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Company Culture & Lean Thinking

         How Values & Habits Become
                          Processes
Lean Basics
 Whenever there is a product for a customer,
 there is a value stream. The challenge lies in
 seeing it.

 Lean is a method of seeing and acting that
 eliminates ANYTHING that does not deliver
 value to the customer.
 Industry averages have shown that companies
 that adopt Lean practices find that there is 95%
 waste in their basic office, manufacturing and
 distribution activities. Does this seem possible?
How to See Waste
 C omplexity
 L abor
 O verproduction
 S pace
 E nergy
 D efects
 M aterials
 I nventory
 T ime
 T ransportation
 S afety
Can You Identify Waste?

Can You identify Any Closed Mitts items in
  your Area of work?
In Buying?
In Ordering-?
In basic office functions?
In our sales processes?
In Distribution?
In Customer Contact?
Lean & Core Values

 Values are invisible.
 All the Core Values have components that
 help guide our daily activities.
 So Values and Culture have components
 that involve habits or actions.
Culture and Values

 People are our Core Assets-Capable People
   Customer Focused


   Pride
 What does it mean to be customer focused and
 to take pride in our capabilities?
 In it’s most essential meaning, it is aligning our
 daily work and activities with the goals and
 needs of our supervisors & customers.
Lean & Company Culture
 This is where Lean fits in.
 Lean makes us see how to adapt and change our work
 habits and activities to be in alignment with those of our
 customers.
 Are we aligned by department or really to our customer
 needs?
 Do we think inside the box of “department” or in
 alignment with our customer needs?
 How can you tell the difference?
 Being Aligned means considering the implications of
 your actions on the next step in the Value Stream-Make
 it a GOOD HANDOFF
The Value Stream
 The “Value Stream” are all the actions and
 activities to deliver a company’s products or
 services to it’s customers.
 Anything that does not “add value” to the
 customer is considered wasted energy or
 activity.
 Toyota has consistently applied Lean Thinking
 and Processes and now is the #2 Automotive
 company in the world and growing!
 Something must be working!
1. Where Lean Begins-5 S

 Sort-Get rid of un-needed
 Set-in-order-everything in it’s place
 Shine-daily/weekly schedules
 Standardize-visual controls
 Sustain-Continuous improvement
 Team Leader_________________
 Project Name_________________
5 S Sort
 Explanation Of The First Pillar - Sort
 Definition of the First Pillar
      Only what is needed, only in the amount needed, and only when it is
      needed. Remove all items from the workplace that are not needed for
      current production (or clerical) operations.
 B.    The Key to the First Pillar
         If you Sort, you leave only the bare essentials: When in doubt, throw it out.
         This principle is a key part of Sort in the context of the five Pillars.
 C.    Why Sort is Important
           • Problems and annoyances in the work flow are reduced, communication between
             workers is improved, product quality is increased, and productivity is enhanced.
           • AREAS TO SORT
           • _____________________________________

           • _____________________________________

           • _____________________________________
5S Set in Order
 Explanation of the Second Pillar – Set in Order
 Introduction
 Sort and Set in Order work best when they are implemented together
        Definition of the Second Pillar
 Set in Order means that you arrange needed items so that they are easy to use and label them so
 that anyone can find them and put them away.
        Why Set in Order Is Important
 Setting in Order is important because it eliminates many kinds of waste in production or clerical
 activities.
 It is not unusual for a three-hour changeover routine to include 30 minutes of searching.

 AREAS TO SET IN ORDER

 _________________________________________________

 _________________________________________________

 _________________________________________________
5S Shine
 Explanation of the Third Pillar – Shine
           Introduction
           Definition of the Third Pillar
           Shine: Keep everything swept and clean
           Set & Post Daily & Weekly Schedules
           Why Shine Is Important
           Another key purpose is to keep everything in top condition
           so that when someone needs to use something, it is ready
           to be used
           AREAS TO SHINE
           _______________________________________

           _______________________________________

           _______________________________________
5 S Standardize
 Explanation of the Fourth Pillar – Standardize
   Definition of the Fourth Pillar
      Why Standardization Is Important
      Building on this definition, we may define Standardized as the result that
      exists when the first three pillars-Sort, Set in Order and Shine-are properly
      maintained
        • When you think about a city you might say that a well-kept city block is
           one that has been swept and washed clean of debris and dirt. In the
           5S context, a well-kept city block would be one in which results or Sort,
           Set in Order and Shine are maintained.
         • AREAS TO STANDARDIZE

         • ___________________________________________

         • ___________________________________________

         • ___________________________________________
5 S Sustain
   Explanation of the Fifth Pillar - Sustain
   Definition of the Fifth Pillar
   The fifth pillar is Sustain. In the context of the five pillars, to Sustain
   means to make a habit of properly maintaining correct procedures.
   In your life in general, what do you mean when you talk about
   sustaining something? Usually, you think of it as drawing on something
   from inside yourself in order to maintain a course of action-even when
   forces in your life challenge this effort.
   AREAS TO SUSTAIN
   _________________________________________________

   _________________________________________________

   _________________________________________________

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How Values And Habits Become Process Lean Thinking

  • 1. Company Culture & Lean Thinking How Values & Habits Become Processes
  • 2. Lean Basics Whenever there is a product for a customer, there is a value stream. The challenge lies in seeing it. Lean is a method of seeing and acting that eliminates ANYTHING that does not deliver value to the customer. Industry averages have shown that companies that adopt Lean practices find that there is 95% waste in their basic office, manufacturing and distribution activities. Does this seem possible?
  • 3. How to See Waste C omplexity L abor O verproduction S pace E nergy D efects M aterials I nventory T ime T ransportation S afety
  • 4. Can You Identify Waste? Can You identify Any Closed Mitts items in your Area of work? In Buying? In Ordering-? In basic office functions? In our sales processes? In Distribution? In Customer Contact?
  • 5. Lean & Core Values Values are invisible. All the Core Values have components that help guide our daily activities. So Values and Culture have components that involve habits or actions.
  • 6. Culture and Values People are our Core Assets-Capable People Customer Focused Pride What does it mean to be customer focused and to take pride in our capabilities? In it’s most essential meaning, it is aligning our daily work and activities with the goals and needs of our supervisors & customers.
  • 7. Lean & Company Culture This is where Lean fits in. Lean makes us see how to adapt and change our work habits and activities to be in alignment with those of our customers. Are we aligned by department or really to our customer needs? Do we think inside the box of “department” or in alignment with our customer needs? How can you tell the difference? Being Aligned means considering the implications of your actions on the next step in the Value Stream-Make it a GOOD HANDOFF
  • 8. The Value Stream The “Value Stream” are all the actions and activities to deliver a company’s products or services to it’s customers. Anything that does not “add value” to the customer is considered wasted energy or activity. Toyota has consistently applied Lean Thinking and Processes and now is the #2 Automotive company in the world and growing! Something must be working!
  • 9. 1. Where Lean Begins-5 S Sort-Get rid of un-needed Set-in-order-everything in it’s place Shine-daily/weekly schedules Standardize-visual controls Sustain-Continuous improvement Team Leader_________________ Project Name_________________
  • 10. 5 S Sort Explanation Of The First Pillar - Sort Definition of the First Pillar Only what is needed, only in the amount needed, and only when it is needed. Remove all items from the workplace that are not needed for current production (or clerical) operations. B. The Key to the First Pillar If you Sort, you leave only the bare essentials: When in doubt, throw it out. This principle is a key part of Sort in the context of the five Pillars. C. Why Sort is Important • Problems and annoyances in the work flow are reduced, communication between workers is improved, product quality is increased, and productivity is enhanced. • AREAS TO SORT • _____________________________________ • _____________________________________ • _____________________________________
  • 11. 5S Set in Order Explanation of the Second Pillar – Set in Order Introduction Sort and Set in Order work best when they are implemented together Definition of the Second Pillar Set in Order means that you arrange needed items so that they are easy to use and label them so that anyone can find them and put them away. Why Set in Order Is Important Setting in Order is important because it eliminates many kinds of waste in production or clerical activities. It is not unusual for a three-hour changeover routine to include 30 minutes of searching. AREAS TO SET IN ORDER _________________________________________________ _________________________________________________ _________________________________________________
  • 12. 5S Shine Explanation of the Third Pillar – Shine Introduction Definition of the Third Pillar Shine: Keep everything swept and clean Set & Post Daily & Weekly Schedules Why Shine Is Important Another key purpose is to keep everything in top condition so that when someone needs to use something, it is ready to be used AREAS TO SHINE _______________________________________ _______________________________________ _______________________________________
  • 13. 5 S Standardize Explanation of the Fourth Pillar – Standardize Definition of the Fourth Pillar Why Standardization Is Important Building on this definition, we may define Standardized as the result that exists when the first three pillars-Sort, Set in Order and Shine-are properly maintained • When you think about a city you might say that a well-kept city block is one that has been swept and washed clean of debris and dirt. In the 5S context, a well-kept city block would be one in which results or Sort, Set in Order and Shine are maintained. • AREAS TO STANDARDIZE • ___________________________________________ • ___________________________________________ • ___________________________________________
  • 14. 5 S Sustain Explanation of the Fifth Pillar - Sustain Definition of the Fifth Pillar The fifth pillar is Sustain. In the context of the five pillars, to Sustain means to make a habit of properly maintaining correct procedures. In your life in general, what do you mean when you talk about sustaining something? Usually, you think of it as drawing on something from inside yourself in order to maintain a course of action-even when forces in your life challenge this effort. AREAS TO SUSTAIN _________________________________________________ _________________________________________________ _________________________________________________