LEAN 5S Webinar Slides

Slides and a recording of the
presentation will be available on
our blogs at:
5S – Workplace
Organization and
About David Blain, CPA/ABV, CVA
Principal in the Audit and
Assurance Practice Unit
Practice leader of the
Construction and
Manufacturing Group
Certified as a LEAN
Professional through the
Certification Program
Board and Executive Board
Member of MANTEC
• Understanding LEAN
• The Eight Deadly Wastes of LEAN
• Defining and Understanding the 5S
• Wrap up
Understanding LEAN
The House of LEAN
Definition of LEAN
An organization-wide approach to creating
an environment which allows a company
to supply products paced by the demand
of their customers with as little waste as
Defining LEAN Environment
When a company’s system-wide approach
shifts from maximizing utilization and
productivity to maximizing information flow
and elimination of waste.
A LEAN Enterprise Focuses on FLOW
Individual Efficiency
System Efficiency
Shifting Paradigms!
Basic Components to LEAN
• Defining Value Added versus Non Value
Added Efforts.
• Defining the “Eight Deadly Wastes.”
What is Value-Added?
• Value Added
– Any activity that
changes the fit, form,
or function of a
– The customer must be
willing to pay for these
• Non-Value Added
– Any activity that does
not change the fit,
form, or function. The
customer is not willing
to pay for these. They
must become the
focus to be reduced or
The Eight Deadly Wastes
Defining the “Eight Deadly Wastes”
Defects – Inspection and rework of
defective work product. i.e. weak process
Overproduction – Doing more than is
required. Performing more work than
benefits the client or product.
Waiting Waste – Idle time created when
waiting for ____? i.e. unplanned
Defining the “Eight Deadly
Wastes” con’t.
• Non-Value Add Processing – Non-value
added activity within the process. i.e.
redundant efforts.
• Transportation Waste – Transporting parts
and materials around the plant. i.e. poor plant
layout and misaligned process flows.
• Inventory Waste – Any supply in excess of
real customer demand. i.e. production buffers
or excess queue times.
Defining the “Eight Deadly
Wastes” con’t.
• Motion Waste – Any movement of people
or machines that does not add value to the
product or service. i.e. unorganized
• Employee/People Waste – The waste of
not using people’s mental, creative, and
physical abilities. i.e. misaligned process
Defining and Understanding
the 5S Concept
The Definition of 5S
Set in Order.
A Fundamental Strength –
The 5S Vision
• A workplace that is:
– Clean, organized,
– Safe.
– Efficient and pleasant.
– The foundation for all
other improvements
• Resulting in:
Fewer accidents.
Improved efficiency.
Improved quality.
Workplace control.
• And therefore…
- Reduced waste.
- Reduced cost.
Getting Started: Workplace
• Getting Started:
–Form a core implementation team.
–Identify a project.
–Perform a workplace scan.
–Create a workplace scan display.
Tips for Getting Started
Map the current process.
Go to where the action is.
Use a checklist to gather information.
Create a display in the target area.
5S Step 1 - Sort
• What is needed? What is not?
– Sort through items in the area.
– Keep what is needed.
– Eliminate what is not needed.
– Reduce the number of items to the quantity.
required at any given time.
Tips for Sorting
Determine sort criteria.
Determine holding areas for information.
Develop sort log of information.
When sorting, ask yourself:
– Does it have a function in this area?
– Is it needed? How often? By whom?
Step 2 – Set in Order and Set
• Definition: A place for everything and
everything in its place.
• Procedure:
– Identify best locations.
– Relocate out of place items.
– Set height and size limits.
– Focus on safety.
– Install temporary location indicators.
A Few Guidelines
• Look for the “low hanging fruit” first:
– Carry out the easy decisions.
– Make low cost decisions.
• Get worker buy-in, its their work area.
• This is the test phase, you can make
changes later.
Step 3 – Shine
• More related to actual manufacturing
• Focus is on elimination of sources of
contamination through cleaning.
• For a back office function focus should be
– Control of information.
– Use of visual controls for information.
Inspect through Cleaning
• Check to see if everything is in its place,
i.e. stored in correct drive.
• Check to see if you need to replace
• Check specific information targets for
necessary changes.
Step 4 – Standardize and
Share Information
• Maintain the first 3 S’s:
– Uniform standards.
– Clarity about what is and is not normal.
– Create and use checklists.
– Establish a simple action plan.
– Make everything visually apparent.
A Shift in Thinking
Understand the 30 Second Rule.
Know the “one is best” concept.
Move from individual to group ownership.
Ensure that 5S is an essential part of daily
• Enable workers to manage and control
their area.
Guidelines for
• Make standards obvious and easy to
• Ensure information is on or near the
operation or function it relates to.
• Make standards understandable by
• Ensure that 5S standards accomplish their
Step 5 - Sustain
5. Sustain
• Sustain through Self-Discipline:
– Make procedures a habit.
– Properly train all workers.
– “Buy in” from workers and a change in work
habits has been achieved.
– The workplace is well-ordered and run by
agreed upon standards.
5 Necessary Conditions
Development of new awareness skills.
Support from management.
Ongoing communication.
5S is part of daily work.
Total employee involvement (TEI).
Where Can I Use 5S?
Where Can I Use 5S?
• Data Storage:
– Hard Files.
• AP Invoices.
• Cash receipts.
• Journal entries, special reports, other information.
– Soft Files and Shared Drives:
• Excel and Word documents.
• Electronic invoices and receipts.
• Shared information.
Where Can I Use 5S?, cont.
• Office supplies.
• Financial statement preparation:
– Storage of information.
– Use of shared information.
– Preparation and storage of reconciliations.
Why LEAN???
Benefits of a LEAN Enterprise
• Improved on-time delivery of service or
• Improved work quality.
• Shorter cycle times.
• Reduced internal costs.
• System-wide focus on improvement.
• Improved profitability through elimination
of waste.
To LEAN or Not to LEAN
• Ask yourself the following questions:
– Do you like the current performance of your
– Is it going to stay that way?
– Will you get better if you keep doing the same things?
“The definition of insanity is doing the same thing over
and over again and expecting different results.”
- Albert Einstein
• David Blain
– [email protected]
– (717) 761-7910
Please visit The LEAN Accountants for
more information on LEAN at:
Slides and a recording of the
presentation will be available on
our blogs at:

similar documents