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Lean transformation

E2E Value Stream, Lean Transformation, Bias for Action, LDMS, Lean Daily Management Systems, Leader's Standard Work, Leaders Audit Checklist, Lean Scorecard, Lean Metrics, KPI, Visual Boards, Lean Box Score, Hoshin / Policy Deployment, Cascading Priorities to Action, Lean Scorecards, Lean Maturity Assessment, Lean Maturity Chart, SDCA, PDCA, Improvement vs. Maintenance, PDCA Cycle, Goal Achievement, Performance Management, Standard Work, 8 Steps for Creating Standard Work, Kaizen, System and Process Kaizen, Problem Definition, 6W 2H, A3, Shingo Model, Lean books, Kaizen Books

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Lean transformation

  1. 1. Lean Transformation Anand Subramaniam
  2. 2. Lean Transformation 2
  3. 3. E2E Value Stream 3
  4. 4. Bias for Action 4
  5. 5. Take Away ▪ It is a systematic approach to drive value and operational excellence ▪ Be flexible and vary the approach depending on the organisation’s culture ▪ It is a journey / endurance race for continuous learning and improving ▪ It requires leadership, discipline, and buy in on lean philosophy ▪ Continuous improvement and people development must go hand in hand ▪ It is on the job, real time learning & training ▪ Lean is 20% Technical and 80% Behaivioral 5
  6. 6. Lean Daily Management System (LDMS) 6
  7. 7. Importance of LDMS 7 Leader Standard Work (Specific sequence & time) Daily Accountability (Gemba, Tool Box) Leadership Discipline (Audits, Coach, Teach) Visual Controls (Visual Boards, Go See) LDMS
  8. 8. Leader’s Standard Work 8
  9. 9. Leader’s Std Work – Walk Frequency 9
  10. 10. Leader’s Std Work – Activity & Time 10
  11. 11. Leaders Audit Checklist 11
  12. 12. Lean Scorecard 12
  13. 13. Lean Metrics 13 • Establish Lean metrics – What to track? – How to track? – Who will track it ? – How often to track ? – Which form to use ? – When to report ? – Where to display? – Why track? • Obtain buy-in for metrics • Calculate baseline metrics • Select targets • Create visual aids • Measure results • Post results • Act on results • Improve on results (PDCA) • Sustain results (SDCA)
  14. 14. KPI on Visual Boards 14
  15. 15. Lean Box Score – Cell to Value Stream 15
  16. 16. Hoshin / Policy Deployment 16
  17. 17. Hoshin Process 17 ▪ Aligns Strategy and Execution ▪ Systematically develops and links plans from organizational vision to operational tactics ▪ Ensures deep and common understanding and maximizes ownership and buy-in to plan ▪ Requires thoughtful, detailed planning for each and every improvement action ▪ Consistently assesses actual performance vs. plan and addresses issues and learns from the process All Employees are Engaged in the Process
  18. 18. Hoshin - Seven Phases (PDCA) 18 Deploy Improvement Priorities Develop Annual Breakthrough Objectives and Improvement Priorities Monthly Review Implement Improvement Initiatives Annual Review PLANNING IMPLEMENTATION REVIEW Establish Organizational Vision Strategic Planning/ Develop 3-5 Year Breakthrough Objectives Annual Review Self-Diagnosis Root Cause Countermeasures Catchball Critical Step P D C A
  19. 19. Top Level Matrix 19 RESOURCES Annual Breakthrough Objectives Targets to Improve 3-5 Year Breakthrough Objectives Top Level Improvement Priorities = Primary Responsibility = Secondary Responsibility 5- WHO 4- HOW MUCH Use dots to show relationship of Targets and Resources to the Improvement Priority 3- HOW Use dots to show relationship of Improvement Priorities to Annual Objectives 2- HOW FAR 1- WHAT NOTE: Only Solid dots on a resource deploy to the next level The whole picture on one sheet of paper! OWNER
  20. 20. Cascading Priorities to Action 20 = Original Plan x = Progress at Review Action Step/ Kaizen Events Milestone Jan Feb M ar Apr M ay June July Aug Sept Oct Nov Dec Improvement Priority Title: * Department/Location: * Management Ow ner: * Date: * Core Objective: * Timeline Target Improvement Planned Dates Policy Deployment Action Plan Review Team: * Next Review : * Environmental Situation Summary: * Status ( P a st D ue i n R e d ) Impact Ow ner (Lead is bold) 2003 Second Level Policy Deployment l Primary Responsibility m Secondary Responsibility RESOURCES Target to Improve SECOND LEVEL – Plant/Business Danaher Business System Office - Policy Deployment 1998 l Primary Responsibility m Secondary Responsibility Resources Annual Breakthrough Objectives 3-5 Year Breakthrough Objectives Target to Improve TOP LEVEL – Company/Group POINT OF IMPACT - ACTION PLAN Engineer/SupvCascade as many times as necessary to the Root Cause Level Point of Impact - Action Plan The level where root causes are addressed! Action Plans can be initiated out of any matrix level. POINT OF IMPACT Second Level Policy Deployment l Primary Responsibility m Secondary Responsibility RESOURCES Target to Improve ROOT CAUSE LEVEL- Sub Plant/Dept Annual Objectives Breakthrough Top Level Improvement Priorities Second Level Improvement Priorities Top Level Improvement Priorities Top Level Improvement Priorities Second Level Improvement Priorities Third Level Improvement Priorities
  21. 21. Scorecards Created for All Matrices 21 Second Level Policy Deployment l Primary Responsibility m Secondary Responsibility RESOURCES Annual Breakthrough Objectives Top Level Improvement Priorities Targets to Improve SECOND LEVEL SCORECARD Danaher Business System Office - Policy Deployment 1998 l Primary Responsibility m Secondary Responsibility Resources Top Level Improvement Priorities 3-5 year Breakthrough Objective Annual Breakthrough Objectives Target s to Improve TOP LEVEL SCORECARD 2nd Level Improvement Priorities Title
  22. 22. Hoshin Example 22
  23. 23. Lean Maturity Assessment 23
  24. 24. Lean Maturity Chart 24
  25. 25. SDCA & PDCA 25
  26. 26. Improvement vs. Maintenance 26
  27. 27. Everyone’s Job 27
  28. 28. Why PDCA? 28
  29. 29. PDCA Cycle 29
  30. 30. Goal Achievement 30 Goal : Improve Performance Goal : Achieve Standard Performance
  31. 31. Performance Management 31 Managing to Improve Managing to Sustain
  32. 32. Standard Work 32
  33. 33. What is Standard Work ? 33 • A simple written description of the safest, highest quality, the most efficient and ONLY acceptable way known to perform a particular process or task • Reduces variation, increases consistency • Includes the amount of time needed for each task • Needed in all work areas and expected to be continually improved When correctly applied, standard work will not only sustain kaizen improvements, but also expose and eliminate previously unseen waste.
  34. 34. Critical Elements of Standard Work 34 ▪ The customer demand ▪ The most efficient work routine or steps (Value Add) ▪ The exact / standard amount of work in process required ▪ The cycle times required to complete work elements ▪ All process quality checks required to minimize defects / errors
  35. 35. 8 Steps – Creating Standard Work 35 1. Define the extent of the process for which you are creating standard work (e.g. starts at… ends at…) 2. Determine the appropriate standard work requirements 3. Gather required information 4. Create standard work documents • Standard work for each function in a multi-function process • People doing the same job will use the same standard work • The end point will be the starting point for the next standard work sequence • Title • Work area • Author • Revision date • Takt time, cycle time • Work sequence • Approvals • Document location and ownership • Whenever information is collected for standard work, it is important to search for best practices. • Observing multiple people doing the same work is a good way to let everyone see how much variation there is from unit to unit and from person to person. Now that you have gathered the required information, you are ready to create the standard work document (s).
  36. 36. 8 Steps – Contd. 36 5. Train the supervisor on standard work 6. Train the employees on standard work 7. Run the process and observe the results 8. Make adjustments and modifications to the standard work • This is an essential step. • The supervisor is the owner of the standard work and must understand it perfectly and train others to do it perfectly • Once trained, each employee must be able to demonstrate their ability to perform the standard work perfectly • Once standard work has been created and everyone is trained, it is time to start the process and make observations. This is the time to look for improvements. • Look for: • Training needs • Inadequate processes • Waste Types • Standard work should be a document subject to change; however, a process should be implemented for making changes to the standard work. • Revision levels should be recorded each time standard work is changed and old standard work should be filed for future reference
  37. 37. Standard Work – Do & Don't 37 Do • Keep standard work simple • Make it accessible • Include all info on one, easy-to- read document • Create one standard work document for each part of the process • Always look for ways to improve the process Do Not • Put standard work in a desk drawer • Change processes without changing standard work • Make standard work difficult to change • Give up on standard work – it can be tough, but it’s very important
  38. 38. Kaizen 38
  39. 39. Cases for Kaizen 39
  40. 40. System & Process Kaizen 40
  41. 41. Kaizen Timing 41
  42. 42. Outcomes from a Kaizen Event 42
  43. 43. Lean Tools utilised during Kaizen 43 Day 1 Day 2 Day 3 Day 4 Day 5 Kick Off meeting Goals, KPI’s , Teams Game Plan Current State Assessment = Go See / Walk the Process Before Pictures & Video Taking Spaghetti / Zoning Data - Plan, Forms, Checklist, Collect, Analyse & Report Waste Walk CT, CO, VA, NVA, WIP, RTY, Resource 3S Work Place Organisation Future State Improvement Plan Idea Generation Idea Prioritise After Pictures Implementation Plan / A3 Lean Coaching = Principles, Thinking, Challenging Status Quo, Tools , Methods & Techniques Facility Stats Process Map & Activity Steps Demand / Capacity / Level FIFO, S’Mkt, KanbanConstraint/ B’neck Takt, ECRS, Std Wrk Skill Assess /JI 3S, Waste, E’Proof Min / Max, Visual Layout = Flow / Pull
  44. 44. Kaizen Event Roadmap 44
  45. 45. Problem Definition 45
  46. 46. What is a problem? 46
  47. 47. Problem Definition – 6W2H 47 • Who - Who does the problem affect? Specific groups, organizations, customers, etc. • What - What are the boundaries of the problem, e.g. organizational, work flow, geographic, customer, segments, etc. What is the issue? What is the impact of the issue? What impact is the issue causing? What impact does it have on the business or stakeholders. What will happen when it is fixed? What would happen if we didn’t solve the problem? • When - When does the issue occur? - When does it need to be fixed by? • Where - Where is the issue occurring? Only in certain locations, processes, products, etc. • Which – Which metric / measure has been impacted? • How - How do you know it is a problem? • How Much / How Many - How much is it costing the business? How many are impacted? • Why - Why is it important that we fix the problem?
  48. 48. How to set targets? 48
  49. 49. A3 – Problem Solving 49
  50. 50. Shingo Model – Operational Excellence 50
  51. 51. Guiding Principles & Supporting Concepts 51
  52. 52. Lean books for your knowledge 52
  53. 53. 53 Good Luck http://www.linkedin.com/in/anandsubramaniam