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    What is Lean?

    LEAN is a time-tested set oftools, and an organizationaldesire,

    to reduce waste anddefects within systems andprocesses,

    by engaging your staff

    to improve productivity,quality, staff morale, andcustomer service.

    6

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    Lean, Six Sigma, TQM????

    All come from common origins of SPC Statistical Process Control begun in 1920s

    All focus on continuous process improvement

    All engage those who work in the process toidentify and implement process improvements

    All provide tools that can be useful in improvingprocess performance

    Lean has a strong focus on process efficiency,accountability, and a bias for action

    Why focus on process? Nearly every tangible output; service or

    product, is created as the result of aprocess or series of processes (a system).

    Its been shown that over 85% of the

    opportunity to improve those outputs,while reducing time and cost lie withinthe process itself.

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    Process forms the base of every organization

    Department

    Program

    Processes

    If you cant

    describe what

    you do as a

    process,

    you dont know

    what you aredoing

    W. Edwards Deming

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    = = = =

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    7 Wastes7 Wastes 5S5S

    StrategyStrategy

    LeadershipLeadership

    SustainmentSustainment

    KaizenKaizen

    TrainingTraining

    PlanningPlanning

    LeanLeanTransformationTransformation

    Standard WorkStandard Work Increasin

    gOrganizationalValue

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    23

    : : : :

    1 1 1 1

    24

    +1 +1 +1 +1

    : : : :

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    E

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    29

    Defects also create:

    Re-work

    Re-inspection

    Employee

    frustration

    More cost

    30

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    31

    Follow the bouncing paperwork

    32

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    33

    Factoid

    About 95% of the time thatis required to produce aproduct or service is

    because of waiting.

    34

    . A,

    .

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    36

    ////B

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    37

    38

    -

    1

    Where should thisitem be located?

    How aboutthis one?

    Number oftimesperson

    accessesfile in a

    day

    Distance Carried (feet)2 4 6 8 10 12 14 16 18 20 22 24 26 28 30 32

    10

    20

    30

    40

    50

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    39

    1

    2

    3

    4

    5

    7

    12

    3 6

    54Mail

    File

    Issuer

    FileReview

    Mail

    6

    7 File

    Start

    End

    40

    12

    3/4

    2

    1

    2

    4

    3

    Mail

    Issuers/depositors

    Quality

    Helptracking

    Issuance Work Area

    3

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    41

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    .

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    47

    5 5 5 5

    48

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    49

    50

    : : : :

    1 1 1 1

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    51

    52

    D

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    1.

    ,

    54

    2.

    ,

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    56

    D

    D

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    Step 1: Sort

    5 S TAG

    DEPARTMENT: DIVISION: FIXED ASSET #:

    ITEM DESCRIPTION:

    TRANSFER TO __________ STORE __________ SURPLUS __________

    ARCHIVE __________ SEND TO FREE OFFICE SUPPLY STORE __________

    IDENTIFIED BY: DATE:

    RECYCLE APPROPRIATELY ___________

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    59

    :

    D

    A

    60

    1. D , , , .

    2. D .

    3. A .

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    2 2 2 2

    62

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    C

    D

    64

    ???? B

    D

    If a workspace is getting dirty

    faster than it can be cleaned,

    the root cause of the problemhas not been identified.

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    65

    1. E

    66

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    67

    ? ? ? ?

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    69

    1. C

    ,

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    2.

    70

    Where should thisitem be located?

    How aboutthis one?

    Frequencyof getsand put-awaysTimes/Day

    Distance Carried (feet)2 4 6 8 10 12 14 16 18 20 22 24 26 28 30 32

    10

    20

    30

    40

    50

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    71

    Where should thisfile be located?

    How aboutthis one?

    Frequencyof use

    Times/Month

    # of Mouse Clicks to Open File1 2 3 4 5 6 7 8 9 10

    10

    20

    30

    40

    50

    72

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    .

    .

    .

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    !!! !!! !!! !!!

    76

    !!! !!! !!! !!!

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    86

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    2.

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    87

    Kaizen Newspaper

    Date: Page:______ of:______

    Item No. Descr ip tion o f Prob lem Cou nter Measure Person Responsible Due Date

    %

    Complete Date CompleteTool Boards Not Maintained Shadow all tools and have Kevin 1/22/2004

    supervisor follow-up

    Drill Press has frayed electrical cord Replace cord Maintenance 2/1/2004

    Mat erial replenis hment not to adequate Mark lines on bins for daily Ji m 2/5/ 2004

    level fill level

    Team Number:

    25

    50 75%

    100

    25

    50 %

    100

    25

    50 %

    100

    25

    50 %

    100

    25

    50 %

    100

    25

    50 75%

    100

    2550 75%

    100

    88

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    5

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    89

    1. C

    :

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    2.

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    A

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    91

    4.

    92

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    93

    94

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    95

    96

    , ,

    C

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    97

    3 :

    1. C

    2. ()

    3. C ( )

    98

    !

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    99

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    7

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    101

    102

    1. D

    2. D

    3.

    4. C

    5.

    6.

    7. A 5 8.

    9.

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    103

    C

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    104

    A

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    ()

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    105

    C

    106

    D:

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    C

    !

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    107

    5: 5: 5: 5:

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    108

    7: 5 7: 5 7: 5 7: 5

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    109

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    111

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    113

    To take it apart,and put it backtogether in abetter way.

    Follows Demingscycle of Plan, Do,Check, Act(PDCA)

    114

    B

    A

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    115

    .

    116

    Time

    People (jobfunctions)

    Tasks/Process

    :

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    117

    People

    (job

    functions)

    118

    DECISION(Y or N)

    TaskTime to

    Complete

    (in min.)

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    119

    Storage / FileWait / Delay

    Wait Time

    (in daysor weeks)

    120

    Handoff

    Electronic,phone, or fax

    Physical (e.g.passing a paperitem back and

    forth)

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    121

    Accounting

    Customer

    Order Entry

    Sales

    SupplierShipping

    Customer Service

    Customer Callsin order.

    Customer Servicesends e-mail to Sales

    Sales person isassigned to order anddelivers paper copy oforder to Order Entry

    Order is nowentered into

    the companysdata base.

    An electronic order issent to the supplier.

    Swim Lane Mapping MetricsDHS kaizen

    Qty. Time Qty. Time

    Tasks 18 44 minutes 7 19 minutes

    Waits 5 52 hours 1 2 hours

    Handoffs 5 1

    File/Store 0 0

    Decisions 3 1

    Totals - 52 hrs - 44 min - 2 hrs - 19 min

    95% Improvement

    InvoicingCurrent Future

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    DOC Comparison Metrics

    Current Scenario Handoffs Decisions Storage Waits Tasks

    ECRC best path with1 Transfer

    18 12 10 24 for

    29-155Days

    49

    381 min

    Improved Scenario Handoffs Decisions Storage Waits Tasks

    ECRC best path with1 Transfer

    11 9 10 2 for

    2-31Days

    33

    192 min

    Handoffs Decisions Storage Waits Tasks

    Improvement 38% 25% 0 92% 33%49%

    124

    : : : :

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    125

    126

    C (C) :

    C

    .

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    Leadership is an action not a

    position.Donald H. McGannon

    If your actionsinspire others to

    learn more, do

    more, or become

    more, you are a

    leader

    John Quincy Adams

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    Managers and Leaders

    Managers keep the trainrunning on time toward anestablished destination

    Leaders determine what theappropriate destination isand create an environmentwhere employees have thepermission and support to

    help figure out the best waysto get there

    If you don'tknow whereyou are going,you will windup somewhereelse.

    - Yogi Berra

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    131

    132

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    133

    134

    ,

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    135

    136

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    .

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    ? D ?

    ;

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    137

    138

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    139

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    2. , .

    3. ,

    4.

    5. , ,

    140

    6. 5

    7. ( 8 , 7 )

    8. .

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    10.

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    The greatest barrier to

    success is the fear of

    failureSven Goran Ericksson

    7 , 5, ,