1. The document provides an overview of lean principles and tools for analyzing and improving manufacturing processes, including value stream mapping, identification of waste, and standardizing work. 2. Key lean concepts discussed include takt time, kaizen, gemba, muda, poka yoke, and one-piece flow. Standard lean tools like the 5 whys, A3 problem solving, and PDCA cycles are also referenced. 3. The document contains an agenda for presenting lean concepts and tools to a group, including sections on hoshin planning, work content analysis, operator balancing, and layout optimization.

1. Facilitation - Instructor
- Consultant John Petak
Exercise Lean LLC
Hoshin - F119 • 09/08 to 09/10 2009
“If you are doing today what you
did yesterday, prepare to do
nothing tomorrow”.
“People don’t care how much you
know, until they know how much
you care”.
1

2. 20 PRINCIPLES OF LEAN
1. Identify the value stream
2. Go See “Go to Gemba” – Direct Observation
3. Develop an eye for improvement “Learn to See”
4. Identify the waste (MUDA) 8 Types (the most difficult part) MUDA
5. Make things visual
6. Speak with data
7. Get flow (material, information and $$$)
8. Do things in REAL TIME and @ POINT OF USE @ the customer TAKT
9. Question everything … Why? Why? Why? …
10. Focus on the things that your customer is willing to pay for (The right things)
11. Do the right things right the first time (Quality First)
12. Create a culture of Continuous Improvement (Kaizen) focused on making many
small changes for the good of the people who do the work
13. Familiarity is the enemy of continuous improvement
14. Walk the processes/value streams Sta nd rds
a
e ncy
Tra nspar
15. Focus on the WHAT not the WHO
WHO
16. Develop a culture of effective problem solvers T e
im
17. Stabilize ►Standardize ►Squeeze through PDCA cycle
18. Gemba is a mirror of the way the area is managed
19. PROFIT = PRICE – COST
20. Adopt (become) lean by creating a culture of lean thinkers
WHO
WHO 3
Presentation Planning
1 Hoshin Definition - Kaizen - Takt Time
2 Work content - Cycle Time Diagram
3 Number of operators - Parts Board Objective
4 Elimination of waste
5 Standardized Work and balancing
6 One-piece flow
7 Layout
8 6 Quality Basics
9 Ergonomics
10 Frontal loading
2

3. Hoshin Definition -
1
Kaizen - Takt Time
1.1.
1.1. Hoshin Definition
“HO” = Method Way of setting
“SHIN” = shiny needle / compass directions
Find simple and immediately applicable
solutions in order to:
Improve quality
Resize the line to make it more adaptable to
customer demand
Reduce variability
Improve the flow
Eliminates wastes
6
3

4. 1.1. Hoshin Definition
How : Observations and measurements of
shop-floor malfunctions.
HOSHIN is shop-floor action.
This action starts off with a rapid change and
then continues indefinitely.
7
1.2. Kaizen
HOSHIN is never finished and goes with a KAIZEN
state of mind (progress one small step at a time).
Productivity Innovation + Kaizen
Innovation
Time
8
4

5. 1.2. Kaizen
10 steps to a Kaizen state of mind:
1 Challenge fixed ideas, challenge existing methods
2 Instead of saying things cannot be done, think of ways it can be
3 Implement good ideas without delay
4 Do not wait for perfection, better 60% improvement now
5 Correct errors as they happen, with the team
6 From difficulties, generate new ideas
7 Apply the “5 Why” and find the root cause
8 Use ideas from 10 people, not just from one expert
9 Try out ideas and confirm their effect
10 Improvement is infinite
9
1.3.
1.3. Takt Time
It represents, in units of time, the number of
parts the customer expects us to deliver.
* Production Time / day
TAKT TIME =
+ Number of parts required / day
* Production time = open time - programmed stops
+ Or customer demand.
10
5

6. 1.3. Takt Time
Pull flow vs. Push flow
PUSH
PULL
11
Work Content -
2
Cycle Time Diagram
6

7. 2.1. Work Content
It is the sum of basic tasks performed at each
workstation to obtain a complete and good
product.
JOB 1 JOB 2 JOB 3 Finished
part
Minimum cycle times
found in time study : 30s 50s 40s
Work Content = 30s + 50s + 40s = 120s
13
2.2. Cycle Time Diagram
It brings out variations between each cycle
(variability) and the imbalance among the operators.
Time Time
(in s) (in s)
45 45
TAKT TIME TAKT TIME
40 40
35 35
30 30
25 25
20 20
15 15
10 10
5 5
0 0
OP1 OP2 OP3 OP4 OP5 OP1 OP2 OP3 OP4 OP5
14
7

8. 2.2. Cycle Time Diagram
15
Cycle Time Measurement Form
16
8

9. Standardized Work Chart
17
Standardized Work Combination Table
18
9

10. Number of Operators -
3
Parts Board Objective
3. Number of operators & Parts Board Objective
With Takt Time and Work Content, we have:
NUMBER OF Work Content
=
OPERATORS Takt Time
Parts Board objective: new ones to determine
before starting with new layout.
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10

11. Elimination
4
of Waste
4. Elimination Of Waste
Overproduction Overprocessing
Motion Scrap & Rework
Waiting Storage
Inventory Unused Human Capacity
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11

12. Big Muda
T ransportation
I nventory
M otion
W aiting
O verproduction
O verprocessing
D efects / Rework /
Scraps
Wanted DEAD or ALIVE:
Tim Wood Brainless
Father of 7 Waste
Shigeo Shingo
Mr. Shingo distinguished himself as one of the world's
leading experts in improving manufacturing processes.
He has been described as an "engineering genius" who
assisted in the creation of, and wrote about, many of
the features of the revolutionary just-in-time
manufacturing methods, systems, and processes which
make up the renowned Toyota Production System and
related production systems. The Shingo Prize is named
for the Japanese industrial engineer, Shigeo Shingo. His
greatness was in his ability to understand exactly why
products are manufactured the way they are, and then
transform that understanding into a workable system
for low-cost, high-quality production. Mr. Shingo died
peacefully November 14, 1990 at the age of 81.
12

13. Shigeo Shingo
Father of Just in Time
13

14. Taiichi Ohno
Kaoru Ishikawa
Ishikawa diagrams were proposed by Kaoru
Ishikawa[1] in the 1960s, who pioneered quality
management processes in the Kawasaki
shipyards, and in the process became one of
the founding fathers of modern management.
It was first used in the 1960s, and is
considered one of the seven basic tools of
quality management, along with the histogram,
Pareto chart, check sheet, control chart,
flowchart, and scatter diagram. It is known as a
fishbone diagram because of its shape, similar
to the side view of
14

15. Kaoru Ishikawa
Kaoru Ishikawa
15

16. Standardized Work
5
and Balancing
5. Standardized Work and
Balancing
Balancing
Precisely defined and repetitive process.
Definition of:
Best way to do basic tasks
Best succession of basic tasks
TRANSFORMATION, INSPECTION and
MOVEMENTS from & to the workstation.
32
16

17. 5. Standardized Work and
Balancing
Process Technician’s responsibility :
Train the operators on the line.
Ensure quality and productivity.
Defining standardized work implies that we
have first eliminated or reduced waste, which
is a source of variability.
Balancing workstations is a requirement.
33
One Piece
6
Flow
17

18. 6. One Piece Flow
Maximal elimination of waste implies
working with zero intermediary stock
between operators.
Every operator must pass on a good part to
the operator at the next workstation.
35
6. One Piece Flow
BEFORE 36" 720" 36" 180" 36" total
1008"
20 parts 5 parts
AFTER 36" 36" 36" total
108"
36
18

19. 7 Lay-out
7. Layout
Raw materials
B Stock
Stock
Finished
product
A C
Stock
Raw materials Stock
Raw
materials
A B C Finished
products
38
19

20. 7. Layout
U Line
Advantages Disadvantages
- Mutual assistance possible - Risk of mix-up
- Easier communication - Maintenance more
- More balancing solutions (max. difficult
flexibility) - People blocked
- Obliges use of small containers - Passageway needed all
- Fosters polyvalence around
- Greater reactivity to quality problems - More difficult to
- Physical zone for the team coordinate upstream
- Less moving around and downstream
- More layout alternatives - Return of empty tooling
- Better control of WIP if operator (conveyor pallets)
handles
both first and last operation
- Easier supply / withdrawal of finished
product containers
39
7. Layout
Straight Line
Advantages Disadvantages
- Easier supplying - Communication more difficult
- Clearer flow (entry-exit - Longer route (return empty)
separation) - Longer line
- Easier to mechanize - Fewer layout alternatives
- More suitable for bulky - Limited balancing and flexibility
products - More movement with long
- Easier to integrate into plant machines
flow - Poorer reactivity to quality
- Easier to understand flow problems
- Return of empty tooling
(conveyor pallets)
40
20

21. 6 Quality
8
Basics
8. 6 Quality Basics
6 Quality Basics
1 Quality Wall
2 Self Inspection
3 OK First Part
4 Rework Under Control
5 Poka Yoke
6 Red Bins
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21

22. 9 Ergonomics
9. Ergonomics
Minimization of movement and
handling
Minimization of loads handled
(small boxes, around 15 lb)
Improvement of work posture
Parts easier to pick
No obstacles on floor (around or
between work stations)
Good lighting
Noise control and reduction
44
22

23. Frontal
10
Loading
10. Frontal Loading
Frontal
To reduce the amount of movement needed to
pick parts, we must load them frontally and
place them in small containers.
If there are several references, they must be
stored facing the operator as much as possible.
This can lead to a reduction in box size. The
idea is to “disconnect” the line’s changeover
from parts replenishment. Likewise, we must try
to disconnect the line’s work form removal of
empty boxes and finished product containers.
46
23

24. 1.1.
1.1. Hoshin Definition
HOSHIN means seeking simple and
immediately applicable solutions in the
workplace, with all the people concerned, to
eliminate waste and improve flow.
It is a serious reexamination of the
production line organization aiming to:
improve quality by mastering processes
(particularly human processes)
resize the line to make it more adaptable to
customer demand
reduce variability
47
Spaghetti Diagram/Value Stream
Mapping
1
3
13
2, 5, 7, 9, 12, 15, 17 14
10
11
4
16
6,8
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25. Six Primary Barriers to Change
1. Justification
2. Not invented here
3. Done that before
4. Don’t rock the boat
5. It’s not my job
6. “It may work in other industries, but Lean
won’t work here in this environment”
Diagnosis of Current State (1)
Product Value Stream Levels (PVS)
• All divisions
• All plants within a division
• Individual plant
• Process level
Prepared by John F Petak Exercise Lean LLC 50
25

26. Diagnosis of Current State (2)
Product Value Stream (PVS) Focus
Create the “Current State”
• PVS from beginning to end (Customer to
Supplier)
• Focus on product families
• Visually check - go to gemba
• Hand draw map using M&I symbols
• Collect actual data - no Engineering or BOM data
allowed
Prepared by John F Petak Exercise Lean LLC 51
Diagnosis of
Current State - Purpose
• Enable people to see the flow of material
and information through a facility through
its Product Value Stream (PVS)
• Identify sources of muda (waste) and other
opportunities to improve
• Plan actions that have quick and significant
impact
• Provide the improvement committee with a
common language
• Link principles and concepts of KAIZEN
and lean principles of Toyota Production
System
Prepared by John F Petak Exercise Lean LLC 52
26

27. Focus of Material
and Information Flow
• Baseline methodology and symbols for
defining material and information flow
before and after KAIZEN activity.
• Used to support the principles and
concepts of KAIZEN and the principles and
technologies of the Toyota Production
System.
• Leadership clarity & responsibility
– Transform current state to lean
– Design new processes for lean
Prepared by John F Petak Exercise Lean LLC 53
Material and
Information Flow Process
• Define project scope (which Product Value
Stream).
• Establish work teams.
• Gather data.
• Create a “current state” Material and Information
Flow Chart.
• Identify KAIZEN opportunities.
• Create a “vision state” Material and Information
Flow Chart.
• Create a “roadmap” on how to move from current
to vision state.
• Implement the KAIZEN activity.
• Document results using the KAIZEN Story format.
Prepared by John F Petak Exercise Lean LLC 54
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28. Data Gathering Tools
• Interviews with key personnel
– Production / Inventory Control
– Engineering / Maintenance
– Production
– Quality
• Walking through the Product Value Stream
• Material and Information Flow Chart blank
form
• Data collection sheets
• Inventory sheets
6/9/2010 Prepared by John F Petak Exercise Lean LLC 55
Simple “Push”
Flow Chart Example
Production
Control
Weekly/Monthly Forecast
Weekly Orders Daily Orders (small percent)
/Deliveries (fax/verbal)
Daily Material Work Orders Weekly Forecast (fax)
Release Schedule
Final QC
2 Assembly 4 Inspection
Supplier Warehouse 1 Injection 3 Warehouse Customer
Prepared by John F Petak Exercise
Lean LLC 6/9/2010 56
28

29. Simple "Push" vs.
"Pull" Flow Chart Examples
Production D
A
E Control
Weekly Orders
Push System /Deliveries Daily Orders/
Daily Schedule Daily Schedule Weekly Forecast
Injection
#1 2
5
Supplier Warehouse 1 Assembly 4 Assembly Customer
Injection
#2 3
Weekly Orders/Deliveries E Production E
Control
Pull System Daily Orders/
Weekly Forecast
KB
Injection
#1 KB
Supplier Warehouse Assembly Staging Customer
KB
Injection
#2
KB
Prepared by John F Petak Exercise
Lean LLC 6/9/2010 57
Material and
Information Flow Symbols
Pull Common
Material Flow Pull Inter-factory
Transportation
Parts Withdrawal
Kanban Factory
Transportation
Production
Instruction Kanban Manual Information
Flow
Signal Instruction
K
Kanban Process
B
Stores Data Block
Push (computer
Kanban Post information)
One Piece Flow Problem/KAIZEN
1
Prepared by John F Petak Exercise
Lean LLC Opportunity 58
6/9/2010
29

30. Information Flow Symbols (1)
E External Mail E E-mail
I Internal Mail P Phone Call
Meeting F Fax
Prepared by John F Petak Exercise
Lean LLC 6/9/2010 59
Information Flow Symbols (2)
D I Waiting for
Information Printing
D
A Waiting for
Authorization Copying
Information
Filing
Retrieval
Prepared by John F Petak Exercise
Lean LLC 6/9/2010 60
30

31. Material Flow Data
Material Flow Data for PVS
• Shifts worked
• Number of people by location or process
• In-process inventory by P/N & location
• Machine Condition
– Cycle Time C/T
– Changeover Time C/T
– Up-time
– First Time Quality %
Prepared by John F Petak Exercise Lean LLC 61
Information
Flow Data - Customer
Customer Information for PVS
• Shifts worked
• Forecast method 90/60/30 day
• Daily order method
• Delivery frequency
• Container type
– Returnable
– Disposable
Prepared by John F Petak Exercise Lean LLC 62
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32. Information
Flow Data - Scheduling
Production Scheduling
• Shifts worked
• Scheduling method
– Month / week / day
– Revisions
– Daily order method
• Delivery frequency
• Container type
– Returnable
– Disposable
Prepared by John F Petak Exercise Lean LLC 63
Information
Flow Data - Suppliers
Supplier Order
• Shifts worked
• Order method
– Month / week / day
– Revisions
– Daily order method
• Delivery frequency
• Container type
– Returnable
– Disposable
6/9/2010 Prepared by John F Petak Exercise Lean LLC 64
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33. Processing Station Data
M/C time
C/O time
Uptime %
Seconds/day
Every product every
% First Time Quality
Prepared by John F Petak Exercise
Lean LLC 6/9/2010 65
Push vs. Pull Production
Operation 1 Operation 2
Stock at Point
of Manufacture
Operation 1 Operation 2
PULL SYSTEM
Prepared by John F Petak Exercise
Lean LLC 6/9/2010 66
33

34. Push Flow Chart with
Lead Time Calculations
Production
E Control
Weekly/Monthly Forecast
(small percent)
F Daily Orders (fax/verbal)
I
Work Orders Weekly Forecast (fax)
F
Final QC
2 Assembly 4 Inspection
Supplier Warehouse Assembly 3 Final QC Final QC
1 Inspection Inspection
12 days 1 day 2 days 2 hours 4 days
c/t = 90 seconds c/t = 5 min. 32 sec. c/t = 60 min.
c/o = 16 minutes c/o = 3 min. c/o = 60 sec.
Upt = 80% Upt = 98% Upt = 95%
27,000 seconds/day 27,000 seconds/day 27,000 seconds/day
EPE = week EPE = week EPE = week
Def. Rate = 2.1% Def. Rate = 1.8% Def. Rate = 3.2% Total
12 days 1 day 2 days 2 hours 4 days 19 days 2 hours
90 Seconds 332 Seconds 3600 Seconds 4022 Seconds
67 minutes
Prepared by John F Petak Exercise
Lean LLC 6/9/2010 67
Data Collection Sheet for
Material and Information Flow
Process Name
Date Completed
Completed By
Before KAIZEN After KAIZEN Improvement Comments
Customer Requirements
Monthly
Weekly
Daily
Hourly
Process Layout (AS IS)
Floor Space Calculation for Each Area
Spaghetti Chart (Including Distance Walked)
Inventory (Use Inventory Sheet If Necessary)
Finished Goods by Location
Finished Goods Space Calculation
Raw Materials by Location
Raw Materials Space Calculation
Part Number Usage (BOM)
Package Type -Returnable or Disposable
Package Dimensions
Package Quantity
Scheduling Method / Frequency
Customer Order
Supplier Order
Production
Delivery Method of Raw Materials & Components
Supplier to Plant Stores
Plant Stores to Production Process
Plant to Customer
Transportation Method Within Plant
Prepared by John F Petak Exercise
Lean LLC 6/9/2010 68
34

35. Inventory Sheet for
Material and Information Flow
Process Name
Date Completed
Completed By
Finished Goods
Pkg. Pkg.
Part # Description Lot Size Location Amount Type Dimensions Comments
Raw Materials/Components
Pkg. Pkg.
Part # Description Lot Size Location Amount Type Dimensions Comments
Prepared by John F Petak Exercise
Lean LLC 6/9/2010 69
Material and
Information Flow - WIP
Process Name
Date Completed
Completed By
Work in Progress and Sub-assemblies
Pkg. Pkg.
Part # Description Lot Size Location Amount Type Dimensions Comments
Prepared by John F Petak Exercise
Lean LLC 6/9/2010 70
35

36. Instructions
• Go to the production area assigned
• Deploy data gathering to team members
– Processing station data
– Inventory data
– Customer requirements data
– Process layout sketch and data
– Scheduling methods
– Delivery methods
• Identify the 10 most critical raw materials or
components ($)
• Walk through the core process asking questions
• Return to meeting room to create Material and
Information Flow Chart.
• Spaghetti Chart for current state of line assigned.
Prepared by John F Petak Exercise Lean LLC 71
36