TEMPUS LeanEA

LEAN Training Course

May 23-27 2011

Course Leader:
Associate Professor Dr. Kim Hua Tan

TABLE OF CONTENTS
Introduction
Lecture Notes:
Session 1 Introduction Workshop
Session 2 Toyota History And Background
Session 3 Lean Philosophy and Principles
Session 4 Tabletop Game
Session 5 5S Visual Management
Session 6 Data and Root Cause Analysis, Analyzing Process Performance
Session 8 JIT Lego Game
Session 9 SMED and Poke Yoka
Session 10 Heijunka, High-Mix Low-Volume and OEE
Session 11-12 Operations and Process Improvement
Session 13-14 The Theory of Constraints
Session 15 Web Lean Game
Session 17 Mindset, Behaviour and Coaching

TEMPUS LeanEA Project

Lean Training Course in Nottingham (23-27 May 2011)
AIMS OF THE MODULE: This module aims to give participants: an understanding of Lean, and
the analytical skills to achieve incremental and step changes in performance: the skills to develop
and apply work standards in manufacturing and service planning and control. In particular, the
module addresses the concepts, tools and techniques that are essential to creating world class lean
manufacturing and service organizations.
LEARNING OUTCOMES:
After completing this module, the participants should gain following benefits:
Understand Lean as a system, not just as a collection of tools and techniques
Develop skills, tools and concepts to analyze, manage, and improve operations
Understand and apply hands-on application of Lean principles
Learn and internalize Lean principles for sustainable operations transformation
Understand how to apply Lean to develop own operations transformation action plans
Bring home potential outlines for Lean teaching in the university
ORGANISATION:
In this 5-days module, participants will learn about Lean through a series of discovery exercises, case
studies, games, videos, and guest lectures. In day 1, participants begin to develop a language and lens
for a Lean way of thinking. In days 2, 3 & 4, participants will learn, apply, and reflect on Lean
principles and tools through videos, lectures, games and exercises. Guest lectures will be organized to
enable participants to interact with practitioners and understand the issues and challenges in Lean
implementation. Finally, in day 5, participants will look at Lean and their operations in a wholly new
way. Participants will learn and understand the leadership and mindset required to make Lean happen.

CONVENER/TEACHER:
KH Tan
J Guinery
K Pawar
P Marzec
M Tse
Guest speakers
o Bojana Militunovic, Procurement Specialist, KBR
o Lina Zabaliunaite, Manufacturing Manager, Westmill Foods

TEMPUS LeanEA Project

Lean Course in Nottingham (23-27 May 2011)
COURSE SYLLABUS:
SessTime
Tutor
Topic
ion
May 23 (Monday): Introduction to Lean
1
09:00JT/
Introduction and welcome to Nottingham
10:00
KH Tan 5-day program outline
2
10:30KH Tan Toyota history and background
12:00
TPS house
Toyota video
3
13:00Mike
Lean philosophy and principles
14:30
Tse/KH 8 wastes, MUDA, exercises
Tan
Pull versus push
4
15:00KH Tan Tabletop game
17:00
Process redesign, one piece flow
May 24 (Tuesday): Introduction to Lean Techniques
5
09:00KH Tan 5S, Visual management
10:30
Examples from cases
Name card exercise
6
11:00Mike
Data and root cause analysis, analyzing process performance
12:30
Tse
Run charts, Histograms, Fishbone diagrams, 5 why exercises,
etc.
7
13:30Guest
Lean implementation examples (Westmill Foods)
15:00
lecture Making it happen
8
15:30KH Tan LEGO game
17:00
Pull versus Push
Floating bottleneck
May 25 (Wednesday): Introduction to Lean Techniques
9
09:00KH Tan SMED and Poke Yoke
10:30
SMED Game
10
11:00Peter
Heijunka, High Mix Low Volume and OEE
12:30
Marzec Heijunka exercise
11
13:30K
Gemba kaizen
17:00
Pawar
Examples
12
May 26 (Thursday): Putting Lean into Practice
13
09:00Jane
Lean in practice - Theory of Constraint (TOC)
12:30
Guinery
14
15

13:3015:00

Mike
Tse

16

15:3017:00

KH Tan

Lean game (IT base )

Web game for larger class size
Teaching Lean in classroom/training center
Course exam preparation
2

May 27 (Friday): Putting Lean into Practice

17
09:00KH Tan Leadership, mindset, behaviour, and coaching
12:00
Old maid game, attention test
Peter
Managing continuous improvement
18
Marzec Video: American vs Japanese suggestion programs

19

20

12:0012:30
13:3015:00

KH Tan

Examination

Guest
lecture

15:3016:30

KH Tan

Lean implementation examples (KBR)

Service operations
Issues and challenges
Concluding discussion & Award ceremony

ASSESSMENT:
Assessment will be by means of an examination (100%), to be held on 27th May 2011.
COURSE TEXTS:
Books
Core texts

Rother and Shook (2003) Learning to See: Value Stream Mapping to Add Value and
Eliminate Muda, Lean Enterprise Institute
Jones and Womack (2003) Seeing The Whole, Lean Enterprise Institute
Smalley (2004) Creating Level Pull, Lean Enterprise Institute
Harris, Harris, and Wilson (2003) Making Materials Flow Creating, Lean Enterprise
Institute
Rother and Harris (2001) Creating Continuous Flow, Lean Enterprise Institute
Nicholas, J.M. (1998) Competitive manufacturing management, McGraw-Hill
International
Bicheno, J. (2004) 'The New Lean Toolbox: Towards Fast, Flexible Flow' (3rd ed)
Picsie Press, England.
Womack J., Jones D. (1996) Lean Thinking: Banish Waste and Create Wealth in your
Corporation, Simon & Schuster, New York.
Imai (1997) Gemba Kaizen: A Commonsense, Low-Cost Approach to Management,
McGraw-Hill
Liker, J. (2004). The Toyota Way: 14 Management Principles from the World's
Greatest Manufacturer, McGraw-Hill
Womack, J.P. & Jones, D.T., (2003). Lean Thinking: Banish Waste and Create
Wealth in Your Corporation, New York: Free Press.
Spear (2008) Chasing the Rabbit: How Market Leaders Outdistance the Competition
and How Great Companies Can Catch Up and Win, Foreword by Clay Christensen,
McGraw-Hill
Drew, McCallum and Roggenhofer (2004) Journey to Lean: Making Operational
Change Stick, Palgrave Macmillan
Miller and Schenk (1993) All I Need to Know About Manufacturing I Learned in
Joe's Garage
Satoshi Hino(1996), Inside the mind of Toyota : management principles for enduring
growth. Productivity Press.
PMI (2000) The Process Manager: Transforming Goals into Results, Process
Management International
Lean Manufacturing Advisor (2006) Visual Tools: collected practices and cases,
Productivity Press, New York
Hiroyuki Hirano (1995) 5 Pillars of the Visual Workplace, Productivity Press, New
York
Mahoney, RM (1997) High Mix Low Volume Assembly, Prentice-Hall,

Englewood Cliffs, NJ
Lane, G (2007) Made-to-Order Lean: Excelling in a High-Mix, Low-Volume
Environment, Productivity Press
TPM: Collected Practices and Cases, 2005, Productivity Press
Shook, J (2003) Lean lexicon: a graphical glossary for lean thinkers, Lean
Enterprise Institute
The Productivity Press Development Team (2002) Standard Work for the
Shopfloor, Productivity Press
Imai , M (1997) Gemba kaizen: a commonsense low-cost approach to
management, McGraw-Hill
Kaizen for the shopfloor (2002), Productivity Press
Cellular manufacturing: one-piece flow for workteams(1999), Productivity Press
Drury, C. (2005). Management Accounting for Business, Thomson Learning.
Sutherland, J. & Canwell L, D. (2004) Key concepts in Strategic Management,
Basingstoke, Palgrave.
Dweck, C.S (2007) Mindset: The Psychology of Success, Random House
Publishing
Harding, S. & Long, T. (2008) MBA Management models, Aldershot, Gower
Publishing.
Rother, M (2009) Toyota Kata: managing people for improvement, adaptiveness,
and superior results, McGraw-Hill
Drury, C. (2005). Management Accounting for Business, Thomson Learning.
Sutherland, J. & Canwell L, D. (2004) Key concepts in Strategic Management,
Basingstoke, Palgrave.
Simon (2000), Performance Measurement and Control Systems for Implementing
Strategy, Prentice Hall.

Journals

Spear and Bowen (1999), Decoding the DNA of the Toyota Production System,
Harvard Business Review, September-October

Shah, R. and Ward, P.T. (2007), Defining and developing measures of lean
production, Journal of Operations Management, Vol 25, pp 785-805

Ahmad, A., Mehra, S. and Pletcher, M. (2004), The Perceived impact of JIT
implementation on firms financial or growth performance, Journal of Manufacturing
Technology, 15(2), pp 118-130

Bokhorst, J., Slomp, J (2010) Lean Production Control at a High-Variety, LowVolume Parts Manufacturer, Interfaces, 40(4), p303-312

Choobineh, F (1988) A framework for the design of cellular manufacturing

systems, International Journal of Production Research, 26(7), p1161-1172

Wemmerlov, U., Hyer, N (1989)Cellular manufacturing in the U.S. industry: a

survey of users, International journal of production research, 27(9),p1511-1530

Choo, A. S. (2010) 'Impact of a Stretch Strategy on Knowledge Creation in Quality

Improvement Projects'. IEEE Transactions on Engineering Management, PP, 99, 110.

Ferdows, K. (2006). "Transfer of Changing Production Know-How." Production &

Operations Management 15(1): 1-9.

Gosling, J., Mintzberg, H (2003) The Five Minds of the Manager. Harvard
Business Review, Nov, 81(11) p54-63

Hamel, G. & Prahalad, C. K. (1989) 'Strategic Intent'. Harvard Business Review,

May/June, 63-76.

Hamm, J (2006). The Five Messages Leaders Must Manage, Harvard Business
Review, May

Inkpen, AC (2005) Learning through alliances: GM and NUMMI, California

management review , 47, p114-136

In addition there are number other articles/additional material which provide useful supporting
information, these will be provided during the workshop.

18/05/2011

Agenda

Fire Exit

Campus Map

Wifi Point

Catering and Coffee break

Schedule

Nottingham Staff

Computer lab
(on Thursday)

2
Lecture room
in normal day

18/05/2011

Hotel to Jubilee Campus

Walk Path to Victoria Center (Bus stop)

Bus stop at city

centre for buses to
Jubilee Campus
From Jubilee:
All the bus with Destination - Victoria
Center is suitable

Days Hotel

Go to Jubilee 28, 30, 31

Bus Routes (1)

Bus Routes (2)

There are two ways to get into

Jubilee Campus:

(2) Orange line 36,35,36,37 to the back

entrance (go through a Pedestrian/cycle Take off at Hillside
route) at Derby Road A6200, Take off at
"Hillside"

(1) Pink line: 28,30,31 to the MAIN

ENTRANCE at Wollaton Road
A609, Take off at "Jubilee Campus"

Pedestrian

Information:
http://www.nctx.co.uk/orange/
Route map in City Center:
http://www.nctx.co.uk/orange/route.php

Information:

http://www.nctx.co.uk/pink/times.php

Route map in City Center:

http://www.nctx.co.uk/pink/route.php

All fair is 1.6 single, no weekly ticket

1 Day ticket is 3.2

Getting off point at Jubilee Campus

http://www.nctx.co.uk/fares/onthebus.php

18/05/2011

How to Connect to UoN-guest

Wireless

Some laptops have a switch on the side of the laptop to activate the wireless adaptor. Make sure this is
switched on

If you are in range your laptop should automatically connect to the UoN-guest network. If not, find
UoN-guest in the list of networks available, then double click to connect. If it is not listed you are not
within range of the hotspot. Please move the laptop until you are in range

1.

Open your web browser, then go to any website that is not the University of Nottingham (see next
page)

2.

The UoN-guest wireless login page will appear

3.

Enter your email address

4.

Select, I accept the terms and conditions of this service , to confirm you have read the terms
and conditions on this page

5.

A small pop-up window will appear. This is for you to use later to logout

6.

You are now connected to UoN-guest and can browse the internet

Wireless Access Point

Day 1 Day 2
May 23 (Monday): Introduction to Lean

10

Day 3 Day 4
May 24 (Tuesday): Introduction to Lean Techniques
May 25 (Wednesday): Introduction to Lean Techniques

09:0010:00

JT/
Introduction and welcome to
KH Tan Nottingham

5-day program outline

09:0010:30

KH Tan

5S, Visual management

Examples from cases

Name card exercise

10:3012:00

KH Tan Toyota history and background

TPS house

Toyota video

11:0012:30

Mike Tse

Data and root cause analysis,

analyzing process performance

Run charts, Histograms, Fishbone

diagrams, 5 why exercises, etc.

13:3015:00

Guest
lecture

Lean implementation examples

(Westmill Foods)

Making it happen

15:3017:00

KH Tan

LEGO game

Pull versus Push

Floating bottleneck

09:0010:30

KH Tan

SMED and Poke Yoke

SMED Game

May 26 (Thursday): Putting Lean into Practice

09:0012:30

Jane
Guinery

Lean in practice - Theory of

Constraint (TOC)

15

13:3015:00

Mike Tse

Lean game (IT base )

Web game for larger class size

Teaching Lean in
classroom/training center

16

15:3017:00

KH Tan

Course exam preparation

13
14

13:0014:30

Mike
Lean philosophy and principles
Tse/KH
8 wastes, MUDA, exercises
Tan

Pull versus push

15:0017:00

KH Tan Tabletop game

Process redesign, one piece flow

Heijunka, High Mix Low Volume

and OEE

Heijunka exercise

10

11:0012:30

Peter
Marzec

11

13:3017:00

K Pawar Gemba kaizen

Examples

12

11

12

18/05/2011

Day 5

Catering
1) Morning tea (10.00-10.30)
- Tea, coffee and mineral water

May 27 (Friday): Putting Lean into Practice

17

09:0012:00

KH Tan
Peter
Marzec

18

Leadership, mindset, behaviour, and coaching

Old maid game, attention test

Managing continuous improvement

Video: American vs Japanese suggestion programs

12:0012:30

KH Tan

Examination

19

13:3015:00

Guest
lecture

Lean implementation examples (KBR)

Service operations

Issues and challenges

20

15:3016:30

KH Tan

Concluding discussion & Award ceremony

2)

Lunch (12.30-13.30)
A Selection of Freshly Prepared Sandwiches
on Wholemeal, Malted & Farmhouse Breads
A Selection of Freshly Filled Wraps
Mini Indian Selection with Mango Chutney
Chicken Satay
Savoury Lattice Pastry (v)
Herb Sausage Bites
Fresh Crunchy Vegetables (v)
Fresh Fruit Platter
Plum Tomato & Parmesan Tart (v)
Cajun Chicken Skewers
Crispy King Prawn
Paneer Tikka Pizza (v)
A selection of Bite Sized Cakes
& Exotic Fresh Fruit Slices

13

3) Afternoon Break (15.00-15.30)

- Tea and coffee

4) Dinners
- Monday:
Marrakesh Morrocan Bar and Restaurant

14

Nottingham Staff

Dr. Kim Hua Tan

Prof. Kulwant Pawar

Dr. Jane Guinery

Mobile: 07904802221
Email: [email protected]

Email:
[email protected]

Email:
[email protected]

Mike Tse

Peter Marzec

Mobile: 07598950267
Email: [email protected]

Mobile: 07975511327
Email: [email protected]

15

18/05/2011

Agenda

Why Learn From Toyota?

Background and History of TPS

TPS System

Revenue Of Toyota

Why Learn From Toyota?

Reached 10% market share in 2000, and Toyota was

number one in global automobile sales for the first

quarter of 2008

Consistently maintains top productivity

Consistently achieves winning quality levels (before
the recall scandal )

Has triggered a global transformation of traditional
manufacturing to Lean Manufacturing.

Source: http://www2.toyota.co.jp/en/news/11/index.html

18/05/2011

Background of Lean And TPS

Agenda

The core concept of Lean originates from

the Toyota Production System (TPS)

Why Learn From Toyota?

Movie clip play

Background And History Of TPS

TPS System

Toyota began car production in 1933

TPS was developed in Japan in the post

1933
start car
product
line

1937
1st A
model

1946
Major
strike

1950
1960s
Start of Supplier
TPS
development

1980s
Transplants

war period after the 2nd world war

It was established under certain

geographic, economic, political and

cultural circumstances as an attempt to
increase Toyotas competitiveness

Low volume made mass production inflexible

Low productivity
Lack of resources

Important Persons In Toyota

History Of Manufacturing Management

Sakichi Toyoda, the founder of the Toyota group

of companies, started Toyota as a textile machine
company.

Kiichiro Toyoda, son of Sakichi and founder of the

Toyota automobile business..

Taiichi Ohno, Toyota's chief of production in the

post-WWII period. He was the main developer of
Toyota Production System (TPS).

Dr. Shigeo Shingo: A consultant to Toyota.

Shingo Prize is the highest manufacturing
excellence award in the U.S. The prize is given both
to companies and individuals who contributed to the
development of manufacturing excellence.

Source: http://www.strategosinc.com/lean_manufacturing_history.htm

18/05/2011

Waste Reduction By Lean

Manufacturing
Customer placed
the order

Customer placed
the order

Lead
time

Lead
time

NO
WASTE

WASTE
Completed the
order
Finished
Product
delivered

Agenda
Definition:
Lean is a
manufacturing
philosophy
which shortens
the production
lead time by
eliminating
sources of
waste.

Why Learn From Toyota?

Background And History Of TPS

TPS System

Finished
Product
delivered

Completed the
order

10

House Of Toyota

Toyota Production System (TPS)

Definition: The production system developed by Toyota
Motor Corporation to provide best quality, lowest cost, and
shortest lead time through the elimination of waste.

Goal: Highest Quality, Lowest Cost, Shortest Lead Time

TPS is comprised of two pillars, Just-in-Time and Jidoka

(autonomation) , and is often illustrated with the "house"
shown on the next slide.

Jidoka

Just-in-Time

Stop and notify of

abnormalities

Continuous Flow
Takt Time
Pull System

TPS is maintained and improved through iterations of

standardized work and kaizen (continuous improvement),
following PlanDo-Check-Act (PDCA Cycle from Dr.
Deming), or the scientific method.

Heijunka

Separate mans
work & machines
work

Standardized Work

Kaizen

Stability
Toyota Production System House
11

12

18/05/2011

The Toyota Way

Another e.g. The Ceva Lean House

Challenge  Long-term vision,

courage and creativity!

Excellence

Goals

Customer Satisfaction
Fast response

Low cost

Human Development

Zero defects

Physical &
mental safety

Flow

Principles

Kanban

Scheduling

Takt time

One-piece-flow

LEAN audit

*Emphasis is on operating system

Stop the
line

Built-inquality

5 whys

Poka yoke

Kaizen  Innovation and

evolution!
Genchi Genbutsu  Go to the
source to find the root cause!

Leveling

Stability

TPM

Standard
operations

Continuous
Improvement

Problem Go and see

solving

Standardized Work

Foundation

Empowerment

Quality

Pull

JIT

Challenge

Work
instruction

5S

Training

KPIs

Respect for
People

Continuous Improvement
Cross training

Waste
elimination

PDCA

Visual
management

Respect  Respect, take

responsibility and mutual trust!

Kaizen form

Teamwork  Growth and

performance!

Task
descriptions

13

14

The 4P Model of Toyota Production

System (TPS)
TPS
Problem
Solving

The Categories And The 14 Management

Principles Of The Toyota Way
Category

Management principles

Philosophy (long-term thinking)

Base management decisions on a long-term philosophy, even

at the expense of short-term financial goals

Process (eliminate waste)

Create process flow to surface problems

Use pull systems to avoid overproduction
Level out the workload
Stop when there is a quality problem

People and Partners

Standardize tasks for continuous improvement

Use visual controls so no problems are hidden
Use only reliable thoroughly tested technology

Process

People and partners (respect, challenge, and

growthem)

Grow leaders who live the philosophy

Respect, develop and challenge your people and teams
Respect, challenge, and help your suppliers

Philosophy

Problem solving (continuous improvement and

learning)
15

Continual organizational learning through Kaizen

Go see for yourself to thoroughly understand the situation
Make decisions slowly by consensus, thoroughly considering
16
all options; implement rapidly

18/05/2011

Toyota Production System (TPS):

Related Terms

Lean Application In Other Areas

Ohno System

Lean management in Office

MAN (Material as Needed) - Harley Davidson

MIPS (Minimum Inventory Production Systems) -

Westinghouse

Stockless production - Hewlett Packard

Lean in fastfood restaurant - McDonald

Zero inventory production system

Lean Manufacturing/Production - MIT

17

18

Reference
Book

Liker, J; Meier, D. (2005). The Toyota Way Fieldbook: A Practical Guide
for Implementing Toyota's 4Ps. McGraw-Hill.

Satoshi Hino(1996), Inside the mind of Toyota : management
principles for enduring growth. Productivity Press.
Journal

Spear and Bowen (1999), Decoding the DNA of the Toyota Production
System, Harvard Business Review, September-October
Website

http://www2.toyota.co.jp/en/news/11/index.html

http://www.strategosinc.com/lean_manufacturing_history.htm

19

18/05/2011

Purpose Statement
Previous session:

We know where is lean originated from We know
Toyota has developed an amazing management
philosophy
This session:

We will cover the core philosophy in of Lean
management, for instance, 8 Muda (wastes), JIT,
Kanban, Toyota DNA.
2

Three Types of Waste In Lean

Manufacturing

Agenda

MUDA

Unreasonableness

8 Wastes

Pull Versus Push

Toyota DNA
Inconsistency

10 JIT Elements

Operations/activities that do
not add any customer value

18/05/2011

Muda - Introductory Quotation

Non-Value
Added

Waste (Muda in Japanese) is

anything other than the minimum
amount of equipment, materials,
parts, space, and workers time,
which are absolutely essential to
add value to the product.

Vs

Value
Added

Non-Value Adding
Process:

Value Adding Process:

Those process steps that

take time, resources, or
space, but do not add
value to the product or
service itself.

A process step that

transforms or shapes a
product or service
towards that which is
sold to a customer.

?%

?%

Shoichiro Toyoda (
),
Chairman of Toyota (19921999)
5

Identify V.A. vs. N.V.A.

Lean Versus Traditional Approach

Ask:
Is this something the customer
would be willing to pay for?

Value
added

Value
added

Ask:
Non-value added

Does this activity change the

form, fit or function of the
product or service?

Traditional Approach

Non-value added

Lean

N.V.A. but necessary those that add no value to the customer but must be done.
7

18/05/2011

Muda Elimination Perspective

Elimination of Muda

Toyota perspective on waste is substantially different from the

This is the manufacturing system developed by Toyota which pursues

streamlining throughout the entire system through the elimination of
Muda, and aims to build quality in at the manufacturing process while
recognizing the principle of cost reduction. It also includes all the
accompanying technology necessary to accomplish those aims.

perspective adopted by the rest of other

E.g. it is common knowledge that inventory is waste, however,

when we actually see inventory on the shopfloor, we might

think:

1)we tend to see either something necessary for production
to run smooth, or

2) it is evidence of healthy manufacturing

Smooth?

Whats the difference in Toyota perspective?

Toyota does not view inventory in terms of productivity but

Productive?

in terms of cash flow

Father of TPS - Taiichi Ohno (

10

Waste

Agenda

TWO DIMES A method to

remember the 8 forms of

waste

MUDA

8 wastes

Some lean expert raised 7 wastes

Transportation

Pull Versus Push

Waiting

Toyota DNA

Over production

10 JIT Elements

Defects (Correction)

Inventory

Motion

Excess (over) processing

Shared knowledge
11

12

18/05/2011

The 7 Wastes
Waste

Description

WAITING

TRANSPORTATION

Waiting for Upstream

process to provide
inputs

Caused by the
unnecessary movement
of material , information

MOTION

1. Overproduction

Producing too much or too soon, resulting in poor flow of

information or goods and excess inventory

2. Defects

Frequent errors in paperwork, product quality problems, or poor

delivery performance

3. Unnecessary
inventory

Excessive storage and delay of information or products, resulting in

excessive cost and poor customer service

4. Inappropriate
processing

Going about work processes using the wrong set of tools,

procedures or systems, often when a simpler approach may be more
effective

5. Excessive
transportation

Excessive movement of people, information or goods resulting in

wasted time, effort and cost

6. Waiting

Long periods of inactivity for people, information or goods,

resulting in poor flow and long lead times

7. Unnecessary
motion

Poor workplace organisation, resulting in poor ergonomics, i,e,

excessive bending or stretching and frequently lost items

Caused by non-value
added movement of
people and machines

What might it look like

Unnecessary walking, bending,
twisting
Searching through database,
files, manuals
Extra clicks or keystrokes
13

Work in process waiting for

input/ information
Awaiting Approval
Wait for meeting to start
Waiting for systems to start

Moving documents
from place to place in
the process
Manual workflows
Office Moves
14

Source: Hines & Taylor, 2000

DEFECTS/ CORRECTION
This type of waste
occurs whenever we
have rework, defects or
audit

INVENTORY
This waste is work in
process or finished
product

OVER PROCESSING
Caused by
unnecessary
processes & operations

OVER PRODUCTION
Producing more product /
information than the customer
wants and before the customer
wants it

What might it look like

Incorrect reports/data
entry errors

More finished product

than the customer needs

Information not right

the first time

Emails/ requests to be read

or handled

KNOWLEDGE
Do not fully utilize our
employees or transfer learning

What might it look like

Printing extra copies of reports
Reports or information nobody
uses
Back ups between departments

Unnecessary hands-off
No decision rights
Complicated approvals
15

Repeating the same mistake

Specialists, not all employees solving
problems
Best Practices not shared across
organization
16

18/05/2011

Push versus Pull

Agenda

MUDA

Push system: material is pushed into downstream

workstations regardless of whether resources are

available

8 Wastes

Pull Versus Push

Toyota DNA

Pull system: material is pulled to a workstation just as

10 JIT Elements

it is needed

17

Just-in-Time (pull and flow)

stage A

buffer
inventory

JIT approach

Kanban

Goods are produced and handed off to downstream process

Creates excess inventory
The production of items at times required by a given schedule planned in advance

Push approach

stage B

buffer
inventory

stage A

Authorizes production from downstream operations

Pulls material through plant

stage C

May be a card, flag, verbal signal etc.

orders

stage B

deliveries

Japanese word for card (

Driven by demand (customer pull)

Coordinated production
Use kanban cards

orders

18

Used often with fixed-size containers

Add or remove containers to change production rate

stage C

deliveries
19

20

18/05/2011

Triangular Kanban Application

Triangular Kanban
Part #

Part Description

Date Triggered

Location

Lot Size

Trigger (Reorder) Point

Tool #

Machine #

21

Kanban System

Inventory

Traditional: inventory exists in case problems arise

JIT objective: Eliminate inventory

JIT requires

The function of Kanban

(is similar to)

Small lot sizes

The function of Inventory Reorder Point (ROP)

Single card

Move only containers

with C (Conveyance)kanban)

e.g.: Kawasaki

22

Low setup time

Dual card

Containers for fixed number of parts

Move only container

JIT inventory: Minimum inventory to keep system

with C- kanban

Produce only when
authorized by P
(Production)- kanban

e.g.: Toyota

running

23

24

18/05/2011

Less Inventory Exposes Problems

Small Vs Large Lots

JIT produces same amount in
same time if setup times are
lowered

JIT Small Lots

A

Time
Small lots also increase flexibility to meet
customer demands

Large-Lot Approach
A

Time
25

26

Toyotas DNA - The four rules

Agenda

Rules 1: All work shall be highly specified as to content ,

sequence, timing, and outcomes

Rules 2: Every customer-supplier connection must be direct, and
there must be an unambiguous yes or no way to send request and
receive response

Rule 3: the pathway for every product and service must be simple
and direct

Rule 4: Any improvement must be made in accordance with the
scientific method, under the guidance of a teacher, at the lowest
possible level in the organization.

MUDA,

8 Wastes

Pull Versus Push

Toyota DNA

10 JIT Elements

All the rules require that activities, connections, and flow

paths have built-in tests to signal problems automatically

It is the continual response to problems that makes this
seemingly rigid system so flexible and adaptable to changing
circumstances
27

28
Source : Spear and Bowen (1999), HBR

18/05/2011

Toyotas DNA
Rule

Agenda

Implied Hypotheses

Problem Signals

Responses

Specifications document
all work processes and
include content,
sequence, timing and
outcome.

The person or machine can

The work procedure
perform the work as specified
varies from specification
If the work is done as specified, Defective Products
the product is defect-free.

Improve training

How Work
Connects

Connections with clear

YES/NO signals directly
link every customer and
supplier.

Customer requests have

a known, specific volume and
mix.
The supplier can respond to
requests.

Determine true mix and demand.

Determine true supplier capability.
Retrain/improve/modify.

The Physical
Arrangement

Every product and

service travels a single,
simple and direct flow
path.

Every supplier in the flow path is A person or machine is

required and suppliers not on
not needed.
the flow path are not required
Unspecified supplier
performs work.

Determine why supplier was

unnecessary; redesign flow.
Determine reason for unspecified
supplier; redesign flow.

A specific change causes

a specific, predictable
improvement in productivity,
quality or other parameter.

Determine why the actual result

differed from the prediction.

How People
Work

Workers at the lowest

feasible level, guided by
How To Improve a teacher (Sensei),
improve their own work
processes.

Improve Process Capability

Modify the work specification

MUDA,

8 Wastes

Pull Versus Push

Responses do not keep

pace with requests.
Supplier is idle waiting
for requests.

Actual result varies from

expected result.

Toyota DNA

10 JIT Elements

Redesign the change.

Source: http://www.strategosinc.com/toyota_corporate_culture.htm29

10 JIT Elements

The JIT Island

Small lot size

Setup time
reduction

JIT facility
layout

Multi-skill
employee

1. Setup time reduction

Setup time reduction is also called quick c handover, its

function is to reduce the time involved in changing from
producing one product to other products.

2. Small lot size

Reduce lot size enables JIT systems to operate effectively so

that it benefits from less WIP inventories, less space required,
and increased flexibility.

3. Quality control

Infrastructure element of JIT

Have another names, such as Total quality control quality
circle, quality management programs and Total quality
management,

4. JIT purchasing

It is a supplier participation and partnership program. This

program would involve suppliers in long-term mutually
rewarding cost-reduction efforts.
Usually it requires frequent or JIT delivery and quality
certification, sole sourcing and developing a long term
relationship based on close work with supplier

5S campaign

JIT purchasing
Quality
control

30

Heijunka
Kanban
Total productive
maintenance

Ref: Ahmad et al. (2004), Shah and Ward (2007) 31

32

18/05/2011

5. JIT facility layout

In JIT system, equipment layout, such as U-shape layout is

notably different from Ford system.
This kind of manufacturing cell and other smaller equipment
designed for flexible floor layout, can eliminate operators
motion waste and have flexibility in responding to demand
variations.

6. Total productive
maintenance

This element attempts to establish and routine preventive

maintenance and replacement programs to reduce waste of
machine breakdown and failure.

7. Kanban and visual

management

In JIT system, the original meaning of Kanban is a signaling

device (usually is a card) to regulate material flows
In practice, the definition of Kanban has been extended; it is
used to denote all kinds of visual management tools.

8. Level scheduling
(Heijunka)

Requires materials to be pulled into final assembly in a

pattern uniform enough to allow the various elements of
production to respond to pull signals.
Attempts to stabilize and smooth the production workload,
reduce the waste of WIP and obtain high flexibility to
respond to diverse demand.

10 JIT elements

33

10 JIT Elements
9. Five S campaign

Sometime it is called housekeeping.

usually viewed as an important prerequisite for implementing
JIT.

10. Multi-skill employee flexibility of workers skill cross-functional workforce,

cross-functional training
The basic idea is to train employees on several different
machines and in several functions, and ultimately reduce
waste of human resource.

34

Reference
Book

Liker, J; Meier, D. (2005). The Toyota Way Fieldbook: A Practical Guide
for Implementing Toyota's 4Ps. McGraw-Hill.

Satoshi Hino(1996), Inside the mind of Toyota : management principles
for enduring growth. Productivity Press.
Journal

Spear, S. and Bowen, H.K. (1999), Decoding the DNA of the Toyota
Production System, Harvard Business Review, September-October

Shah, R. and Ward, P.T. (2007), Defining and developing measures of
lean production, Journal of Operations Management, Vol 25, pp 785-805

Ahmad, A., Mehra, S. and Pletcher, M. (2004), The Perceived impact of
JIT implementation on firms financial or growth performance, Journal of
Manufacturing Technology, 15(2), pp 118-130
Website

http://www.strategosinc.com/toyota_corporate_culture.htm
35

2011/5/18

Purpose Statement

Last session

Lean philopshy and TPS

Session 4
Tabletop Game

Overview

There are 4 evolutionary experiments

Craft Production

Division of Labour

Improved Lot Size, Layout and Workers

Balancing the process

They are related to the cellular layout principles of lot

size, production smoothing, one piece flow etc

This session

A hands-on game to learn the seed of TPS

Setup: Worksheets

Each sheet has 3 problems

Each problem has 8 operations

Each step uses results from the
previous stages

To start, pick an integer between
1 and 19 to feed into Operation 1

Example

Seed = 9

Op 1: (Seed) + 13 22

Op 2: (1) x 2 . 44

Op 3: (2) / 11 . ???

1.
2.
3.
4.
5.
6.
7.
8.

1.
2.
3.
4.
5.
6.
7.
8.

..
..
..
..
..
..
..
..

1.
2.
3.
4.
5.
6.
7.
8.

..
..
..
..
..
..
..
..

..
..
..
..
..
..
..
..

2011/5/18

Setup: The Players

8 operators

Observer 1:
Average task
time
Observer 2:
Average lead
time

All

All

3. Reduction of lot size,

improved layout and selection
of suitable workers
1

Experiment

All

4. Balancing the process

A

(1,2)

(3)

(4)

(5)

(6,7)

(8)

Record Form

All

The transporter moves all the

worksheets

1 transporter

All

2 observers

2. Simple specialisation

All

All

Observe 1: The task time- the time

from one operator to the next
Observe 2: The lead time- the time
from start to end

Set-up: The Layout

1. Craft Production
All

The operators complete the task.

Workers are not allowed to
move worksheet- That is
transporters role

Experiment 1: Craft Production

2

Operators

Complete all 8 stages FOR All 3 problems

Operator to time from start to finish

No transporters

Seed =1

2011/5/18

Experiment 1: Discussion

Both the task time and the lead-time are the same.

as the calculators) have very low rates of utilisation.

Furthermore, all the workers must be skilled at all the
jobs, mental, pencil and calculator calculations

There is a set-up time between different work
elements

Variation in times and errors in work is high

Experiment 2: Division of Labour

Work Sequence

Operator 1 gets all 8 sheets. Each sheet gets a different seed number

Operator 1 completes ONLY THE FIRST STEP for all three problems

When the a worksheet is completed the transporter takes it to Operator 2
who completes ONLY THE SECOND STEP for all three problems and so on..
4

Notes

Only the transporter can move worksheets around as per the layout above

If you have worksheets, do them- DONT STOP! (especially Operator 1!)

Under this scheme, major pieces of equipment (such

Now dividing the task up- operators arranged as follows

2

What is the average time?

Experiment 2: Division of Labour

Operators: only do the step allocated, but for all 3 problems

Observer 1: Follow a worksheet from start to finish, timing each
operator from when they start till when they finish

Observer 2: Time worksheet to when operator 1 starts till when
operator 8 finishes

Transporter: Move worksheets between operators- Note the
layout! WARNING: workers cannot move/pass
worksheets!

Experiment 2: Discussion

What is the average task time and the average lead-time with
simple specialisation?

We should see that simple specialisation reduces the task time
because the workers can get adept at the simpler tasks and there
are reduced set-up time.

This means more product can be produced in a fixed period of
time

BUT, lead-time soars because flow is interrupted due to
imbalances in the process: Stock builds up before slow
operations and after fast ones.

SO specialisation increases the capacity of a process at the
expense of the lead-time

2011/5/18

Experiment 2: Discussion

Also lead-time is increased due to the lot size of 3

Pros: Increased equipment operating rates

Cons: need for a transporter

Cons: increase production lead-time

Experiment 3: Discussion

What is the average task time and the average lead-time with
improved layout and selection of suitable workers?

The better selection of personnel should reduce the task time
(about 10%)

Also the improved layout should have reduced the lead-time

Transporter errors should be reduced

Transporter workload should be been reduced

Because of this workers have less idling

The lot-size reduction should have also reduced the lead-time

But the lead-time is still greater than in Experiment 1 because of
the imbalances in the process.

Pros: Improved ability to do work

Improvement 1: Improved layout- create a linear flow

remember: only the Transporter can move worksheets!!
4

problems per worksheet

And the transporter is now required. If the
transporter has too much work to do, then the benefits
of specialisation can be lost. Also transporter can also
make errors

Summary of effect of Simple Specialisation

Experiment 3: Improved Lot Size,

Layout and Workers

Improvement 2: Allocate Operators based on peoples strength,

that is, those that are best at mental calculations, do those, etc.

Improvement 3: Reduce lot size- Instead of having 3 problems
per worksheet (ie Batch = 3), cut them into 3 individual
problems and now move them (ie one piece flow)

Format same as previous: 2 observers; work sheet flow only by
transporter; Each problem gets a different seed.

Experiment 4. Balancing the

Process

You would have found that some operations are more difficult
then others- now we will balance them out

Operators

Step 1 and 2 are done by A

Step 3 is shared between B and C

Step 4 is done by D

Step 5 is shared between E and F

Step 6 and 7 are done by G

Step 8 is done by H

Observers- same

Eliminate the transporter

(1,2)

(3)

(4)

(5)

(6,7)

(8)

2011/5/18

Experiment 4: Discussion

What Have We Learnt?

What is the average task time and the average lead-

Simple division of labour, if done thoughtlessly can

time with improved layout and selection of suitable

workers?

There is no real change in the task time, except for a
slight learning curve effect, but the lead-time should
be drastically reduced

Lead-time should be the quickest yet!

Improved balance reduces queuing and waiting in the
process

This experiment show that we should both assign
people the the right tasks and balance the process

cause a bad layout and greatly increase the

transportation overhead

Balancing the process has the greatest effect on leadtime

Reducing the Lot-size has a large effect on lead-time

Re-arranging the process in the order of operations has
some effect on lead-time

How Does This Fit In?

JIT?

Kaizen?

Muda?

TOC?

Heijunka?

VSM?

Etc.

18/05/2011

Purpose Statement

Previous session:

We discussed the history of TPS, elements of TPS,.

This session:

Where to start with lean initiative after we know there

are wastes in our operation? Thus, we can simplify
and improve our firms operation?

Think It In Lean

Agenda

5S visual management a first tool of lean transformation !

5S

Visual management

If you dont know where to start lean, where would it be?

Name Card exercise

Go 5S!

To build teamwork and produce immediate result (you can

view it visually!!)

5S can be more than a starting point, in fact, it is the

critical part of overall initiative.

3

18/05/2011

Foundation For Improvement

5S For Improvement
To ensure a clean, orderly, safe and productive workplace.

The physical work environment is

Shitsuke

critical as the key driver for high

quality, low cost and rapid delivery.

Will product improvements see the
light of day in filthy plants?

Can we expect people in dismal
environments to work at their
maximum potential?

Can uncluttered minds with fresh
ideas function in cluttered
workplaces?

4S
Standardize

1S
Sort

Seiri

Seiketsu

5S
Sustain
2S
Set

Seiton

As managers, we demand the best from the people who work

with us. But in order to get the best performance, we must
provide the best working environment.

3S
Shine

Seisou

5S is a Foundation for Improvement

What Is 5S?

5S Elements

5S is a methodical approach to improve workplace

efficiency through organisation.

The aim is to reduce clutter, expose waste so that
you can eliminate it and prevent it from recurring
in the future

Improve workplace orderliness a place for
everything and everything in its place

5S relates to the Organisation of the Workplace
(Workplace Organisation), and is foundational to
Lean Manufacturing.

Sort (Get rid of everything you dont need)

Set in Order (Properly locate necessary stuff, set

inventory limits)

Shine (Clean everything inside and out)

Standardize (Create the rules for maintaining the

first 3 Ss)

Sustain (Ensure adherence)

5S in the US: Sort, Straighten, Sweep, Standardize, Self Disciple

5S + 1S (Safety) = 6S
5S + 2S (Safety and Security) = 7 S (Agilent Technology that was
part of Hewlett Packard)
7

18/05/2011

Why 5S?

5S In Visual Management

Visual Management are simple signals that provide an

immediate understanding of a situation or condition.

They are efficient, self regulating, and worker managed.
Examples include:

Pictures, diagrams

Color coded dies, tools, pallets

Lines on the floor to delineate storage areas, walk ways,

work areas, etc.

Improved lighting
To eliminate the wastes that result from uncontrolled processes.
To gain control on equipment, material & inventory placement and position.
9

The Good After 5S

10

Visual Management
link to Visual
management

Visual Management
Andon Lamp
Red - line stoppage
Yellow - call for help
Green - normal operation

Color-coded areas
Clear aisles
Increased visibility of non-conformances

Working procedures are mentioned clearly on

the board with pictures and instructions

11

12

18/05/2011

View Of Shopfloor

The Great Wall

5S Example

Five Foot Standard

Sight is blocked !

Before 5S
Link to McDonald example video

After 5S - Cleaned,
organized and drawers
labeled (less time and
frustration hunting)

13

Sort (Seiri)

SORT

14

Red Tag Process

Identify and remove clutter

Classify everything by frequency of usage

One-time activity to remove

or disposition clutter

Throw out what is not used (red tag exercise)

Sorting Criteria
Frequency of use

Action

Never (unneeded)
Once a year
Less than once a month
Once a week
Once a day or more

Throw away
Place in storage
Store in factory or office
Store in general work area
Carry or keep at workstation

1.
2.
3.
4.

Questions to ask:
What is this item used for?
How often it is needed?
Is it needed in this location? Anywhere else?
How many are needed?
Who uses it?
Are there any other reasons why this item should be kept here?

Identify clutter, unused

equipment, etc
Fill out and attach red tag
Note in red tag log
Red tags must be dispositioned
within 30 days

Source: www.superfactory.com

Red tag attack: A red tag attack is the strategy of a team going through
the plant and putting red tags on everything that has not been used within
the last 30 days. The items that people feel are necessary to "hold on to"
must be justified to their superior, or the item is taken out of the plant!
15

16

18/05/2011

Set In Order (Seiton)

5S Examples - Sort, Set In Order

SET

Locate what is used in the right place

Clearly indicate where things belong i.e. lines, labels,

signs, colours.

A place for everything (using boards, tools and dies on
trolleys or at the right height, and color matching to
link associated tools)

Everything in its place

Source: www.tocforme.com/ppt/5sbasictrainingppt.ppt

See the difference?

Sort - All unneeded tools, parts and supplies are removed from the
area
Set in Order - A place for everything and everything is in its place

17

Shine (Seisou)

18

5S Example - Shine
Shine

Eliminating all sort of contamination i.e. dirt, dust,

fluids, and other debris.

Cleaning is checking!

Check for abnormality and its root causes

Physical tidy up and visual sweeping (look out for

anything out of place)

To improve safety, product quality, and working

environment
The area is cleaned as the work is performed (best) and\or there
is a routine to keep the work area clean.
Source: www.tocforme.com/ppt/5sbasictrainingppt.ppt
19

20

18/05/2011

Standardize (Seiketsu)

Standardize
Sustain

Develop standard for the first 3 Ss.

Share information among teams so that there is no
confusion or errors regarding

Locations (tools, aisles)

Sustain (Shitsuke)

Keep the steam going! Daily 5-mins 5S activities

Everyone participates in 5S on an ongoing basis

(training)

Delivery

Encourage and recognise achievements

Destinations

Carry out audits regularly

Quantities

Schedules (cleaning)

Downtimes (maintenance)

Procedures and standards

Make the standards known (visual)

21

22

Exercise
Cabinets

With an Organized Workplace

Cabinets are part of the business environment, in the

Defects are reduced

workshops or office. These pieces of furniture have to be

part of the 5S discipline, and not be considered as
convenient hiding places for leftovers and scrap!

From visual management and 5S point of view, cabinets
have one weak point: solid doors. These doors hide the
cabinet content, its state of orderliness and restrain quick
access to documents, tools, or other items stored. Closed
doors do not allow to see from remote place nor
immediately, if a needed item, tool or document is at its. It
is then necessary to move to the cabinet, open it and...
discover.

Cleanup time is minimized

Inventory is reduced

Maintenance is improved

Safety is improved

Workers are more efficient

How would you tackle this?

23

24

18/05/2011

Exercise (answer)

Exercise (answer)

25

26

Business Card Exercise (Answer)

Business Card Exercise

While we attend conference/workshop/, we are

routinely exchanging business card whenever

the people first meet. Unfortunately, few
people organize their collection of business
cards rationally.

In fact, about half of the business cards that

people received are useless from the beginning.

They are exchanged merely as a formality with
neither party intending to use the card at a
later date.

In this exercise, we assume that there are loads

of unorganized business cards, how can we

apply 5S to manage these business cards,
transform them from MUDA to an useful
resource to our company? Form a groupof 6.

27

18/05/2011

Reference
Book

Lean Manufacturing Advisor (2006) Visual Tools:
collected practices and cases, Productivity Press, New
York

Hiroyuki Hirano (1995) 5 Pillars of the Visual
Workplace, Productivity Press, New York

29

18/05/2011

Purpose Statement
Previous session:

Overview the lean philosophy, 8 waste, JIT
This session:

For implementing lean, it is necessary to figure out the
waste before eliminating it

For instance:

Too much defects (waste!)?

Too much rework (waste!)?

Introduce techniques and tools for analyze the root cause

of waste

Think It In Lean

Agenda

Run Chart

We want to know what exactly the problem is

Histograms

We need to identify the expensive problem and solve

it

Pareto Diagram

5 Why

7 Quality Control Tools

Fishbone Diagram

Collection sheets

Run Chart

We need to use that time wisely. We only want to

solve them in oncesolving the same problem twice

is a MUDA!!!

Histograms

Pareto Diagram

Fishbone Diagram
Control charts
This covers 4 of the 7 Quality Control Tools, the rest of them are
data collection sheets, control charts, and scatter diagram

Scatter diagram
4

18/05/2011

Run Chart

Trend Example

Purpose:

As a process improvement tool, run charts allow for
the observation of a process characteristics while
preserving the time order of data

A trends can be
Finished product

indicated in the figure

600
500

Centerline = 467.5

Piece

400

There is a special

300
200

Run-charts show changes in a process over time by

100

giving an indication of:

The centre and the spread of process

Recurring cycles, trend, or shift

9 10 11 12 13 14 15 16 17 18

Remarks: Centerline is the median of the data

The effect of change over time

cause when a
sequence of 7 or more
points are steadily
increasing and
decreasing of no
change direction

Run Example
Quality of finished product
30

Cycle Example

A run having two or more
consecutive data point on
one side of the centreline

cause variation:
Repeating patterns

30
25

25
20
Centerline = 19

15
10
5

A run indicates a special

cause is one that show 9
or more consecutive data
points on one side of the
centreline

unit

No of defect

There is signal of special

35

20

A cycle must recur at

15

Centerline = 10.5

10

5
0

0
1 3 5 7 9 11 13 15 17 19 21 23 25

Then should be an
unusual event that needs
further investigation

1 3 5 7 9 11 13 15 17 19 21 23

least 8 times before it

can be interpreted as a
signal of a special cause
of variation

18/05/2011

Agenda

Histogram

Run Chart

Can describe a data set with

respect to shape, center and
spread

Help identifying
sorting, rework, or multiple
sources of variation in a process
 Histogram alone cannot indicate
whether the process that generate
the data is stable, since there is no
time element
 When the original data is grouped
in classes, some information is
loss

Histograms

Pareto Diagram

5 Why

Fishbone diagrams

10

Shape and Spread in Histogram

Agenda

Shape

Having an understanding of the shape of the data produced by
the process

Run Chart

Histograms

helps in the development of theories to explain what is happening,

Pareto Diagram

diagnosing problems

5 Why

identifying sources of variation

Fishbone Diagram

Spread

Measures of spread provide an indication of the magnitude of

variability in a dataset

The control limit can be constructed by the measure of spread
11

12

18/05/2011

Pareto Diagram

Pareto Diagram (2)

Pareto diagram indicates priorities for

Benefits

problem investigation or the main

sources of variation

The basis for prioritization can take
various forms, such as cost or
frequency of occurrence

Paretos Law states that 20% of causes
give 80 percent of the effect (e.g. 20%
of customer generate 80% of
turnover, sure it is just a
guideline, not a rigid rule )

A Pareto diagram is a bar chart that
summarized the items by their
frequency and order them in
decreasing frequency. The height of
the diagram is the total frequency

It provides a graphical method for prioritising issue

It helps to separate the vital few from trivial many

It provides the meanings to view the issue from different perspectives

Can be used to compare the rank of problems

Usually will employ before Value Stream Mapping (VSM)

There are loads of production and operation in my firm, which one
should be mapped in VSM? Use Pareto diagram to rank and illustrate
it!!
13

Levels Of Analysis

LEVERL 3. BREAKDOWN BY
REASON

MechCo is a large machinery

manufacturer that provides machinery
parts to variety industries. The project
manager, Mr. X, is reported by the
repairing department that the number
of repairing request by clients has
leaped in these two months. Even in
some cases, the same item has been
returned to MechCo twice in a month .
Mr. X has plotted a run chart and find
there should be a special cause for
these return.
Whats make him to have this
implication?

Customer Defect Return

30
25
No. of case

LEVEL 2. BREAKDOWN MAIN

CONCERN
BY OTHER CATAGORIES, SUCH AS
AREAS, TYPES, ETC.

Case Example - Level 1

Drill-down to the actual problem

LEVEL 1. IDENTIFICATION OF MAIN

CONCERN BY
CHECKING THE OVERALL
PERFORMANCE

14

20

Centerline = 19
15
10
5
0
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22

Week

_________________________
15

16

18/05/2011

Case Example - Level 2

Mr. X gets the product repairing
data in week 12-week 21, and he
has plotted a histogram. However,
the plotted histogram does not
give a clear information . He needs
a useful diagram that can really
represent the situation more
obviously. So, he can bring it to
quality team for further
discussion.

Level 2- Plot the Pareto Diagram

Week

Total

Product A Product B Product C Product D Product E

12
13

27
20

2
2

9
5

6
5

9
5

1
3

14

22

10

15
16

25
27

1
1

10
5

4
5

10
15

0
1

17
18

28
28

2
3

5
7

1
5

17
11

3
2

19

25

10

20

27

10

11

21

21

250

200
80 %
150
50%
100

Can you help him to re-plot it to a

Pareto diagram?
(Remarks: You may plot it to
another histogram, and follow
with Pareto diagram)

50

17

Case Example Level 3

0%

18

Agenda

Mr. X focuses on the repair cases of Product D

and B. He groups the defective information of
this 2 product into a table, and plots another
Pareto diagram.

80
70
60
50
40
30
20
10
0

100%

175

Run Chart

Histograms

Pareto Diagram

100
80%
75

5 Why

50

Fishbone Diagram

25
0

Motor breakdown
Cover melt
Overheat
Cover crack
Physical damage
ESD
Others

No. of case
73
26
49
15
5
5
2

He finds that most of the problems are related to motor.

i.e. the motor is breakdown because of overheat, even the
cover melting is another consequence of it. Thus, he
brings these figures and shows to the quality team to
discuss the problems.
To be continue

19

20

18/05/2011

Root Cause Analysis Tools

5 Whys?

5 whys is a Root Cause Analysis Tool.

Problem

Root
Cause

NOT a problem solving technique.

Corrective
Actions

The output of a 5 Whys analysis is :

one or several root causes that ultimately identify the reason why a

problem was originated.

Identify the problem
from data

Root Cause analysis Tools:

 5 Whys
Ishikawa Charts (Fish Bone, Cause & Effect Diagram.)

Failing to address the deeply rooted seed of the problem means it will likely

recur.
The problem-solver simply asks a why question approximately five
times in series.
Experience has shown that stopping at 2 or 3 whys usually means that
the inquiry has not gone deep enough.

21

5Whys: An Effective Problem-solving

Technique Example 1

22

Five Whys Preparation

It is not always necessary to reach 5 before the root cause of a problem is fully

Why is our client, unhappy?

explained

Because we did not deliver our services when we said we would.

It may take more than 5 whys to get to the bottom of it. It will depend on the

Why were we unable to meet the agreed-upon timeline or schedule for delivery?

complexity of the process or the problem itself.

The job took much longer than we thought it would.

In any case, 5 has been determined, as a rule of thumb, as the number at which

Why did it take so much longer?

most root causes are clearly identified.

Because we underestimated the complexity of the job.

Do not worry about not meeting or exceeding this number though. Just follow

Why did we underestimate the complexity of the job?

your thought process and let it decide how many Whys you require to get to
the point where the root cause is evident.

Because we made a quick estimate of the time needed to complete it, and
did not list the individual stages needed to complete the project.

Why didn't we do this?

Because we were running behind on other projects. We clearly need to

review our time estimation and specification procedures.

23

24

18/05/2011

Five Whys The First Why

Five Whys The Second Why

Clear statement of the reason for the defect or failure to occur, understood even
by people that are not familiar with the operation where the problem occurred.

A more concise explanation to support the first statement.

Get into the technical area, the explanation can branch out to several different

Often this first Why must be a short, concise sentence that plainly explains the
reason.

root causes here.

Dont try to justify it, there will be time to do that later on in the following whys
if it is pertinent to the thought process.

It is fine to follow each of them continuing with their own set of remaining 3

whys and so forth.

It is fine to write the questions down even if it seems too obvious for you (It may

not seem that obvious to other staff that will read the document).

25

Five Whys The Third Why

26

Five Whys The Fourth Why

Do not jump to conclusions yet, follow the regular thought process even though

Clear your mind from preconceived explanations and start the fourth why with a
fair approach.

This 3rd why is critical for a successful transition between the obvious and the not

You may have two or more different avenues to explore now, explore them all.
Even if one or several of them turn out not to be the root cause of the
problem, they may lead to continuous improvements.

some underlying root causes may start surfacing already.

so obvious.

This is a good time to include a Cause and Effect analysis and look at the 5 Ms.
Method
 Material
 huMan
 Machines
 environMent

The 1 and 2 whys have prepared you to focus on the area where the problem

could have been originated; the 3, 4, 5 whys will take you to a deeper
comprehension of the problem.

Visualize the process where the product went through (process mapping) and

narrow down the most likely sources for the problem to occur.

You do not need to answer all the whys at the same time, it is an investigation

activity and it will sometimes require you to go to the process and see things you
could have missed at first.
Remarks: You may be missing the obvious by rushing into logical explanations.
27

28

18/05/2011

Five Whys Conclusion

Five Whys The Fifth Why

A good way to identify if the 5 Whys was done properly is to try to

When you finally get to the fifth why, it is likely that you have found a systemic

organize the collected data in one sentence and define it in an

understandable manner.

If this cannot be done or the sentence is fragmented or meaningless
chances are that there is a gap between one or several of the whys. You
then must revisit the 5 Why and identify those gaps to fill them in.

cause.

If you have reached the fifth why and you are still dealing with process related
cause(s), you may still need one or two more whys to deep dive into the systemic
cause.

If there is coherence in the way that the sentence is assembled, it shows

consistency on the thought process.

Something like:

Problem Description occurred due to Fifth Why. This was caused by

Fourth why mainly because Third Why was allowed by Second
why, and this led to First Why.

29

30

5Whys: case example

Five Whys Conclusion

While Mr. X is discussing with the quality team, they

have started a 5 Whys root cause analysis process.

Do not forget that the sought outcome of a 5 Why exercise is a root cause of a the

defined problem, not the resolution of the problem itself

5 Whys is not a standalone Problem Solving technique but more of a tool to aid in

1.

Why did the motor burn out?

Answer: The shaft seized.

this process.

2.

Why did the shaft seize?

Answer: There was no lubrication.

Pros

easy to understand

can be done quickly

get us to something that needs to be fixed

3.

Why was there no lubrication?

Answer: The line filter was clogged.

Cons

not good for complex problems

can be done too quickly not enough data collection

wrong answer will take you down the wrong path

4.

Why was the line filter clogged?

5.

Why was it the wrong size?

Answer: It was the wrong size.

Answer: We receive the wrong size.
31

Root Cause?
Root Cause?

32

18/05/2011

Cause and Effect Diagram

Agenda

Run Chart

Also known as Ishikawa or Fish Bone diagram

Histograms

Used to identify and analyze all possible causes of a

situation or problem

Pareto Diagram

5 Why

Fishbone Diagram

environMent

Methods

huMan

Output

Material

33

Goal
Identifies possible root causes (inputs) associated with a
specific effect (output)

Brainstormed ideas become the small bones of the fish

Methods

34

Fishbone How To Do It Practically

Filling Out the Fish Bone

environMent

Machines

huMan

Steps:
1.Select a specific effect (tightly defined, small in scope)
2.Brainstorm the possible causes of the problem onto
individual post-it notes

Output

Variable
that affects
output
Material

3.Establish major cause categories, most frequently used are:

HuMan , Machine, Materials, Method/Process, EnvironMent
4.Construct the fishbone. This will become a living map of the
process towards resolving the effect:

Machines
35

36

18/05/2011

Fishbone How To Do It Practically

Fishbone: Case Example 2

5.Transfer Problem Post it notes to the diagram, placing

each cause under the appropriate cause category
6. List causes in order of priority

Human

Machine
Purchaser ordered
the wrong parts

Materials

No facility to assist to
discover the wrong
size before hand

Opportunistic
behaviour from
supplier

HUMAN

MACHINE

MATERIAL

Receive and
use the wrong
size line filter

Insufficient/wrong
inspection in finished
products

EFFECT

Poor incoming
inspection

METHOD

ENVIRONMENT

Eliminate causes in order of priority

The outlook of the

wrong part is so
similar to the correct
one

Improper purchasing
process

Method

Do you think this is a good

fishbone diagram? Why?
The product ion
leadtime is too short

Environment

37

Fishbone: Case Example Suggested

Answer

38

Cause and Effect Diagram

Pros

looks at lots of potential causes

more systematic than 5 Whys

better for dealing with more complex problems

Cons

39

takes some time; not a quick fix

40

10

18/05/2011

Link the Fishbone to 5 Whys ?

7. Establish which are the most likely causes. Circle these and

develop them further by asking 5 Whys to reach root cause

Data

Data

Data

Data

Data

1stWhy

2ndWhy

3rdWhy

4thWhy

5thWhy

HUMAN
Cause
Cause
Cause

Root Cause

Cause

8. Substantiate each Why step with real data to confirm. This

may take some time depending on data availability but will
prove to be entirely worthwhile in resolving any doubt within
or external to the team and in justifying possible expenditure

References
Book
PMI (2000) The Process Manager: Transforming Goals
into Results, Process Management International
Nicholas, J.M. (1998) Competitive manufacturing
management, McGraw-Hill International
Website
http://www.balancedscorecard.org/Portals/0/PDF/runc
hart.pdf

9. Agree corrective actions and begin trials.

41

42

11

2011/5/18

JIT LEGO Game

Designed to compare the two different modes of

production

Push

Pull (JIT)

We will be operating a production line making

seaplanes out of LEGO blocks

Firstly, we will run the line in the Push mode of

production, and then we will run the line in the

Pull mode of production

Just-In-Time (pull and flow)

Push approach

stage A

Overview

Goods are produced and handed off to downstream process

Creates excess inventory

buffer
inventory

stage B

buffer
inventory

stage C

Stage 1

Stage 2

Undercarriage

Fuselage

Stage 3

Stage 4

Wings &
Engines

Tail

Inspection

Driven by demand (customer pull)

Pull approachCoordinated production

Use kanban cards

orders
stage A

orders
stage B

deliveries

stage C

4 operators

deliveries
3

2 dismantlers

1 inspector
4

2011/5/18

The Set-up

The Set-up
Operator

Inspector

Dismantler

Responsible for assembling a particular part of

the product

Inspect every product for defects and record

the amount of products that are produced

Record timing that is indicated on the
Record Sheet

Dismantle the finished products and replenish

the raw material supplies

Production duration = 12 minutes

Lead time block inserted after 5 minutes

Tea break after 7 minutes

Count inventory

At the end of the production the inspector will count

up the number of products made (including defects,

etc.)

Lead Time Block

Experiment 1: The Set-up

During the game play, Kim / instructor will give a

lead time block (can be yellow or white)to

workstation 1, plug it into your working product
Inspector please start your timer

Push Mode

Operate with a batch system with a lot-size
of 3

As soon as the batch of 3 has been completed
it can be pushed to the next stage

No split batches can be moved

Start
Timer

Stop
Timer

Lecturer/instructor

Inspector

Inspector please Stop your timer once you get

this special product. The time you recorded
down is the production lead time

2011/5/18

Record Form

Experiment 1: Discussion

Time product with lead-time block is

delivered

What is the time product with lead-time block is

delivered?

Amount of WIP in the pipeline during

Tea Break
Good product

What is the amount of WIP in pipeline at Tea Break?

Defect product

What is the stress level of the operators?

Where is the position of the bottleneck?

Total production quantity

10

Record Form

Experiment 2: The Set-up

Pull Mode

Operate with a Kanban system with a lotsize of 3

Empty squares will be used as the Kanban
card to trigger assembly

Operators will only work when they receive a
Kanban, other they will remain idle

Push

Pull

Time product with lead-time

block is delivered
Amount of WIP in the pipeline
during Tea Break
Good product
Defect product
Total production quantity

11

12

2011/5/18

What Have We Learnt?

Experiment 2: Discussion

Benefits of a Pull System

Reduced
inventory
costs

What is the time product with lead-time block is

delivered?

What is the amount of WIP in pipeline at Tea Break?

Greater
customer
satisfaction

Where is the position of the bottleneck?

What is the stress level of the operators?

Higher quality
products

Less warehouse
space needed

More rapid
response to
customer orders

13

14

Dice game
WS1

WS2

WS3

WS4

4 persons form a production line

Each player acts as the operator of the work station (WS)

LEGO block is the stock in the whole production line

Each person starts with 4 stocks (except the WS1, WS1 has

infinite raw materials)

Each person has a dice

2011/5/18

Steps To Run Dice Game

Discussion

In each round
1.
Each person rolls the dice at the same time at the start of each round.
2. WS1 operator takes the number of LEGO blocks equal to what he has
rolled to WS2. If he does not have enough LEGO blocks, the he passes
all he has.
3. Operator needs to record the current stock in his WS in every round
4. Step 2 and 3 is repeated for everyone in turn
5. At the end of the round, WS4 operator passes the number of LEGO
blocks to the finishing line
6. Step 1 to 5 repeat 20 rounds

1.

The number of LEGO blocks in the queue will be the

measure of WIP and the total number of LEGO blocks that
passed finished line is a measure of the throughput
2. Plot a graph to show the WIP and throughput in each round

So, what does the graph tell?

2011/5/18

Purpose statement
Session 9
SMED and Poke Yoka

Previous session

Disscussed wastes in operations, and various tools to
analyze them

This session

Introduces two tools for improve these identified
opportunities:

Agenda

What is SMED?

Four Stages of SMED

SMED Game

What is Poke Yoka?

Mistakes VS Errors VS Defects

Poke Yoka Devices

Improving changeover time with SMED

Defect reduction with Poke Yoka

What is SMED?

SMED Single Minute Exchange of Dies

Changeover to a Single Digit Minute, i.e. less then 10 minutes

Developed by Toyota and expanded by Shigeo Shingo

Why SMED?
Idle time is non-value adding process (Muda/Waste)
Increase machine utilization
Improve Cost and Delivery

2011/5/18

What is a Changeover?

Includes

Changeover = the time taken

from the last conforming piece

until the first conforming piece
of the next run

Removing the old tool/dies

Attaching new tool/dies
Adjustment time
Production Time

Set-Up Time

Quick changeover...IKEA style

Production Time

http://www.youtube.com/watch?v=_GZUM87rNrg
Acceptable
Production

Change-Over Tooling

Scrap

Acceptable
Production
(New Product)

Start Process

Output
Acceptable
Production

Wasted Time

Acceptable
Production

Time

Why Quick Changeovers?

Flexibility: more often changeovers

Improve service levels

Smaller batch sizes means
less likelihood of large scale defect
problems in inventory

Lower inventory- Reduces the need for on-hand inventory

Better Quality: Reducing quality defects and yield losses due to
machine adjustments

Where is Time Spent?

10%

Centering and dimensioning new tooling

20%

Preparation of materials such as Jigs and Tools

20%

Removal of Tooling

50%

Trial processing and adjustment

Reduce lead time

Better On-Time Delivery

Increase machine capacities

2011/5/18

Changeover Activities

External Activities

The activities which currently take place when the machine is

switched off, but could be performed whilst it is still running

Collecting tools
Adjusting jigs and fittings

Finding shims etc

Internal Activities

work that must be done while the machine is shut down

Changing the blade on a band saw

Changing the head of a spray gun

Removing the tool from a press

2.
3.
4.

What is SMED?
Four Stages of SMED
SMED Game
What is Poke Yoka?
Mistakes VS Errors VS Defects
Poke Yoka Devices

SMED Principle- convert Internal activities to External activities

Four Stage Approach

1.

Agenda

Observe and record

Separating internal
and external setup
Converting internal
to external setup
Streamlining all
aspects of the setup

Stage 1: Observe

Observe: every activity of the changeover

Clipboard

Video

Stopwatch

Record: Time the steps

Identify Non-Value Added Activities

TIMWOOD
The camera never lies

2011/5/18

Stage 2: Separate

Stage 3: Convert

Allocate each activity into internal and external set up

Challenge whether some of the internal activities

should be external


INTERNAL

Stage 4: Reduce

Golden rules for SMED

Reduce Internal and External Set-up Time

Use other Devices
Quick clamping devices (toggle clamps)
Pneumatic tools

Eliminate-combine-reduce
ELIMINATE ?

EXTERNAL

Study the internal activities and look for opportunities where

operations could be:


Simplified


Use pre-set jigs and fixtures


Pre-heat molds or dies


Standardized fixtures, mounting plates, bolts
Question


What preparations need to be made in advance?


What tools and parts need to be on hand?


Where do tools and parts need to be placed?


Are tools and parts in good repair, cutters sharp?


Where should tools be placed after removal?


How will tools and parts be transported?

Point 1: 5S

Establish defined storage places for dies, jigs, tools etc

Create checklist and standardize terminology

Arrange items according to their frequency of use or the process
undergoing during SMED

Color code as required
Point 2: Move Arms Not Legs

Yes

Change layout or procedure as to minimize walking

No

COMBINE ?

No

REDUCE ?

Remove walking waste caused by a central control panel

Yes

Yes

2011/5/18

Golden rules for SMED

Point 3: Bolts As Enemies

Devise a lever-type fastener.

Devise a cam-type fastener.

Devise auto-clamp devise.
Point 4: Standardization Of Dies, Jigs, and Fixtures
Die height.
Die sizes.
Clamp height.
Clamp position.
Locators or stops for one touch setting.
Color coding to assure correct dies, jigs, and fixtures.

Agenda

What is SMED?
Four Stages of SMED
SMED Game
What is Poke Yoka?
Mistakes VS Errors VS Defects
Poke Yoka Devices

Golden rules for SMED

Point 5: Adjustment Is Waste

Set up guideposts or SOPs

Eliminate adjustment for setting the feed pitch.

Eliminate adjustment of material feed devices.

Eliminate adjustment for positioning.

Point 6: Can SMED Be Eliminated?

Can SMED be mechanized?
Integrate the press into the production line.
Use rotary press.
Mechanize the die replacement process (auto-feed and or auto-stop
devices.)

Tasks:
 Changeover from the large tool to

the small tool, and

 Change raw material from large disks

to small disks as quickly as possible

 Current Job:
 Large tool on machine
 Pin filled with 5 large disks (raw matl)

 Next Job:
 Small tool on machine
 Pin filled with 9 small disks (raw matl)

2011/5/18

Before SMED

Assembly Conditions
5mm 1mm

30mm
35mm

Perpendicular to 3
sides 1mm

30mm

Game Setup
 1 Operator

Assembly Rules

Loosen & tighten nuts with spanners & allen keys only

Dont use hands as adjusting spanners

 1 QA
 (tool centered 1mm, 5mm

between tool and clamp)

Dont write on the material

Tools cant fall out when the changeover is completed

Only the operator is qualified to make the changeover

 1 Time-keeper

2011/5/18

First Trial Checklist

First Trial Checklist

Material

Operating Procedure

Adjust & tighen clamp

Adjustment of 2
perpendicular sides/ edge

Small tool: 30mm on both
sides & 35mm from edge

Measurement 5mm while
disk cant fall out

Change the raw material (9
small disks)

Ruler

Set of Spanners

Set of Allen keys

New tool

New raw material

Results - Before SMED

Task

Time

Get and open toolbox

Find allen key from the pile of hand tools
Loosen tool
Remove Large tool
Get new tool
Find the right size spanner
Loosen and lift clamp
Put Small tool onto the machine
Find ruler
Adjust and tighten clamp by spanner
Adjust tool position
Tighten tool with allen key
Remove old raw material
Put new raw matl in place
QA intervenes

Before SMED - Discussion

What is the total changeover time?

What is the time spent on searching for hand tools?

What is the time spent on loosening and tightening

the tool?

What is the time spent on adjustment?

What is the stress level of the operators?

Variation in times and errors in work is high

TOTAL

2011/5/18

Second Trial Checklist

Material

Ruler

Spanner 19

Allen keys 5

New tool

New raw materal (9 small disks)

Shim & guide pins

Butterfly nut

Agenda

What is SMED?
Four Stages of SMED
SMED Game
What is Poke Yoka?
Mistakes VS Errors VS Defects
Poke Yoka Devices

Results - After SMED

Task

Time

Loosen tool using butterfly nuts

Remove Large Tool
Put shim & guide pins on machine
Put Small Tool onto the shim
Tighten tool with butterfly nuts
Take away raw matl, supply new raw materal
QA intervenes
Loosen tool using butterfly nuts
TOTAL

What is Error-Proofing?

Technique to minimise the possibility

For mistakes/defects to be made AND

Passed on to customers

Not on identifying and counting defects

Emphasis on the eliminating the cause

Can reduce the time/cost of inspection to near zero

2011/5/18

Poke Yoka and Shingo

Everyday Examples

Also known as Poke-yoke, Japanese for avoiding inadvertent errors

avoid (yokeru) mistakes (poka)

Technique formalized by Shigeo Shingo.

The use of process and/or design features

Build into

Product design
Tool design

Process design

Poke-yoke devices are mechanism that

Prevents a mistake from being made

Makes the mistake obvious

Auto-shut off Irons, Coffee Makers, Sinks in public places

Electrical outlets

Two handed start buttons

To err is Human

Agenda

Have you ever

Driven to work and not remembered it?

Forgot to stop at a store?

Workers do the same

Workers finish the shift and dont remember what

What is SMED?
Four Stages of SMED
SMED Game
What is Poke Yoka?
Mistakes VS Errors VS Defects
Poke Yoka Devices

they have done.

After building green widgets all morning, the workers
put green parts on the red widgets in the afternoon.

2011/5/18

Poke Yoka vs Statistics

Mistakes

omitted
operation

Mistakes are.
Nobodys fault


The execution of a prohibited action


The failure to correctly perform a required action


The misinterpretation of information essential to the correct
execution of an action


Due to variation in a process not people in the process


Traditionally viewed as


Natural, but blame the people who make them


Inevitable, and avoid the pain of understanding the process

Probability

Normal
Variation

Control Charts/Statistics/SPC is good at detecting shifts in the

process mean or variance.

Human errors tend to be rare, intermittent events. They are not

readily detected by control charts.

What Causes Defects?

Defects and Errors

Defects are results

Process Defects

Process Failure

Errors are the cause of results

Error prevention not defect detection

Humans make errors (Cause) and defects arise because errors are made

(Effect)

Errors will not turn into defects if action takes place at the error stage.

Operational or Procedure Failures

Process Error

Incorrect or Imprecise

Product Defects

Incomplete Product

Substandard Product

Prevention

Detection

10

2011/5/18

Agenda

What would you do to stop trucks

from hitting this bridge?

What is SMED?
Four Stages of SMED
SMED Game
What is Poke Yoka?
Mistakes VS Errors VS Defects
Poke Yoka Devices

Levels of Mistake Proofing

Some Common Poke Yoka Devices

Guide pins (capture or limit the movement of parts,

tooling during the assembly process)

Blinking lights and alarms (detects errors)

Limit/Proximity switches (show presence/absence of

components and their proper position)

Counters (count the number of passengers)

Checklists (graphical reminders of tasks, materials,

etc.)

11

2011/5/18

Where do you look for opportunities to

mistake proof?

Where do you look for opportunities to mistake proof?

Customer complaints/rejects

Material Review Board Data

Process yield data

Inability to maintain cycle time

Safety/EHS issues

Types of mistake proofing

devices

1) Prevent vs Detect

Devices used to either prevent mistakes

i.e., floppy disk

OR Detect error/defect at start up or during process

i.e., proxy sensor to detect punch

Audit findings

Types of mistake proofing

devices

Types of mistake proofing

devices

2) Physical vs Audio/Visual

Physically introduce safeguards that prevent mistakes
from occurring

3) Regulatory vs Setting

Regulatory: Devices that either control a process or give
warning about it

i.e., guide pins

Visual/Audible Warnings to notify that a mistake is

about to occur, or has occurred

i.e., Shuts down the process when it detects an abnormality

Setting: Ensures proper settings or counts in a process

i.e., SOPs

i.e., buzzer when car headlights are left on

12

2011/5/18

The Six Steps of Poke Yoka

Examples
Limit Switches on Jig

1.
2.
3.
4.
5.
6.

Understand the process

Identify possible opportunities for mistakes
Prioritise the risks associated with them
Tackle the highest risks
PDSA possible mistake proofing solutions
Implement mistake proofing solutions

A New Attitude Toward

Preventing Errors

Make wrong actions more difficult

Make it possible to reverse actions to undo

themor make it harder to do what cannot be

reversed.

Make it easier to discover the errors that occur.

Make incorrect actions correct.

Proximity Sensor Detects Broken Bit

Switches

broken bit

proximity sensor
warning lamp

Which processes should be mistake

proof?

Which processes should be mistake proof?

High error potential

Complex processes

Routine boring processes

High failure history

Critical process characteristic

13

2011/5/18

Ideal mistake proofing solution

The ideal solutions are:

inexpensive

simple and easy to implement

specific to the need

involve process operators

References and Reading

The Complete Lean Kit (Learning to See, Seeing The Whole, Creating

Level Pull, Creating Continuous Flow, Making Materials Flow, Lean

Lexicon), Lean Enterprise Academy (www.leanuk.org)

Bicheno, J. (2004) 'The New Lean Toolbox: Towards Fast, Flexible Flow
(3rd ed) Picsie Press, England.

14

2011/5/18

Purpose Statement
Previous session

SMED and Poke Yoka
This session

Builds on the JIT/kanban system with Heijunka, a
technique that smoothens production by controlling
the flow of kanbans, especially useful in high-mix lowvolume production. Subsequent improvement can be
measured by Overall Equipment Effectiveness

Agenda

What is Heijunka?

The Heijunka Process

What is Heijunka?

Heijunka () is a Japanese term for make flat
and level

High- Mix Low-Volume

Tool to Leveling (Smoothing) Production Schedules

OEE and the 6 Big Losses

It is a technique to combat mura ("unevenness")

Combining Lean and OEE

Instead of producing in large batches, produce smaller

evenly distributed batches over time (e.g., 7/day)

Level both mix and volume

I.e. At Toyota you will see Camrys and Avalons being
produced on the same production line at the same time

Balance the work load within the cell and the supply

base

2011/5/18

Why is it Important?

Key method to control kanbans and JIT

It is a simple way to visually manage the process of giving
customers exactly what they need when then need it

Benefits

Does not need to maintain large inventory buffers

Improved flexibility and lowered finished goods inventory

Production to better meet customer demands
need for
SMED?

Avoids batching which results in minimum inventories,
capital costs, manpower, and lead time

Flow is improved

Smaller demand signals are transmitted up the value stream

bullwhip effect?

Heijunka Box

---The Lean Lexicon

Paced Withdrawal

A method used to intercept the batches of information (Kanbans),

organize them and regulate the distribution

Just as we do not want to batch materials, we do not want to batch
information

A heijunka box has a row of kanban slots for each product type, and
column of kanban slots for each time interval

---Learning to See

The practice of simultaneously releasing new instructions and

withdrawing completed products.

A material handler performs a fixed route through a facility at fixed

time intervals

---Learning to See

2011/5/18

Paced Withdrawal

Agenda

As the products are withdrawn from the supermarket, the signal is

given to load the Heijunka box

Material handler takes the production instruction from the Heijunka
box to the assembly area

Material handler then withdraws the previously completed work

...and supplies to supermarket

What is Heijunka?
The Heijunka Process
High- Mix Low-Volume
OEE and the 6 Big Losses
Combining Lean and OEE

---Learning to See

Two Main Elements of Heijunka

Production Planning:

The Heijunka Process- Step 1

Level Production Volume.

1) Level Volume of Finished Goods

Level Production Variety.

A) Requirement =

B) Takt Time

9600

PIECES PER MONTH

SHIFTS PER MONTH

Customer Requirement

HEIJUNKA
PRODUCTION
PLANNING

= 460

20

460

= 1 minute

460

Minutes per Shift

Product

Total

Requirement

9200

4600

2300

2300

Shifts/Month

20

20

20

20

Pieces per Shift

460

230

115

115

2011/5/18

The Heijunka Process- Step 2

The Heijunka Process- Step 2

2) Level Variety of Finished Goods

2) Level Variety of Finished Goods

Traditional Batch Method

1 2

Heijunka Method

9 10 11 12 13 ..... 460
1 2

230

115

230

115

115

115

TOTAL 460

9 10 11 12 13 ..... 460

TOTAL 460

The Heijunka Process- Step 3

The Heijunka Process- Step 3

3) level Proceeding Processes

3) level Proceeding Processes

Process A
Delivery 2 min.

PRECEDING
PROCESS
OPERATION

FINAL
LINE
OPERATION

2 min./piece
Operators Required: Manual Cycle Time
= 1
Takt time
= 2 min./piece

Final Production Schedule (Lot)

Process B

Produce

Require
ment

Cycle
time

Takt
Time

230

2 min

2 min

115

4 min

4 min

115

8 min

4 min

Final Production Schedule (Lot)

A

Operators Required: Manual Cycle Time

4 min./piece
= 1
Takt time
= 4 min./piece

Delivery 4 min.

A
B
C

B
C
Process C
Operators Required: Manual Cycle Time 8 min./piece =
2
= 4 min./piece
Takt time

Delivery 4 min.

2011/5/18

Another example

Heijunka in Practice
1.
2.
3.

http://membres.multimania.fr/hconline/lean/heijunka2_us.htm

4.
5.
6.

7.

Agenda

What is Heijunka?
The Heijunka Process
High- Mix Low-Volume
OEE and the 6 Big Losses
Combining Lean and OEE

Calculate daily requirements

Decide time interval (1HR10MIN.) and establish route
Heijunka runner picks up the available Kanban delivery cards (at the
specified time) and proceeds to finish goods rack at cell
Heijunka runner pulls finish goods from rack and detaches Kanban
build from product- This will schedule the cell to start
Heijunka runner takes product with Kanban delivery cards back to
Heijunka board.
After product has been completed by the last operation in cell, a
Kanban build card for that product is attached and both are returned
to the cells finish goods rack.
After each trip to the cell, the Heijunka runner is responsible for
1.
Getting finish goods to the Heijunka delivery board.
2. replenishing raw material to cell.

HMLV vs HVLM

high-volume low-mix

manufacturers

Ie Ford

win business on the cost

and quality of products

high-mix Low-volume

manufacturers

Ie toyota

earn business based on

agility/flexibility in how
quickly they can deliver
what the customers
wants

2011/5/18

Issue

JIT is feasible in high-volume, low-mix

production but difficult in HMLV

HMLV enhances issues such as

The work times for each product are unequal

Not all employees have the same level of

competence, hence job shifting and rotation is

difficult

Agenda

What is Heijunka?
The Heijunka Process
High- Mix Low-Volume
OEE and the 6 Big Losses
Combining Lean and OEE

Solution
Divide each incoming order into
batches that can be assembled in
roughly the same amount of time
2. Use Heijunka principles to
smoothen batch production
3. Use SMED principles to reducing
setup time
4. Used Standard Work principles to
standardise work and improve ease
of training
1.

What is OEE?

Overall Equipment Effectiveness!

How effectively does your equipment run when you
plan to run it?

OEE = Availability X Efficiency X Quality

80% x 80% x 80% = 51.2% OEE!!!

Benefits

Identify major losses

Road map to find problems

Enhance capacity

Benchmark equipment

2011/5/18

Overall Equipment Effectiveness (OEE)

Definitions

Total Operating Time

Planned Availability
If you planned to use it, could you

Not
scheduled

A Net Operating Time

Downtime
losses

B Running Time

Performance Efficiency

C Target Output

Is it running at the desired output level

D Actual Output

Speed
losses

E Actual Output

Quality
Are you producing 100% good product

The Six Big Losses

F Good Output

OEE

Defect
losses

= B/ A
F/ E
D /C
Availability
Performance Quality

100

Breakdown
Available Run Time

Breakdowns
Setup & Adjustment
Idling & Minor Stoppages
Startup
Reduced Speed
Quality Defects & Rework

Changeover
Downtime Losses

Idling & Minor Stoppage

Net Operating Time
Reduced Speed

Speed Losses

Scrap & Rework

Valuable Operating Time
Start up

Defect Losses

2011/5/18

Agenda

What is Heijunka?
The Heijunka Process
High- Mix Low-Volume
OEE and the 6 Big Losses
Combining Lean and OEE

Combining Lean and OEE

1) Improving the Availability Dimension

Changeovers

50

SMED

Standard Work

Technology

40

Control System

Breakdowns

Pareto Analysis

30
20
10

- Jams
- Other
- Inserts
- Chips

Problem Solving Techniques 0

TPM

5S

Combining Lean and OEE

Combining Lean and OEE

2) Improving the Performance Dimension

3) Improving the Quality Dimension

Idling and Minor Stoppage Loss.

Non Conformance Losses

Pareto Analysis

Variability Reduction techniques i.e. SPC

Problem solving

Poke Yoke

TPM

Heijunka

Takt Time

Reduced Speed Losses.

Kaizen events

Training

Standard Work

Start Up / Set-up Losses.

SMED

5S

Design of Experiment

SPC

Re-design and Implementation

2011/5/18

Summary

Reference

AVAILABLE
TIME

'SIX' BIG LOSSES

DOWNTIME
LOSSES

BREAKDOWN

AVAILABILITY % =
# AVAILABLE TIME - DOWNTIME x 100
# AVAILABLE TIME

CHANGEOVER
PRODUCTIVITY % =
SPEED
LOSSES

IDLING & MINOR STOPPAGES

REDUCED SPEED

NON CONFORMANCE
LOSSES
VALUE
ADDED
RUNNING
TIME

NON-CONFORMING ITEMS

Books

Mahoney, RM (1997) High Mix Low Volume Assembly,
Prentice-Hall, Englewood Cliffs, NJ

Lane, G (2007) Made-to-Order Lean: Excelling in a High-Mix,
Low-Volume Environment, Productivity Press

either

CYCLE TIME x QUANTITY PRODUCEDx 100

## RUNNING TIME

or

TAKT TIME x QUANTITY PRODUCEDx 100

## RUNNING TIME

SET-UP SCRAP
QUALITY % =
x 100
QUANTITY PRODUCED - NON CON. ITEMS
QUANTITY PRODUCED

Articles

Bokhorst, J., Slomp, J (2010) Lean Production Control at a HighVariety, Low-Volume Parts Manufacturer, Interfaces, 40(4),
p303-312

O.E.E % = AVAILABILITY % x PRODUCTIVITY % x QUALITY %

Overview

Session 11-12
Operations and Process
Improvement
Kulwant S Pawar
Professor of Operations Management
Email: [email protected]

Why Benchmark?
External vs internal benchmarking
Consulting methodology
Kaizen (CI)
PDCA Cycle
Kaizen versus Innovation
Summary

Nottingham University Business School, UK

Professor K S Pawar

Professor K S Pawar

Why Benchmark?

To be able to compare and contrast with others

(internal or external comparisons)
To make strategic & informed decisions for
improvements
To be competitive
Often rating, what is important to customers needs to
be analysed and understood

GOOD

Better
than

EXCESS ?

APPROPRIATE

Same
as

IMPROVE

6
7

URGENT
ACTION

8
9
9

Less
important

LOW
Professor K S Pawar

Worse
than

Importance-performance matrix useful way of

examining order winners and order qualifiers
Professor K S Pawar

PERFORMANCE
AGAINST
COMPETITORS

To identify potential areas of weakness

The importance performance matrix

BAD

To understand the current status

Qualifying

Order
winning

IMPORTANCE
FOR
CUSTOMERS

HIGH
Slack et al, 2010

Historical evolution of Quality and CI

How Do Organizations Respond?

Organizations Rated By Performance

American
initiatives

Organisational
Development

Excellent -sustainable organisation

(Competitive Continuous Improvement, Breakthrough and Sustain business
excellence)

Country
Class

Japanese
initiatives

World-Class
(Continuous Improvement to become and sustain being the best)

World
Class

European
initiatives

(Keeping ahead of change)

Above average, but think they are

good or very good

ReEngineering

Total Quality

SixSigma

(Adaptive)

Survivors
Below average, but think they are
average or better

BSC

ISO9000

Zero
Defec
t

EFQM

MBNQA

Demin
g Prize

QCC
TQC

JIT

1960

1970

Slipping
Organizations

TQM
Lean
Productio
n

Kaize
n

1980

Winners

KM

Organisational
Learning

Learning

Best in
Class

1990

1995

2000

2005

Troubled
Organizations

Time

Losers

High Performance Benchmarking: 20 Steps to Success H. James Harrington

Professor K S Pawar

Professor K S Pawar

Internal Benchmarking

Benchmarking (External)
Competitive Benchmarking - comparison with
competitors

Functional Benchmarking - other organisations who

operate in a similar area of work, e.g., similar production
processes, and may be quite willing to co-operate

Generic (or process) Benchmarking - Main processes

are similar in every industry. e.g. A high level process such, as
staff appraisal is likely to have similarities in all organisations.

Best Practice Benchmarking - compare yourself to the

best companies in your industry

Professor K S Pawar

.. is simply setting an internal target, which a

company wants to or aspires to achieve.
Questionnaires are developed and participants
are asked to rate their current performance and
where they would like to be (as-is to to-be).
Comparison between different departments is
also possible.
Compared to external benchmarking this
method will enable companies to quickly and
easily identify areas for improvement.

Professor K S Pawar

Customers needs & how the performance might change over time

Different standards of comparison give different messages

100

cost
2

.5

.5

Absolute performance = 100%

Strategic goal = 95%

cost
2

90

.5

Actual performance = 83%

80
1

.5

dependability

Competitor performance = 75%

70

speed

speed

dependability

0 .5

0 .5

60

Last years average performance = 60%

50
40

Time
quality

flexibility

Time
quality

flexibility

Performance by historical standards is GOOD

Performance against improvement goal is POOR
Performance against competitors is GOOD
Absolute performance is POOR
Performance of the operation

Requirements of the market

Professor K S Pawar

Slack et al, 2010

Professor K S Pawar

IATA number of employees Data

Benchmarking Supply-Chain Management

Typical
Firms
Administrative costs as a
percent of purchases
Lead time (weeks)
Time spent placing an order
Percentage of late deliveries
Percentage of rejected material
Number of shortages per year
Professor K S Pawar

3.3%

Benchmark
Firms
0.8%

Slack et al, 2010

Ticketing, sales
and promotion

Airport handling

5912

3687

3394

3914

2.32

1.45

1.33

1.53

9.30

421

2028

3208

3072

232

15111

4.82

7.62

7.30

0.55

35.89

British Airways

3537

14568

6831

5761

10467

48748

4.12

1.93

1.63

2.96

13.78

Lufthansa

4607

13472

11795

90673

2.92

2.56

0.00

0.00

19.68

United Airlines

6455

15460

8430

3488

18191

61248

2.40

1.31

0.54

2.82

9.49

Singapore Airlines

2129

6856

475

2321

735

14713

3.22

0.22

1.09

0.35

6.91

618

1365

633

4555

2.21

1.02

0.00

0.00

7.37

Airline
Air Canada

Pilots and copilots

2551

Ratio to Pilots
Air India

15
42 minutes
33%
1.5%
400

8
15 minutes
2%
0.0001%
4

BMI

Cabin
attendants

Maintenance and
Overhaul

Total
(employees)
23714

Professor K S Pawar

Assessment Module

Example: Consulting System - An Overview

Request for
Assessment
I1

Target CE Improvement

Request for

Request
Director

Request

Assessment

CE Assessment
Module

I1

Raising

Awareness
Raising

Target CE
Improvement

Request
CE Solution

Solution

Awareness

1
O1

Request for CE

Solution
Identifier

I2

Request for

Request

Benchmarking Request

Assessment

(Optional)
2

Understanding

Area of CE

Request for Initial CE

O2

I2

Benchmarking

Improved CE

Initial
CE Screening

Improvement

Request for
Tool Selection

(Optional)

Target CE Improvement
Request

CE Tools

Request for Target

O3

Request for CE Tool

Selection
I3

CE Assessment

Benchmarking Request

Tool
Selection
Module

Implementation
Guidelines

(Optional)
O4

I3

Target
Data
Collection
4

O1

Target CE
Improvement
Request
O2

Benchmarking
Request
(Optional)

Professor K S Pawar

Professor K S Pawar

Areas & Criteria for Assessment

Organisation
Organisational Structure
Internal & External; Horizontal and
Vertical
Business Strategy
Goal Sharing, Strategy
deployment, Focus on key
competencies,...
Technology
Manufacturing Processes
Process structure, key operations,
...
Processing Equipment
Suitability, Functionality, Flexibility
Human Factors
Knowledge & Skill Base
Available knowledge and skills
Human Empowerment
Knowledge Sharing, Training,
Motivation

Professor K S Pawar

Company CE Profile (CEP) an overview

Assessment Criteria
Integration

Performance Values

Assessment Areas

Parallelism
Standardisation
Continuous
Improvement

Company
CE Profile
(CEP)

Customer/Supplier
Focus
Information Flow

Professor K S Pawar

Assessment Module - Initial Screening

Initial Screening-Identifying Critical Area(s) of Improvement

Understanding
I1

Interactive
Questioning
1

Current state
Desired state

Performance value

Improved CE

Company Specific
Information on CE

Request for
Initial CE
Assessment

Analysis

I2

Key Process Areas

CE Profile (CEP)

Selected area of improvement

Benchmarking
3

Comparative
Benchmarking Request (Optional)

CE Status

I3

V(c)CEP

40

32

35

32

40

50

CE Profile ( current)

V(d)CEP

60

40

57

65

63

50

CE Profile ( desired)

Area of CE Improvement

Reasoning

V(F)

O1

Professor K S Pawar

CEP

CE Profile ( focus)

Professor K S Pawar

Target Data Collection - Investigation of Critical Area(s) of

Improvement

Assessment Module - Target Data Collection

Area of CE
Improvement
I1

Target
Interactive
Questioning
1

Target Area Assessment

Area Specific CE
Information

Company CE Profile (CEP)

Request for
Target CE
Assessment

Target
Analysis
2

Area CE Status

V(c)CEP

pc1

pc3

pc4

pc5

pc6

V(d)CEP

pd1 pd2 pd3

pd4

pd5

pd6

V(F)CEP

I2

pc2

Performance Values
Benchmarking Request (Optional)
I3

Target
Benchmarking
3

Target CE

Area
Comparative CE

Improvement Request
O1

Status

Company Area CE Status (CES)

Target
Reasoning
4

Professor K S Pawar

Target CE Improvement
Request
O2

V(c)CES

sc1

sc2

sc3

sc4

sc5

sc6

CE Status (current)

V(d)CES

sd1

sd2

sd3

sd4

sd5

sd6

CE Status (desired)

V(F)CES

CE Status (focus)

Professor K S Pawar

Target Data Collection - Results

Professor K S Pawar

Continuous Improvement (CI): Definition

What is Kaizen?

Professor K S Pawar

Some of the elements of improvement approaches

Emphasis on
rapid change

CI is also known as Kaizen (Japanese word)

Masaaki Imai Kaizen means improvement in
personal life, home life, social life and work life.
When applied to workplace. Kaizen means
continuing improvement involving everyone
managers and workers alike

an effort to continuously seek and make

changes for the better through the processes
which are characterised by either
incremental or radical transformation, and to
maintain the results.
Professor K S Pawar

End-to-end
processes

Radical/
breakthrough
improvement
Six Sigma

Process based
analysis
Customer
centric

Emphasis on
solutions what
to do

Lean

Business process
reengineering (BPR)

Evidence-based
decisions

Emphasis on
methods how
Synchronized
Reduce
to do it
Systems and
flow
variation
Emphasis on
procedures
Waste
education Perfection
identification
is the goal Improvement
Customer
Include all
Continuous
cycles
relationships
people
improvement
Total quality
management
(TQM)
Emphasis on gradual
change

Professor K S Pawar

What are the key elements of operations improvement?

The elements that are the building blocks of improvement include:
Radical or breakthrough improvement
Continuous improvement
Improvement cycles
A process perspective
End-to-end processes
Radical change
Evidence-based problem-solving
Customer-centricity
Systems and procedures
Reduce process variation
Synchronized flow
Emphasize education/training
Perfection is the goal
Waste identification
Include everybody
Develop internal customersupplier relationships.
Professor K S Pawar

Features of Continuous & Breakthrough Improvements

Features

KAIZEN (CI)

INNOVATION (breakthrough
improvement)

Effect

Long-term and long-lasting but undramatic

Short-term but dramatic

Pace

Small steps

Big steps

Timeframe

Continuous and incremental

Intermittent and non-incremental

Change

Gradual and constant

Abrupt and volatile

Involvement

Everybody

Select few champions

Approach

Collectivism, group efforts, systems

approach

Rugged individualism, individual ideas and

efforts

Mode

Maintenance and improvement

Scrap and build

Spark

Conventional know-how and state of the art

Technological breakthroughs, new

inventions, new theories

Practical
requirements

Requires little investment but great effort to

maintain it

Requires large investment but little effort to

maintain it

Effort orientation

People

Technology

Evaluation criteria

Process and efforts for better results

Results for profits

Advantage

Works well in slow growth economy

Better suited to fast growth economy

Source: M. Imai 1986

Professor K S Pawar

Two improvement cycles

Kaizen v Innovation
Kaizen (Japanese)

Innovation (Western)

Define
Plan

Do
Control

Performance

Large number of small

Large scale, infrequent
incremental
Top-down, deployed
improvements
Step change in quality
Bottom-up
performance Based on people working
Breakthrough
in improvement
Often technology-based
teams/QCC
Company-wide
Kaizen
Innovation

The plandocheckact, or Deming improvement cycle, and the

definemeasureanalyzeimprovecontrol, or DMAIC six sigma
improvement cycle.
The concept of CI literally implies never ending cycle

Act

Check

Improve

Measure
Analyze

Time
Professor K S Pawar

Professor K S Pawar

The DMAIC cycle

PDCA Cycle (Western)

Defineidentify
problem, define
requirements and
set the goal

The DMAIC
cycle

Plan
(Management)

Controlestablish
performance
standards and
deal with any
problems

Measuregather
data, refine
problem and
measure inputs
and outputs
Improvedevelop Analyzedevelop
problem
improvement
hypotheses, identify
ideas, test,
establish solution root causes and
validate hypotheses
and measure
results

Do
P

Fire

Fight

D
C
(Worker)

Check
(Inspectors &
Management)

Source: M. Imai 1986

Professor K S Pawar

Continuous improvement

Professor K S Pawar

Incremental and Breakthrough Improvement

Processes

Continuous improvement

Plan
Act

Continuous Improvement = (Incremental

Improvement + Radical/Breakthrough Improvement)
+ Maintain
Incremental
Improvement

Quality
Performance

Performance

PDCA cycle repeated to create continuous improvement

Do
Check

Time

Maintain
Performance
Improving
steps
(PDCA,
DMAIC)

QA

Breakthrough
Improvement

Declining quality
performance without
maintenance

Time
Professor K S Pawar

Professor K S Pawar

Ten Kaizen sayings

Kaizen includes:

Get rid of all old assumptions

Don't look for excuses, look for ways to make things
happen
Say "NO" to the status quo
Don't worry about being perfect - even if you only get
it half right " start NOW!
It does not cost money to do KAIZEN
If something is wrong "Fix it NOW
Good ideas flow when the going gets tough
Ask "WHY" five times - get to the root cause
Look for wisdom from Ten people rather than one
Never stop doing KAIZEN!

Customer orientation
TQC (Total Quality Control)
Robotics
QC circles
Suggestion system
Automation
Discipline in the workplace
TPM (Total productive maintenance)
Kanban
Quality improvement
JIT
Zero defects
Small- group activities
Cooperative labour management relations
Productivity improvement
New product development

Professor K S Pawar

Professor K S Pawar

Problem Solving Tools

Cause & Effect
Diagram with CNX/SOP

Method for Organizing ideas (Fishbone

Diagram).

When you need to identify and explore and display the possible
causes of a specific problem or condition

Pareto Diagram

Separates the vital few from the trivial many.

Organizes data from highest value to lowest.

When you need to apply the relative importance of all conditions in order to:
Choose the starting point for problem solving.
Monitor success.
Identify the basic cause of a problem.

Run Chart

Method of graphing trends.

Histograms

Data collection and presentation tool for

frequency of occurrence.

Process Flow Charts

Pictorial representation showing all steps of a

process

5 Whys Root Cause

Method of breaking down the problem to the

root cause.

IPO Diagram

A visual presentation of capturing Inputs that

affect Outputs in a process

Summary
Important to develop internal and external benchmarks
Need to develop systematic processes
Human centred approach with advisory support and
guidance built in as integral component of most assessment
tools
Generic methodology needs to be developed which can be
adapted to specific situations/scenarios
Kaizen widely practiced and embedded in many Japanese
companies & increasingly accepted more widely
Extensive debate between Kaizen vs innovation

When you need to do the simplest possible display of trends within

observation points over a specified period.
When you need to discover and distribute data by bar graphing the number
of units in each category.

When you need to identify the actual and ideal path that any product or
service follows in order to identify problems.
When you need to implement corrective action on a problem and want to be
sure your actions will address the root cause and not just the symptoms of
the problem.
When you need to identify the inputs that comprise a process yielding to the
desired output(s) of any product or service

Why?
Why?
Why?
Why?
Why?

O
P

The foundation of statistical engineering and KISS.

Normal Distribution

The distribution characterized by the smooth, bell

shaped curve.

First Pass Yield (FPY)

Percent of first time passers throughout a system.

Same statement as Pareto Diagram above.

COPQ

The costs associated with any activity that is not

doing the right thing right the FIRST TIME.
The discipline of using a structured approach to
interrogate a process and optimize it via data

Purposeful changes of the inputs (factors) in order to observe corresponding

changes in the output (response).

Helps identify products or processes to focus improvement efforts on.

Y1

Y2

FPY = Y1*Y2...

Design of Experiments
(DOE)

Professor K S Pawar

$
Fac tor
A
B
C
D
E
F
G
Row # Pull Ba ck a ng le Stop an gle Pin He ig ht Cu p h eigh t Rub be rb an d po sitio n Ba ll typ e Ope ra tor
1
1 62
2
2
4
2
-1
-1
2
1 62
2
2
4
2
1
1
3
1 62
2
3
5
3
-1
-1
4
1 62
3
2
5
3
-1
1
5
1 62
3
3
4
3
1
-1
6
1 62
3
3
5
2
1
1
7
1 80
2
3
5
2
-1
1
8
1 80
2
3
4
3
1
1
9
1 80
2
2
5
3
1
-1
10
1 80
3
3
4
2
-1
-1
11
1 80
3
2
5
2
1
-1
12
1 80
3
2
4
3
-1
1

Y1
2 6.2 5
42 .5
37.8 75
71
96
96
75
1 03 .5
94 .5
8 1.2 5
9 8.7 5
80

Y2
25 .2 5
4 2.5
3 6.5
72
96 .7 5
95 .2 5
74
10 2.5
94 .2 5
83
97
77 .7 5

Y3
25
41
36
71.5
96
95 .25
72.5
10 2.5
94
82
96 .25
79 .25

Y4
25 .5
43
3 7.8 75
70 .5
95 .5
9 5.25
72
1 01 .5
94
82
96
79 .5

Y b ar
S
2 5.5 0.5 400 62
42 .25 0.8 660 25
3 7.0 625 0.9 601 43
71 .25 0.6 454 97
9 6.0 625 0.5 153 88
9 5.4 375 0 .3 75
73 .37 5 1.3 768 93
10 2.5 0.8 164 97
9 4.1 875 0.2 393 57
8 2.0 625 0.71 80 7
97 1.2 416 39
79 .12 5 0.9 682 46

Professor K S Pawar

18/05/2011

The Theory of Constraints (TOC)

The Goal: a process of ongoing

improvement by Eliyahu M. Goldratt and

Dr Jane Guinery

Jeff Cox (2006)

Starts with Alex Rogos dilemma - the typical

factory from hell

The Race by Eliyahu M. Goldratt and

Robert E. Fox (1994)

Production operation based on JIT

Session content
09:00-10:30

Introducing TOC

A simple application

Principles from The Goal

Rogos business scenario

The Goals analogies

Drum-buffer-rope

Includes dice game
simulation

Buffer management

Proces
sA

11:00-12:30

What is The Goal?

Accounting for TOC

Business decisions

exercise

Implementation issues

The Precision Tool room

The Chain Manufacturer

Proces
sB

Proces
sC
DEMAND

SUPPLY

KANBAN
Instruction
BUT, What happens if:
You manufacture a high variety of product
Demand is not repetitive

SLIDES FOR THE 2nd PART OF THE SESSION

WILL BE PROVIDED IN CLASS

Process routes and processes are not standard

Product focused or cell layout is not sustainable
DO YOU HAVE ANY CONCERNS WITH APPROACH?

18/05/2011

What is TOC?

Why TOC?
Impact of variety and variation
Variety

Low volume of each

product may not have

repeat orders

Flow layouts not feasible as

routes vary

Takes a whole system perspective

Variation due to

All systems have constraints which

dictate performance

Demand fluctuation

Process times change with

Constraint Management Improvement

Process

different products

Supply disturbances

Batch sizes make flow

lumpy

Need a different type of approach to PULL

1. Identify the constraint

2. Exploit the constraint
3. Align/subordinate everything else to

support the constraints

4. Elevate the constraint

5. Prevent inertia go back to step 1

Need to manage and smooth

demand

Align decisions

IMPACTS ON WHOLE BUSINESS

Need to protect supply

5

What are Constraints?

An illustrative case:

Towel manufacturer invests

in new machinery

Internal resource constraints

Processes:

Spinning

Market constraints

Warping

Policy constraints

Weaving

Bleaching

Dying

Cutting and Hemming

Finishing and labelling
7

18/05/2011

A closer inspection of the constraint

management improvement process

A bottleneck is a physical constraint

A bottleneck is defined as any department,
work station, or operation that restricts the flow
of product through the production system.

Identify the system's constraints

Determine how to exploit the system's constraints

Subordinate everything else to the constraint )

Analysis
of this example
leads to the following
An
illustration
of its significance

Elevate the constraint so a higher performance level can

How do you make sure the constraint is not wasted?

be reached

two principles:

If the constraint is eliminated go back to step 1

Do not let inertia become the new constraint

(1) An hour of production time lost at a bottleneck subtracts

one hour of output from the entire production system
(2) An hour of time saved at a non-bottleneck only adds an
hour to its idle time
9

10

Common bottleneck (X) and

non bottleneck (Y) scenarios

Identify the constraint

What is controlling flow?

Are all constraints the same?

What is the rate limiting

NO!

Physical constraints

Policy constraints

Paradigm constraints

Ask yourself which is the

factor?

Material

Resource

Skills

Sales

most common?

If external, select an

internal control point

There is a constraint, but

how do we see it?
11

Sno. Relation

Effect

Y X

Excess inventory in front of X

XY

Y would have idle capacity or would be starved for parts

to process (which is acceptable)

X Assembly
Y Assembly

Y parts would accumulate at the assembly

X Product X
Y Product Y

Ys capacity is greater than the market demand,

accumulation of finished goods inventory of Product Y.
12

18/05/2011

Exploit the constraint

Subordinate to the constraint

How can we get more money faster through the constraint

without spending more money

How do we ensure the rest of the company does not

waste the constraint capacity?

Eliminate constraint waste

Time
Unsold product
Scrap
Set-up
Unneeded work
Identify and use process alternatives to offload

Ensure

smooth flow of work to constraint

through lean principles e.g. low inventory, small batch sizes

Introduce

Drum-Buffer-Rope production control

WHICH

Protective Capacities (buffers)

Schedule
includes Buffer Management which helps focus

Concentrates on

Makes the goods we can sell

SMED, Poka-Yoke, TPM, SPC, Schedule, Cloud technique

improvement efforts on processes impacting on constraint

How can we select the most profitable work?

Transfer batch size process batch size

13

14

Drum Buffer Rope

Drum

Buffer?

20

Rope
University of Nottingham

16

18/05/2011

Production operation based on TOC

The Buffer

(and Drum-Buffer-Rope)
Rope release work based on bottleneck hours!

Release Work

Process
C

Process
A

Process
F

Process
D

Hours of work
available to
constraint 4

B
5 pcs
3 hrs

C
5 pcs
5 hrs

A
25 pcs
5 hrs

Buffer
Process
D

How is it managed?

Process
E

Process
B

Buffer size?
Buffer content?

Drum constraint process

DEMAND

D
2 pcs
6 hrs

B
5 pcs
3 hrs
1

C
2 pcs
5hrs
2

Schedule
C

Days

Are other buffers needed?

18

17

Network Flow Diagram of a more complex system

with one Bottleneck

D-B-R: The Benefits

Reduced Lead Time

High Due Date Performance

Reduced levels of inventory

Reduced expediting

Capability for increasing sales significantly

Fewer materials/parts shortages

Improved bottom-line performance (typically
within 6 - 8 weeks)

19

20

18/05/2011

Elevate the constraint

Questions

How do we increase the capable rate of the constraint?

Does TOC theory make sense in your business?

Management question

Where should the constraint be located?

How do we move it there?
To most effectively apply the tools of constraint
manufacturing

Are you already using some of the principles

discussed?

If not, how might you apply them?

Prevent inertia
21

22

18/05/2011

Introduction

It supports large scale
class, up to 70-100 players

It integrates both physical
lean game. i.e. JIT LEGO
game and Dice game

Please open the web-game
http://www.nottingham.ac.uk/~lizkht/

Basic System Requirements

To Start

Follow the instructions

User need a computer/laptop

which is already connected to
internet

step by step

The games consists of

The game supports any

browser with Flash Player
PlugIn.

three levels.
Push demo
2. Pull demo
3. JIT production game
1.

The web game needs

Javascript enabled in your
browser setting. (The default
settings of your browser is
already enable this functions)
3

18/05/2011

Level 1 - Demonstration of Push

System

Level 2 - Demonstration of Pull

System

Click the Start Simulation

button to run the simulation

The setting is the same as

level 1, it is only enhanced

with Kanban

The simulations will stop at

turn 200.

Record the number of

finished goods and

number of WIP

Record the number of

finished goods and number
of WIP

Is there any difference

If your facility is connected

with printer, you can print
the results as well

between these two

simulation results? Why?

Level 3 JIT Production Game

Level 3 JIT Production Game

The Pull simulation is

The game will stop at 1000 rounds

improved in this level that

you can change some
parameters of the game

Please configure your production line that can achieve

maximum output

The parameters are:

Kanban batch size

Resource allocated in
improve quality variance

Assign number of staff in
each work station

Print the screen, or drop down your production line

setting while you run the game each turn

18/05/2011

Discussion
1.

The production target now is changed to - "manufacture 100 pieces

of finished item within 10 working days", what are the parameters
changes? (you can try it by yourself to run the simulation again)

2.

What does the Kanban system affecting the production? in terms of

cost? in terms of performance?

3.

What is the critical factor affecting the performance?

4.

Does the changes of Kanban batch size affecting the performance?

5.

Are there major parameters about Kanban system that is neglected in

this simulation? What's that?

2011/5/18

Purpose statement

Previous session

The DNA of Lean is PEOPLE...

Session 17
Mindset, Behaviour and Coaching

Agenda

This session

Lean is as much about process improvement as people
improvement and development

Understanding behaviours, mindset and coaching is
fundamental in developing people for successful Lean
implementation

For most companies, doing businesses as

usual is not an option

Mindset and Behavior

Kata Coaching

2011/5/18

Most lean attempts fail for 3 reasons

Waste

Inflexibility

Barriers to lean transfer

Fail to address performance inhibitors

Variability

5S

Take a piecemeal approach, which can deliver

results at micro-level but doest not deliver
significant impact to the customer or
shareholder

The case of Toyota and GM: NUMMI (Inkpen, 2005)

Managers assigned to NUMMI gave little preparation
and training

Absorptive capacity of the recipient resistance of GM
to implement lean

Lack of relationship between the source and recipient

On average 27 month duration of knowledge transfer

TPS deeply embedded in Toyota context and tied into an
integrated system

Only tackle the technical elements

On barriers to transfer

Firm culture that values technical expertise &

knowledge creation over sharing

An over-reliance on transmitting explicit rather than

tacit information

Not rewarding people for learning and sharing
knowledge

Capacity to facilitate knowledge transfer and
assimilation

Attention Test
http://www.youtube.com/watch?v=vJG698U2Mvo

2011/5/18

Transfer mechanisms for

operations know-how

Transfer approaches

Manufacturing

Adaptation

Ferdows (2006)

Cloning

Intels Copy exactly

Practices

Source: Manufacturing Mobility, University

of Cambridge

Global (McDonald)

Polycentric (BAT)

Form of
operations
know-how

Codified

Ethnocentric (traditional family enterprises)

Moving people
(Club Med)

Tacit

Issues such as:

Manuals and systems

(Mcdonalds)

Process appropriateness

Projects
(AOL)

Joint development
(Intel)

Fast

Slow

Transferability

Speed of change of operations know-how

Life cycle effects

We believe transfer needs to be

approached at three levels

The dimensions of Lean knowledge

What are the different levels of lean knowledge ?

Configuring resources to educate

workers on lean thinking and
techniques

What knowledge are general or sticky ?

How to identify them?

Before
transfer

Lean
system
Management
infrastructure

Ensuring that the operating

system is followed in a habitual
way (hard-wired) without any
form of extraordinary effort

Mindsets,
Capabilities &
behaviours

After
transfer

Aligning the mindsets and

behaviours of workers with
business objectives, and build
self-standing capability

What are the stages in lean practice transfer?

Before
transfer

Lean
system
Management
infrastructure

Mindsets,
Capabilities &
behaviours

After
transfer

2011/5/18

Sustaining change depends on...

What is Mindset?

Aligning mindsets, capabilities and behaviours to the

People fall into two types of mindsets:

Fixed

Growth

The fixed mindset sees limitations on intelligence,

business goal

personality, opportunities, etc.

The growth mindset views challenges as opportunities

for improvement.

(McKinsey & Co)

To change mindset

Role of motivation in changing

behaviour

Traditional management = extrinsic motivation

External forces such as

Rewards and incentives

Punishment
Company targets

Lean management and quality teams = intrinsic motivation

Motivation driven by internal force such as

interest
Enjoyment
Self efficacy
Challenges

2011/5/18

Agenda

Mindset and Behaviour

Kata Coaching

What is a Kata?

A way of doing something

A pattern, form, routine
or method

Originally a set of
sequences in martial arts

What is the Toyota Kata?

Toyota Kata

Day-to-day management, methods and routines

Behavioural rules for people

Taught to all organization members and repeated in
daily work

Two forms of Kata

Improvement Kata
2
Current condition

4
Barriers
PDCA

3
Target

1
Vision

Step 1: establish long term vision

Step 2: Current state, where are we now?

Step 3: what is our next target in order to reach our vision?

Step 4: what are the barriers to the target? Use PDCA to
overcome

2011/5/18

Improvement Kata
1.
2.
3.

4.
5.

What is the target condition? (the challenge)

What is the actual condition now?
What obstacles are now preventing you from
reaching the target condition? Which one are you
addressing now?
What is your next step? (start of next PDCA cycle)
When can we go and see

Coaching Kata

Purpose

For the mentor to assess the current status of

the process
the learner

To get the learner to build a chain of PDCA cycles (what is learned

from one PDCA cycle leads to the next PDCA cycle)

To help teach the improvement kata pattern through repetition

Train for short time frequently, then long time once

Hence use of incremental improvements

We build people before we build cars- Toyota

Coaching kata

Lessons learnt about Coaching kata

The stakeholders

The mentor (the Coach)

Usually targets are set too ambitious

Everyone has a mentor

Knows the details
Asks questions
Teaches the improvement kata
Focuses on learning NOT results

The Mentee (The learner)

Owns the target and works to achieve it

The Process or the focus of the Improvement Kata

A secondary Mentor to Coach the Coach

Do coaching at beginning of a shift as a kind of check

It requires practice

A coaching cycle is not a surprise check, so preparation

is the key

Relies on up to date facts and data

Coaching cycles are for improvement, not monitoring

Its not When can you have it done? rather What are
we learning?

2011/5/18

References and Reading

Coaching for Performance
http://www.youtube.com/watch?v=0ScHWylEDgA

Books

Dweck, C.S (2007) Mindset: The Psychology of Success, Random House Publishing

Harding, S. & Long, T. (2008) MBA Management models, Aldershot, Gower Publishing.

Rother, M (2009) Toyota Kata: managing people for improvement, adaptiveness, and superior
results, McGraw-Hill
Articles

Choo, A. S. (2010) 'Impact of a Stretch Strategy on Knowledge Creation in Quality Improvement
Projects'. IEEE Transactions on Engineering Management, PP, 99, 1-10.

Ferdows, K. (2006). "Transfer of Changing Production Know-How." Production & Operations
Management 15(1): 1-9.

Gosling, J., Mintzberg, H (2003) The Five Minds of the Manager. Harvard Business Review,
Nov, 81(11) p54-63

Hamel, G. & Prahalad, C. K. (1989) 'Strategic Intent'. Harvard Business Review, May/June, 63-76.

Hamm, J (2006). The Five Messages Leaders Must Manage, Harvard Business Review, May

Inkpen, AC (2005) Learning through alliances: GM and NUMMI, California management
review , 47, p114-136

Mueller, C.M., Dweck, C.S (1998) Praise for Intelligence Can Undermine Children's Motivation
and Performance, Journal of Personality and Social Psychology, 75(1), p33-52

Five Minds of the Manager

Advanced Material
(Not covered)

1.
2.
3.
4.
5.

Managing self: the reflective mind-set

Managing organizations: the analytic mindset
Managing context: the worldly mindset
Managing relationships: the collaborative mindset
Managing change: the action mindset

(Gosling & Mintzberg, 2003)