5S (Lean Tool)

5S is a workplace organization method that can help improve the efficiency and management of operations. 

• SORT (SEIRI) -- Sort thru the items as required and remove unneeded items from work area. Never used items need to be discarded immediately.
• SET IN ORDER (SEITON) -- Arrange required items for ease of accessibility. Files that are required more often (SOP, instructions etc.) are placed in marked location / designated area. 
• SHINE (SEISO) -- Cleaning the work area and equipment. (Manufacturing example - cleaning of inspection surface plates leads to better measurement results). Other e.g. equipment work table cleaning and cleaning of the floor.
• STANDARDIZE (SEIKETSU) - Involves developing checklists, standards, and work instructions to keep the work area in an orderly condition. 
• SUSTAIN (SHITSUKE) - Sustaining efforts and continuing them (continuous improvement). Requires support of team and that of management, empowerment of employees, etc.  

> A process is impacted by its environment

> The ability of employees to process change is also impacted by its environment

> Improvement in the work area is helpful for controlling the process.

5S Example in a Service-based Industry

• CEO asks for progress update on existing cost improvement initiatives.
• PMO shares a comprehensive report spending 80 hours and at least two loops. 
• CEO unhappy. 
• 5S is deployed. 
• Existing report looked at
• Sorted existing reports based on stakeholder requirements - high, med, low
• What type of data was being collected, and how it was collected for the report. Was being done manually, and in various formats.
• The improvement team "sorted" the available information as inputs to fulfill the requirements. 
• Set in order - Created input screen from where PMO could add his details, and the PMs can collect data and upload their reports. 
• Created reports in Tableau. 
• Shine - identified 5PMs and executed a pilot. 
• Standardize - Created training material, SOPs, maintenance procedures, 
• Sustain - for 2 months. 
• 
  

Value Stream Map...

A value stream map is a lean technique used to document, analyze, and improve the flow of information or materials required to produce a product or service for a customer. 

> Identify and eliminate waste

> Review the flow of process steps and information from origin to delivery

> Has a system of symbols to depict various work activities and information flows

Value Stream Map extends on the Process Map

A process map is a work that should ideally happen as part of the process on the floor, whereas a value stream map is what actually happens. 

• NVA - Non-value-added work - actions that should be eliminated. 
• ENVA - Essential non-value-added work - wasteful actions but essential under operating procedures. 
• VA - Value Added work - Actions that add value to the work. 

1. Add time for each activity
2. Calculate total time
3. Calculate Total value-added time 
4. VA / Total Time = Process cycle efficiency (PCE) 

How to create a VSM?

Example of Pizza Delivery 

• Step 1: Identify the start and endpoints

• Step 2: Document the process steps

Next, indicate how many operators complete each step in the circle within each box. 

Next, include a data box to indicate:

1. CT or the cycle time - Time to complete each activity

2. CO - Change Over Time The time to switch between steps

3. Up Time - The percentage of time the machine is up and running. 

4. Yield - Percentage of parts that pass inspection. 

Next, indicate cycle time (CT) (shown in the diagram below). 

• Step 3: Add inventory and wait times. Connect the start and endpoints. Electronic flow lines represent customer call and electronic payment, a vertical-lined thick line is material pushed from one process to the other, and the solid thick line is shipment/delivery.

Use Inventory Triangles In between each phase to mark the number of parts in WIP. 

Add symbols at the shipment (scooter here) - to show method of shipment

• Step 4: Draw information flow:

- Draw information flow: Suppliers, Production control to represent people centrally coordinating between the suppliers and the pizza store - ensure raw material stock at pizza store doesn't' go below minimum prescribed level. 

- Then place lines of communications (straight lines (manual comms) and crooked lines)

- Add notes about the type of exchange, frequency of exchange and the media used

• Step 5: Create Timelines: 

- Finally create timelines at the bottom of the value stream map. The timelines will have three levels -- 

-- Value-added process

-- Essential non-value added process

-- Non-value added process

- Finally, add a databox at the bottom that houses - Total Cycle Time, Value Added Time and Process Cycle Efficiency

Another example of Value Stream Map (Call Centre)

Lean Enterprise Organization

• An organization that uses lean thinking
• Applies lean tools to reduce waste
• Offers value to customers

Achieving a lean enterprise requires a change in:

• Attitudes
• Procedures
• Processes
• Systems

Value Stream

• Value Stream is a series of activities. 
• Starts with the Supplier and ends at the customer. 
• Wastes are explicit and hidden along this value stream. 

Components of Value Stream

• Flow of materials
• Transformation of raw materials into finished products/services
• Flow of information

What is Value?

• Value is defined by the customer based on:
• Is the customer perception of the usefulness of the given product or service
• The necessity of the given product or service