Lean Definitions and History

Question 1

Lean versus Six Sigma

Answer 1

Lean is more efficient, SixSigma is less defects.
Efficient and effective is both.
LEAN create flow and eliminate waste.

Question 2

Acronym Downtime “D” is

Answer 2

Defects: mistakes, errors, flaws, etc. (not acceptable to customer)

Question 3

Acronym dOwntime “O” is

Answer 3

Overproduction: providing sooner than needed or in greater quantity than needed. (father of all wastes because it leads to all others)

Question 4

Acronym doWntime “W” is

Answer 4

Waiting; products are waiting to be worked on or information is waiting to be processed. (front office orders that wait).

Question 5

Acronym dowNtime “N” is

Answer 5

Non-utilized talent: hiring someone overqualified or underqualified, not using someone on the team, subsidiarity. Using their hands and feet but not their minds.

Question 6

Acronym downTime “T” is

Answer 6

Transportation: anytime something is moved without adding value. (can be confused with _____ ). Generally considered customer good or service, product or delivery, inventory item in transit.

Question 7

Acronym downtIme “I” is

Answer 7

Inventory: could be physical piles of inventory (raw material, wip, finished goods) or data trying to work its way through the value stream.

Question 8

Acronym downtiMe “M” is

Answer 8

Motion: walking, searching, bending, sorting or physically moving around. (generally considered employee time.

Question 9

Acronym downtimE “E” is

Answer 9

Extra processing: duplication of effort, duplication of information, rework, redo, etc.

Question 10

Picture of Continuous Process Improvement

Answer 10

Two circles, one “defects” one “slow” draw a line through both; neither are desirable states.

Question 11

Lexus 1990’s phrase; states, “until we reach perfection we’re going to continue improving.

Answer 11

Lexus, “relentles pursuit of perfection.” You’re never done working to achieve perfection because one can always be better.

Question 12

Nike to process contract manufacturers took 246 days, what did it change to and why?

Answer 12

Using Lean, it now takes 152 days. They deployed built-in quality, just-in-time techniques, operational sustainability, and cultural empowerment.

Question 13

Nike views Lean helping employees in these 4 ways:

Answer 13

1) Factory leaders use lean to drive business performance.
2) workers are engaged and enabled to drive success,
3) factory processes are predictable AND agile in response to customer demand,
4) Lean engages the minds of those closest to the work to solve problems.

Question 14

PDSA/PDCS stands for

Answer 14

Plan / Do / Study-check / Act:
Plan: identify the need for change,
Do: test the changes
Study-check: analyze results, what’s data telling us, is the change working?
Act: adjust to what was learned

Question 15

QA / QC quality assurance, quality control

Answer 15

Quality assurance (QA) is the management side of quality� It identifies weaknesses in the process� It evaluates the effectiveness of quality control (QC)�
Quality control (QC) control charts track defects, variation.

Question 16

Lean versus Six Sigma

Answer 16

Both focus on the customer, but Lean focuses on end-to-end perspective while Six Sigma focuses on islands of suboptimization (defects).

Question 17

MUDA (japanese)

Answer 17

“muda” means waste or wastefulness; in its most intense version, it means uselessness� The term was first introduced by Taiichi Ohno in the book The Toyota Production System�
2) non-value-added time

Question 18

Three criteria to be me for something to be considered value added (if not met, it’s “waste”).

Answer 18

If these are met, it’s value added:
1) physically changing the process.
2) getting it done right the first time.
3) customer is willing to pay for it.

Question 19

Role of CI ( continuous improvement)

Answer 19

Continuous improvement is simply the relentless pursuit of perfection� You may not reach it, but in your efforts you will make vast improvements� Remember, you will want to embrace zero as that which removes obstructions to your processes�

Question 20

What should we celebrate?

Answer 20

Celebrate milestones, stop and be grateful for progress. Be sure to include milestones that are communicated.

Question 21

Effectiveness

Answer 21

Effectiveness eliminates the imperfections of overproduction
- Transportation
- Inventory
- Extra processing

Question 22

Efficiency

Answer 22

Eliminates the imperfect situation of having to wait. (related to effectiveness).

Question 23

Kaizen (ski-pen) comes from two words:

Answer 23

1) Kai, meaning change
2) Zen, meaning good or for the better

Question 24

Kaizen event points

Answer 24

3 or 5 day events. Short term event with immediate results:
- establish training
- define boundaries
- time to collect and analyze data
- brainstorm
- implement, trial, brainstorm, remeasure

Question 25

Lean Roles of players, describe 3; then a successful implementation is…

Answer 25

• Top Level Management – focuses on the overall strategic plan� Top level management will have metrics on a scorecard that address the elimination of waste
• Middle management – integrates the initiative across departments
• Employees – tasked with day-to-day responsibilities
—– success—–
Engaging in the process – An organization will require that everyone is committed and diligent
Accepting your roles and responsibilities willingly

Question 26

Project Selection Matrix (describe down the left and the rating)

Answer 26

Down the left are (criteria):
1) high impact on key business objectives
2) low performing process
3) high probability of success
4) low impact on resources
5) potential cost savings
6) customer satisfaction

Rating must be 1 to 5 using each number once;

Question 27

Project selection Matrix across are…

Answer 27

The basic template can be changed for each project but starts out with; order taking, preparation, initial processing, original processing and shipping.

Question 28

Dr William Deming (1900 - 1993)

https://www.youtube.com/watch?v=ehMAwIHGN0Y

Answer 28

Known for championing the work of Walter Shewhart. Using Shewhart’s tools such as Statistical Process Control, Operational Definitions, and an evolved version of The Shewhart Cycle called the Plan-Do-Act-Study, or PDSA, he would greatly change the landscape of quality improvement.

Deming is best known for his Fourteen Points for Management, Seven Deadly Diseases of Management, and Total Quality Management, or TQM, ideologies.
- His methods were also responsible for Ford Motor Company’s resurgence in the 1980s

Question 29

Sakichi Toyoda (1867–1930)

Answer 29

Japanese inventor and industrialist, who is often referred to as the father of the Japanese industrial revolution.
• Founder of Toyota Industries Co., Ltd.
• Invented the automatic power loom
• Implemented the principles of Jidoka (autonomous automation), which means that the machine stops itself when the problem occurs, in its creation
• Is cited as the developer of the concept of “5 whys”
- When a problem occurs, ask ‘why’ five times to try and find the source of the problem
- Once identified, enact preventive measures to keep these problems from recurring

Question 30

Kiichiro Toyoda (1894–1952)

Answer 30

Son of Sakichi Toyoda, was a Japanese entrepreneur.
• He diversified the family business, Toyoda Loom Works, into automobile manufacturing, creating
the largest automobile manufacturer in the world: Toyota Motor Corporation
• With the assistance of some of Japan’s leading engineers, Toyoda was able to design their first gas- powered engine by 1934. Within a year the company was manufacturing automobiles, and a year later in 1936 they renamed the company Toyota. By 1937 the auto division was so successful that it was spun off as a separate business named Toyota Motor Corporation with Kiichiro as its vice president
• In the post war recession of 1950 Japan, Toyota found itself near bankruptcy
- The company was forced to implement massive layoffs that led its workers to go on strike
As part of the settlement with the workers, Toyoda and many top executives resigned from the company
- Kiichiro passed away two years later at the age of 57

Question 31

Taiichi Ohno (1912–1990)

Answer 31

Chinese born industrial engineer and businessman widely regarded as the father of the Toyota Production System, which would later come to be known as Lean Manufacturing in the United States
• Identified the “seven wastes” as part of this system, as well as for his authoring of several books on the Toyota Production System itself
• Championed the eradication of such waste within the production process Over the next thirty years the system would continue to evolve and mature, with some of its elements such as: muda (the elimination of waste), jidoka (the injection of quality), and kanban (the tags used as part of a system of just-in-time stock control), taking root in the West
(this work came from Henry Ford’s reduction of employee movement)

Question 32

Shiegeo Shingo (1909–1990)

Answer 32

Japanese industrial engineer, who was considered to be the world’s leading expert on manufacturing practices and the Toyota Production System
• Shingo became involved in Toyota’s efforts with the reduction of set-up times for the changing of dies
- His expertise led to the creation of the Single Minute Exchange of Die, or SMED that shortened the set-up times from hours to minutes
• His quality teachings utilized methods that included systems such as poke yoke, mistake proofing, and just-in-time techniques

Question 33

Dr. James Womack

Answer 33

management expert and founder of the Lean Enterprise Institute�
• Lean Enterprise Institute is a nonprofit training, publishing, conference, and management research
company that aims to advance the practice of lean production and lean thinking
• Womack is best known for his book The Machine that Changed the World, which popularized the term lean production globally

Question 34

Anand Sharma

Answer 34

twenty-year veteran of the manufacturing industry� Sharma co-founded TBM Consulting Group in 1991, where he served as president and CEO.
• Sharma’s LeanSigma system is a result of combining the best aspects of Six Sigma and Lean production. The details of his system can be found in his book, The Perfect Engine: How to Win in the New Demand Economy by Building to Order With Fewer Resources
• In 2002, Sharma was named a Hero of US. Manufacturing by Fortune magazine, which earned him the Society of Manufacturing Engineer’s - Donald Burnham Manufacturing Management Award for that year

Question 35

Toyota

Answer 35

Toyota developed the Toyota Productions System, consolidating its management philosophies and practices aimed at eliminating waste and inconsistencies while improving quality� This system is also known as “Lean production�”

The system was originally designed and implementedin the late 1940s by Taiichi Ohno� Over the next thirty years engineers, such as Ejii Toyoda, would modify and improve upon its foundations culminating in the underlying principles of what is now known as The Toyota Way�
In 1950, Toyota found itself on the brink of bankruptcy� At the time, they were in the process of developing a means by which they could reduce the time it took to exchange manufacturing dies� The help they so desperately needed came in the form of Shigeo Shingo� His method SMED helped reduce the time needed for the exchange of dies from hours to minutes�
Toyota’s rise was due to their ability to reduce inventory while lowering operating costs� They also invested in their human capital – training their employees to identify issues during the stages of production and introduce necessary corrective actions (PDCA)� Teams were created and tasked with the improvement and reduction of defects within all of the company’s processes�
Toyota was so committed to defect reduction that equipment operators were empowered to check for product quality and stop the process if defects were identified� As an additional task, employees were given the mandate of focusing on continual improvement in everything they did individually, or as a company�

Question 36

Womack’s principals of 5 LEAN principals

Answer 36

Lean principles:
1) Define value
2) Map value stream
3) Create flow
4) Establish “customer” Pull (not sellers push)
5) Pursue perfection

Question 37

Owno, Toyota produciton system

Answer 37

Idea of kanban, or sign boards for visual cues

Question 38

Pursuing perfection (ways to relentlessly)

Answer 38

Pokyoke - error proofing
Kaisen event

Question 39

List of Lean heros

Answer 39

W. Edwards Deming - Japanese miracle 1950’s-1960’s

Sakichi Toyoda - automatic power loom, founder of Toyota

Kiichiro Toyoda - 1894-1952, son of sakichi, started automotive, 1st car 1934.

Taiichi Ohno - Chinese Fr of toyota production system, known now as LEAN. defined 7 wastes.

Shiegeo Shingo - reduction of setup time for dies, SMED single minute exchange of dies system; zero defects at the same time. researched, statistical quality control. Plus, poke Yoke, Mistake proofing, just-in-time.

James Womack - founder of LEAN enterprise institute, book, “lean production” MIT research director.

Anand Sharma - TBM consulting CEO. combines best of six sigma and lean for “LeanSigma”.