25 September, 2013© S A Partners
The Principles of the Lean
Business System:
#5 Prevention
Lean in the 21st Century ™ Series
Professor Peter Hines
25 September, 2013© S A Partners
• Welcome
• Webinar will last about 1 hour
• We will invite you to complete
a few Polls
• Q&A session
Our Webinar
Lean in the 21st Century™
25 September, 2013© S A Partners
• Frederick Taylor invented the business system used by
organizations throughout the 20th Century
– Cost is the focus
– Scientific Management System
– Functionally organized by expertise
– Built for internal efficiency
– Not fit for the global , competitive environment of the 21st century
– Relies on traditional management to be effective
– Objective is to minimize the time it takes to do value added
processes
• Peter Hines has invented a business system of the 21st
Century
– People are the focus
– Value Management System
– Organized by value delivered
– Built for productivity in an extended enterprise
– Fit for the global, competitive environment of the 21st century
– Relies on leadership disposition and language to be effective
– Objective is to reduce or eliminate non-value added activities
Welcome!
• Co-founder Lean Enterprise Research Centre, Cardiff University
• Chairman, S A Partners• Adjunct Professor, University of
South Australia
Professor Peter Hines
90% of problems in business are caused by management, 10% by the workman. F. W. Taylor, 1912
25 September, 2013© S A Partners
• Research conducted by Professor Peter Hines identified 5 key elements of success:-
• Link business system to a one to two year strategy through Policy Deployment
• Dismantle traditional, siloed, functionally-focused business processes
• Deploy human resources aligned to value to be delivered
• Develop leadership to be effective in a 21st century business system space
• Synchronize business systems with suppliers and customers
We encapsulate this in an evolutionary business model rooted in time tested customer, quality and lean thinking
The Lean Business Model
How we see creating a 21st
century business system…
25 September, 2013© S A Partners
The Lean Business Model ®
Original source: Professor Peter Hines
Benchmarking Toyota’s Supply Chain: Japan vs U.K.
Long Range Planning, February, Volume 31, Number 6, pp. 911-918, 1998, ISSN 0024-6301
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The Principles
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Muda, Mura and Muri
Mura
(unevenness)
Muda
(waste)
Muri
(overburden)
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• Are your Continuous Improvement activities:
• Mostly focused on removing Muda or waste
• Mostly focused on removing Mura or un-evenness
• Mostly focused on removing Muri or overburden
• Well balanced between the three
• Please select one option
Poll #1
25 September, 2013© S A Partners
• Prevention
– Standards and stability
– Quality at source
• Risk
– Zero Defect Thinking (ZD) using PFMEA
• Variation Reduction
• Local Problem Solving
Prevention
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Kaizen Blitz vs. Lean
Management
Imp
rove
me
nt
Op
po
rtu
nit
y
Time
Short term
gains made
Lost and repeated results
due to no sustainability
Results could be lost entirely
if organizational structure not
aligned to support and education
level of all employees not increased.
Improvement leveled off and
eventually stopped due to lack
of realizing “true” lean
opportunity
Greater, sustained
results achieved
Awareness, education,
organisation structure
created to support lean Source: C. Craycraft, Whirlpool
Utilization of Lean tools will deliver
performance improvement. However,
behaviors focused on Continuous
Improvement / Pursuit of Perfection
will provide sustainable long term
improvement
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Creating Sustainable
Improvement
System of Thinking & Behaviour
System of Improvement
System of Work
Re
active
Fo
rma
l
De
plo
yed
Au
ton
om
ou
s
Wa
y of life
Mo
bilis
atio
n
Be
ne
fit
Time
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Demand Amplification: Food Supply Chain
32%
26%
34%
44%
544%
12000
17000
22000
27000
32000
RetailSales
Retail orders to producer
Packed at producer
Actual Steaks supplied by meatpacker
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The Lean Tools Model of
Excellence
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• Why Has Lean often Over-Focused on Delivery Pillar?
• Lean has a functional home & tradition in Operations / Engineering rather than Quality
• We have been led by the text books
• We have been led by Lean training courses
• It is easier to be very focused in one area
• Please select one or more options
Poll #2
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Standardised & Stable
Processes
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A Brief History of CI and PDCA
Tools
In the 1950’s W. Edwards Deming recommended that business
processes be placed in a continuous feedback loop to identify and change the parts of that process that need
improvement.
This continuous process is now commonly known as the Plan, Do,
Check, Act cycle:
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Workplace Organisation
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Why clear up?
Remove
clutter
Free up
space
Start to
organise
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Why organise?
Easier Safer Quicker
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Why shine?
Eliminate
dirt and
grime
Cleaning is
checking
Maintain
Optimum
conditions
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Standardised & Stable Processes
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• OEE (Overall Equipment Effectiveness)
Overall Equipment Effectiveness
Availability Performance Quality
OEE World Class Benchmark = 85%
X X90 % 99 %95 %
An Example : @ A=50% / P=50% / Q=50% What is OEE?
25 September, 2013© S A Partners
• To understand the current situation
• To identify the variation in performance
• To identify the focus area for improvement
• To know the benefits of the improvements
In Summary
• A simple visual method for measuring and then acting on the equipment effectiveness
• It’s purpose is to sustain and continuously drive the improvement of all aspects of equipment effectiveness
Why the Need to Measure by OEE
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Traditional Manufacturing
THIS RESULTS IN AN UNSTABLE, VARIABLE AND UNRELIABLE PROCESS
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Phase 4 -
Consolidation
Phase 3 -
Implementation
Phase 2 - Introduction
Phase 1 - Preparation
The 4 Phases and Twelve Steps
to Successful TPM
Ref: TPM – in Process Industries by Tokutaro Suzuki (1994)
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TPM - Production Systems
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TPM – Maintenance Systems
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Quality
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• What order is it best to apply tools:
• Standardised & Stable Processes, Quality, Delivery
• Standardised & Stable Processes, Delivery, Quality
• Quality, Standardised & Stable Processes, Delivery
• Quality, Delivery, Standardised & Stable Processes
• Delivery, Standardised & Stable Processes, Quality
• Please pick one answer
Poll #3
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The Lean Model of Excellence
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STEP 1 STEP 2 STEP 3 STEP 4
Objective Process Flow Cause & Effect Mapping Plan
ProblemStatement:………………………………………………………………
Target: ………
Results:
Team:
What How……… ……….……… ……….……… ……….……… ……….……… ……….……… ……….……… ……….……… ……….……… ……….……… ……….……… ……….……… ……….
Problem Solving Methodology
Crimp Terminals
Assemble
harness
Crank to motor
Set up
Go No
Go
EFFECT
MENMETHODS MATERIALS
ENVIRONMENTMEASURE MACHINES
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champion
Master Black Belt
Black Belt
Green Belt
Yellow Belt
Six Sigma “Expert” Tools – DOE
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• Define
• Measure
• Analyse
• Improve
• Control – Maintain the gain!
• Transfer – Transfer the benefits!
• Each step has common tools
and methods
• Generates a common
organisational language
12 Project Steps
• Project Selection
• Performance STD’s, units, defect rate
• Measurement Validation
• Process Capability
• Performance Objectives - Targets
• Identify Variation Sources
• Screening Potential Sources
• Eliminate Defect Sources
• Establish Operational Tolerance
• Measurement System Validation
• Determine Process Capability
• Implement Process Controls
Six Sigma –
A Methodology for Improvement
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Process Thinking
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Zero Defect Performance
RPN Reduction
Single piece flow
Reduce MuraTakt Time
Heijunka
Reduce MuriOEE
Line BalancePoka Yoke 5 step evaluation
Standard work
Shift start-up checks
Process audit
PDCAPersonal & team
discipline
Internal Defect reduction
Tester Capability Check process
Andon / Jidoka Problem solving
5 Why
Window Analysis
CEDACStandard Work Process audit
Poka Yoke 5 step evaluation
ZERO DEFECTS – Toolkit
Configuration
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Potential Failure Effect
SEV
ERIT
Y
Potential Cause
OC
CU
RR
ENC
E
Current Control
DET
ECTI
ON
Original RPN
What is the impact on the Key output
variables (Customer or internal
requirements)
Ho
w s
ever
e is
th
e ef
fect
to
th
e cu
sto
mer
?
What causes the key input to go
wrong?
Ho
w o
ften
do
es c
ause
or
failu
rem
od
e go
wro
ng?
What are the existing controls or
procedures (inspection and
test) that prevent the cause or the
failure mode? Should include an
SOP number Ho
w w
ell c
an y
ou
det
ect
cau
se
or
failu
re m
od
e?
Cleaning of housing (as well as checking dimensions) is not proof of assemblingprocess!
8
Wrong sequence of operation and cleaning method is not effective
10No control to make sure there is no dirt in valve
10 800
Leakage, waste of compressed air
6Wrong step sequence
5Functional test can barely pick it up
8 240
Loss of set pressure 6No Standard in place
3 No control 6 108
Loss of set pressure 6No Standard procedure
8 No control 2 96
PFMEA process
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Poka Yoke – Error Proofing
Mindset
Don’t accept a defect
Don’t make a defect
Don’t pass ona defect
Ideally design the product so that it can’t be assembled incorrectly
Your supplier You Your customer
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Autonomous problem solving
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• What further activity would you like?
• Please select one or more answers
Poll #4
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• If you would like to discuss anything coming out of the webinar please contact me at: [email protected]
or +44 (0)7974 416660
• Please also link up with me at: uk.linkedin.com/in/profpeterhines/
• Or join me at my Lean Business System LinkedIn group: http://www.linkedin.com/groups/Lean-Business-System-1801885?trk=myg_ugrp_ovr
• See also the previous webinars at: http://www.sapartners.com/webinars-2/
Further Questions
25 September, 2013© S A Partners
• Lean & Green – Greencore (Nottingham, UK) Factory tour
– 17-18 October 2013
– http://www.sapartners.com/book-launch-of-creating-a-lean-green-business-system/
• Accelerating Business Performance – How to create Culture of Business
Improvement, (Dublin, Ireland)
– Date: 12 November 2013
– http://www.sapartners.com/accelerating-business-performance-create-culture-
business-improvement/
• Learn • Share • Grow – Achieve Lean Excellence at Aimia Foods,
Haydock, UK)
– 16-17 January 2014
– http://www.sapartners.com/achieve-lean-excellence-event/
For further information please contact [email protected]
Or visit http://www.sapartners.com/uk-events/ for our full event schedule
European Events
25 September, 2013© S A Partners
• Cardiff University accredited training in Melbourne ,
Sydney and Brisbane . See more details on:
http://www.sapartners.com.au/wp-
content/uploads/2012/11/Lean-Awarness.pdf
• Or Contact our Australian Managing Director Chris
Butterworth on [email protected]
Australian events