensure your gains are
sustainable, you must start
with a firm foundation.
• Its strength is contingent
upon the employees and
company being committed
to maintaining it.
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5S Translation - Workplace Organization
Focus on using the English words,
much easier to remember.
Step
Japanese
Literal Translation
English
Step 1:
Seiri
Clearing Up
Sorting
Step 2:
Seiton
Organizing
Straightening
Step 3:
Seiso
Cleaning
Shining
Step 4:
Seketsu
Standardizing
Standardizing
Step 5:
Shitsuke
Training & Discipline
Sustaining
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SORTING - Decide what is needed.
Definition:
• To sort out necessary and
unnecessary items.
• To store often used items
at the work area,
infrequently used items
away from the work area
and dispose of items that
are not needed.
Why:
• Removes waste.
• Safer work area.
• Gains space.
• Easier to visualize the
process.
Lean Six Sigma Awareness
Things to remember
• Start in one area, then sort
through everything.
• Discuss removal of items with
all persons involved.
• Use appropriate
decontamination,
environmental, and safety
procedures.
• Items that cannot be removed
immediately should be tagged
for later removal.
• if necessary, use movers and
riggers.
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A Method for Sorting
Item
Useful
Unknown
Useless
Keep &
Monitor
Keep &
Store
Useful
ABC
Storage
Lean Six Sigma Awareness
Sorting
Useless
Dispose
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STRAIGHTENING – Arranging Necessary Items
Definition:
• To arrange all necessary items.
• To have a designated place
for everything.
• A place for everything and
everything in its place.
• Easily visible and accessible.
Why:
• Visually shows what is
required or is out of place.
• More efficient to find items and
documents (silhouettes/labels).
• Saves time by not having to
search for items.
• Shorter travel distances.
Lean Six Sigma Awareness
Things to remember
• Things used together
should be kept together.
• Use labels, tape, floor
markings, signs, and
shadow outlines.
• Sharable items should be
kept at a central location
(eliminated excess).
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SHINING – Cleaning the Workplace
Definition:
• Clean everything and
find ways to keep it
clean.
• Make cleaning a part of
your everyday work.
Why:
• A clean workplace
indicates a quality
product and process.
• Dust and dirt cause
product contamination
and potential health
hazards.
• A clean workplace
helps identify abnormal
conditions.
Lean Six Sigma Awareness
Things to remember
• “Everything in its place” frees up
time for cleaning.
• Use an office or facility layout as a
visual aid to identify individual
responsibilities for cleaning. This
eliminates “no man’s land.”
• Cleaning the work area is like
bathing. It relieves stress and
strain, removes sweat and dirt, and
prepares the body for the next day.
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STANDARDIZING – Creating Consistency
Definition:
• To maintain the workplace
at a level that uncovers
problems and makes them
obvious.
• To continuously improve
your office or facility by
continuous assessment
and action.
Why:
• To sustain sorting, storage
and shining activities
every day.
Lean Six Sigma Awareness
Things to remember
• We must keep the work place neat
enough for visual identifiers to be
effective in uncovering hidden
problems.
• Develop a system that enables
everyone in the workplace to see
problems when they occur.
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SUSTAINING – Maintaining the 5S
Definition:
• To maintain our
discipline, we need to
practice and repeat until
it becomes a way of life.
Why:
• To build 5S into our
everyday process.
Lean Six Sigma Awareness
Things to Remember
• Develop schedules and
check lists.
• Good habits are hard
to establish.
• Commitment and discipline
toward housekeeping are
essential first steps toward
being world class.
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