Office_Lean_sample

1© 2005 Superfactory™. All Rights Reserved.

Lean Office OverviewLean Office Overview

Superfactory Excellence Program™Superfactory Excellence Program™www.superfactory.comwww.superfactory.com


OutlineOutline

1.1. What is Lean?What is Lean?

2.2. 5S & Visual Controls5S & Visual Controls

3.3. KaizenKaizen

4.4. Value StreamsValue Streams

5.5. Pull ManufacturingPull Manufacturing

6.6. Mistake ProofingMistake Proofing

7.7. Quick ChangeoverQuick Changeover

8.8. Six SigmaSix Sigma

9.9. Lean AccountingLean Accounting

10.10. Theory of ConstraintsTheory of Constraints

11.11. Human FactorsHuman Factors


Thinking LeanThinking Lean

Specify value Specify value can only be defined by the ultimate customer can only be defined by the ultimate customer

Identify the value stream Identify the value stream exposes the enormous amounts of waste exposes the enormous amounts of waste

Create flow Create flow reduce batch size and WIP reduce batch size and WIP

Let the customer pull product through the value stream Let the customer pull product through the value stream make only what the customer has ordered make only what the customer has ordered

Seek perfection Seek perfection continuously improve quality and eliminate waste continuously improve quality and eliminate waste

From From Lean ThinkingLean Thinking by Womack and Jones by Womack and Jones


BenefitsBenefits

Lean provides tangible benefitsLean provides tangible benefits Reduces costs not just selling price Reduces costs not just selling price

Reduces delivery time, cycle time, set-up time Reduces delivery time, cycle time, set-up time Eliminates waste Eliminates waste Seeks continuous improvement Seeks continuous improvement

Improves quality Improves quality Improves customer ratings and perceptions Improves customer ratings and perceptions Increases overall customer satisfaction Increases overall customer satisfaction Improves employee involvement, morale, and company Improves employee involvement, morale, and company

culture culture Helps “transform” organizations Helps “transform” organizations


Toyota Production System (TPS)Toyota Production System (TPS)

Quality, Cost, DeliveryQuality, Cost, Delivery Shorten Production Flow by Eliminating WasteShorten Production Flow by Eliminating Waste

Just In TimeJust In Time The Right Part at the Right Time in the Right AmountThe Right Part at the Right Time in the Right Amount Continuous FlowContinuous Flow Pull SystemsPull Systems Level ProductionLevel Production

Built-In QualityBuilt-In Quality Error Proofing – Poka YokeError Proofing – Poka Yoke Visual ControlsVisual Controls

Operational Stability Operational Stability Standardized Work Standardized Work Robust Products & Processes Robust Products & Processes Total Productive Maintenance Total Productive Maintenance Supplier Involvement Supplier Involvement


Eight Service Industry WastesEight Service Industry Wastes

1.1. Errors in documentsErrors in documents

2.2. Transport of documentsTransport of documents

3.3. Doing unnecessary work not requestedDoing unnecessary work not requested

4.4. Waiting for the next process stepWaiting for the next process step

5.5. Process of getting approvalsProcess of getting approvals

6.6. Unnecessary motionsUnnecessary motions

7.7. Backlog in work queuesBacklog in work queues

8.8. Underutilized employeesUnderutilized employees


Examples of Office Process Waste Examples of Office Process Waste

•Too many signature levels•Unclear job descriptions• Obsolete databases/files/folders• Purchase Orders not matching quotation• Errors – typo’s, misspelling, wrong data• Waiting – for information, at meetings, etc.• Poor office layout• Unnecessary E-mails


Lean vs. TraditionalLean vs. Traditional

Major reduction in sales-order cycle time by 59 percent Major reduction in sales-order cycle time by 59 percent (from 23 hours to 9 hours)(from 23 hours to 9 hours)

Engineering change-order cycle time by 91 percent Engineering change-order cycle time by 91 percent (from two hours to two)(from two hours to two)

Response time to customer’s quote requests by 83 Response time to customer’s quote requests by 83 percent (from 66 hours to 11 hours)percent (from 66 hours to 11 hours)

Errors by company employees were reduced by 69 Errors by company employees were reduced by 69 percent percent

(Tonya, 2004) (Tonya, 2004)


After 5SAfter 5S

Clear, shiny aislesClear, shiny aisles Color-coded areasColor-coded areas Slogans & bannersSlogans & banners No work in processNo work in process


Push Vs. Pull Scheduling Push Vs. Pull Scheduling

Push Scheduling Push Scheduling • • traditional approach traditional approach • “ • “move the job on when finished” move the job on when finished” • • problems - creates excessive inventory problems - creates excessive inventory Pull scheduling Pull scheduling • • coordinatedcoordinated • • driven by demand (pulled through system) driven by demand (pulled through system) • • extensive use of visual triggers extensive use of visual triggers (production/withdrawal kanbans) (production/withdrawal kanbans)


Everyday Poka Yoke ExamplesEveryday Poka Yoke Examples

New lawn mowers are required to have a safety bar on the handle that must be pulled back in order to start the engine. If you let goof the safety bar, the mower blade stops in 3 seconds or less.

Fueling area of car has three error-proofing devices: 1. insert keeps leaded-fuel nozzle from being inserted 2. tether does not allow loss of gas cap 3. gas cap has ratchet to signal proper tightness and

prevent overtightening.

3.5 inch diskettes cannot be inserted unless diskette is oriented correctly. This is as far as a disk can be inserted upside-down. The beveled corner of the diskette along with the fact that the diskette is not square, prohibit incorrect orientation.


Six Sigma as a MetricSix Sigma as a Metric

Sigma = = Deviation ( Square root of variance )

-7 -6 -5 -4 -3 -2 -1 0 1 2 3 4 5 6 7

Axis graduated in Sigma

68.27 %

95.45 %

99.73 %

99.9937 %

99.999943 %

99.9999998 %

result: 317300 ppm outside (deviation)

45500 ppm

2700 ppm

63 ppm

0.57 ppm

0.002 ppm

between + / - 1between + / - 2between + / - 3between + / - 4between + / - 5

between + / - 6


ConstraintsConstraints

Any system can produce only as much as its critically constrained Any system can produce only as much as its critically constrained resourceresource

60 unitsPer day

70 unitsPer day

40 unitsPer day

60 unitsPer day

Constraint

Maximum Throughput = 40 units per day

Business

Office_Lean_sample