Transactional Lean I

Training

John Pomnean
Linda Torgerson

Safety Contact
2

In the event of a Medical Emergency, please notify

the security department from any phone at x2888.
In the event of a fire, please evacuate the area
immediately, activating the facility fire alarm system
or call security at 566-2888 from a safe area.
In the event of an evacuation, please follow the
voice instructions provided by the fire alarm system
and follow the exit route. Once outside proceed to
your normal gathering location. Visitors should
remain with class instructors.

Safety Grabber
3

With summer recess in session, watch out

for children when driving, especially on
neighborhood streets, and around parks
and playgrounds.
Pedestrian injury is the third leading cause
of unintentional injury-related deaths among
children ages five to 14.
Several factors could put children at a higher
risk:
Walking is a major form of transportation
Children frequently dont pay attention to
traffic conditions
Childrens height makes them difficult to see

Absolute Business Advantage

4

Offering the exact products & services its

customers demand

Producing them more efficiently than its

competitors
o
o

Fewer labor hours

Less capital resources

Operational Excellence
5

Continuously Improve Our Operations

to Drive Accelerated Sales
and Profitable Growth

S-W Culture of Excellence

6

Leadership
Excellence

Brand
Excellence

Innovation
Excellence

Sales
Excellence

Financial
Excellence

Operational
Excellence

Integrity People Service Quality Performance Innovation Growth

OPEX Five Focus Areas

7

Safety
Quality
Service
People
Cost

Zero is Possible
Zero Defects
The Perfect Order
Drive Employee Engagement
Total Supply Chain Costs

OP16 Report that Tracks Savings

There are many Continuous Improvement Tools
in our Tool Box

Coincidence ?

Or Commitment?
9

10

"If the only tool you have is

a hammer, you tend to
see every problem as a
nail."
Abraham Maslow
He is noted for his conceptualization of a "hierarchy of human needs,
and is considered the founder of humanistic psychology.

Agenda Day 1
11

Lean Overview
Simulation Round #1

Define Customer Value

Transactional Lean Tools
Wrap-up Discussion

Classroom Rules
12

Participate!!!
o

You get out what you put in

Important Ideas Sheet

o

Jot down key thoughts, notes, reminders

Breaks

Turn OFF your cell phones and put away

Introductions
13

Name
Department
Function
What do you know about Lean?
Who is your Champion?
What is your favorite TV show?

Lean Overview
14

Lean & Operational Excellence

Transactional Lean vs. Lean Manufacturing

How will Transactional Lean help you

Training Expectations

1798
American
Civil War
Eli Whitney

Eli Whitney
Interchangeable Parts

Drawing Conventions
Tolerances
Modern Machine Tool Development

Frederick Taylor
Standardized Work
Time Study & Work Standards
Taylor

Gilbreth

1900
Great War

Frank Gilbreth
Process Charts
Motion Study
Henry Ford
Assembly Lines
Flow Lines
Manufacturing Strategy

Henry Ford

World War II

1950
Shingo

15

Edwards Deming
Joseph Juran
Kaoru Ishikawa
SPC
TQM

Eiji Toyoda
Taiichi Ohno
Shigeo Shingo
Toyota Production System
Just-in-Time
Stockless Production
World Class Manufacturing

Ohno

2013

Lean Manufacturing
Transactional Lean
SWAFC EcoLean

What is Transactional Lean?

16

Continuous Improvement Tools that

Drive Waste Reduction

Process-Oriented
Customer Focused
Reduces Non-Value-Added Activities (Muda)
Increases Time for Value Added Activities

Transactional Lean
17

Look at Your Work Differently

Ask Why?

Thats The Way Its Always

Been Done!

Operational Excellence
Comparison of Tools
18

Six-Sigma
o

o
o

o
o

Primary Metric =
Defects & Dollars
Data, Data, Data
Specific Process
Oriented
More rigorous process
Project Teams

Lean
o
o
o
o
o

Primary Metric = Time

Limited Data
Customer focused
Accelerated results
Everyone, everyday

POWERFUL COMBINATION

Methodology Selection
19

Lean Manufacturing
20

WHAT THE
CUSTOMER
SEES

VALUE
GOOD PRODUCT
DELIVERED ON TIME

The customer pays

for this!

THE EFFORT
IT TOOK TO
DO IT!

WASTED EFFORT
SCRAP AND REWORK
LATE DELIVERIES
EXCESSIVE HOURS
SHORTAGES
BREAKDOWNS

The customer will not

pay for this!

Transactional Lean
21

WHAT THE
CUSTOMER
SEES

Final Product

VALUE
Prompt Execution
Good Product
Delivered On-Time

THE CUSTOMER
PAYS FOR THIS

Transactional Lean Application

22

Examples:

Business Objects SCIS Universe

Onbase Reporting Project
Online White Pages

23

How can Transactional Lean

help You?

Identify Internal & External Customers

Visualize your Entire Process
You are a both a Customer AND a Supplier
Identify Non-Value-Added Work
Challenge Established Procedures

Tools of Transactional Lean

24

Tactical
o
o
o
o

Error Proofing
Visual Management
Spaghetti Diagram
5S System

Strategic
o

o
o

Value Stream Mapping

SIPOC-R
Process maps (BMS ISO 9000)

Lean Tools are Effective

Tactical

Error Proofing
Visual Management
Spaghetti Diagram
5S System

Strategic

Value Stream Mapping

SIPOC
Process Maps
SIPOC-R

25

Transactional Lean
Project Examples
26

Finance

Accounts Receivable Process

Accounting Close Procedure
P&L Summaries
Credit Approvals
Accounts Payable

Sales & Marketing

Procurement

Supplier Selection Process

Supplier Performance Evaluation Process
Toller Processes
Outside Buy Decisions

Optimized Controlled Distribution Model

Sales Prospect Selection
Acquisition Integration
Sales Force Effectiveness
Advertising & Merchandising

Human Resources

Organizational Review Process

Candidate Evaluation
Employee Training
Sales Incentive Process

Key Performance Indicators

27

Growth

Revenue

Cost

Profit
EPS
Stock Price

Lean's CI Role in
28

Growth

Revenue
Customer
Value

Cost
Red
uce
-

Co
mp
lex
ity
&

Tim
e

Profit
EPS
Stock Price

Risk of Not Being Lean

29

Business as Usual
o
o
o

Tracking Useless Metrics

Wasted Effort Remains Hidden
Analysis Paralysis

Missed Opportunities
o
o
o

Reduction in Effort and Time

Adding Value
Customer Satisfaction

Process Improvement
30

Anything in business is a process.

Processes have metrics.

Metrics can be improved.

You cant improve what you dont measure.
~ Dean Sutton

Three Versions of any Process

31

What you think it is

What it actually is

What you want it to be

A clear understanding and communication of the

current state is essential to establishing the future state!
31

Training Expectations
32

Training
o
o
o
o

Introduce key concepts

Establish common language
Select transactional lean projects
Facilitate strategic projects

Accelerated project completion (6 Weeks)

o
o

Early victories
Sustained results

Communicate and leverage successes

o

Involve your colleagues

33
If everything seems under control, youre just not going fast enough
~Mario Andretti

34

Think Growth

Lean is about sustaining the

growth of the enterprise, in
revenues, in earnings
and in cash flow.

It is really that simple!!!!

BREAK
35

Simulation Round 1
36

Activity

Observations
37

Transactional Lean - Basics

38

1. Define Customer Value

2. Identify the Value Stream
3. Make Value Flow
4. Let the Customer Pull Value
5. Pursue Perfection

How is Value Created?

39

Tangible & Intangible Positive Change

Done Right the First Time

Activity that the Customer is willing to

Pay for
Activity that is Mandatory Due to
Regulations

40

What are you

Selling?

&
Who is your
Customer?

What are you Selling?

41

Raw Information
Cleaned Information
Transaction Initiation
Executable Plans or Direction
Quality
Accelerated Results

Identify Your Customers

42

External Customers
o

Ultimate Consumer

Internal Customers
o

Next person in the data stream

Voice of the Customer

43

Who is your customer?

Do you have more than one?

Who takes precedence if there is more than one?

o The one you see or hear from most often?

We dont define value, our CUSTOMERS do!!!

Voice of the Customer

44

What tools do you currently use

to gather the voice of your
customer?
o
o
o

Open feedback (documented?)

Surveys
Customer Opinion Polls

What tools would you like

to have that are not
currently available to you?

Types of Value
45

Customer Value
o

Activity in which a product / service / document is

transformed right the first time

Activity that the customer expects to take place

and is willing to pay for (money or time)

Business Value
o

Activity that is mandatory due

to regulations or policy NVA,
but necessary

Questions to ask to Determine if

a task is Customer Value Added?
46

Does the task add a form or feature to the product

or service?
Does the task enable a competitive advantage
(reduced price, faster delivery, fewer defects)?
Would the customer be willing to pay extra, or
prefer us over the competition if he or she knew
that we were doing that task?

Questions to ask to determine if

a task is Business Value Added?
47

Is this task required by law or regulation?

Does this task reduce the financial risk of the
owner or shareholders?
Does this task support financial reporting
requirements?
Would the process as a whole break down if you
failed to do this activity?

Value Added in the

Transactional Environment
48

Transactional processes
o
o
o

Order entry
Release of items from inventory
Delivery to customer
Others?

Unit of measure is TIME

Value-Added Summary
49

Activity that, in the eyes of the customer,

improves a product or service
Activity that customers are willing to pay for
(money and/or time)
Necessary Non-Value Added Activities

What is Non Value-Added?

50

Does the task include any of the following activities?

Counting, Handling
Transporting, Moving or Storing
Expediting or Rework
Multiple Signatures/Approvals
Non-Automated Data Collection
Inspecting

Value-Added

Activity

51

Activity

VA

NVA

Activity

Entering Orders

Reviewing

Waiting for parts

Inspection

Testing

Copying reports

Staging/Batching

Filing Information

Assembling products

Revising/Reworking

Counting parts

Ordering raw materials

Fueling delivery trucks

Shipping to customers

Checking

Preparing engineer
drawings

Filing insurance claims

Obtaining multiple
approvals

VA

NVA

Results

Activity

52

Activity
Entering Orders

VA

NVA

Activity

VA

NVA

Reviewing

Waiting for parts

Inspection

Testing

Copying reports

Staging/Batching

Filing Information

Revising/Reworking

Assembling products

Counting parts
Fueling delivery trucks

X
X

Checking
Filing insurance claims

X
X

Ordering raw materials

Shipping to customers

Preparing engineer
drawings

Obtaining multiple
approvals

Process Waste
Seven Forms of Waste
53

Transportation

Over-Production

Excessive movement of an object or piece of

information

Creation of a deliverable before its actually

required

Example Multiple approvers for a single

request

Example Printing Repeatable reports

Inventory

Accumulation of material or information before

its actually required

Example Unused records in file room

Over-Processing

Effort that does not add value

Example Re-typing electronic data into

spreadsheets

Defects
Motion

Excessive personal motion

Example Extra clicks or keystrokes

Waiting

Queuing of materials, information or

inquiries

Example waiting for computer to boot up

Any deviation from a documented process or

customer requirement

Example Manual Order entry

Activity
54

Working with your neighbor, identify 1

perceived Value Added (VA) and 1 Non-Value
Added (NVA) Activities in a typical work day.
Example: VA Communicating upcoming Lean
training waves to candidates. NVA Typing your
name at the end of the email.

Brainstorm ideas for eliminating or at least

improving the NVA and/or improving the VA
Example: Add automatic signature with your name
and contact information that will appear on every
email Saves Time!

Tactical Tools
55

Error Proofing
Visual Management

Spaghetti Diagram
5S

Error Proofing
56

Visual Management
57

Spaghetti Diagram
58

Track movement

Show current work path of a process

Identify areas that can be consolidated
Improve work load flow
Reduce complexity

What Is 5S?
59

5S is a system for eliminating waste

by organizing the workplace.

Benefits of 5S Office
60

Fewer Errors & Processing Delays

Less Waste & Higher Quality Output
Lower Costs
Improved Productivity & Safety
Positive Attitude

The Importance of 5S
61

a company that cannot

successfully implement the 5Ss
cannot expect to effectively
integrateany largescale
change.

Hiroyuki Hirano
JIT Expert, Author
5 Pillars of the Visual Workplace

1. Sort
62

Sort through items and

keep only what is needed.

When in doubt, throw it out.

2. Straighten (or Set in Order)

63

Arrange items that are left after sorting so that

they are easy to find and easy to use.

A place for everything and everything in its place.

Example Sort & Straighten

64

3. Shine
65

Make sure everything is clean

and functioning.

4. Standardize
66

Create guidelines for maintaining

and monitoring the first three Ss.

5. Sustain
67

Make 5S a habit
Management
support
Continual
communication
Total employee
involvement
Establish visual
displays, metrics
& controls

68

Before

69

After
using Lean Techniques (and 29 dumpsters later)

5S is a Continuous Cycle
70

5S Summary
71

Sort
Clearly distinguish the needed from the unneeded

Straighten
All items in the workplace have a marked place of storage
that allows for easy and immediate retrieval to where it is
used

Shine
Work area is continually cleaned and straightened

Standardize
5S methods are used consistently and in a disciplined
manner

Sustain
Established procedures maintained by checklist

The 5S Numbers Game

72

Activity

Strategic Tools
73

Value Stream Map

SIPOC-R
Process Map

Transactional Lean - Basics

74

1. Define Customer Value

2. Identify the Value Stream

3. Make Value Flow
4. Let the Customer Pull Value
5. Pursue Perfection

What is a Value Stream

75

End-to-End Business Process which Delivers

Value to a Customer
Interdependent Processes & Steps that use
Goods, Services and Information to Accomplish
an Objective

Value Stream
76

Flow of a Value Stream

Original

VALUE STREAM

Requestor to Our Suppliers

Our Suppliers to Us
Our Systems/Processes/Procedures
Our Finished Process to Our Customers
Our Customers Original Requestor

Maximizing Our Value Stream

77

Understand the interactions between functional

areas
Optimization should focus on the entire system

Levels of a Value Stream

78

Across Multiple
Companies

Multiple
Departments

Start Here

Single
Department
(door-to-door)

Process
Level

Value Stream Mapping

79

Follow a product or service from beginning to

end, and draw a visual representation of every
process in the material & information flow.

Then, draw a future state map of how value

should flow.

Value Stream Map

What Does It Do?
80

Identifies areas of waste

Locates significant sources of variation and/or
complexity
Captures the big picture from the customers
perspective
Provides a focal point for future efforts
Evaluation of before and after

Value Stream Map

Why Do It?
81

To visualize the system as a whole in terms of

processes, inventory, and information flow
through the system
Identify areas to target
Who will be affected by change

How efficiently are we creating value for our customers?

Identify Your Value Stream

82

End to End (Deliverables)

o

Processes
Actual transformation of inputs
Information that supports our decisions

Time = Cost to customer

Goal = Value Added Time = Total Lead Time
What are your deliverables?

Key Terminology
83

Cycle Time
The time it takes to complete the task required for a process.

Total Cycle Time

The sum of all cycle times for an individual process in a value stream

Queue Time
The time a work unit waits for another process to work on it.

Total Lead Time

Total Cycle Times + Queue Times

Value Added Percentage

Total Cycle Time / Total Lead Time

Time Measurements
84

Cycle, Queue & Lead

Times

Process1

Process 2

Non -Value Added

Non -Value Added

Q-Times

Value Added
Cycle Time

Value Added

Cycle Time

Cycle Time

+
+

Q-Times

Value Added

10 Min

240 Min

Process 4

Non Value Added

Q-Times

120 Min

5 Min

Process 3

Value Added
Cycle Time

120

+
15 Min

5 Min

Total Queue Time = 480 Min + Total Cycle Time = 35 Min = Total Lead Time = 515 Min
% Value Added = 35 / 515 = 7%

Value Stream Map Icons

85

Customer

Worker

Timeline

Manual Info

Electronic Info

Database

Dedicated Process

Shared Process

External shipment

Inventory

Push Arrow

Data Box

Note: Value stream symbols are not standardized and there are many variations.

Value Stream Map

86

Value Stream Map for

Raw Material Purchases
87

Purchasing

Evaluate Raws

320 min

10 MIn
60 MIn
Value Added

Set Price /
Evaluate Supplier

Add to System

Delay Time

15 mim
Value Added

Delay Time

Order Raws

7.5 hrs
90 min
Value Added

Delay Time

60 MIn
Value Added

VSM Answers These Questions

88

Is the flow of product consistent?

Are there loops of material or information?
Are there any shared resources?
Where is Inventory/Work In Process located,
how much and why?
Who and what changes the schedule and
why?
What information is exchanged between our
suppliers and customers and ourselves?

Value Stream Map

Do It

Activity

89

Create a current state value stream map of

the simulation exercise
Should include most important processes (but
not every small detail)
Map the process as it currently operates
Indicate times for each activity (Value Added
vs. NVA)

SIPOC
90

S
I
P
O
C

= Supplier
= Input
= Process
= Output
= Customer

SIPOC - Strategic Lean Tool

91

Purchasing

Evaluate Raws

10 Min.
Delay Time
60 Min.
Value Added

Set Price /
Evaluate Supplier

Add to System

320 Min.
Delay Time
15 Min.
Value Added

Tactical Tools

Order Raws

7.5 Hrs.
Delay Time
90 Min.
Value Added

60 Min.
Value Added

Strategic Tools

Process Map
92

Analyze a Particular Activity

Keep it Simple
Identify Lead Time
Identify Bottlenecks
Identify Improvement
Opportunities

Process Map Symbols

Process Map Example

93

Develop Raw
Pricing

File sent on 22nd

of the month

20 days

15th mnth

Plant

Obtain list of
raws:
Note: For part 475151
there are 17raws

Load into Excel

file

Identify
negotiated
price for each
raw

Is there a nego.
price?

Yes

Add
Upcharge

Email File
to
supplier

C/S rep
distributes

Purch

file
Finan

No

Evaluate mkt.
Review last month
pricing
Review projections

Create
estimated
price

Vendor returns to
SHW with a cost
breakdown

Update
QAD

Update
Sherprocure

SIPOC-R
94

S = Supplier
I = Input
P = Process
O = Output
C = Customer

R = Requirements of Customer

Future State Value Stream

and SIPOC
95
Purchasing

Evaluate Raws

Set Price /
Evaluate Supplier

Add to System

10 Min.
Delay Time
60 Min.
Value Added

320 Min.
Delay Time

Order Raws

7.5 Hrs.
Delay Time
50 Min.
Value Added

15 Min.
Value Added

60 Min.
Value Added

Strategic Tools

Tactical Tools

SIPOC
Suppliers

Inputs

Raw List
Price list

Process

Excel Sheet

Outputs

Customers

POs

Purch. Agent
Supplier
Customer
Requirements

Determine
Needs

20 min

Enter POs

10 min

Material
Inspection

20 min

SIPOC-R
96

Set Price /
Evaluate Supplier

Tactical Tools

Strategic Tools

SIPOC
Suppliers
Raw List
Price list

Inputs

Process

Excel Sheet

Outputs
POs

Customers
Purch. Agent
Supplier
Customer
Requirements

Determine
Needs

20 min

Enter POs

10 min

Material
Inspection

20 min

Value Stream Map (Current State)

97

Freight Bill Payment Process (DDI Kick-outs)

Accounts Payable
Freight Bill Payment

Receive
Freight Bill
from DDI.
DDI unable
to pay due to
insufficient
information

Send Freight
Bill to
Customer
Service to
Determine
Cost Center

Receive
Freight Bill
from
Customer
Service with
Cost Center

Enter Freight
Bill in system
for payment

Process
Bill/Issue
Check for
Payment

DDI Rejected Freight Bills

Current State SIPOC
98
Accounts Payable
Freight Bill Payment

Receive
Freight Bill
from DDI.
DDI unable
to pay due to
insufficient
information

Send Freight
Bill to
Customer
Service to
Determine
Cost Center

Supplier

Inputs

(Frt Carriers)

(Frt Bills)

Supply Chain
Services
Group recs
freight bill &
enters into
spreadsheet

Process

Outputs

Admin
forwards to
Stores Team
Lead in
Customer
Service

2hrs
4 hrs

Enter Freight
Bill in system
for payment

(Acct Payable/Frt Carriers)

Freight Bill
Researched to
determine cost
centerSEE
PROCESS
MAP

10 min
2hrs

Freight Bill
given to Admin
with Cost
Center, who
logs into
spreadsheet

4 hrs
15hrs

Process
Bill/Issue
Check for
Payment

Customers

(Completed Frt Bills)

Freight Bill
sent to Admin
in Customer
Service

30 min

Receive
Freight Bill
from
Customer
Service with
Cost Center

Freight Bill
sent to Accts
Payable for
Payment

30 min
10 min

7.5hrs
2hrs

Improvement Plan
99

Forward freight bills directly to Stores C/S team

lead
Transfer responsibility of information entry on the
problem tracking spreadsheet from Supply Chain
Services group to an admin function within
Customer Service
Customer Service reps enter issues into Etrac with
more data, including the 2 digit Etrac prefix

Allows Accounts Payable to determine how to charge

without sending to Customer Service for research
Less Customer Service time spent researching freight bill
issues

DDI Rejected Freight Bills

Future State SIPOC
100
SIPOCFreight Bill Payment Process (DDI Kick-outs)Future State

Accounts Payable
Freight Bill Payment

Receive
Freight Bill
from DDI.
DDI unable
to pay due to
insufficient
information

Send Freight
Bill to
Customer
Service to
Determine
Cost Center

Supplier

Inputs

(Frt Carriers)

(Frt Bills)

Freight Bills
sent to Stores
Team Lead in
Customer
Service

Receive
Freight Bill
from
Customer
Service with
Cost Center

Process

Freight Bill
given to Admin
with Cost
Center, who
logs into
spreadsheet

3 hrs
7.5 hrs

Outputs

(Acct Payable/Frt Carriers)

Freight Bill
sent to Accts
Payable for
Payment

40 min
10min

2 hrs
2 hrs

Process
Bill/Issue
Check for
Payment

Customers

(Completed Frt Bills)

Freight Bill
Researched to
determine cost
centerSEE
PROCESS
MAP

2 hrs

Enter Freight
Bill in system
for payment

Results Achieved
101

Before
Total lead time for rejected freight bills
Lead time = Value Added Time + Wait Time
37.5 hours = 14.5 hours + 23 hours
After
Total lead time for rejected freight bills
Lead time = Value Added Time + Wait Time
17 hours = 7.5 hours + 9.5 hours

Project Scoping
102

How do you eat an elephant?

One bite at a time!

Project Scoping Proposal

Project Name
Project Scoping Proposal

Suppliers
103

Customers

Stakeholders

Inputs

Outputs

WORK PROCESS
Observations and problems

In Scope

Out of Scope

Customer
Requirements

SHW
Requirements

104

Reichhold / SHW - Toller

Project Scoping Proposal
Suppliers
Reichhold
105 Customer Service
MFG
Distribution
SHW
Purchasing
Receiving
Accts Payable

Customers
SHW - Plants (CEP)

Stakeholders
Reichhold
MFG locations
Raw Suppliers
SHW
Plants (CEP)
Purchasing Dept

Ordering and Shipping Process

Inputs
Reichhold
MFG Ordering process
Part History
MFG process
SHW
Ordering process

In Scope
Part # 475151(SOMI)
Ordering & shipping
process
Reichhold Mfg process

> Can we change the forecast from monthly to weekly numbers

> How do we communicate changes in the demand
> Can we normalize the Pickup and trailer drop?
> How can we obtain clearer tank readings and communicate to
Reichhold
> Can we fix EDI Payment problems. Kilo vs. lbs and/or line vs. bottom
line number
> Products are setup incorrectly commercial vs. toll which affects
payment terms.
> We need to ensure that we get Reichhold the file as early as possible
> Reichhold pricing process has redundant activities

Out of Scope
Payment process

Customer
Requirements
Ensure product
avail

Outputs
Reichhold - Map
shipping & mfg
process
SHW Map value
stream. Map the
pricing & forecasting
process

SHW Requirements
Product:
Available for MFG
Delivered on-time
Correct quantity
Meet Specs

Group Exercise
Activity

106

Using someones potential Lean project

from the class, we will create a:
Project Scoping Proposal
Value Stream Map

Transactional Lean - Basics

107

1. Define Customer Value

2. Identify the Value Stream

3. Make Value Flow

4. Let the Customer Pull Value
5. Pursue Perfection

Elements to Making Value Flow

108

Flow - of the work/process

Produce to the Customer Demand
Improve Continuously

Flow - What is it?

109

Aligning all value creating steps so that the

Design, Order and the Product itself move
steadily & rapidly toward the customer with no
Detours, Waiting or Scrap!

James P. Womack, PhD

Former director of IMVP at M.I.T.
Founder, Lean Enterprise Institute

The 7-Flows
110

Flow of People
Flow of Information
Flow of Products
Flow of Equipment
Flow of Engineering
Flow of Parts
Flow of Raw Material

Produce to the Customer Demand

111

Takt Time Establish the Process Pace

Total Available work time
Customer Demand Requirements

Example:

Ten Minutes to enter a new part.

450 min (1day)

1500 new parts

Takt = Rhythm of Work

Produce to the Customer Demand

Smooth the Workload
112

Review & Redesign the Transactional Flow

Flexibility
Capacity
Visual Controls
Standard Work
Material at Point of Use
Information automated, accessible, easy to understand

Make Value Flow

113

Common causes for delays..

Communication Multiple Handoffs

Layered Management / Approval Review
Missing Information / Data...Rework
Data Paralysis
WIP - Batching Requests
Process Variability
Decreasing delay time is usually easier than
speeding up execution time

Tools to Improve Value Flow

114

Tactical Tools
Strategic Tools .
Standardization
Cross Training
o
o
o
o

Keep Multiple skills sharp

Appreciation for big picture
Increase potential for new ideas
Adds value to future job prospects

Make Value Flow - Summary

115

Flow is built upon the foundation of

Flexibility and Waste Elimination

Understand your customers demands

Understand your processes and capabilities
Standardization is key to waste elimination
Continuous Improvement

Transactional Lean - Basics

116

1. Define Customer Value

2. Identify the Value Stream
3. Make Value Flow

4. Let The Customer Pull Value

5. Pursue Perfection

Let the Customer Pull Value

117

Push vs. Pull

Push - Work is initiated by an internally driven
activity like a forecast or deadline.
Pull Work is initiated by an externally driven
activity like a customer order or data request.

Pull
118

Process does not start until demand is

communicated
o

Changed from pushing reports to letting the customer

get the data when required

WIP is reduced and easier to control

o
o

Reports are not consuming up real or virtual space

Overall inventory is reduced

Workers can immediately see what work needs

to be done

Push

119

vs.

Pull

Let the Customer Pull Value

120

Advantages of a Pull System

Minimize WIP (Work-In-Process)
Little variation in Lead Time
Reduced production lead time variation allows for
more value added activity

Summary of Customer Service Report

Reduction Project
121

Problem Statement: Approximately 528 reports are

prepared by administrative assistant in Customer
Service. Time dedicated to reporting approximately 1,088
hours.
Project Scope: Reports are prepared for Management
Team and Director of Customer Service. Focus on needs
of management team (Push vs. Pull).
Project Objective: Eliminate unused Reports &
Streamline the process
Projected Benefits: Eliminate unnecessary workload,
Minimize storage space, Reduce paper usage.

Project Results
122

502 out of 528 reports did not add value to the

management team and were eliminated.
Redeployed approximately 1,004 hours in
preparation time.

Saved $220.88 on paper yearly.

Saved space on storage of daily reports.
Reports will no longer be pushed to the
Director, Managers & Supervisors. These
customers will use online reporting to pull data
when needed.

Linking Flow to Cost & Profitability

123

Elimination of
Waste

Improved
Flow

Decreased
Cost

Increased
Profits & New
Business

Apply the Tools of Transactional Lean

124

Reduction in Complexity/Lead Time

Eliminate non-value creating activities as defined
by the customer

Minimize the time needed for value creating

activities
Eliminate Wait Times (One piece flow)
Implement a Pull System

Transactional Lean I
End of Day 1
Questions / Comments

Transactional Lean I
Training Day-2
June 26-27, 2013

John Pomnean
Linda Torgerson

Agenda Day 2
127

Strategic Project presentation

Review yesterdays discussions
Future state map presentations
Simulation Round 2
Your Strategic Project
o Project Mgmt

Method to track projects

Homework!

Review Day 1
128

One question about yesterdays discussions

A key take-away

Value Stream Map

Activity

129

Create a future state value stream map of

yesterdays simulation. Focus on:

How the process could be changed

Eliminate waste
Create flow / pull system (produce on demand)
Eliminating (or at least minimizing) NVA activities
Consider splitting complicated steps into parallel processes
Using the tools that we have learned so far, what would you
do differently to improve service to our customer?

Simulation Round 2
130

Activity

Observations
131

Transactional Lean - Basics

132

1. Define Customer Value

2. Identify the Value Stream
3. Make Value Flow
4. Let the Customer Pull Value

5. Pursue Perfection

Pursue Perfection
133

Radical vs. Incremental Change

Apply the 4 principles of Lean
o
o
o

Define Customer Value

Identify the Value Stream
Make Value Flow
Let the Customer Pull Value

Every step in a process can be improved

o

The smallest changes can make a difference

Avoid the One & Done

Pursue Perfection
134

Envision the picture of perfection

o

How can you move closer to it?

Process improvements alter the Value Stream

o

The vision is constantly changing

Pursuing perfection will lead to Excellence

Pursue Perfection
Pursue Excellence
135

Seven Zeros that lead to Zero Inventory/Lead

Time/Waste

Zero Defects
Zero Batching
Zero Setup
Zero Breakdowns
Zero Handling
Zero Lead Time
Zero Changes in Supply

Pursue Perfection
136

Toyota
o

Almost 25 years to go from a 3-hour

set up to a 3-minute set up.

New product entry PI-1 Form

o
o
o

Manual Process
Automated Notes Workflow
PIM

Take-Aways
137

Customers Define Value

Use Simple Tools to Identify and Eliminate
Waste & Reduce Lead Time
Ask WHY Challenge the current standard

Tactical vs. Strategic

138

Tactical:
o
o
o

Clean up / Remove the Clutter

Short Turn-around
Minimal redeployed time (i.e., 30 minutes)

Strategic:
o

o
o

Process change
Utilizes Lean tools
Requires an output report

How to Select a Project

139

Identify your customer

o

Who is affected by your activity?

What do you provide?

o

Data, Service/Information, Training

What is the Process to create your output

o
o

How much of your day is involved in the activity?

When was it last reviewed?
Project Discussion

140

Project Presentation
Ryan Rampton
Facilities Services Analyst
Paint Stores Group

Project Ideas
141

Around the room.

Tactical Project
o

Project Title

Strategic Project
o
o

Project Title
Process change

Mapping Tips
142

Dont

Dont sit at the computer

Dont map things the
way they are supposed
to be
Dont try to map all flows
on one process map
Dont pull time from
previous project
measurements

Do

Do physically walk the

process
Map the way it really is
Flow the main attributes

Use a stopwatch and

collect times yourself

Research Etiquette
143

Get Management approval

Communicate to all areas before going there
Properly introduce yourself
Explain your purpose
Be open and honest when responding to
questions
Respect their workspace

Project Management
144

Why
Project Management Overview

12 Steps to Success
o

Best Practices

Project Types
145

Large Projects
o Cross-functional
o Broad timeframe
o Extensive team and PMO

Smaller Projects
o Require same methods but less intense
o Different tools may be needed

DTO Do the Obvious

o Resources and results are known

Project Management Process

146

Project Management
Approach
147

1. Identify the Opportunity NOT the Solution

2. Form a Team (You Are Not an Island)

Champion
Project Sponsor

3. Scope It Out

Expanse of Project
Impact on business

4. Get Organized

Plans are roadmaps

Use available tools (Charters, Gantt Charts, etc.)

Project Management
Approach
148

5. Make the Time

Schedule time on your calendar
6. Document the Progress

Agendas and meeting notes

7. Identify Milestones

Make sure you hit them

8. Develop a Clear Plan to Implement

Project Management
Approach
149

9. Expect Implementation Pushback

10. Develop a Control Plan

Make sure change sticks

11. Celebrate Successas a Team

12. Project Autopsy

Project Management Summary

150

Projects Need Organization

o Use tools: Charter, Plan/Timeline, Database
o Communicate and Document

Projects Need Management

o Delegate: the project is a team effort
o Use your Champion
o Team members may change
o Cooperation can be a challenge

Strategic Project
151

Home Work:

Identify your strategic project

Complete individual VSM/SIPOC (Current State)
Identify wastes in current process
Complete individual VSM/SIPOC-R (Future State)
Develop future state process map

See back pocket of manual for

follow-up details

Post-Project Completion
152

Upon project completion:

Attach project report-out to the charter

Be sure to identify a person to validate
Submit for project validation
Credit as Lean Certified in GEMS with validated
project

Validation requirements on the GSC Lean Enterprise web page

CI Database Access
153

See instructions on how to access OnBase on the GSC Lean Enterprise web page..

Project Tracking
154

ONBASE Continuous Improvement Project Tracking

See OnBase CI Database

Instructions online in the GSC
Lean Enterprise web page.

Onbase Training Videos

155

156

Transactional Lean I
End of Day 2