Dean Pomykala NERC 2013 Lean Office

Report
Lean Office
Dean Pomykala, MBA, LSS
Agenda
• My Bio
• Lean Overview
– What is Lean? Why go Lean?
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Value Added vs. Non-Value Added Activities
Value Stream Mapping
One Piece Flow
Kaizen Events
6S
Wrap Up
Dean Pomykala - Lean Office
Agenda
• My Bio
• Lean Overview
– What is Lean? Why go Lean?
•
•
•
•
•
•
Value Added vs. Non-Value Added Activities
Value Stream Mapping
One Piece Flow
Kaizen Events
6S
Wrap Up
Dean Pomykala - Lean Office
My Bio
• Dean Pomykala -
MBA, LSS Green Belt
– Presently
• Director of Instruments Operations
• Business Improvement Manager
– Canberra Industries
• Radiation Detection & Analysis Equipment
– Used in Power Plants, Labs, Military Applications
• 1000+ Employees worldwide
• 400 in Meriden, CT
Dean Pomykala - Lean Office
My Bio
• Dean Pomykala – Education
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Electronics Technology
Bachelor’s Degree in Business
MBA
Lean Six Sigma Green Belt
– Over 25 years of experience in creating &
improving standard work processes
• Industries include Medical, Military, Aerospace
• Standards
– FDA, ISO, GMP, MIL-SPEC, OSHA
Dean Pomykala - Lean Office
Agenda
• My Bio
• Lean Overview
– What is Lean? Why go Lean?
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Value Added vs. Non-Value Added Activities
Value Stream Mapping
One Piece Flow
Kaizen Events
6S
Wrap Up
Dean Pomykala - Lean Office
Lean Principles
• Lean Principles can be applied to any industry
– Health Care
– Food Service
– Financial
– Shop Floor
– Customer Service
• Any department
– Customers can be internal
Dean Pomykala - Lean Office
Why go Lean??
• Survival…..
Dean Pomykala - Lean Office
Why go Lean??
• Why are Companies going Lean?
• Financial Savings
– Huge savings can be made initially from low hanging fruit
– Product 1
• 32 Hours Saved Plus Material
• $8,000 Each
• $250,000 in 2013
– Product 2
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4.4 Hours Saved Plus Material
$590 Each
$20,000 in 2013
184 Square Feet
Dean Pomykala - Lean Office
Why go Lean??
• Lean Office Projects
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Reduce time to enter an order
More efficient method for sales to quote an order
Real-Time Production results displayed in sales office
Freed 6 hours of Shipping/Receiving time
• Soft Savings
– Hidden Value
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Improved Customer Satisfaction
Improved On Time Delivery
Faster turn around
More efficient process / Time saved
– More time to be productive in other ways
Dean Pomykala - Lean Office
Why go Lean??
• General Electric
– Saved $12 billion over five years
– Added $1 to its earnings per share.
• Honeywell
– Saved more than $800 million
• Motorola
– Reduced manufacturing costs by $1.4 billion from
1987-1994
Dean Pomykala - Lean Office
Why go Lean??
• Baxter Healthcare Corporation
– Over a three-day event, a team developed Value
Stream Maps (VSM) that detailed the plant’s use of
water and identified processes with potential for
improvement
– Using the VSMs, the team developed an
implementation plan that saves 170,000 gallons of
water per day and over $68,000 over the next year,
with little or no capital investment
Dean Pomykala - Lean Office
Why go Lean??
• Canyon Creek Cabinet Company
– Expect savings of almost $1.5million annually
from process improvements
– Process improvements include lead time
reduction, defect reduction, overproduction,
operator motion, and material loss and
damage
Dean Pomykala - Lean Office
Why go Lean??
• The Boeing Company
– Boeing Everett
• Productivity improvements of 30-70%
• Eliminated the use of 350 cubic feet of cardboard &
bubble wrap packing material per 747 wing panel set
• Reduced chemical usage per airplane by 11.6 %
– Boeing Auburn
• Defects have been reduced from 1,200/10,000 (12%) to
fewer than 300/10,000 (3%)
• Reduced floor space by 200,000 square feet
Dean Pomykala - Lean Office
Why go Lean??
• General Electric
– Peebles, Ohio Facility
• General Electric's jet engine facility found ways to reduce
its greenhouse gas emissions by implementing Lean
methods, while also producing significant cost savings.
Lean events contributed to the following successes at the
facility:
• Reduced fuel consumption for GE90 engine testing from
20,000 gallons to 10,000 gallons.
• Achieved cost savings of $1,000,000 due to fuel use
reduction.
Dean Pomykala - Lean Office
Why go Lean??
• NBC & Universal Studios
– The Energy Treasure Hunt Model
• Conducted well over 200 treasure hunts globally with a
combined emissions reduction of over 250,000 metric
tons of Green House Gas.
• Saved over $14 billion dollars
Dean Pomykala - Lean Office
Why go Lean??
• Monetary Savings are easy to see
• Soft Savings or Efficiency Savings
– Increase in Efficiency
– Increased Customer Satisfaction
– Increased Market Share
• Revenue will follow
Dean Pomykala - Lean Office
World Class
• It should be everybody’s goal to become
a “World Class” Company
• World Class
– Standard-Setting Excellence
– The standard by which all others are
measured
Dean Pomykala - Lean Office
World Class
• Does your product or service have “Standard-Setting
Excellence”?
• Are your internal processes the standard by which all
others are measured?
• Does your company function like a World Class
Company?
• Is your competition World Class?
Dean Pomykala - Lean Office
Becoming World Class
• Implement Lean Principles
• Systematic Continuous Improvement
– Product/Service & Processes
• Reduce Costs
– Not just raw material costs….
– The cost of doing business
• People spend too much time fighting fires
• Bureaucracy gets in the way
• Generate a Road Map
– Where are you & where do you want to be
Dean Pomykala - Lean Office
What is Lean??
• Lean is a philosophy that characterizes all
activities as either
– “Value Added” (VAT)
– “Non-Value Added” (NVAT)
Lean strives to eliminate or reduce all
Non-Value Added Activity
Dean Pomykala - Lean Office
Continuous Improvement
– Identify which Processes need to be
addressed
– Use Lean Tools to identify road blocks,
bottle necks, redundancies, bureaucracies,
etc.
– Use Lean Tools to determine where you
want to be & make consistent
improvements over time to reach your
goals
Dean Pomykala - Lean Office
Implementing Lean Principles
• DISCUSSION QUESTION
– Three minutes
Can you list 2 – 3 internal processes
that can be improved?
Dean Pomykala - Lean Office
Change
• Fear of change is the biggest obstacle in
implementing Lean Principles
– That’s the way we do it
– We’ve always done it that way
– That won’t work here
• Change is not only inevitable, it is necessary
Dean Pomykala - Lean Office
Paradigm Shift
• Paradigm
– A philosophical or theoretical framework
– The way we look at the world
• Paradigm Shift
– A radical change in underlying beliefs
– When a conventional world view is replaced with another
• Business Models Change
– The preferred method today may not be preferred
tomorrow
Dean Pomykala - Lean Office
Business Models & Paradigm Shifts
“That’s the way we’ve always done it.”
Dean Pomykala - Lean Office
Paradigm Shift
• The “Vuja De” Moment! (Simon T. Bailey)
– “Vuja De” is the reverse of the Déjà vu, which
means “already seen it.” The “Vuja de” moment is
when “you’ve never seen something” but you
intend to create it.
– The Vuja De Moment! When your own eyes
become “a fresh set of eyes” to see the same thing
everyone else sees, but in a unique way.
Dean Pomykala - Lean Office
Agenda
• My Bio
• Lean Overview
– What is Lean? Why go Lean?
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•
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•
•
Value Added vs. Non-Value Added Activities
Value Stream Mapping
One Piece Flow
Kaizen Events
6S
Wrap Up
Dean Pomykala - Lean Office
Value Added Activity
• Value Added Activity
– Any activity that transforms raw material
(Inventory) into a finished product that the
customer is willing to pay for
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Painting
Assembling
Face time with Clients
Medical
– Face time with Patients
• Food Service
– Food Prep
– Serving
Dean Pomykala - Lean Office
Non-Value Added Activity
• Non-Value Added Activity
– Any activity that consumes resources (Labor &
Material), but does not add value to the product
• Anything that your customer does not
perceive as value is waste
– Ask yourself, “Is the customer willing to pay for
what I am doing at the moment?
Dean Pomykala - Lean Office
The 7 Wastes
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Overproduction
Waiting
Transportation (The Product)
Motion (People)
Inventory
Over Processing
Defects
Dean Pomykala - Lean Office
The 7 Wastes
• Transportation (The Product)
• Motion (People)
• Inventory
Dean Pomykala - Lean Office
Waste/Non-Value Added Activity
• Examples
– Getting Approvals
– Waiting for Medical Tests
– Searching for Medical Records
– Walking to get ingredients
– Setting Tables / Washing Dishes
– Non-Value Added, but Necessary
Dean Pomykala - Lean Office
Waste/Non-Value Added Activity
• Anything that your customer does not perceive as
value is WASTE
• What is the customer willing to pay for?
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Assembling? Yes
Repair? No
Time spent walking to copier
Time waiting for approvals
• Bureaucracy
– Checking other people’s work
– Searching for files
Dean Pomykala - Lean Office
Review of Waste
• DISCUSSION QUESTION
– Three minutes
Can you list 2 – 3 forms of waste or
Non-Value Added Activities at work?
Dean Pomykala - Lean Office
Agenda
• My Bio
• Lean Overview
– What is Lean? Why go Lean?
•
•
•
•
•
•
Value Added vs. Non-Value Added Activities
Value Stream Mapping
One Piece Flow
Kaizen Events
6S
Wrap Up
Dean Pomykala - Lean Office
Value Stream Mapping
• A tool used to show the work flow
– Clearly lays out Value Added & Non-Value Added
Activities
– Exposes the 7 forms of waste
• Create a map for:
– “Present State”
– “Future State”
Dean Pomykala - Lean Office
Value Stream Mapping
Dean Pomykala - Lean Office
Value Stream Mapping
Dean Pomykala - Lean Office
Value Stream Mapping
Dean Pomykala - Lean Office
Value Stream Mapping
Dean Pomykala - Lean Office
Value Stream Mapping
Dean Pomykala - Lean Office
Value Stream Mapping
Dean Pomykala - Lean Office
Value Stream Mapping
Dean Pomykala - Lean Office
Value Stream Mapping
• Get all of the appropriate people in a room
– At least one per department
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Map your “Current State”
Map your “Future State”
Make the Future State your new Present State
Re-Visit for Continuous Improvements
Dean Pomykala - Lean Office
Agenda
• My Bio
• Lean Overview
– What is Lean? Why go Lean?
•
•
•
•
•
•
Value Added vs. Non-Value Added Activities
Value Stream Mapping
One Piece Flow
Kaizen Events
6S
Wrap Up
Dean Pomykala - Lean Office
One Piece Flow
• One Piece Flow is not just for Manufacturing
Moves Stack to Person 2
Person 1
10 Minutes
Person 2
10 Minutes for each folder
Waits for 10
folders
VAT = 10 Minutes
5% Efficient
NVAT = 90 Min (Wait Time)
NVAT = 1 Min (Transportation Time)
VAT = 10 Min
NVAT = 90 Min (Wait Time) Total Time = 201 Minutes
Total Value Added Time = 20 Minutes
Dean Pomykala - Lean Office
Benefits of One Piece Flow
• Does not overwhelm Shipping at the end of
the day
• Ship Product to each Customer faster
• Customers get consistent service
– Is it 100% customer focused to let one customer
wait while you work on another?
• Steady Out = Steady In
– Inventory Control
Dean Pomykala - Lean Office
New Fast Food Model
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One Piece Flow / One Touch
Pull System / Only build what the Customer Orders
Custom Builds
6S
Visual Management of Inventory / Supply Chain Management
Wastes??
Overproduction?
Waiting?
Transportation?
Motion?
Inventory?
Over Processing?
Defects?
Dean Pomykala - Lean Office
Agenda
• My Bio
• Lean Overview
– What is Lean? Why go Lean?
•
•
•
•
•
•
Value Added vs. Non-Value Added Activities
Value Stream Mapping
One Piece Flow
Kaizen Events
6S
Wrap Up
Dean Pomykala - Lean Office
Kaizen Events
• Kaizen Events
– Short Term Project
– Intense & Focused
– Concentrate the focus on clear & concise objectives
• Reduce Cost, Reduce Lead Time, Reduce Customer Wait
Time, etc…
– Cross-Functional Team
• Includes personnel from several departments
Dean Pomykala - Lean Office
Kaizen Events
• Kaizen Events
– Create a Value Stream Map
– Create a Future State
• Move work areas
• Set up new work stations
– Make custom tool sets
» Tools
» Office supplies
• Documentation
Dean Pomykala - Lean Office
Agenda
• My Bio
• Lean Overview
– What is Lean? Why go Lean?
•
•
•
•
•
•
Value Added vs. Non-Value Added Activities
Value Stream Mapping
One Piece Flow
Kaizen Events
6S
Wrap Up
Dean Pomykala - Lean Office
6S
• 6S is intended to create an Efficient work area
– Safety
– Sort
– Straighten
– Shine
– Standardize
– Sustain
Dean Pomykala - Lean Office
6S
Dean Pomykala - Lean Office
6S
Organized & Accessible
Tools
Easily Identified
Missing Tool
Dean Pomykala - Lean Office
6S
Dean Pomykala - Lean Office
6S
• Which is more efficient?
• Which looks World Class?
Dean Pomykala - Lean Office
Agenda
• My Bio
• Lean Overview
– What is Lean? Why go Lean?
•
•
•
•
•
•
Value Added vs. Non-Value Added Activities
Value Stream Mapping
One Piece Flow
Kaizen Events
6S
Wrap Up
Dean Pomykala - Lean Office
Wrap Up
• Lean Concepts
– Value Stream Map
– Identify Waste
• Eliminate or Reduce Waste
– One Piece Flow where possible
– 6S for an efficient workplace
– Continuous Improvement
• Re-Visit everything
Dean Pomykala - Lean Office
Wrap Up
• Become World Class
• Use Systematic Continuous Improvement
• Enhance the entire Organization by:
– Examining your own Processes & Procedures
– Several small but consistent successes make one big
SUCCESS
Dean Pomykala - Lean Office
Wrap Up
• The Key to Success
• Continuous Improvement
Visualize a “World Class Environment”
Then make your vision a reality
Dean Pomykala - Lean Office
Questions??
• Dean Pomykala
– [email protected][email protected]
Dean Pomykala - Lean Office

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