Lean for Small Business Presentation
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This presentation discusses key Lean principles and tools for small businesses, including value stream mapping, the seven wastes, 5S workplace organization, standard work, and visual management. It provides examples and explanations of each tool to demonstrate how they can help businesses improve processes, reduce waste, and increase efficiency. The overall message is that implementing Lean strategies and systems can transform operations and guarantee a return on investment.
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Lean for Small Business Presentation
- 1. Robert Baird Lean Teams USA +1 215 353 0696 Lean for Small Business 11-May-14 1www.leanteamsusa.com
- 2. Presentation Value Subject Time (min) Slide # Key Principles 3 3 What is Lean 4 4 7 Wastes 2 7 Value Stream Mapping 3 9 5S Workplace Efficiency 4 11 Standard Work 4 20 Visual Management 3 27 11-May-14 www.leanteamsusa.com 2
- 3. Key Lean Principles • Transformational Leaders – Clear vision set, communicated – Team-builder, coach, mentor – Effective delegation – Caring, Empathy • Respect For People – Problem Solving – Increasing skill – Empowered • Continuous Improvement – Going to the Source of Problems 11-May-14 www.leanteamsusa.com 3
- 4. Lean Management System 11-May-14 www.leanteamsusa.com 4 Strategy Resistance Satisfaction
- 5. Where is Customer Value? • Complete Service 22% • Friendly staff 7% • Sales team 12% • Technical expertise 16% • Timely & Accurate Invoice 5% Quality 53% • Market • Value Price 47% 11-May-14 www.leanteamsusa.com 5 Value
- 7. The 7 Wastes Waiting • People, inefficient processes, supply chain Inventory • Inefficient Raw material, WIP Over processing • Features Not valued by customer Over Production • Producing more than next step requires Defects • Product errors, data errors Transportation • Inefficient layout Motion • Ergonomics 11-May-14 www.leanteamsusa.com 7
- 8. 7 Office Wastes 1. Over Production – Too many signature levels, Too many emails, Ineffective meetings, More information than the customer needs, more information than the next process needs, creating reports no one reads, or making extra copies , 2. Transportation – Retrieving or storing files, carrying documents to and from shared equipment, taking files to another person, or going to get signatures 3. Motion – Searching for files, extra clicks or keystrokes, clearing away files on the desk, gathering information, looking through manuals and catalogs, or handling paperwork 4. Waiting – Waiting for meeting participants, Waiting for faxes or a copy machine, for the system to come back up, for a customer response, or a handed-off file to come back. 5. Unnecessary Processing – Meeting participants that are not required, Creating reports, repeated manual entry of data, use of outdated standard forms, or use of inappropriate software 6. Inventory – Files waiting to be worked on, open projects, too many office supplies, e-mails waiting to be read, unused records in the database 7. Defects – Data entry errors, pricing errors, missing information, missed specifications, or lost records 8 11/05/2014
- 9. Value Stream Mapping 11-May-14 www.leanteamsusa.com 9 Customer Lunch Demand Available Time 60 Orders per hour 75 Takt Time 0.8 min Place Order 4 Payment Receive Order 3 2 2 min .53 min 1.3 min .43 min .16 min .2 min Lead Time 4.62 min Value Add Time 1.16 min Non Value Add Time 3.46 min Value Add % 25.1% Non Value Add % 74.9%
- 11. 5S Workplace Efficiency 11-May-14 www.leanteamsusa.com 11
- 14. 14 5S Steps What do I need to do my job? Where should I locate this item? How many of this item do I really need? Configure ready access to tools and supplies, Label, Storage containers Workplace is WOW clean The method by which Sort, Straighten, and Sweep are made habitual Employee ownership of 5S program
- 21. Creating Successful Standard Work 1. Determine the important steps – Observation (video, trained eyes) 2. Identify the Key Points – Provided by your best employees 3. Reasons for key points – What are the customer values 4. Establish standard work documents 5. Train 1. Follow up through observation 11-May-14 www.leanteamsusa.com 21
- 22. Customer Service Customers Who Stop Doing Business Because of Poor Customer Service 11-May-14 www.leanteamsusa.com 22
- 23. Work Instructions 11-May-14 www.leanteamsusa.com 23 Important Step Key Points Reason for Key Point 1. Answer phone within 3 rings 1. No one likes to wait 2. Be prepared with a pen and paper to record name, address, phone number 1. People value their time 2. Personalize the call and call back information 2. Introduce the business and yourself 1. Good morning. This is Lean Teams USA, Robert speaking. How may I help you? 2. May I ask who is calling? 1. People want to know they have reached the correct business and who they are talking to 2. Unsolicited call policy adherence. Able to use callers name will provide importance 3. Transfer the call or take the order 1. If having to put on hold start a timer, max 20 seconds 2. The order process is only 3 questions, can we get started? 1. Potential Loss of business after 20 seconds 2. People appreciate knowing how long it might take 4. Ending the call 1. Summarize the order an let them know when they can expect the arrival of their order 2. Lean Teams USA appreciates your order is there anything else I can help you with 1. Ensures there were no errors with what the customer expected 2. People appreciate a business who appreciates them
- 24. Work Instructions 11-May-14 www.leanteamsusa.com 24 Important Step Key Points Reason for Key Point 1. Clean all three sinks Clean with mild soap & rinse Prevention of previous contaminants 2. Sort and scrape foods Prior to loading in sink Keeps water clean 3. Wash with provided detergent 1. Use appropriate brush size 2. Hot water 110 F 1. Remove contaminants 2. Effective removal of residue 4. Rinse in middle sink Must be clean water Prevents re-contamination 5. Sanitize in 3rd sink 1. Use Quat sanitizer 2. Water temp. between 55 and 120 3. Immerse for at least 35 seconds 4. Use test kit to measure ppm must be between 150 and 400 ppm 1. Cleaning does not consistently reduce contamination to safe levels 2. Works best in this temp range 3. Requires contact time because it is slow acting on bacteria 4. Below 150 ppm results in an inadequate reduction of microorganisms. Using too much, above 400 ppm, sanitizing agent can be toxic. 6. Air Dry Do not use a towel Contamination of sanitized items 7. Properly store 6" above floor Prevents floor contaminants
- 25. Ga p Continuous Standard Work 11-May-14 www.leanteamsusa.com 25 Current Standard (Baseline) New Standard
- 26. Standard Work Support 11-May-14 www.leanteamsusa.com 26 𝐸3 Training Standard Work for Leaders Visual Management Gemba Walk Standar d Work
- 30. Guaranteed ROI From Lean Teams USA Contact Us • Lean Teams USA Lean Consulting • www.leanteamsusa.com • Lean Teams USA +1 215 353 0696 • @Robertbaird10 11-May-14 www.leanteamsusa.com 30
Editor's Notes
- One of the key steps in Lean and TPS is the identification of which steps add value and which do not. By classifying all the process activities into these two categories it is then possible to start actions for improving the former and eliminating the latter. Some of these definitions may seem rather 'idealist' but this tough definition is seen as important to the effectiveness of this key step. Once value-adding work (actual work) has been separated from waste then waste can be subdivided into 'needs to be done (auxiliary work) but non-value adding' waste and pure waste. The clear identification of 'non-value adding work', as distinct from waste or work, is critical to identifying the assumptions and beliefs behind the current work process and to challenging them in due course.
- TransportationEach time a product is moved it stands the risk of being damaged, lost, delayed, etc. as well as being a cost for no added value. Transportation does not make any transformation to the product that the consumer is willing to pay for.InventoryInventory, be it in the form of raw materials, work-in-progress (WIP), or finished goods, represents a capital outlay that has not yet produced an income either by the producer or for the consumer. Any of these three items not being actively processed to add value is waste.MotionIn contrast to transportation, which refers to damage to products and transaction costs associated with moving them, motion refers to the damage that the production process inflicts on the entity that creates the product, either over time (wear and tear for equipment and repetitive strain injuries for workers) or during discrete events (accidents that damage equipment and/or injure workers).WaitingWhenever goods are not in transport or being processed, they are waiting. In traditional processes, a large part of an individual product's life is spent waiting to be worked on.Over-processingOver-processing occurs any time more work is done on a piece than is required by the customer. This also includes using components that are more precise, complex, higher quality or expensive than absolutely required.Over-productionOverproduction occurs when more product is produced than is required at that time by your customers. One common practice that leads to this muda is the production of large batches, as often consumer needs change over the long times large batches require. Overproduction is considered the worst muda because it hides and/or generates all the others. Overproduction leads to excess inventory, which then requires the expenditure of resources on storage space and preservation, activities that do not benefit the customer.DefectsWhenever defects occur, extra costs are incurred reworking the part, rescheduling production, etc. This results in labor costs, more time in the "Work-in-progress". Defects in practice can sometimes double the cost of one single product. This should not be passed on to the consumer and should be taken as a loss.
- There are FIVE overriding principles to Lean.1.Identify Customers and Specify Value - The starting point is to recognise that only a small fraction of the total time and effort in any organisation actually adds value for the end customer. By clearly defining Value for a specific product or service from the end customer’s perspective, all the non value activities - or waste - can be targeted for removal.2.Identify and Map the Value Stream – The Value Stream is the entire set of activities across all parts of the organisation involved in jointly delivering the product or service. This represents the end-to-end process that delivers the value to the customer. Once you understand what your customer wants the next step is to identify how you are delivering (or not) that to them.3.Create Flow by Eliminating Waste – Typically when you first map the Value Stream you will find that only 5% of activities add value, this can rise to 45% in a service environment. Eliminating this waste ensures that your product or service “flows” to the customer without any interruption, detour or waiting.4.Respond to Customer Pull – This is about understanding the customer demand on your service and then creating your process to respond to this. Such that you produce only what the customer wants when the customer wants it.5.Pursue Perfection - Creating flow and pull starts with radically reorganising individual process steps, but the gains become truly significant as all the steps link together. As this happens more and more layers of waste become visible and the process continues towards the theoretical end point of perfection, where every asset and every action adds value for the end customer.In following these five principles of Lean you will implement a philosophy that will become “just the way things are done”. You are ensuring that you are driving towards the overall organisational strategy by constant review of your processes to ensure that they are constantly and consistently delivering value to your customer. This allows the organisation to maintain its high level of service whilst being able to grow and flex with a changing environment and it does this through implementing sustainable change.
- Standard Work: This is the sequence of steps, the time required to perform the steps and other elements that ensure an activity is performed consistently. Helps produce predictable output, prevents recurrence of defects, and eliminates variability and assist employees to adhere to established standard processes. Steps include: Takt Time, Work Sequence, Standard Process, Cross Training, Resource Planning and Cycle-Time Improvement. - See more at: http://www.flextronicsblog.com/5-must-do-lean-office-best-practices/#sthash.IAIG44PY.dpuf
- How do you want to spend your time, what do you like, where do you best serve the business. How to create a repeatable businessCreate the necessary documentation to ensure that everyone understands exactly what to expect from you. Similarly, lay out your own expectations to keep everyone on the same page.http://www.forbes.com/sites/theyec/2014/04/14/repeatable-process-the-phrase-every-entrepreneur-should-learn-to-love/?utm_campaign=forbestwittersf&utm_source=twitter&utm_medium=social
- setting up customer service systems on various channels. Phone and in-person customer support are, of course, standard, but do you have online services as well? If not, consider installing a live chat application on your website so your visitors can instantly touch base with you if they have any concerns. Also make sure that you have a dedicated community manager who can address concerns on social media.
- Story – How many times have you immediately drawn negative conclusions when a phone is answered with poor phone manners. I recently called for a propane service and only 1 out of 4 had a professional method of answering the phone
- The worlds favorite color is blue the second is green
- 1. Because the Value Stream Mapping exercise requires the participation of people from various departments, departmental “Silos” are broken down through people starting to understand the effect of their outputs on other department’s inputs. This alone significantly improves the time through the value stream.2. The people participating will start to look at the complete system instead of individual process steps. People start to understand where process change resources must be focused.3. Once the Future State map is determined it provides a step by step plan, along with timeline, and resources required to change the process according to customer requirements.4. All changes are focused on what is required to meet customer requirements and because of this people are much more in touch with customers. 5. The people participating now have a much better understanding of how they contribute to the overall strategy, ownership of the changes increases.
- A typical blood draw takes two or three minutes. If the customer has a 30-minute total experience at the lab, 27 of those minutes are non-value-added, as are all the additional steps by the patient and staff. Once you identify these non-value-added steps, you can begin to eliminate, reduce or simplify them.
- Have you ever been in a group where someone took control of the situation by conveying a clear vision of the group's goals, a marked passion for the work, and an ability to make the rest of the group feel recharged and energized? This person just might be what is called a transformational leader.Transformational leadership is a type of leadership style that can inspire positive changes in those who follow. Transformational leaders are generally energetic, enthusiastic, and passionate. Not only are these leaders concerned and involved in the process; they are also focused on helping every member of the group succeed as wellIf you don’t keep yourself and your staff abreast of the latest trends, issues, and developments in your field, you could miss the boat on many opportunities. Not to mention, you’ll risk falling behind your forward-thinking competitorsStay in the know by subscribing to your industry’s publications, attending relevant conferences, and consuming retail resources and learning materials. Don’t forget to invest in your staff’s education as well. Bring them to any events that they can learn from. Let them attend relevant training sessions or webinars. Provide your employees with the educational means to help them do their jobs better
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