The BASICS Model: Baseline (B)
The B in our BASICS model stands for Baseline, or determining “as-is” metrics. It is important to develop a true baseline prior to starting the project so we can ascertain how much we have improved later on (see Figure 2.1).
Figure 2.1 The BASICS six-step model for Lean implementation—baseline. (Source: BIG Training Materials.)
Getting Started with Lean
When working with new clients we start by understanding what problems they are facing. We then tour the plant, where we can immediately assess, as you will see later, whether the plant is batch or flow, and what opportunities there are to improve the productivity or efficiency in the plant. For office processes or hospitals, we start with a value-stream map to expose the gaps (problem areas). We then agree on a shared vision of what to expect from a Lean implementation.
If you are thinking about implementing Lean, the best place to start is to pick a pilot area as a project. Keep in mind, the most important thing for any pilot project is to be successful. The strategy behind the BASICS model is to build people’s motivation by having small ongoing successes that make everyone feel like they are part of a winning team. We then work to introduce a problem-solving culture and eventually a Learning organization.*
The Change Equation
You have determined you need to change, or at least that you want to change, so what next? The first change tool we use is called the “change equation.” We review this with all our clients, normally starting during the assessment phase. The equation is:
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Rchange = Resistance to Change
Notice there is a multiplication sign between each letter. This is because if any of the letters equal zero or are not addressed, we will not overcome the Rchange, which stands for resistance to change; thus, effective change will not occur. In addition, each step needs to be followed in order.
C = Compelling Need to Change
We have learned Lean is generally not even pursued in most companies unless there is a perceived need to change. The question to ask is: Is there really a compelling need to change? If we could say this a thousand times louder, it would not even come close to how necessary this equation is for change. There are two ways to incentivize change:
1. One is to have an actual crisis or business case, where, without change, the organization will not survive.
2. The other way is to invent a crisis or to set very high goals (challenges or stretch targets) for the organization that cannot be achieved by doing it the way it has always been done.
We must find a way to drive Lean improvements and implement employee ideas every day. We have learned if you implement someone’s idea then they will more than likely give you another. The CEO must create the compelling need to change for the organization. This means not only do we go through the change equation, but the CEO must determine a way to continuously repeat the change equation cycle to create a systemic way to drive continuous improvement every day.
V = Vision
The next letter in the change equation is V for vision. A shared vision is important in the change equation because without a vision, how can you chart a course? People must understand the vision and the why the change is required to support the vision. This includes the how, when, and what their contribution will be, as well as their role in the change. This will make the change easier to sell and adopt, thus reducing the resistance to change.
Communicate, communicate, and communicate. It is critical when you begin deploying Lean that team members communicate the vision and why the Lean transformation is needed.
N = Next Steps
N stands for next steps. Once we know we have a compelling need to change and know and understand the vision, we need to determine the next steps to reach the vision. These steps come from assessing where we are currently, relative to the vision, and then understanding and overcoming the gaps. This must be translated to what we call a Lean roadmap. The roadmap will outline how we are going to achieve the vision.
S = Sustain
The final letter, S, stands for sustain. This is the most difficult step of all. Sustaining is the true test of whether there was a compelling-enough reason to change and a sign as to if the other letters were implemented properly.
Train the Leadership Team
It is important to conduct a training session for the Leadership team. This varies in length but the executive overview is normally one to two days. We normally augment this training with a working session to start laying out the goals for the first pilot and to agree on a contract for change. The leadership team will require ongoing coaching and training, using benchmarking trips, gemba walks, Lean conferences, etc. Over time the leadership should all attend the five-day Lean training class.
Five-Day Lean Training Seminar and Kaizen
The next step is to train the core team and pilot team along with any related stakeholders, which will be crucial to implementing the project. We recommend the leadership participate in the training as well. This five-day Lean overview consists of lecture, videos, and includes real-life application by kaizening a small project. This five-day training just scratches the surface of Lean principles and tools but will motivate the team to find waste and achieve excellent implementation results.
The system’s success absolutely depends on the entire organization’s input and implementation of the tools and methodology, but it is up to the leadership team to drive the organization. This means at every level of implementation they need to be hands-on with the concepts and understanding of their team to make sure they align with the direction of the company. The highest success rates we have seen when it comes to Lean implementation is when the leadership team is involved as early on as the team charter.
Charter the Team, Scope the Project, and Select the Pilot Area
We always suggest starting small to create learning. We start by creating a team charter, picking a pilot and core team, and selecting the pilot area. One should think through the following elements when considering large projects:
1. Enter a clear statement of the problem or process to be improved.
2. The specific metrics to be targeted.
3. List the team members and the names for the champion, team leader, team members and their function, and the facilitator.
4. Describe how the project ties to the customer and strategic goals for the company.
5. Who is the principal owner of the process?
6. Who are the primary stakeholders that will be affected by the project deliverables?
7. What are the baseline and targeted metrics?
8. What is the process scope: input boundary—the starting point of the process to be improved: output boundary—ending point of the process to be improved?
9. Budget: List any budget available if applicable or list tools or equipment that may need to be purchased or modified.
10. Potential benefit: List any non-monetary or intangible benefits expected from improvements to the process.
11. Exit criteria: List specifically at what point the team will be considered “done” the event, where any and all changes or open actions transfer to the team leader.
12. Empowerment level for the team: At what empowerment level the team is chartered. i.e., are they empowered to recommend changes, implement changes, etc.?
13. Is there any pre-work required?
14. Support functions required: this could be maintenance, IT, etc.
15. HS&E: Is there a checklist for environmental and safety that needs to be filled out?
16. Risk mitigation: Are there any potential risks from the kaizen we need to assess and mitigate?
17. Steering group/Review council: List what group the team is going to report out to and at what frequency.
The purpose of the core team is to stay together during the implementations and become the future Lean practitioners. The goal of the consultant is to transfer the knowledge to the Lean practitioners. The pilot team is made up of members from the line, including the supervisor, whose job is to sustain the line when the core team exits.
The purpose of the pilot is to experiment and provide a starting point for the Lean implementation. This gives the team a chance to see how the Lean tools work and what results can be obtained. We then gather lessons learned from the pilot prior to implementing in the next area. The criteria we use for the pilot are as follows:
■ Be representative of most areas in the company and strategically key to the business.
■ An environment where the implementation has the best chance of success and sustaining.
■ The supervisor and staff are willing to make the necessary changes and lead the area with the new changes in place.
■ People in the pilot area have a positive attitude toward change.
■ Have a way to measure before and after results and set targets for implementation.
■ It should test the new tools being utilized.
■ Solutions should be able to be transferred to other lines.
Many times companies want to “jump” right into the biggest problem area, or where there is major crisis. This criterion doesn’t mean you can’t pick the biggest problem area; but remember, the ultimate goal of the Lean implementation in the pilot area is simple: It must be successful! Sometimes it is better to go with an area where both the attitudes are good and there is a compelling need to change.
The implementation team should have members from the pilot area and can include persons from the next area to be worked on in addition to those subject-matter experts you are working to develop, that is, the Lean core team or kaizen promotion office (KPO). The team should be no larger than six to eight persons.
We then select the team and team leader. Team leader characteristics should include:
■ Can lead a team and manage to a project deadline
■ Is familiar with the business and open to change
■ Has the respect of both the senior leadership, the organization as a whole
■ Is technologically curious, imaginative, and insightful and has good common sense
■ Is a critical thinker and not afraid to ask why (dumb question), admit error, create structure where no structure exist, and identify good talent
■ Is not afraid of confrontation, and has good communication skills, presentation skills, and good interpersonal skills
■ Has detailed process knowledge and has grown up in the system promoted from within
■ Is dedicated and committed and does whatever it takes to get the job done with respect to effort and time commitments
Team member characteristics should include:
■ Have good communication skills and interpersonal skills
■ Provide 110% effort
■ Conduct constructive critical evaluation of their own work
■ Have a good positive attitude and are open to change
■ They are curious and continuous learners
■ They are team players
Baseline Metrics, Identify the “Gaps,” and Set Targets
It is important to first understand the gaps between where we are today and the voice of the customer (VOC). We then create the scope, goals, and problem statement prior to starting the analysis phase. If not, it will create a high amount of confusion and frustration for the team.
Also included in the project plan must be a concept of how we will measure the success of the new process. This will be utilized in the check phase of the BASICS model.
We start with defining the problem and establishing the baseline, which includes the metric definition, source of the data, owner, frequency it is updated, and the calculation(s) used.
We then need to understand and create a list of what problems we have today. This exercise does two things. It lets people “vent” about the problems and we get a good list of opportunities to improve. When we finish the initial phase of the implementation we then go back to this list to see how many of the problems we solved and, more importantly, those we didn’t solve.
Then we brainstorm the ideal state of what the process could look like in five years. This is the beginning of building what we call a shared vision or true north. This shared vision provides the targets for our Lean implementation. Our vision always includes the following:
■ Create one-piece flow (OPF)
■ Eliminate waste everywhere in the process
■ Build in quality to every step
■ Create leader and operator standard work
■ Create visual-management systems
Next, we identify the gaps between where we are today and the vision. This is what we need to root-cause and solve. We always find most companies, even Lean ones, are batching. This is true in the information-flow world as well. This is called “push” production. Batching, or push systems, are the root cause of the seven wastes we will discuss later.
The Change and What’s in It for Me
Change can be a difficult adjustment for many individuals. Whenever challenged with a new initiative, it is important to develop and agree upon answers as an organization to the questions it will receive from its workforce. This means that the Leadership must drive the team to make sure the same answers are being given at every level to ensure uniformity in the organization. These are just a few of the possible questions employees will ask. If not answered correctly they will be left in the dark, creating an unnerving void:
■ What is the change we are making?
■ Why are we making the change?
■ How will it affect the employees? Now and in the future?
■ How will it affect the company? Now and in the future?
■ What is in it for the employee if we make the change?
■ What is in it for the company if we make the change?
Share as much of the implementation plan as possible to provide when, where, and how the change will be implemented. People feel much more secure knowing there is a plan in place and that they have a future role in the company. Not to assume selfishness, but it’s natural for the biggest concern of people to be “what is in it for us and how will it affect us.”
Contract for Change
Once all the answers have been agreed on for how to roll this out to the workforce, it is important to have a group understanding on the initiative being taken. One way to do this is with a contract for change. This document has been extremely useful from a culture standpoint to ensure everyone is on the same page and having them literally sign and date the contract-for-change document. The contract should contain the vision, goals, and objectives, an escalation plan, methodology, and commitment. It can be used at any level for any project. It is critical to have an escalation process in place to help the improvement teams or supervisors remove barriers to improvement. The escalation process should proceed all the way to the CEO.
Resistance to Change*
In Jerald Young’s book Not Now Not Ever he breaks resistance to change into two categories:
1. Logic-based resistance, which presents a problem to be solved. For example, voicing a valid objection to the idea being presented. This does not mean the person is being negative; but, we must overcome this objection in order to get their buy-in and, in many cases it will make the implementation of the idea better. This type of resistance can actually be reviewed as good.
2. Emotional-based resistance, which presents an emotional reaction to be dissolved. For example, a friend of mine, when they were a teenager, had a bit too much rum to drink and since then they refuse to drink rum again.
Young points out that the person is not the enemy, the resistance is the enemy. Young suggests we must dissolve the emotional-based resistance (EBR) before attempting any logic-based resistance. It’s people with this emotional-based resistance that we would have termed “concrete heads” in the past. We also described this EBR in the past as the following:
You can lead a horse to water
The horse likes the water
The horse refuses to drink the water
If you can dissolve the emotional-based resistance and then win the logic-based objections, the person generally will not only go along with the change but tends to become a zealot.
Dr. Young also points out that opposition is different than resistance.
Over the years we have learned that people share two different perspectives on change:
1. I’ll believe it when I see it.
2. I’ll see it when I believe it.
Think about the difference between these two statements. In many cases, for people that share the type 1 view, we need to benchmark other companies, read books, use YouTube®, etc. to “show” them what is possible. Once they see it, you can’t stop them from going after it.
For people that share the type 2 view, they use a very misunderstood gift called intuition to see or even know the possibilities before they see it.
The Impact of Barriers: Removal Degree of Difficulty (×)
Whenever implementing change we run into barriers. We classify these barriers as cultural, process, and technical. We describe these below:
Cultural barriers (100×) result in entrenched habits, behaviors, and attitudes. They have a degree of difficulty = 100×. Cultural barriers can only be removed by the senior leadership team.
Process barriers (10×) are best removed by using cross-functional teams and championed by senior leadership. These are good candidates for Lean system-wide kaizen projects or in some cases point kaizen events.
Technical barriers (1×) are those specific to machines or the industry. Technical barriers can normally be removed by individuals or cross-functional teams.
To remove these barriers one must identify the barrier and question if there is a compelling need to change the barrier. If there is, then categorize the type of barrier and choose the appropriate method or approach to deal with the barrier.
What Is Batching?
We define batching as, “where one operation is done to multiple parts prior to moving the parts to the next operation.” So, this means that one doesn’t see the first completed piece until the entire batch, of whatever it is you are making, is completed. However, sometimes we still have to batch (see Figure 2.2).
Figure 2.2 Batch versus one-piece flow example. When processing ten pieces we get our first piece in batch at 21 minutes versus three minutes in flow and our last piece at 30 minutes in batch versus 12 minutes in flow. With one-piece flow we average a part per minute off the line or office process. (Source: The effect of lot delay reductions—Shigeo Shingo, The Shingo Production Management System, Productivity Press © 1990, page 17, 116 used with permission, Taylor & Francis.)
Batching Is Bad
No matter what we do in life, how we do it matters. Batching drives tremendous inefficiency. This is a difficult concept for many of us to accept, since we all seem to be born with the mindset that batching is the most efficient way to do anything. The book One-Piece Flow vs. Batching* explores this paradox in detail. Suffice it to say that batching drives waste and waste creates problems for all of us.
How many of you would rather take a highway versus a road with a stop sign or red light at every crossing? Stop signs impede our ability to flow. Red lights are called period batch systems, because they let a batch of cars through, determined by a certain length of time on green, before the light turns back to red.
Think about the systems in which you work or live. We find most are full of stop signs and red lights. We consider every stop sign a “gap” or a problem to be solved.
One-Piece Flow
One of the key concepts in Lean is one-piece flow (OPF), or small-lot processing. OPF refers to the processing or servicing of each component part, product, or piece of paper, one at a time through each step until it is completed. In the hospital we call it one-patient flow. One-piece flow or small-lot systems are always faster and result in a decreased opportunity for errors in comparison to processing in batches. Processing in batches essentially makes people robots, i.e., doing the same small step repeatedly over and over again. But please remember, for processes to flow we must eliminate the reasons or need for the batching.
The questions we always ask whenever we identify this gap is: “How can we get this process as close to an assembly line as possible?” In the hospital, we had to add: “… without calling it an assembly line.”
It’s not always possible, and sometimes we are forced to batch;† but, our end goal should always be to create systems with overall or master layouts that flow from beginning to end.
Why Do We Batch?
We have been studying batching behavior for over 30 years. We have developed the following eight reasons why people feel they “must” batch.
1. Your mind: Our minds are programmed from birth to believe batching is more efficient than one-piece flow. If we have any opportunity to batch, we will, and some of us will literally fight (and have fought) to protect our ability to batch. This is why only 20% of companies have any real success with Lean.
2. Setups/changeovers: The larger the lot, the more we need to batch. This is the basis of EOQ.‡ We cannot reduce the lot size or get to one-piece flow on a piece of equipment until we reduce the setup time. However, we do not need to eliminate long setup times to achieve one-piece flow. We can do one-piece flow by setting up kanbans before and after the batching equipment.
3. Variation: We can handle all sorts of variation in one-piece flow implementations. However, the introduction of many new models is a frequent reason shops of all sizes lose one-piece flow.
4. Travel distance: We must decrease the travel distance or people will batch. This means machines must literally be next to one another. In some cases this means cutting in new access panels behind the equipment or moving parts of the equipment (i.e., pumps) on top of the equipment.
5. Equipment: We can do one-piece flow by using standard WIP before and after the equipment, i.e., a batch washer or oven. The goal should be to evolve to one-piece flow equipment using right-sized machines. This is called chaku‒chaku.*
6. Process: Here our goal is to use smaller batches where it makes sense, with a goal of transitioning to continuous flow.
7. Idle time: If people are idle and can continue to build WIP, they will. People hate to be idle. So if they can build a subassembly, or have parts that they can partially assemble, they can’t help themselves, and will build as much as they can or have space available for. Note: We can eliminate the idle time when we implement bumping in a one-piece flow process.
8. Space: Where there is too much space, eliminate it or people will fill it up with WIP, and where there is too little, we add space. If not, people will batch. This is a big problem for companies that implement Lean, cut down the workstations to do one-piece flow, and then start batching again. Because, now there is no room for the WIP. In this case, it can actually produce worse results than the original batching process.
Let Data Be Your Guide
The secret to implementing Lean is to start with the system and let the data be your guide. The data will tell you which way to go and what you need to do. It is a great objective tool. By videoing the process, we can collect data on the as-is process. The video can solve many arguments because it removes the opinions of people and replaces them with facts.
Non-Negotiable Guidelines with Lean System Implementations
■ We must always strive to run one-piece flow. No batching.
■ Create a pull system with level-loaded scheduling.
■ Avoid conveyors between workstations. Only use conveyors to convey … not to store.
■ Use baton-zone line-balancing (bumping).
■ Standing/walking lines—utilize anti-fatigue mats† or operator insoles.
■ Day-by-hour charts in place.
■ All materials within operator ergonomic striking distance.
■ Standard WIP in place, visual controls exist, and audited.
■ The end goal is no forklifts, cranes, or hoists.
■ The end goal is done right the first time—zero escapes to the customer—mistake-proofing first, 100% visual machine inspection second, human inspection is last resort.
■ Operators do not leave the cell or line.
■ Product does not leave the cell until it is completed.
■ No process reversals. Product never goes backward.
■ Standard work in place, followed and audited.
■ The end goal is zero work orders released short. Systems and standard work must be in place to prevent shortages.
■ Active cross-training—everyone can do everything.
■ No trash containers in the cell. Use reusable packaging. No paper or cardboard in the cell. Goal is zero landfill waste.
■ The end goal is a moving line used as a pacemaker for the process.
■ The end goal is no unplanned downtime.
■ Quick/real-time problem-solving demonstrated for line downtime
■ Use MRP to drive high-level scheduling requirements—not spreadsheets. Do not use MRP as the shop floor control system.
■ Use kanban, i.e., empty bins, empty spaces, card systems, to trigger replenishment—not MRP.
■ Daily checks and TPM carried out routinely—quality control process checks (QCPC) have been internalized and are routinely used to improve quality.
■ Value-stream maps exist—ongoing, daily improvements are clearly identified and prioritized.
■ The end goal is no pits dug into the floor or platforms. Build right-sized equipment in-house.
■ Multiple persons should not be required to lift the product.
■ Everything less than 1.5 m (5 ft) in height.
■ Work to eliminate the need for inspection. Inspection means you fundamentally don’t trust the process.
■ Subassembly lines used as required. Goal is eventually to have them in-line or directly feeding main line. These can also be laid out in parallel to the main line. There should be no offline batching of subassemblies.
■ Andon/QCPC system used. Operators empowered to stop the line for any quality/safety issues.
Management and operators/staff must sustain these principles throughout the entire product life cycle.
Baseline Metrics
Why Is Baselining Metrics Important?
This is a critical step. If we don’t baseline the metrics before the project begins, we will not be able to determine how much we have improved.
Unfortunately, many times, there are no standard procedures or metrics available. Sometimes this is because the metrics are kept at a high level or people frequently move in and out of various lines. In this case we may take a week or two to baseline the metrics or we estimate metrics to the best of our ability, which everyone agrees to at the time.
In addition, once you get done a Lean implementation there will be those that don’t believe the new system is better than the old one. This can be a huge problem for those starting the Lean journey because without qualitative and quantitative results, people will not buy-in to Lean and will fight the effort moving forward.
Baseline Metrics
Typical metrics we collect are:
■ Units per hour
■ First-pass yield
■ Rolled throughput yield
■ Pieces per person per day or per hour (UPPH)
■ WIP count and dollars
■ Travel distance for the part and operators
■ Space
■ Current EHS work station rating—ergonomic risk factors
■ Overtime as a percent of units produced
We may also collect any other process or industrial engineering data, drawings, procedures, as well as their overall operational metrics, i.e., on-time delivery, quality etc. See Figure 2.3.
Figure 2.3 Before versus after metrics template example. (Source: BIG Archives.)
Health Check
We use a self-assessment tool to assess the current state of the line or area’s behaviors, management system, and culture. The assessment tool should measure more than the use of Lean tools; it must measure behaviors at each level of leadership and how engaged employees are in the changes to processes they perform (see Figure 2.4).
Figure 2.4 Health check template example. We use scoring for companies that are beginning since this is what they are used to. As the company matures in Lean we eliminate the scoring, otherwise it always becomes more about “the score” than learning the tools and changing the behaviors. (Source: BIG Archives.)
We like to say the Lean tools, while they have to be learned, are easy compared to the change-management piece. There must be a balance between tools and people. It is just as important to focus on the philosophy as it is the tools. Without the philosophy, the tools, by themselves, will not sustain.
What Is a Second Worth?
Every company should have Finance calculate what a second of improvement is worth? Once you have the answer, this is an easy concept for all employees to understand and can answer the question: “Why should I worry about saving a second?” In any process, seconds, over the course of a year, add up to hours, and sometimes days, weeks, or months of savings. Improve your seconds, inches, cms, and save your pennies; save a little bit every day and watch the savings add up. This is daily kaizen which is at the heart of establishing a Lean culture.
Build a Chrono File
Take photos and videos of how it is today. You cannot take enough pictures of how things are today. People will quickly forget, once you go down the continuous improvement journey, how things used to be. We later use these pictures in what we call a chrono file, which documents the BASICS process you followed as well as all your team’s improvements. It is important to build this document as you go or else you will forget a lot of it.
Map the Current-State Process
One can use a simple flowchart, process diagram, swim-lane map, or create a value-stream map (VSM). Normally for manufacturing implementations we just use a simple process map. However, we have found value-stream mapping to be extremely useful for visualizing information flow and transactional processes for administrative, hospital, government, and banking/insurance applications.
Seven Wastes*
The following seven wastes are attributed to Taiichi Ohno.† These wastes are primarily driven by batch systems or imperfect flows:
1. Waste of Overproduction
This waste is the number one waste in the batch system. It manifests itself two ways: Making or buying more than you need or making or receiving it before you need it.
2. Waste of Time on Hand (Idle)
Whenever someone is waiting with nothing to do.
3. Waste in Transportation
Transporting people, things, or paper or electronic transactions.
4. Waste of (Too Much) Processing
We define this as doing more to a part or paperwork (electronic or paper) than necessary to meet the customer-defined specifications, and customer-perceived quality needs. Inspection is a waste of too much processing.
5. Waste of Stock on Hand (Inventory)
This can be raw materials, work in process (WIP), or finished goods. i.e., too many canned goods in the pantry.
6. Waste of (Worker) Movement
We define this waste as follows: whenever someone has to reach outside their normal path of motion while sitting or standing, including having to get their own parts or supplies.
7. Waste of Making Defective Products
This waste includes rework as well as defects.
Three Additional Wastes:
8. Waste of Talent (An Organization’s Most Valuable Asset)
We see this waste when organizations do not tap their employees’ brainpower, ideas, and experiences or they have no respect for their people. The engagement of an organization’s talent is critical in making Lean initiatives successful. The talent in your organization will drive innovation and change by identifying and eliminating all waste.
9. Waste of Resources
Whenever we don’t fully utilize or recycle our resources or we dump hazardous or every day waste into a landfill.
10. Context-Switching Waste
This waste is encountered when someone is trying to multitask, which then results in batching the tasks. i.e., Emergency Room doctor batching three to four patients at a time results in 40%–60% waste.*
The Root Cause of Most of These Wastes Is Batching!
Ohno said the worst waste is the waste we don’t see. We typically can’t see hidden wastes because they are hiding behind or are masked by other wastes. You really have to hunt for them! These are the hardest wastes to find and yet the most dangerous. Reviewing videos is the best way to discover hidden waste.
Transactional Process Improvement
When implementing transactional processes, we utilize all the same tools in the BASICS and PDSA models. Like other Lean initiatives, in general, people are not the problem; the system is normally the problem. The office personnel are like other staff throughout the firm; they are always busy. However, what are they busy doing?
We video the office (transactional) process just like the shop floor and utilize the same analysis tools for information flow as we do for physical products. We always use analysis tools based on the problems to be solved and their complexity.
The Transactional Ten Wastes
1. Waste from overproduction of goods or services—waste of excess reports, both paper and electronic, batch copying, too many brochures printed, information duplicated across forms or not needed. Gathering, sorting, and saving more information than is really needed.
2. Waste from waiting or idle time—is either the information itself or the person waiting for it, time to secure (rubber-stamped) approvals for contracts, equipment ordering, repairs in the office, unplanned interruptions, unbalanced workflow, lack of capacity for volume, etc.
3. Waste from transportation—(unnecessary) document flow/movement between offices for processing, routing, and poor office layout, placement of adjacencies, travel time, unnecessary copying/approval of information to people who do not use it.
4. Waste from overprocessing (inefficiency), multiple, redundant, and undefined approvals; or multiple reviews and inspections. Elaborate filing systems for documents.
5. Waste of motion and effort—rework of requests, calls for following up on approvals if multiple people are involved, searching for information, centralized printers, etc. Waste driven in computer systems.
6. Waste of inventory—unnecessary stock on hand, too many supplies, duplicative files, multiple file storage, just in case storage, etc.
7. Waste from defect—lack of training documents, completion of company errors in capturing data, errors in transferring data, supplies and equipment ordered incorrectly or in the wrong quantities, missed deadlines, rework, clarifications, etc.
8. Waste of talent—frustration of employees, no one listens to their input, right person in wrong position, talented people spending time on rework, lack of empowerment to correct processes, lack of training on process improvement, unclear roles, task interruptions, multitasking, underutilization of talent, etc.
9. Corporate staff waste—creating report-out presentations and ongoing requests for data. Sometimes we receive the same requests from various positions of corporate staff. These people create no value yet justify their positions by creating work for people already busy.
10. Waste driven by centralizing processes.
Waste Exercise 30-30-30or Ohno Circle
Taichi Ohno worked his way up the ranks at Toyota from machinist to vice president. He was known for drawing a chalk circle around managers and making them stand in that circle until they had seen and documented all the problems in an area that he wanted them to see; sometimes for an entire shift or longer (see Figure 2.5).
Figure 2.5 The Ohno circle—managers would spend many hours, sometimes over a shift or more, until they saw the waste Ohno wanted them to see.
Today this exercise is known as the Ohno circle or the 30-30-30 exercise, i.e., 30 minutes’ watch: find 30 problems, and spend 30 minutes solving one of the problems so it doesn’t come back. This is a great first step to train someone’s eyes to see waste and to provide structure for the group leader/supervisor or manager to carry out daily improvement.
Ritsuo Shingo* says the busy executive with limited time must “go to the Gemba and Watch” (not see) what is really happening. We must eliminate batching and always work toward one-piece flow.
Lean Maturity Path Visualization
As we make improvements throughout the process, we should go back and update the VSM. As the value stream evolves from year to year, it can be used as a method to keep track of your progress throughout your Lean journey.
Definition of a Process
A process is defined as anything with an input that is transformed into something else which becomes the output (see Figure 2.6). An input can start with raw material from the ground or from the brain. It is then converted as part of the process to the output desired (or sometimes not desired, i.e., defect). It can be physical or mental; it can be a manufacturing step for a product or a series of manufacturing steps. It can be cocoa turned into hot chocolate, or hot chocolate where milk and/or marshmallows are added to it to make it more creamy and delicious. A process can be information that is transformed into a different output by a particular input.
Figure 2.6 Definition of a process. (Source: BIG Archives.)
SIPOC
We use the SIPOC tool at the beginning of the workshop or when we are working on the team charter (see Figure 2.7 and 2.8). The tool can be very useful if there is any confusion surrounding the process, its inputs, outputs, or customers. The SIPOC can help a team get a high-level understanding and gain consensus of the basics that make up the process before doing a value-stream map (VSM). The tool is used to obtain clarity around:
Figure 2.7 SIPOC—example from healthcare. (Source: BIG Archives.)
Figure 2.8 High-level SIPOC diagram of the enterprise patient flow. (Source: BIG Archives.)
■ Defining the inputs and outputs of the process
■ The high-level process and its major sub-processes
■ Defining the true customer and their requirements
We generally start filling in the SIPOC with the process box. We have the team list the processes and try to keep it simple. Typically it is around five steps. Next we have the team list the outcomes expected from the process along with the customers. The customers can be internal and external. The team then identifies the inputs and suppliers. Because it is only a high-level view, there’s still a need to do detailed process mapping whether it is a VSM and/or product process-flow analysis (PFA).
Value-Stream Mapping (VSM)
VSM has become an important tool in Lean implementations, particularly in understanding the current state of a process and identifying the opportunities where a process can be improved. VSM techniques are explained in two books, Learning to See* and Seeing the Whole.
Since the introduction of these books, many subsequent books utilize VSMs as part of their instruction. This book is no exception. VSM is included initially as part of the baseline toolset (the B in the BASICS model), but it can also be used as an assessment tool (A in our BASICS model).
The VSM Tool
The VSM is much more powerful than a flow chart and has been successfully applied across many types of business, such as manufacturing, any office setting, services, healthcare, and government. The VSM is the best tool for mapping transactional administrative processes including order entry, scheduling, human resources, purchasing, sales, marketing, engineering, finance, and new business development.
The VSM is a dynamic tool that allows one to see the overall system and clearly understand the components of a process, subsystems, and interrelated dependencies at work as it follows the value stream across departmental silos (see Figure 2.9).
Figure 2.9 VSM on whiteboard with stickies. (Source: BIG Archives.)
Over time the VSM can be used to track the progress of the Lean journey (see Figure 2.10). The VSM also helps one visualize the information and material flows across departments There should be an executive position in the organization that is assigned to continually look at how the value streams (processes) function and work together and assess improvement opportunities to streamline the overall organization.
Figure 2.10 VSM in main conference room, which is updated every time improvements are made. (Source: BIG Archives.)
There are many benefits of VSM, including:
■ Visualizes the flow and focuses on the big picture/system(s)
■ Helps see areas to improve across silos
■ Identifies the current state of the process
■ Helps highlight and determine the source of the waste in the process
■ Provides a common language for discussing problems and improvements
■ Makes necessary decisions about flow very apparent
■ Enables innovation brainstorm ideal and future states that leave out wasted steps while introducing smooth flow and leveled pull
■ Provides a visual roadmap of prioritized opportunities to the strategic plan (i.e., projects and tasks) necessary for improvement as a management tool to track progress
■ Enables opportunities to see where information systems should be able to talk to each other
■ Creates employee objectives for their evaluations
The current-state VSM shows the “as-is” processes, which make up the overall system, and provides a focus on opportunities for improvement. Annually, updating your value-stream maps is a great way to keep track of your progress over time.
Parts of a VSM
VSMs started at Toyota and were informal tools, many times written on a napkin, used to describe the supply chain. They have four major parts: see example in Figure 2.11
Figure 2.11 Parts of a value-stream map (VSM). (Source: BIG Archives.)
1. In the middle of the map are the process boxes, which is how the part, product, or information flows.
2. At the top of the map are information system boxes, which outline what information, whether electronic or paper, is required to make each process work and the connection to the process box.
3. The third part is the timeline information at the bottom of the map. The timeline is a sawtooth, which includes the storage times on top and process CTs on the bottom. The results box shows the overall storage time (non‒value-added time) versus the process time.
4. The fourth part is the materials flow from supplier to customer.
There are many references to VSM icons. Figure 2.12 depicts some standard icons, as well as lines to show manual information flows, i.e., someone hand-carrying information verbally or written, and communication such as fax, e-mail, snail mail, and telephone. Use colored lines for information flow: use red for automated, green for manual, and blue for snail mail, e-mail, fax, text, etc.
Figure 2.12 VSM icons. (Source: Learning to See and BIG Archives.)
How to Create the VSM
Our approach is to make the VSM as realistic as possible. The process box also includes a data box (see Figure 2.13). We try to obtain statistically accurate data to populate the boxes where we can; however, the entire process map is a snapshot in time. While some simple maps can and have been done in a day, we find that when combined with teaching a VSM team and collecting real data, doing the ideal and future states and developing a list of projects tied to the strategic plan normally takes a week.
Figure 2.13 VSM data box example. (Source: BIG Archives.)
Current State Map
As discussed previously, the first step is to create the VSM based on the current state (see Figure 2.14); this requires walking the process, pretending to be the “thing” (or information) going through the process with a team of subject-matter experts consisting of frontline staff and those familiar with the process.
Figure 2.14 Current-state VSM example. (Source: BIG Archives.)
The VSM must describe what occurs in the process, not what is written in policies or how supervisors or managers may believe the process is occurring. It is critical to capture reality to truly identify waste and non-value activity, as described, as well as the supporting data.
We use stickies to map the process with one step per sticky (see Figure 2.15). A process step is easy to see; think about the stop lights. First you are driving, then you stop, then you go. When a product or service stops, the activity before the stop was a step, the stopping is a step, i.e., storage, and the activity after the stop is another process step.
Figure 2.15 VSM on paper with stickies—pink stickies is information flow and yellow is process flow. (Source: BIG Archives.)
At the bottom of each sticky we have a data box normally consisting of process cycle time (for one-piece), changeover time, lot size, number of people, number of shifts, etc. Mapping the flow is easy, collecting the data takes time because most of the data doesn’t exist at this level. This means the team has to collect the data thoroughly.
We then add the information required to make each box work, which can include everything from major computer systems to manual logs kept in employees’ pockets.
Next we add the material flow and finish it up by adding a timeline to the bottom. The timeline is a sawtooth, with the storage time, represented by triangles in the map, on the top, and process times on the bottom. We then add whatever notes make sense to describe what happens in the process.
The ERSC Process
The ERSC process is a review of every step in the current state map to determine the following:
■ Which activities can be ERSC (eliminated, rearranged, simplified, or combined)?
■ What is the critical path? Which events can be done in parallel?
■ How many people touch the product or information, and are there handoffs?
■ Are there activities duplicated by the same or another person or department?
Ideal-State Map
The second step is to create the ideal-state map (see Figure 2.16). It should be constructed as part of a brainstorming session in which the team determines what the process would be like if they were starting with a clean slate and all barriers are removed. Mapping the ideal process sets the target condition and looks at the process with what it could look like five or ten years from now if:
Figure 2.16 Ideal-state VSM example. (Source: BIG Archives.)
■ All “sacred cows” were removed
■ You had all the money in the world
■ You had all the new technology available
■ It was your company and you wanted to make money
Teams should not spend more than 30–60 minutes on this step. The purpose is to get teams to brainstorm, get the team “out of the box,” and shift paradigms to envision the possibilities and to set an ideal-state target condition.
Future-State Map
The final step is to construct a future-state map (see Figure 2.17). The future-state map is created by the same team and normally determines what could realistically be accomplished from the ideal-state map over the next year but can forecast out even two years.
Figure 2.17 Future-state VSM—purchasing requisition to acknowledgment. (Source: BIG Archives.)
The team creates kaizen bursts* (sometimes known as improvement bursts) or potential projects and identifies quick wins (immediately changes to improve the process, usually unnecessary waste activities), which can be implemented, to get the process from its current state to future state.
As the team reviews and designs the future-state process, the opportunities are placed in a project list. Each opportunity is ranked based on impact to the strategic planning goals (Figure 2.18) (which may include service, people, finance, clinical, operations, ease of deployment, and cost).
Figure 2.18 Decision matrix of tasks and projects prioritized to their strategic plan goals. (Source: BIG Archives.)
In addition, priority-ranking is used to understand the risk and impact to other departments for each solution that is proposed. The list of potential opportunities provides a road map of CI activities the team can work on and track progress over the next year.
Value-Stream Layout Maps (Sometimes Referred to as Skitumi Maps)
During our VSM teachings, we always use the phrase: the process boxes are a process, not a place. However, the information in VSMs can help guide layout revisions to help optimize flow. Skitumi maps leverage the VSM data by overlaying the process boxes (data) on top of the existing master layout (see Figure 2.19).
Figure 2.19 Skitumi map—VSM overlaid on the cad layout. (Source: BIG Archives.)
This is an excellent way for leaders to help visualize how their overall layouts create bottlenecks and waste. This is also a good way to look at your overall master layouts or block diagrams of the company and develop high-level systemic approaches to improvement.
Conducting Value-Stream Mapping on Transactional Processes
We have found value-stream maps in the office environment to be unsurpassed as a continuous improvement tool. It is very difficult to see an office process because all you can see are cubicles, computers, and paperwork. The waste might be more streamlined now (i.e., e-mailed, texted, and twittered vs. paper documents in inboxes or in file cabinets) but it is still there. The process may pass through many people, floors of a building, across buildings, counties, states, or even across countries. VSMs are a great way to map, review, and discuss linkages between your customers’ and suppliers’ processes and yours.
The BASICS Tools Hierarchy
There is a definite hierarchy to how to implement the BASICS tools. The reason is, if one can eliminate a step at the value-stream level then no further analysis (i.e., product, operator, or setup) is needed for that step and it hastens the improvement process. This reasoning cascades to the product-flow analysis (PFA). If we can eliminate a step at the PFA level, we don’t have to do the next step of the analysis, which is the workflow analysis of the operator, or, in some cases, the setup step is eliminated as well.
What Is Customer Value-Added in the Office?
As the team works through the current state, they should ask themselves the following question: Is what I am working on right now adding value for the customer? It must meet the following criteria:
■ Does the customer care? Are they willing to pay for it?
■ Does it physically change the data package?
■ Is it done right the first time?
During the ideal-state brainstorming we ask the team, if it was their business or company, how they would set up the process, even though it is paper- or electronic-based, to be as close to an assembly line as possible and make money! During the ideal-state brainstorming we force people to think “out of the box.”
The first thing to pop out will be all types of IT systems‒based ideas. Capture these IT suggestions and record them as options. While these are normally very good long-term suggestions, they tend to get expensive quickly, involve training hurdles, and can take a long time in the IT queue to implement. This does not mean they should be discouraged.
Next, ask the team for creativity versus capital ideas. What can we do to fix the process, first with no money and then look at automating the solutions?
Value-Stream Maps Key Points
■ You must walk the process! This is also true for the office. The VSM cannot be done in isolation in a conference room, on a computer, or in a cafeteria. (Some recommended that you start at the last step in the process and go backward. This engages a deeper thought process).
■ You must become the product as you outline the process. Make sure everyone is clear on what you are following (i.e., the product) otherwise everyone will become confused and discouraged.
■ We always start by doing hand-drawn maps and obtain agreement from everyone involved in the process, and then we may put it into the computer.
■ It is best to map the current or baseline state by reviewing the entire process versus a piece of the process.
■ Don’t confuse value-added and process times. They are different. At the VSM level, process CTs include both value-added and non‒value-added.
■ Don’t be afraid to change or update the map during the year. It is good practice to have every stakeholder review the map, make changes, and track their progress throughout the year.
■ Ensure the map is as close to reality as possible. If you can acquire accurate historical data, it is better than timing the process and calling it a “snapshot in time”; however, sometimes there is no other choice.
■ Hold the process owner accountable to run the VSM event and to meet the actions agreed upon during the mapping event.
Determine the Customer Demand and Takt Time (TT)
Production Smoothing
Calculating the takt time starts with understanding the customer demand. Since the customer demand may only be available as a monthly total we use a tool called production smoothing. It is important to understand customer demand at the lowest possible level, especially if there are wide swings in demand cycles, such as in a seasonal business or hourly arrivals in an Emergency Room.
As we begin to relate demand to activities performed, we must be able to analyze demand in terms of how and when it is needed, that is, if a customer wants 1000 pieces per month and we have 20 working days, then the daily demand is 1000 pieces divided by 20 working days which equals 50 pieces per day. This is called production smoothing or leveling.
Peak Demand
Some companies may experience spikes in volume at various times throughout a shift, day, month, or year. Our goal is to totally level-load the demand, but in some cases, this may not be possible.
Therefore, we need to account for the highest volume the system will need to handle to create a successful Lean implementation. We call this demand variation—peak demand. We then use peak demand for the takt time where we can’t level load the system.
Available Time*
The next thing we need to calculate is available time. This is equal to the actual working time of the team members. It is determined by taking the total clock time per shift and subtracting the time for breaks, meetings, cleanup, lunch (if included in the eight hours), etc., where the entire work area shuts down.
In some continuous manufacturing processes (i.e., casting or government or healthcare environments), the areas don’t shut down, so available time equals the total shift time as staff and managers cover breaks.
In the following example, we assume an eight-hour or 480-minute shift. We subtract the following:
■ minutes—two 10-minute breaks
■ minutes—5-minute morning and afternoon exercise break
■ minutes cleanup time
■ minutes daily + QDIP or huddle meeting
This equals 45 minutes of the daily lost time from the workday so we would subtract it from the 480 minutes:
Takt Time Calculation
Many people, while they are familiar with the term takt time (TT), cannot recite the formula. TT allows us to review a process or a group of activities and determine, based on customer demand and available time, how fast a process needs to run related to time. This is just as true for a transactional process as it is for a shop-floor process. TT is equal to the available time or actual working time to produce a product or service divided by the customer demand required during the available time:
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Here is an example: (Figure 2.20).
Figure 2.20 Takt time example. (Source: BIG Archives.)
How to Interpret Takt Time
This calculation shows we must produce one unit every minute to meet the customer demand. However, what does this really mean? Let’s assume it takes five minutes of total labor time to build the product. If the TT is one minute, many of you may at first think we cannot meet the TT because it takes longer than one minute to build the product. However, this is not the case. If it takes five minutes to build the product, you would need to staff the line with five people, each with one minute of work.
Let’s think about what TT is really calculating, as it is not really measuring anything. When we calculated one minute per unit, it must be looked at for what it is, which is customer demand: no more … no less. TT describes the time needed for the system, whether on the floor or in the office, to complete one unit of product or one paperwork task. TT takes nothing else into account.
Important Metrics to Understand
Process-Focused Metrics
The BASICS methodology primarily focuses on building-in quality and eliminating waste. To do this we suggest using process-focused metrics versus results-oriented metrics.
Process-focused metrics include value-added percentage, number of operators, total labor time (direct and indirect), first-pass yield, safety, product travel distance, operator travel distance, work-in-process (WIP) inventory, throughput time, cycle time, setup time, and productivity, i.e., pieces per person per hour and hours per unit.
It should be noted we don’t discriminate between direct and indirect labor. Any labor required to produce a part, including indirect labor, should be accounted for when calculating productivity.
Desired versus Actual Cycle Time
Most companies don’t know their real customer demand so we use required cycle time instead. Cycle time is calculated in different ways, but each should have the same result. There are two types of cycle time—desired and actual.
Desired cycle time is computed by dividing available time by required factory demand (versus customer demand), while the actual cycle time can be determined as follows:
■ The time each team member/operator on the line must be able to meet.
■ The amount of time each person actually spends completing their part of the operation if the work is evenly distributed.
■ It can be computed by dividing the total labor time by the number of operators (assuming the work can be balanced evenly, i.e., there is no idle time).
■ The amount of time between units coming off the end of the line or out of the process. This is the real, actual cycle time.
■ It can be dictated by the time of the slowest machine or person in the line environment.
Determining the current state CT early in the Lean initiative provides a baseline of the activity or process. It is a very important data point since it can be used as an in-process metric versus a results metric.
Throughput Time: A Key Metric
Throughput time is the measure of time from the beginning to end of a process. We say it is the time it takes the product, paper, or thing, to move from its raw-material stage to shipping or finished goods. The throughput time is the sum of all the time the product, patient, or information spends in the process. This means it includes all the wait and/or queue times in the process. The book, Lean Thinking* (Womack and Jones), describes how a can of soda, from mining the ore to reaching the customer, has a throughput time of 319 days.
Throughput time, sometimes referred to as lead time, or overall cycle time, can be used to describe the length of time the thing is in the process. This length of time is from whatever input (beginning) to output boundary (end) you choose.
Every leader should understand that each extra second of throughput time adds costs, which can be defined in a variety of ways. This metric is seldom tracked as a formal KPI and mostly hidden inside of traditional cost accounting methods. Performance goals should be tied to reducing throughput time throughout the year.
Remember, throughput time is your material flow velocity. It represents how fast you can respond to your customer’s or patient’s needs. Throughput time directly ties to inventory turns and dollars and affects your company’s cash flow and working capital.
In the hospital world this metric can mean literally the difference between life and death. The longer the person or product is in the value stream the more resources it ties up and the more opportunity there is for defects to occur. In the hospital world these are known as nosocomial infections.
Man-to-Machine Ratio
What is your man-to-machine ratio? Do you measure it? Is it a KPI? Most companies around the world think they are world-class if they have one operator for two or even three machines. However, these pale in comparison to the Toyota statistics below:
■ In 1896, Toyoda Loom Works averaged over 50 machines per operator.
■ In 1940s, Toyota Motors averaged five machines per operator.
■ In 1993, Toyota Motors averaged 16 machines per operator.
We will discuss a tool called jidoka later, which is the tool that makes these types of man-to-machine ratios possible.
Sales per Employees
Sales or revenue by itself can be a misleading metric for companies, as the prices charged or product mix can change from year to year or during a year; however, sales per employee is a good overarching metric for companies implementing Lean. This is a results-focused lagging metric. This is determined simply by dividing the sales dollars for a given period by the number of employees working.
Contribution margin or gross profit per employee is also a good overarching metric for Lean. This is a high-level look at the contribution per employee, and we should set a percentage goal to increase this each year.
Productivity versus Efficiency versus Effectiveness
Our Lean principles strive for the best utilization of man, machine, methods, and materials. We call these the four M’s. When analyzing a system, it is important to understand the definitions below:
1. Productivity: Productivity is the number of products produced in a certain amount of time with a certain amount of labor. The products could be physical products or transactional, such as processing an invoice, or internet blogs. Productive means getting things done, outcomes reached, or goals achieved, and is measured as output per unit of input (i.e., labor, equipment, and capital) or pieces per person per shift/day.
2. Efficiency: Efficiency is based on the energy one spends to complete the product or service, as well as timing. For example, we all know of the learning curve. The more one performs a new task the better one becomes each time the task is practiced. As one becomes more efficient one reduces stress and gain accuracy. A person has achieved efficiency when they are getting more done with the same or better accuracy in a shorter period, with less energy and better results.
3. Effectiveness: Effectiveness is the ability to achieve stated goals or objectives, judged in terms of both output and impact.
One example is an air conditioner. It can be efficient but not effective if the windows are open. A line can be considered productive, but if it is batching it may not be as efficient or effective.
Improvement Paths May Lead to Innovation
If you think about it, all improvement can be considered a form of innovation, so daily kaizen could be also considered daily innovation. Regardless of the improvement path, for businesses to progress, they must keep improving.
Sir John Harvey* Jones said, “If you are not progressing, you’re regressing; because the rest of the world is moving against you.” The more successful we are, the more complacent we tend to get. No matter how successful we are, we must have a system to guard against complacency.
Steven Spear,† MIT Senior Engineering Lecturer, states, “They (Toyota) constantly worry about who is going to catch up and if they can’t figure out about whom to worry, they worry that they can’t worry. This is why Toyota as an organization, routinely, is always worried about something and looks at having no problem as a big problem! This constant worrying is referred to as ongoing healthy paranoia and is designed to guard against complacency. This is why there were no parties thrown when Toyota became number one in overall vehicle sales in the world.”
The need for improvements, “gaps,” can be generated through the development of new targets or the discovery of existing problems. Once this gap is identified we need a process to overcome the gap.
This improvement process could be simple, as described by Paul Akers‡ in his book, 2 Second Lean, or it could be a much more complicated process, such as reducing the warranty cost by 50% over the next three years.
The thought process is the same for both. Even a two-second Lean project has a baseline, target condition, and a gap. So, no matter the size, we still must think through this process, or, as necessary, document it on paper for larger projects.
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* A Learning Organization is made up of five pieces: Personal Mastery, Mental Models, Shared Vision, Team Learning, and Systems Thinking. The Fifth Discipline, Peter Senge, 1990. Random House: New York.
* Not Now Not Ever, Jerald Young, PhD, 2003. Center for Stable Change: New York.
* One-Piece Flow vs. Batching, Protzman, McNamara, Protzman, 2016. CRC Press: Boca Raton, FL.
† See One-Piece Flow vs. Batching, Protzman, McNamara, Protzman, page 77.
‡ EOQ is the economic order quantity.
* Chaku–chaku stands for place place or load‒load lines. They will take operations done on large machines and break them up to several small machines.
† This is the best anti-fatigue mat we have ever encountered. There is much science behind it: www.smartcellsusa.com. For insoles—I, Charlie Protzman, personally have been wearing these insoles for six years: ALINE Systems, www.aline.com
* The first seven wastes originated with Toyota’s Taiichi Ohno.
† There are many acronyms to help people remember these wastes, i.e., DOWNTIME, TIM P WOOD, etc.
* Certified Scrum Master Training Book. Scrum Inc.: Cambridge, MA.
* Ritsuo Shingo Speech at LLI Santorini Seminar August 2017, hosted by George Trachilis.
* Learning to See, Mark Rother and John Shook, 2003. LEI: Cambridge, MA; and Seeing the Whole, Jim Womack and Dan Jones, 2002. LEI: Cambridge, MA.
* Kaizen bursts can be placed on the current state or future state maps.
* Available time = 480 minutes − 45 minutes lost time = 435 minutes.Note: Planned downtime should be excluded from the available time calculations. If the cell is planned to be shut down, it does not count as available time; however, setup times and unplanned downtime are all included in available time.
* Lean Thinking, Womack and Jones, 1996, 2003. Simon and Schuster: New York.
* Sir John Harvey-Jones MBE was an English businessman. He was the chairman of Imperial Chemical Industries from 1982 to 1987. He was best known by the public for his BBC television show, Troubleshooter, in which he advised struggling businesses.
† Steven Spear is a Senior Lecturer at the MIT Sloan School of Management and at the Engineering Systems Division at MIT.
‡ Paul Akers is an American author, the president of Fastcap, and an internationally recognized expert on Lean manufacturing principles.