MANAGEMENT SYSTEMS Contents 1. LEAN ................................................................................................................................................................................ 1 2. Kaizen Methodology ....................................................................................................................................................... 2 3. Six Sigma methodologies ................................................................................................................................................ 3 4. 5S ..................................................................................................................................................................................... 4 5. VALUE STREAM MAPPING (VSM) .................................................................................................................................... 5 1. LEAN Lean is defined as a set of management practices to improve efficiency and effectiveness by eliminating waste. The core principle of lean is to reduce and eliminate non-value adding activities and waste. Lean manufacturing, or lean production, is a system of techniques and activities for running a manufacturing or service operation. The techniques and activities differ according to the application at hand but they have the same underlying principle: the elimination of all non-value-adding activities and waste from the business. Lean enterprise extends this concept through the entire value stream or supply chain: The leanest factory cannot achieve its full potential if it has to work with non-lean suppliers and subcontractors. The eight-lean manufacturing mudas can be remembered using the acronym DOWNTIME. 1. 2. 3. 4. 5. 6. 7. 8. Defects Overproduction Waiting Non-utilized talent Transportation Inventory Motion Extra-processing 2.Kaizen Methodology Kaizen methodology is an approach that pushes forward the continuous improvement in an organization, based on the constant small positive changes that can result in major and more significant growth. • Quality: products, best practices, and business processes. • Cost: materials, energy, and resources. • Delivery: delivery time and non-valueadded activities • Management: training, attitudes, flow, and documentation • Safety: working conditions When implemented successfully and clearly, Kaizen fulfills three essential needs of employees: • Connection: Feeling connected to a bigger organizational goal, to their work, and to their co-workers • • Creation: Opportunities to think and solve existing problems with creative, yet practical solutions Control: A sense of ownership and awareness throughout the process Some of the advantages of implementing Kaizen in an organization are: • Utilization of Resources – Kaizen focuses on improving products through the utilization of existing resources (your people) to achieve incremental and continuous improvement. Kaizen is centered around making small changes instead of relying on massive changes or investments to gain improvements. • • Increased Efficiency – Central to Kaizen methodology is the importance of providing a well-planned work area, eliminating unnecessary waste such as movement or in operations, and imparting proper training for all employees. Employee Satisfaction – Kaizen is about creating an atmosphere of teamwork and change, where new ideas are encouraged. Team members are asked to examine the processes and make suggestions for improvement. Questions to ask: 1. Why is each step in the process being performed? 2. What work is being performed? / What value is being added? 3. Where is the work currently being done / Where should it be done? 4. When is each step being completed / When should it be completed? 5. Who is performing the work / Who should do the job? 6. How is the work being done / How should it be done? 7. How often is each step being performed / How often does it need to be done 3.Six Sigma methodologies DMAIC works best for an existing business process, for example, when looking to improve the manufacturing or production aspect of a business. • Define: Identify the need. • Measure: Assess the current process and its effectiveness. • Analyze: Use data to evaluate current processes to find where the defects occur or where the areas of improvement are. • Improve: Make changes and improve the process so it helps you meet your goals. • Control: Design a system to keep the improved process in place, anticipating potential future roadblocks. DMADV works best for planning a process that doesn’t yet exist, for example, when creating a new product or improving customer relations. • Define: Establish the client’s or customer’s need. • Measure: Use data to assess customer needs, response to a product or service, and the product or service’s capabilities. • Analyze: Review data and use that information to create new goals or designs to meet customer or client needs. • Design: Create a product, service, or process that will better address customer needs based on findings. • Verify: Test the design and either deliver it to the client or put a plan in place to monitor its success and efficacy at addressing customer needs. Six Sigma process maps • SIPOC, which stands for suppliers, inputs, process, outputs, and customers. • The high-level process map illustrates the basic steps in your process so you can quickly and easily understand it without having to get down in the weeds. • Detailed process map helps you see all the details in a process or part of a process. Because it requires so much detail, this process map is especially important for finding the root cause of errors or waste in a process. • Swimlane diagram, also known as a deployment flowchart, divides the process by the person or team who is in charge of that stage. As well as showcasing cross-functionality, this kind of process map clarifies where handoffs occur. • Value stream map is a process map that illustrates and analyzes the steps involved in producing a product or delivering a service. How to create a process map in Six Sigma 1. Determine context and scope. 2. Identify and sequence the steps of your as-is process 3. Ask others to review the map for accuracy 4. Analyze the process map and single out pain points 4. 5S The 5S quality tool is derived from five Japanese terms beginning with the letter "S" used to create a workplace suited for visual control and lean production. • Sort: Eliminate whatever is not needed by separating needed tools, parts, and instructions from unneeded materials. • Set in order: Organize whatever remains by neatly arranging and identifying parts and tools for ease of use. • Shine: Clean the work area by conducting a cleanup campaign. • Standardize: Schedule regular cleaning and maintenance by conducting seiri, seiton, and seiso daily. • Sustain: Make 5S a way of life by forming the habit of always following the first four S’s. LEAN 5S PROGRAM BENEFITS • Improved safety • Higher equipment availability • Lower defect rates • Reduced costs • Increased production agility and flexibility • Improved employee morale • Better asset utilization • Enhanced enterprise image to customers, suppliers, employees, and management 5S EXAMPLE • The fields were sorted and unnecessary fields were eliminated. • The fields were set into order based on stakeholder input. • The team shined by creating a Microsoft Access database that would not allow duplicate entries. • The spreadsheet was standardized by protecting it and making it a template. • A self-sustaining system was created by using Microsoft Access 5.VALUE STREAM MAPPING (VSM) Also called: value stream analysis, lean process mapping. Value stream mapping (VSM) is defined as a lean tool that employs a flowchart documenting every step in the process. Many lean practitioners see VSM as a fundamental tool to identify waste, reduce process cycle times, and implement process improvement. The "value stream" portion of the VSM system centers on how value can be added to a product or service by changing the market form or function to meet the customer’s needs. This includes adding features and functionality to a product or service that benefit the customer without increasing wasted time and materials (also called muda, the Japanese term for waste) on the company’s side. Understanding the scope of the value stream under examination is a good start when planning your lean process or value stream map. This map is a single area in your organization. However, when multiple plants, customers, or suppliers are included, an extended level map is created. 1. Form a Team to Create the Lean Value Stream Map Form a cross-functional team of high-level managers and supervisors from throughout your company. Representatives from multiple departments will help ensure that information can be passed freely back and forth, and that items don’t slip through the cracks. The ideal team size is about 10 members 2. The Kaizen Kick-Off – VSM Planning At the kaizen event, the team must complete four important steps: A. B. C. D. Determine the process family. Draw the current state map. Determine and draw the future state map. Draft a plan to arrive at the future state. Once these four steps have been completed and the team agrees with the plans and tactics, the VSM team can proceed to the next steps. 3. The Process Family – VSM Planning A process family, also known as a product family, is a group of products or services that go through the same or similar processing steps. To determine your process family, create a matrix. It’s important that this step is applied to all cross-functional teams and key areas within your company. This helps ensure all vital steps are included and no steps are overlooked. 4. Identifying Similarities Examine the matrix and look for sections that have similar or identical processing steps. Also look for sections that share about 80% of the steps. Consider items that share many of the same steps and procedures that can be created together—by the same workers using similar or related steps—more efficiently in a manufacturing cell. Once you’ve identified similarities, the team must then identify which process family it will concentrate on first. Areas that the VSM team should consider: • Biggest "bang for the buck" • Largest reduction in lead time or inventory • Biggest impact to the customer • Highest probability for success • Most visible to stakeholders • New product or service line • Volume or quantity 5. Creating the Current State Map – VSM Planning To create a current state map, collect the data and information by "walking the flow" and interviewing the people who perform the task. This is beneficial for two reasons: A. The team will have the opportunity to see the entire process and look for waste. B. The people who actually perform the work can answer questions and clarify any misconceptions or preconceived notions on how tasks are performed. Be sure to gather high-value information from employees, including: • Cycle time or processing time • Changeover time • Reliability of equipment • First pass yield • Quantities • Number of operators and shifts • Hard copy information • Electronic information • Inventory levels • Queue or waiting times 6. Start by Creating the Basic VSM Template Key areas on the map are: • The upper-right corner for customer information • The upper-left corner for supplier information • The top half of the paper for information flow • The bottom half for material (or product) flow • The gutters on top and bottom to calculate value added and nonvalue added time Calculate the cycle time vs. the inventory time (in days) for the material and information flow. 7. Creating the Future State Map • What is the takt time? Freq. of part production. • Are there bottlenecks or constraints? If any Cycle time is greater than your takt time, which can cause overproduction waste or work in process or extra processing time. • Where can inventory (or queue time) be reduced ? Look at raw material, WIP, buffer stock, safety stock, and finished goods inventories to see whether these can be reduced. Also look for opportunities for paperwork to flow and not sit around • Where can you improve flow? Is it possible to put materials into a cell or eliminate materials from stopping and waiting? If flow improvement isn’t possible, could a "first in, first out" lane be established between processes? • What other improvements are required? place a kaizen burst around any items to signal improvement is needed. 8. Creating the VSM Draft Plan During a typical VSM event, it is possible to create the draft plan based on the information from the future state map. The plan will need further refinement, especially in determining resources required, such as time, people, and budgets. A good plan, as shown in the example below, will include the description of the project, name of the project leader, possible team members, a schedule (or Gantt chart) of events and deliverables, an estimate of costs, and the impact, goals, or benefits.
