Summary of Lean Concepts as they Apply to Acme Alliance
There are five principles of Lean:
- Learn and accept the difference between Waste and Work
- Learn to map Value and non-Value - Strive to Stability
- Flow - Do whatever you can to create flow in your work
- Pull - Produce only what our clients want and work to replenishment, not forecasts
- Benchmark against perfection - an absolute reference, not a relative one
There are seven things we measure at Acme - Combined, these are a powerful measure of how we are doing:
- Internal Scrap - How many times did we try to add value and then scrap the part? This includes "Warm Up" parts
- Returns from Clients - How many parts did we ship that the client disliked so much that they returned the part
- 5-S - How effective are we at creating a safe, clean and productive work area (includes offices and factory)
- Variance from Quoted Rates - How are we doing financially compared with how we quoted a job?
- Setup Time - How long does it take us to set-up a job, considering setups add no Value
- On-Time delivery - Did we ship when we said we would and when the client wanted the parts?
- Variance from Lead-Time - If we were late, how late were we?
Some simple comments that help summarize Lean and what we expect of Lean at Acme:
- "Lean is about taking all things that are implicit and making them explicit"
- "Lean is about allowing anyone (even a visitor) to see the difference between a normal and an abnormal situation"
- "Lean is about Thinking"
- All thinking is done in a cycle, the cycle of Plan, Do, Check, Adjust (PDCA)
- Problem-solving has no place for "Hunchology", it demands use of the Scientific Method
- PDCA is best practiced with the use of the written word - on an A3 size sheet of paper
All outputs (Y) are a function of inputs (X's). You cannot achieve stable outputs without stable inputs Stability comes from the study of Man, Material, Methods, Machines, Measurement and Environment
The Scientific Method:
- Name the problem or question
- Form an educated guess of the cause (a hypothesis) and make predictions
- Test your hypothesis with well-documented experiments(s) Check your results and let others test your conclusions
- Perform this test:
- Do operators know the pace and where they stand against the Standard?
- Do operators KNOW if the part they just completed meets specification?
- Do operators know what to do if the part is defective?
There are four Rules of Lean in order of priority:
Do not worry about the next item until the preceding items are assured:
- Safety - Is the work environment safe for all employees?
- Quality - Do we have a stable, repeatable and defect-free process for making parts?
- Delivery - Are we making the right quantity at the right time to meet client requirements?
- Cost - Can we make the parts safely, without defects, on time AND at a cost we can afford?
There are three Steps in Implementing Lean:
- Go See
- Ask "Why?"
- Show Respect
Waste comes in seven forms:
- Waiting - This is a person, a machine or a process
- Overproduction - Making more than the client needs RIGHT NOW
- Inventory - Any materila in our plant that we cannot sell RIGHT NOW
- Overprocessing - Performing more than the client needs
- Transport - Moving parts
- Movement - Moving people
- Rework - Making defects