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Elimination of waste
Value-added activities
Rapid execution
The elimination of waste focuses on avoiding the use of any resource that is not necessary or preventing
excessive use of that resource.
The second objective of Lean Manufacturing is elimination of non-value-adding activities. Value-added is
when any process and or activity generate a fundamental change to the product or service that meets
customer demand.
Finally, rapid execution is focused on getting results quickly. This is often achieved through activities such
as kaizen events, which are rapid improvement projects that bring people from various functions together
to identify and eliminate waste that is occurring.
In our final topic, we will build the Lean Manufacturing hierarchy.
So lets start with our first topic, the elimination of waste. Within the Lean world, waste elimination
includes a number of broad categories including equipment, materials, parts, and workers. Waste
elimination is all about finding and removing those resources that are not absolutely necessary for
production of a good or service.
Copyright (c) 2009 Accenture. All rights reserved. You may only use and print one copy of this document for private study in connection with your
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Elimination of Waste
Slide 04: Types of Waste
WASTE is effectively the equivalent of NON-VALUE-ADDED activity. Any activity which is not creating
value from the perspective of the customer is considered waste. There are eight basic forms of waste:
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Waiting: Being dependent on a preceding task which causes you to wait before you can be
productive, for example
getting a customer check approved.
Unnecessary Motion: Poor ergonomics or excessive distance. Having someone perform an
activity that is not useful or productive, for example, hard to reach areas on store shelving or
having to walk the full length of an aisle to get work-in-process inventory.
Processing: An activity which is performed but is not required or wanted by the customer, for
example, decorative product packaging.
Inventory: Excessive or not enough stock, for example, too much of a type of caulk which does
not sell, taking up too much floor or shelf space as compared to having limited shelf space for a
high demand caulk which is always running out of stock.
Transportation: The distance required to move a good between steps of a larger process, for
example, shipping SKUs from central distribution warehouse to a retail store warehouse and then
to the retail stores.
Over Production: the production over and above what is required by the demand, for example,
cooking more hamburgers than can be consumed at a fast food restaurant.
Correction: Any activity to fix a product or action after a value added step, for example, not filling
out a form completely or having to correct an entry to a document.
By understanding the types of wastes, you can begin to look within your own operation to see where, and
how, waste is taking place.
Copyright (c) 2009 Accenture. All rights reserved. You may only use and print one copy of this document for private study in connection with your
personal, non-commercial use of a Supply Chain Academy course validly licensed from Accenture. This document, may not be photocopied, distributed,
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Vale-added activities
Slide 06: Value Added
An easy way to visualize what value added means, is to put yourself in the shoes of the customer, and
ask a simple question: Am I willing to pay for this activity as an element of the cost for the product or
service that I am buying? Think of the additional cost to cover a product being moved from one area of
the plant to a machine in another area of the plant and the two hours of overhead incurred while this
move is made. Would you as a customer be willing to pay for that inefficiency? Or, think of the additional
labor and overhead incurred when a product has to be repaired before it reaches the end of the
production line? Would you, as a customer, be willing to pay for that ineffective process? In both cases,
the answer would be no. As such, it is important to eliminate all non-value-added activities so that the
production operation is left with those activities that are legitimately adding value from the customers
perspective.
Lets further explore the concept of how we determine the value added of a process or activity.
Flow is the progressive achievement of tasks along the value stream with minimal queues, no
stoppages, scrap, or backflows
Pull No one upstream should produce a product or service until the downstream customer asks for it.
Material or information is only presented when needed and requested.
Perfection Strive for perfection.
Note that the process is a closed loop; moving to Lean is a never ending task.
Copyright (c) 2009 Accenture. All rights reserved. You may only use and print one copy of this document for private study in connection with your
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Note: interactive elements such as activities, quizzes and assessment tests are not available in printed form.
Copyright (c) 2009 Accenture. All rights reserved. You may only use and print one copy of this document for private study in connection with your
personal, non-commercial use of a Supply Chain Academy course validly licensed from Accenture. This document, may not be photocopied, distributed,
or otherwise duplicated, repackaged or modified in any way.
Note: interactive elements such as activities, quizzes and assessment tests are not available in printed form.
Copyright (c) 2009 Accenture. All rights reserved. You may only use and print one copy of this document for private study in connection with your
personal, non-commercial use of a Supply Chain Academy course validly licensed from Accenture. This document, may not be photocopied, distributed,
or otherwise duplicated, repackaged or modified in any way.
Note: interactive elements such as activities, quizzes and assessment tests are not available in printed form.
Rapid Execution
Slide 11: Change for Improvement
The third, and last, objective of Lean Manufacturing is change for improvement. A key element in change
in a Lean environment is the concept of kaizen. Under the rubric of continuous improvement, kaizen
comes from the Japanese words "kai" which is change and "zen" which is good or for the better.
Kaizen is an integral part of continuous improvement activity by encouraging many small positive actions
with little to no cost. It requires that everyone take responsibility for improvement, and continually
question the ways things are done. It is OK to experiment and try different things. It is OK to fail, but
failing fast is important, i.e., it is important to quickly recognize when something isn't working and move
on.
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The first part is kanban (or pull systems), which ensures that materials are moved or shipped only
when a signal is received that they are required.
Work cells are created so that related work occurs in a single place the work cell. The output of
the cell may be a completed product or a complete component. A key characteristic of a work cell
is that it is adaptable to changes in schedules and production streams.
Finally, process flexibility is a way of ensuring that the system can accommodate changes in
product requirements, and enables quick changeover for new product schedules.
The intent of continuous flow is to be able to ensure a smooth flow of product through the system. To
achieve a smooth flow, there needs to be a minimal amount of delay, no quality problems, and minimized
external processes, such as setup times, in place in the production area. The goal of continuous flow
manufacturing is to become so efficient that production can be planned in a batch size of 1 unit of output.
Quality at the Source involves designing products that can be manufactured and can be error proofed. By
engaging engineering in Lean production systems, they can design products that are easier to produce,
that are optimized for cellular manufacturing, have mistake proofing built into the design so that
production is likely to have fewer defects and process issues. The goal, of course, is no waste due to
defects or process execution problems.
Supplier partnerships involve engaging suppliers as part of the extended enterprise and driving Lean
principles throughout the supply chain.
At the top of the Lean structure is zero Muda. The idea that the product is built right the first time (RFT)
and that there is zero waste throughout the process.
Lets go through each of these elements in more detail, and explore the implications of Lean
Manufacturing systems on the way these activities are performed.
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Sort (Seiri) eliminating unnecessary items from the workplace. This can be accomplished by red
tagging placing a red tag on all items not required to complete the job and moving these to a
central holding area. Other unneeded items, that have no opportunity for reuse, are discarded.
Set in Order (Seiton) the second S focuses on efficient and effective storage methods. Once a
worker understands what tools and equipment are needed to do their job, this task is to get the
correct number of pieces and to locate them in the workplace. Often, each tool's place is marked
with a clear indicator. A place for everything, and everything in its place.
Shine (Seiso) Once clutter is moved out of the way, daily follow-up cleaning is necessary to
sustain this improvement. Workers will take pride in a clean work area. It will be easier to notice
changes in tools and equipment breakage, misalignment - and facility issues - leaks or
contamination - when beginning with a clean space.
Standardize (Seiketsu) After the first three Ss are completed, workers should standardize best
practices in the work area.
Sustain (Shitsuke) - This is the most difficult of the Ss to achieve. As we noted earlier, humans
are reluctant to change and it is easy to fall back into old familiar habits. It is important not to go
back to the status quo, but instead define and standardize the new way of working and make it
the new status quo.
In addition to having a clean workspace, each worker can quickly identify when something is amiss, for
example, a part is still on the bench and was not installed, or a leak has developed.
Copyright (c) 2009 Accenture. All rights reserved. You may only use and print one copy of this document for private study in connection with your
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Note: interactive elements such as activities, quizzes and assessment tests are not available in printed form.
Copyright (c) 2009 Accenture. All rights reserved. You may only use and print one copy of this document for private study in connection with your
personal, non-commercial use of a Supply Chain Academy course validly licensed from Accenture. This document, may not be photocopied, distributed,
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Note: interactive elements such as activities, quizzes and assessment tests are not available in printed form.
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Functional Layouts grouping all of the drill presses in one department rather than in work cells
where the capability can be used.
Poor Communication difficulty in getting information up and down the assembly line quickly.
Unbalanced workloads station 1 has five minutes of work on the product before it can move to
the next work station, station 3 has five minutes of work on the product, but station 2 has 10
minutes of work before the product can move along.
Equipment Breakdowns poor maintenance results in equipment malfunctioning.
Complicated Changeover for example, it takes 25 minutes to change the dies on a press.
Quality Problems / Rework failure to get it right the first time results in additionalwasteful
work.
Absenteeism / Turnover absenteeism impacts consistency and daily performance, turnover
impacts quality of the workforce.
Resource constraints if you have a job that requires 10 workers, and you only have 7 available,
you're already behind the curve.
Expediting is a sign that the plan wasn't well thought out or executed correctly.
Approvals or inspections if they are needed after the fact mean that worker responsibility to
build it right the first time is absent.
If anyone one of these flow impacting situations exist, it is an opportunity for a continuous improvement
event.
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All operations within a process should be rearranged in a sequential fashion with minimal
distance between operations:
o Functional activities should be co-located as much as possible with the rest of the
process activities.
o Layouts should be process/activity oriented versus functional.
o Isolated machines should be moved and incorporated into the line as much as possible.
Flow assumes that material or products will not be stagnant at any point in time, from receiving to
the shipping of finished products, during the entire process.
As shown in the graphic, a continuous flow is a function of kanban and pull systems, work cells, and
process flexibility. Lets look at these in more detail.
Copyright (c) 2009 Accenture. All rights reserved. You may only use and print one copy of this document for private study in connection with your
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How do we do it?
How many?
What are the standards?
When is the job needed?
Work cells represent an effective, organized approach to consistent job performance. By assigning
individuals to work cells, their know-how and expertise is both effectively used and, at the same time,
enhanced through cross-training on the stations within the cell. Work cells also provide a way to measure
performance as completed parts; sub-assemblies and assemblies come out of the cells. Through the use
of team monitoring, work cells serve as a means of preventing recurrence of errors and minimizing
variability. Finally, within the context of Lean Manufacturing, documented processes for work cell activities
are constantly upgraded as employees make continuous improvements.
Copyright (c) 2009 Accenture. All rights reserved. You may only use and print one copy of this document for private study in connection with your
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Work cells provide an effective way to organize people, processes, and equipment to achieve continuous
flow.
Copyright (c) 2009 Accenture. All rights reserved. You may only use and print one copy of this document for private study in connection with your
personal, non-commercial use of a Supply Chain Academy course validly licensed from Accenture. This document, may not be photocopied, distributed,
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Note: interactive elements such as activities, quizzes and assessment tests are not available in printed form.
Copyright (c) 2009 Accenture. All rights reserved. You may only use and print one copy of this document for private study in connection with your
personal, non-commercial use of a Supply Chain Academy course validly licensed from Accenture. This document, may not be photocopied, distributed,
or otherwise duplicated, repackaged or modified in any way.
Note: interactive elements such as activities, quizzes and assessment tests are not available in printed form.
Copyright (c) 2009 Accenture. All rights reserved. You may only use and print one copy of this document for private study in connection with your
personal, non-commercial use of a Supply Chain Academy course validly licensed from Accenture. This document, may not be photocopied, distributed,
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Note: interactive elements such as activities, quizzes and assessment tests are not available in printed form.
Understanding the current process (via tools called value stream mapping)
Identifying the key sources of waste in the system
Establishing the future desired state that is achievable
Build an improvement program that is deployed with the active engagement of managers,
employees, and staff
Essential elements
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Advanced elements
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Copyright (c) 2009 Accenture. All rights reserved. You may only use and print one copy of this document for private study in connection with your
personal, non-commercial use of a Supply Chain Academy course validly licensed from Accenture. This document, may not be photocopied, distributed,
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Note: interactive elements such as activities, quizzes and assessment tests are not available in printed form.