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Small Business Seminar:
Lean for your small business



                              October 26, 2011

                The NEW Lean Consulting Group

                                                 1
Welcome and Introductions
  • NEW Lean Consulting Group
    – Provide Lean consulting services
    – To community businesses and not for profits
      with a quality resource for their Lean journey.

  • Certified Lean Lead Facilitators
    – Jamie Voster
    – Lisa Rothbauer
    – Amy Lauko – Project Lead


                                                        2
Imagine……….
•   Cutting time to process customer requestsby 75%
•   Reducing inventory by 75%
•   Improving quality by 50% – 200%
•   Increasing productivity by 50% – 75%
•   Reducing clutter
•   Reducing time it takes to find and do things




                                                      3
Lean -

  A business system involving all employees
   which constantly pursues the elimination of
   waste to shorten the lead time of a process.

  Not just for manufacturing! Lean principles
   can be applied to any business and every
   process.


                                                  4
Lean Is….                      Lean Is Not
             Is                      Is Not
• A significant shift in     • A headcount reduction
  thinking and performance     strategy
• A long term strategy       • Merely a cost reduction
• Applicable to any            strategy
  organization and every     • A quick, one time fix
  process                    • A short term project
                             • Applicable only to
• Focused on maximizing
                               manufacturing
  value
   – optimizing flow
• Culture changing                                       5
Elements of Lean Thinking
 Learning to see
 Focus on process not on people
 Standard work
 Continuous improvement
 One piece flow
 Error proofing (poka yoke)




                                   6
Lean Toolbox
                            5S            A3
           Teams
                                       Problem
                                       Solving
Setup Reductions

                                                TPM


                                           Kanban


                                    Work Cell
Value Stream Map
                   Error Proofing

                                                      7
Lean Requires Change
• Change is required in
  – Thought
  – Culture
  – Perspective


• Change must occur to achieve success.




                                          8
Change is hard……...
But stagnation is fatal.
Dr. Peter Bishop
University of Houston




                           9
Implementing Change

Critical success factors:
• Leading
• Training
• Acting
• Sustaining
• Plan, Do, Check, Act (PDCA)



                                10
Kaizen -

  Japanese for improvementor
  change for the better.

  It refers to a philosophy or practice that
  focuses upon continuous process
  improvement.

                                               11
Kaizen Events

• Cross functional team empowered to make rapid
  changes in a process
• Targets waste, variability, and non-value add activity
• All necessary resources are readily available
• Look for immediate results that address root cause.




                                                           12
Continuous Steady Improvements
via Kaizen Events
I




                                                               Kaizen
M
                                           Standardize
P




                                           Kaizen
R
O                            Standardize

V
                             Kaizen
E              Standardize
M
               Kaizen




E   Starting
N   Process
T
                             TIME                   From “Kaizen”, Masaaki Imai

                                                                                  13
Key Characteristics of a Lean Team

 An insatiable drive to increase value through
 the on-going elimination of waste.




                                                 14
Waste


 The focus of Lean is…
waste elimination.




                         15
What is Waste?

Anything other than the minimum
 resources required to add value to an
 end product or service.




                                         16
Waste Wheel
    VALUE
    ADDED
    WORK
     5%                             Motion

        Knowledge
                                1             Waiting
                        8
     Inventory
                                        2
                    7
                                        3
                    6                       Transport
         Over-
                            5       4
       Production

                   Over-    Correction
                 Processing




                                                        17
Waste in the Office
Types of Waste              Business Process Waste
   Motion                  Walking, routing information
   Waiting             Delays and queues, decision making
Transportation                Information hand-offs
  Correction            Defects, re-work, incomplete data
  Processing         Unnecessary steps, variation of methods
Overproduction         Unnecessary reports and information
  Inventory             A task waiting to be started (inbox)
  Knowledge      Untapped skills and experience, routine non-value
                                  adding activities

                                                                     18
Introduction to 5s

•   Sieri- Sort
•   Seiton- Straighten
•   Seiso- Shine
•   Seiketsu - Standardize
•   Shitsuke- Sustain
•   = 5S

                             19
5s

• Sort: removing the unnecessary
• Straighten: a place for everything
• Shine: clean up, fix up
• Standardize: everything is consistent
• Sustain: maintain, review standards
= 5S

                                          20
5S
Before        After




                      21
Introduction to
Value Stream Mapping (VSM)
• A one page visual representation showing the flow of
  all processes, information and material
• Current state analysis (snap shot) shows
   – All current value added and non-value added
      processes
• Future state analysis shows
   – Improved value added processes and eliminates as
      much non-value added work as possible
• Action plan for target state implementation
                                                         22
23
Benefits of Lean
Getting the right things to the right place at the right time in the
  right quantity to achieve perfect work flow, while minimizing
  waste and being flexible and able to change.

• Reduced waste, costs, and lost opportunities

• Increased
      • Efficiencies
      • Ability to serve more customers in the same time
      • Customer satisfaction
      • Timely customer access to goods and services
      • Quality
      • Employee empowerment



                                                                       24
Who have we helped Change?
•   Housing Partnership
•   Medical Facility/Retirement Home
•   Temperature Controls Solution Provider
•   Organic American Apparel Company
•   Collision Repair Shop
•   Public Library
•   Counseling Services Company
•   Homeless Shelter
•   Home Care Provider                       25
We can help with:
•   I need more help, I’m just too busy to keep up.
•   I will start fixing it once I find my tool.
•   I’m overwhelmed and don’t know where to start
•   I’m too busy to train employees.
•   There must be an easier way, but how?
•   Everyone has their own way of getting it done.
•   I can’t find the part so express order a new one.
•   There are not enough hours in the day.
Chinese Proverb


If we don’t change
we will end up
where we are headed…


                       26
Are you ready to Change?
•   Contact NEW Lean
•   Identify your problem/pain (1-3 focus areas)
•   Establish goals ex: (reduce wait list by 50%)
•   Develop Plan
•   Identify Resources
•   Schedule your Event


                                                    27
Contact:

• Amy Laukolaukoamy@yahoo.com
• Lisa Rothbauer
  -             lrothbauer@new.rr.com
• Jamie Voster jsvoster@gmail.com
• NEW Lean – newlean.org



                                        29

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Small Business Seminar Presentation

  • 1. Small Business Seminar: Lean for your small business October 26, 2011 The NEW Lean Consulting Group 1
  • 2. Welcome and Introductions • NEW Lean Consulting Group – Provide Lean consulting services – To community businesses and not for profits with a quality resource for their Lean journey. • Certified Lean Lead Facilitators – Jamie Voster – Lisa Rothbauer – Amy Lauko – Project Lead 2
  • 3. Imagine………. • Cutting time to process customer requestsby 75% • Reducing inventory by 75% • Improving quality by 50% – 200% • Increasing productivity by 50% – 75% • Reducing clutter • Reducing time it takes to find and do things 3
  • 4. Lean -  A business system involving all employees which constantly pursues the elimination of waste to shorten the lead time of a process.  Not just for manufacturing! Lean principles can be applied to any business and every process. 4
  • 5. Lean Is…. Lean Is Not Is Is Not • A significant shift in • A headcount reduction thinking and performance strategy • A long term strategy • Merely a cost reduction • Applicable to any strategy organization and every • A quick, one time fix process • A short term project • Applicable only to • Focused on maximizing manufacturing value – optimizing flow • Culture changing 5
  • 6. Elements of Lean Thinking  Learning to see  Focus on process not on people  Standard work  Continuous improvement  One piece flow  Error proofing (poka yoke) 6
  • 7. Lean Toolbox 5S A3 Teams Problem Solving Setup Reductions TPM Kanban Work Cell Value Stream Map Error Proofing 7
  • 8. Lean Requires Change • Change is required in – Thought – Culture – Perspective • Change must occur to achieve success. 8
  • 9. Change is hard……... But stagnation is fatal. Dr. Peter Bishop University of Houston 9
  • 10. Implementing Change Critical success factors: • Leading • Training • Acting • Sustaining • Plan, Do, Check, Act (PDCA) 10
  • 11. Kaizen - Japanese for improvementor change for the better. It refers to a philosophy or practice that focuses upon continuous process improvement. 11
  • 12. Kaizen Events • Cross functional team empowered to make rapid changes in a process • Targets waste, variability, and non-value add activity • All necessary resources are readily available • Look for immediate results that address root cause. 12
  • 13. Continuous Steady Improvements via Kaizen Events I Kaizen M Standardize P Kaizen R O Standardize V Kaizen E Standardize M Kaizen E Starting N Process T TIME From “Kaizen”, Masaaki Imai 13
  • 14. Key Characteristics of a Lean Team An insatiable drive to increase value through the on-going elimination of waste. 14
  • 15. Waste The focus of Lean is… waste elimination. 15
  • 16. What is Waste? Anything other than the minimum resources required to add value to an end product or service. 16
  • 17. Waste Wheel VALUE ADDED WORK 5% Motion Knowledge 1 Waiting 8 Inventory 2 7 3 6 Transport Over- 5 4 Production Over- Correction Processing 17
  • 18. Waste in the Office Types of Waste Business Process Waste Motion Walking, routing information Waiting Delays and queues, decision making Transportation Information hand-offs Correction Defects, re-work, incomplete data Processing Unnecessary steps, variation of methods Overproduction Unnecessary reports and information Inventory A task waiting to be started (inbox) Knowledge Untapped skills and experience, routine non-value adding activities 18
  • 19. Introduction to 5s • Sieri- Sort • Seiton- Straighten • Seiso- Shine • Seiketsu - Standardize • Shitsuke- Sustain • = 5S 19
  • 20. 5s • Sort: removing the unnecessary • Straighten: a place for everything • Shine: clean up, fix up • Standardize: everything is consistent • Sustain: maintain, review standards = 5S 20
  • 21. 5S Before After 21
  • 22. Introduction to Value Stream Mapping (VSM) • A one page visual representation showing the flow of all processes, information and material • Current state analysis (snap shot) shows – All current value added and non-value added processes • Future state analysis shows – Improved value added processes and eliminates as much non-value added work as possible • Action plan for target state implementation 22
  • 23. 23
  • 24. Benefits of Lean Getting the right things to the right place at the right time in the right quantity to achieve perfect work flow, while minimizing waste and being flexible and able to change. • Reduced waste, costs, and lost opportunities • Increased • Efficiencies • Ability to serve more customers in the same time • Customer satisfaction • Timely customer access to goods and services • Quality • Employee empowerment 24
  • 25. Who have we helped Change? • Housing Partnership • Medical Facility/Retirement Home • Temperature Controls Solution Provider • Organic American Apparel Company • Collision Repair Shop • Public Library • Counseling Services Company • Homeless Shelter • Home Care Provider 25
  • 26. We can help with: • I need more help, I’m just too busy to keep up. • I will start fixing it once I find my tool. • I’m overwhelmed and don’t know where to start • I’m too busy to train employees. • There must be an easier way, but how? • Everyone has their own way of getting it done. • I can’t find the part so express order a new one. • There are not enough hours in the day.
  • 27. Chinese Proverb If we don’t change we will end up where we are headed… 26
  • 28. Are you ready to Change? • Contact NEW Lean • Identify your problem/pain (1-3 focus areas) • Establish goals ex: (reduce wait list by 50%) • Develop Plan • Identify Resources • Schedule your Event 27
  • 29. Contact: • Amy Laukolaukoamy@yahoo.com • Lisa Rothbauer - lrothbauer@new.rr.com • Jamie Voster jsvoster@gmail.com • NEW Lean – newlean.org 29

Notas del editor

  1. Do NOT read the slide. Pick 2-3 to point our. Slide 11 Transition: Non value added
  2. Example: Before and After 5S Slide 23 Transition: Getting started….