Introduction To Lean & Six Sigma: Pre Kaizen Training

Introduction to Lean & Six Sigma
Pre Kaizen Training

Agenda
• Introduction to Lean
• Identifying Value
• Value Add vs. Non Value Add
• 7 Types of Waste
• Lean Tools
• Six Sigma
• Lean Six Sigma
• Video
• Summary
• Questions
What is Lean Manufacturing?
• Lean Manufacturing is a way of achieving improved performance

by eliminating waste.
• It is a way of working that is customer focused and aims to get

us performing at our best!
• Lean Manufacturing looks at the timeline between customer order

and the time when we collect payment (Product Lead Time)
• If we can reduce this Lead Time we can:

• Improve Customer Satisfaction (Quicker Delivery Times)
• Free Up Revenue
• Respond to Customers Changing Needs
• Reduce Potential Quality Issues
• And more…
Lean is based on 5 Basic Principles:
1. Identify Value
Specify value from the customer’s perspective
2. Map the Value Stream
Map the sequence of processes from raw materials to the final
customer and eliminate waste from these processes
3. Flow
Create continuous flow, without interruption between processes
4. Pull
Produce products / services only when the customer requires them
5. Perfection
Improve continuously in pursuit of perfection
Identifying Value?
• Lean Manufacturing breaks all process timelines into 3 types of

activities:
Value Add Activities
Non Value Add Activities
Business Requirement Activities

Identifying Value – Value Add V’s Non Value Add
1. Value Add Activities

• These are Activities that the Customer wants and will pay for
• E.g. Painting Parts
2. Non Value Add Activities

‒ These are Activities that the Customer does not need and will not want to
pay for
‒ E.g. Transporting Parts to a Warehouse
3. Business Requirement Activities

• These are activities that the customer does not pay for but are necessary
for the business to function
• E.g. Order Processing
Customer Product Lead Time Payment

Order Collection
• In a typical business only 5% of activities are Value Add

• In order to reduce this Lead Time we need to:
• Eliminate Non Value Add Activities
• Reduce or Eliminate Business Requirement Activities
• Streamline our Value Add Activities

Order Collection

Order Collection
Identifying Value – 7 Lean Wastes
• Value can only be defined from the point of view of the Customer
• Ask yourself – What is the customer willing to pay for?
• Anything we are doing that we cannot charge the customer for is Non Value Add
(NVA) or Waste
• Lean has identified 7 Types of Waste
• Transport • Over Processing
• Inventory • Over Production
• Motion • Defects
• Waiting
• Remember: TIMWOOD
1 – Waste of Transport
• Transport is any movement or handling of material

• It does not add value for the customer
• It should be reduced or eliminated
• Examples of it include
• Transporting Jobs to the Warehouse
• Carrying a Job to the Scales
• Moving a job from storage rack to the workstation
• Some causes include
• Over Production
• Poor Layouts
• Long Changeovers
1 – Waste of Transport
Examples in Creganna
Carrying Jobs between Transporting Jobs

Workstations between Buildings
2 – Waste of Inventory
• Inventory is made up of:
• Raw Materials
• Works in Progress (WIP)
• Consumables (MROS)
• Finished Goods
• All inventory is wasteful because…

• It ties Up Revenues
• Makes Long Setups More Acceptable
• Hides problems related to Machines, Quality and Scheduling
• Inventory needs to be kept to a minimum to highlight these issues and free

up needed revenues
Inventory is like a river, when water level is lowered, boulders must be dealt with….
100
Inventory Levels
Sea of Inventory
50
Long Long Poor Line

Setups Defects
0 Transportation Scheduling Imbalance
Inventory Levels
50
Long Long Poor Line

Setups Defects
0 Transportation Scheduling Imbalance
3 – Waste of Motion
• Waste of Motion is any movements made by people or machines
which does not add value to the product
• Examples of this include
• Stretching to reach Machine Controls
• Extra movements when loading a machine
• Equipment in a work cell spaced too far away
• Poor Work Layout
• Poor Facilities
• Lost Items (searching)
• Poor Tool Design

4 – Waste of Waiting
• Waste of Waiting is any idle time by machines or people

• Waiting for Engineers
• Waiting for Raw Material
• Waiting for a Machine to Finish its Cycle
• Waiting for Paperwork

• Poor Work Balance
• Unreliable Equipment
• Poor Scheduling
4 – Waste of Waiting
-Person waiting for the Bulk Blaster -Person waiting to use the
in to run its cycle. weighting scales
-A total wait of about 2 minutes. -This could be up to 2mins
-This wait may be increased if there
is a queue.
5 – Waste of Over Production
• Waste of Over Production is producing more than is needed
• We should build to what the customer asks
• Not just what the machine is capable of
• Just because we can make it, doesn’t mean we should!
• Overproduction is one of the worst wastes because it leads to other
wastes such as:
• Extra Handling, Extra Storage, Extra Communication, Extra Paperwork, And
More…
• Causes of Over Production Include
• Inventory being viewed as security (‘Just in Case’)
• Poor Forecasting and Production Planning/Scheduling
• Producing to Speculative Demand (forecast)
6 – Waste of Over Processing
• Waste of Over Processing is carrying out processing which does not add value to a
product
• They are enhancements which a customer will not notice

• Polishing to a Higher Spec than customer requirements
• Painting a part that’s going to be covered later
• Causes of this include

• “That’s the way we’ve always done it!”
• Lack of Understanding Customer Needs (Specifications)
• No Standard Work
• Misuse of Materials
• Mistakes in Process
• Excessive Checking
6 – Waste of Over Processing
7 – Waste of Defects
• Waste of Defects is any Product that does not meet customer requirements – Scrap
Products or Reworks
• They can result in:

• Customer Returns
• Loss of Goodwill
• Warranty Costs
• Increased Production Costs
• Causes of Defects include
• Poor Manufacturing Methods/Procedures

• Poor Training
• Poor Storage Provisions

• Excess Handling
7 – Waste of Defects
Lean Tools
Some of the tools available in Lean Manufacturing include
• 7 Wastes
• 6S and Workplace Organisation
• Visual Management
• Rapid Changeovers (SMED)
• Poka Yoke (Error Proofing)
• Kanban
• Process Mapping
Project Charter
Goal Statement Lean Tool

Increase Efficiency by 15% 7 Wastes
Re-Layout cell Process Mapping

Reduce Change over down time SMED
Introduce Workplace 6S
Organisation (6S) Visual Management
Improve storage provisions for Visual Management
WIP Kanban
σ Six Sigma
• Six Sigma is another set of tools which aims to make us work better
• Six Sigma is about using statistics to measure and improve process

capability (how well a process works)
• It too focuses on the needs of the customer
• It is separate from Lean but the tools from both can be used together
• If tools from both are shared it is called Lean Six Sigma or simply Lean
Sigma
σ Six Sigma
• Six Sigma aims to improve quality and reduce defects

• A Six Sigma Process has only 3.4 Defects per Million!!
A yield of 99.9997%
Kaizen Video
• Video of Kaizen in action – Toast Video.VOB

Summary
• Lean Manufacturing is a strategy to improve the way we do things
• It is focused on the needs of the customer
• It aims to reduced the timeline between customer order and payment by

eliminating waste and improving flow of product
• Reduce Costs
• Improve Quality
• Improve Customer Satisfaction
• Increase Responsiveness
• It has identified 7 different wastes which all NVA activities fall under:
TIMWOOD
• It aims to Continuously Improve processes and work practices

Summary
• Six Sigma is a strategy to reduce variation in a process and improve
quality
• Six Sigma tools can be combined with Lean Manufacturing tools and
used together
• Lean Sigma
• Lean Manufacturing, Six Sigma and Lean Sigma allow us to

• Work Better
• Respond Faster to Our Customers
• Stay Competitive
Questions

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Introduction to Lean & Six Sigma

Pre Kaizen Training

What is Lean Manufacturing?

• Lean Manufacturing is a way of achieving improved performance

• It is a way of working that is customer focused and aims to get

What is Lean Manufacturing?

• Lean Manufacturing looks at the timeline between customer order

• If we can reduce this Lead Time we can:

• Lean Manufacturing breaks all process timelines into 3 types of

Value Add Activities

Non Value Add Activities

Business Requirement Activities

Identifying Value – Value Add V’s Non Value Add

1. Value Add Activities

2. Non Value Add Activities

3. Business Requirement Activities

Identifying Value – Value Add V’s Non Value Add

Customer Product Lead Time Payment

• In a typical business only 5% of activities are Value Add

Identifying Value – Value Add V’s Non Value Add

Customer Product Lead Time Payment

Customer Product Lead Time Payment

• Transport is any movement or handling of material

Carrying Jobs between Transporting Jobs

• All inventory is wasteful because…

• Inventory needs to be kept to a minimum to highlight these issues and free

Long Long Poor Line

Long Long Poor Line

• Lost Items (searching)

• Poor Tool Design

• Examples of this include

• Some causes include

• Examples of this include

• Causes of this include

• They can result in:

• Causes of Defects include

• Poor Manufacturing Methods/Procedures

• Poor Storage Provisions

Goal Statement Lean Tool

Re-Layout cell Process Mapping

• Six Sigma is about using statistics to measure and improve process

• It too focuses on the needs of the customer

• Six Sigma aims to improve quality and reduce defects

• Video of Kaizen in action – Toast Video.VOB

• It is focused on the needs of the customer

• It aims to reduced the timeline between customer order and payment by

• It aims to Continuously Improve processes and work practices

• Lean Manufacturing, Six Sigma and Lean Sigma allow us to

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