Introduction to Lean and Six Sigma

the following content is provided under a Creative Commons license your support will help MIT OpenCourseWare continue to offer high quality educational resources for free to make a donation or to view additional materials from hundreds of MIT courses visit MIT opencourseware at ocw.mit.edu okay well this is uh this is literally for most of you in the start of your lean journey because we've seen the value data and we know that for many of you these this whole subject matter is something you've hardly heard about and that's perfect because that's what this course is designed for so welcome so at the end of this module we hope you'll be able to explain the origins of lean and Six Sigma explain the Lean Six s tool you're going to learn your first lean tool here you're going to be able to define what is lean what's a lean enterprise and what our stake who are stakeholders of the Lean Enterprise you'll recognize why Lean Six Sigma principles are being implemented in aerospace healthcare and other sectors we're going to talk about why these sectors are moving in this direction and you'll be able to explain that lean is a journey it's not a state you never are lean you're always trying to become lean and we'll talk a little bit about that so this this subject matter comes out of the Japanese automotive industry and unlike aerospace engineering in structures and controls and aerodynamics where you can go to the laboratory and see what's happening and do experiments things in this field you have to go to work where it's actually being practiced because that's the body of knowledge comes from that field so this all kind of came to the surface in 1990 when MIT published a book called the machine that changed the world there was a study of the Japanese North American and European automotive manufacturing and this is a plot given them a production of cars these are all the u.s. car manufacturers and here's Japan and what do you see in that chart what jumps out at you what's the first thing you see yeah yeah that's one thing Japan has just steady growth what's the next thing you see inconsistent right this is the the typical us thing you know you kind of over produce under produce over produced so the Japanese are nice smooth and steady there's a lot of data in the machine that changed the world and we're not going to go through all this but I want to make a couple points first of all the data in this chart is product development and manufacturing now a big mistake a lot of US companies made when they read this book was that leans a manufacturing paradigm it's a manufacturing system in fact most of my friends when they talk to me say oh you're in lean manufacturing ok the Japanese never saw it that way they implement lean right back and engineering and product development okay so in product development for exams the average engineering hours in a new car 1.7 million for Japanese 3.1 million for us almost twice the number of engineering hours for the same car supplier share of engineering how many of the suppliers are actually doing engineering compared to just supplying parts 51 percent in Japan 14 percent in u.s. so we're going to be talking about that tomorrow in the engineering section this that that's design here's production let's just get a couple numbers quality defects per hundred vehicles 64 Japanese 82 for us training hours of new workers 380 for Japan 46 for us that's probably not because the Japanese need more training probably because Japan invests more in training okay so this is what started the whole length of activity around the world in the u.s. now how does lean compare what are the fundamental comparisons of lean with what we already know well we have here lean thinking mass production and craft production as sort of three paradigms let's just we're going to spend a bit of time in this chart because this is going to set your your thoughts for the whole course so let's look at the these are different focus area so in operations in crafts thing persons working on a single item in mass production the idea is you make a lot of them and you put them in a queue you make more and you put them in a queue in Lean Thinking it's all flow everything's flowing very smoothly and synchronized and we're going to talk a lot about flow what's the overall aim in craft it was the mastery of the craft in mass production is reduced unit cost and increase efficiency in lean it's eliminating all wastes and only doing value-added activities you're going to be hearing a lot about this by the way most of the things that we talked about today we're going to come back and talk about tomorrow and they're going to come back and talk about on Wednesday so if something goes by you today and you go home and said I don't think I really got it that's good because tomorrow you're going to get it again probably okay so we're going to be talking about all these things quality in math and craft production it was just part of how they did things it was integrated into their whole system in mass production qualities was treated as a second step we inspect and we correct in Lean Thinking is built is the qualities built in at every step of the whole activity from engineering right through production and one of the things that was so hard for Westerners to grasp was most Westerners thought I'll give you a quality output but it's going to cost you more money and what the Japanese found was I'll give you a quality output and it cost less money okay quality and this is really important in health care it's really important in health care focusing on quality will drive down cost okay it always has business strategy here was customization here it's the economies of scale and automation here is being flexible and adaptable to the changing customer demands and I think this is the really the heart of lean this last one in the craft who does the improvement in the craft world it was the master of driven continuous improvement in the mass production world there was the expert driven periodic improvement we bring in the consulting company they tell us how improve here it's the worker does the improvement in a continuous way the worker is a continuous problem solver so this I spent a lot of time on that chart because this this really sets up the whole course and when we wrote a book on this we struggled with how we define lean and here's the term we came up with lean thinking is the dynamic knowledge driven customer focused process to which all people in an enterprise continuously eliminate waste and create value so you guys are actually little enterprises for this course you guys are going to be airplane manufacturing enterprises and you guys are going to be clinics ok and tomorrow when we do our Lego simulations you're going to be applying these principles in your enterprises okay so what about lean and Six Sigma they're very interrelated they came from somewhat different backgrounds Six Sigma was developed by Motorola in the 1980s when they decided that the big problem they had was that all their processes had too much variation so when they were built something they weren't sure what the output was going to be and so they didn't have very good what you might call yield they had a lot of scrap and not just in production but in office processes and everything so so Motorola focused on reducing the variation of every process so that every process would have a predictable output to deliver value to their customers it was very problem focused and the assumption is you've got the process isn't working so you go in and do a very kind of quantitative analysis and fix that process and get the variation down lean has the same end objective of delivering value to the customer but its focus is to reduce waste to get all the waste out of the system and we'll find out that most the thing most of the inefficiency is not the people it's the system in which the people are working is wasteful and it's focused on keeping everything flowing and so the assumption is that waste removal will improve businesses and that many small improvements are better than a big giant step so lean is very much a process of starting where you are taking whatever system you have making a little bit better or a lot better and then making a lot better and then making a lot better and just continually trying to improve it that's why it's a journey now what's happened over the past 10 15 years is that is that well let me back up and say 15 years ago there were people say oh I'm doing Six Sigma or I'm doing lean it was like there were two camps and luckily that eventually we got past that and and most organizations now pick some portions of lean some portions of Six Sigma and bring them together they we think of leanness or optimizing flow and Six Sigma is reducing variation and the body of knowledge is have come together into something is generally called Lean Six Sigma they're there books you can buy called Lean Six Sigma and what happens is an enterprise will look at these principles they will tailor their own version of it they will name it and brand it and it becomes their operating strategy or their improvement strategy so Textron calls theirs Textron Six Sigma Virginia Mason Medical Center calls it the Phrygia Mason Production system some of you are either going to work or have been working a Boeing they call there is lean plus now and I was talking with Susan lil earlier Dartmouth which is a real leader in this area doesn't even call it lean at all okay and that doesn't matter it's it's that the organization understands their process improvement and identifies with it and takes ownership of it and doesn't get hung up on what the name is so our course is going to cover all the principles that underlie all these things if you are going if you were in a company or a hospital and went to their training they would give you specific training on their system because you're working for them but you're all going to go somewhere else different places so we give you the fundamentals that apply to any of those systems that's why end up the first part of this module with this slide that shows how important people are implementing continuous improvement I often hear that there are two jobs we all have one job is the work we do and the other job is improving how we do our work and we're going to emphasize the importance of people in implementing lean thinking throughout the whole course and we'll even get a hint of it in this exercise we're now going to do that's the background now let's get some something specific on the right-hand side of your folder is a exercise it looks like this and take it out and don't open it up yet just put it in front of you okay this is called 6's now there are two versions of this out there they're multiple versions there's 5s and 6s so 5s which came from the Japanese they were Japanese words which I don't remember but they've been translated into basically short short straight and scrubs standardized and sustained and this is a way of improving your work environment very simple and we'll talk a little bit about it now what happened when this came to the Western world the Western world set off safety that starts with an s2 and safety is very important so we'll make it success and we'll add safety on to the list and when we put this is the only place in the course where we've actually taken something that we didn't observe in the field when we did this we thought that's kind of an afterthought just to put safety at the end of the list and safety is more important than that so either if you either leave it off or if you're going to integrate it integrate it and so we put it as the second s and we call it safe which is an action verb this is probably the only place you'll see this version of success but that's okay don't worry about that so what we're going to do is we're going to little exercise and this is your workplace for right now this is your work environment and we're going to try to improve it applying the basic principles of success and we're going to do it in twenty second rounds you can think of each 22nd round is maybe a work shift or something like that and you have a bunch of supplies and this is in the medical context but we could do it otherwise you have some instruments some bandages and some medications and you're going to each of your work shifts you're going to be asked to fetch some of these supplies from your storeroom and don't turn it over yup at the first page represent your current work environment and then each next slide will show you what you have to in your first work shift and when you fetch it so what you're gonna do is just put an X through whatever you fetch or if you want to circle it you could do that too I don't care okay so here's what we're going to need to get on the first round you're going to have to find five syringes five of these band-aids five scissors and five of the medication twos so I wanna don't do it yet when I say go you're going to flip the page cross off five of each of these until I say stop and that's the end of the shift any questions on the mechanics of it okay so we'll do ready set go stop shift this over time to go home okay okay so now count up the number of items total number of items you got I don't need to know items by category just the total number of items okay super okay how many are kind of round eight nine ten okay probably ten is roughly about the middle I'm we don't have to be too careful so let's so this is kind of our our work place well what do we see okay we didn't get the job done and there's high variability okay we got we have about c6c we have about 25 28 workers here in our plant then we got quite a variable outcome this is the kind of thing Six Sigma was worried about high variability okay so that's that's where we're starting now our first first s is to sort and you probably saw in your work place there's a lot of stuff there that you don't have to go collect there's some old equipment that's in your storeroom there may be some onion you know medications that have been there you know when this first started a lot of these companies go into the storeroom and they find out that somebody in purchasing got a good deal some time on some piece of equipment or supply they got a volume discount they bought ten years worth of it and a year later they stopped using that stuff and then other nine years are still in the okay that's waste okay so what we're going to do is we're just going to go through and clean up get everything out of the work place that we're not looking for and then we're going to redo this so it's the same thing but now you've got rid of all the clutter but we're going to get just so we take the learning out we're going to get now five tape rolls five band-aids five tweezers in five medication threes okay ready set go stop okay now we count them up again and then we'll see where we're at okay anybody get all 20 19 19 okay okay how about how many are around 15 15 okay that's good enough okay 25 so we made up you made up we're going to talk a lot so I just a heads up one of the things about lean is you're trying to meet your customers demand and you exceeded customer demand okay sometime the customer won't pay you for it but this time it's probably okay how many got look at your medications everybody anybody get a medication one or a medication - ah okay okay okay so now we're going to safe getting the wrong medications is a big problem so that's an example why we set it up for that's why we put safe here so safe is just making the workplace safe gain you know if your workers get injured or if the customers get injured or suppliers get injured that's pure waste that's lost time that they can't contribute to your enterprise so safety is not good safety is important for many reasons but it's a it's very much a lien principle you don't want anything that well I've already said sit accidents or waste so we've we've gone in and we've made our workplace a little safe now we've we put cheese on our syringes we've made the medications different shapes we've closed the scissors and so we're going to do the same thing get twenty items and ready set go stop I think everybody's got the mechanics down so okay anybody at ten or less than ten twelve eleven eleven eleven eleven twelve okay or had a little bit of improvement here anybody get all 20 18 19 19 okay okay how about 16 17 18 15 14 okay it's kind of hard to see I think we're still maybe a little bit better than before but about same so we we we've closed down the variation a little bit we didn't expect to get too much improved improvement in productivity because all we did was we made the environment safe we didn't really do any reorganization okay now we're going to straight now that we've gotten all the clutter out we've made things safe now let's get our workplace a little bit better organized so it's not so helter-skelter so we're going to straighten things so we've installed some racks in our storeroom because management seen this great increase in productivity they're going to ask for more now in the shift they want 25 125 things found okay so you can see the list up there okay ready set go stop okay bye 15 or less how many 14 14 okay 14 okay yeah you got 15 but she got 14 would you 15 okay anybody get 25 24 23 23 okay and how many are 8 19 20 21 okay it looks like it we're about in the middle here okay well we see the increase in productivity there okay now the next one the next a sister is basically clean things up to scrub by the way in these charts there multiple translate of the Japanese word and we've given them all here so for scrub it scrub shine or sweep you might find in a particular five or six s incarnation and that's pretty important in a course in a healthcare environment it's critical for for all sorts of reasons but in an aerospace environment or a production environment you can walk a lean factory you can walk into you can eat off the floor I mean we'll see we're going to have a balanced new video of New Balance shoe and you'll see when we get into that factory how clean it is well-lit everything's clean it's just it's just a way of thinking so keeping your workplace tidy and neat is just part of it we can't find a good way to do that exercise here so we're going to skip this s and move on to standardize so now we want to make it now we got your things straightened up now we make make it real easy to find things so we got three clinics here okay be nice if each clinic had its own way of storing things ok we're going to talk about that tomorrow in our simulation or we got to production facilities here be nice that in the two production facilities may be the same company you have the same same way of storing things so you can go from one to the other and not have to be trained so we're now going to we've done a good job of that we standardized this as an example it's hard to see but these are a bunch of binders and they just put a little tags on so you can immediately see which binder is missing because it's out of sequence ok well now we're up to 30 ok we want to get 30 items on this round it's the last shift of the week you're going to have the weekend off after this ready set go up okay anybody get 30 look at that Wow anybody get 25 or less how many 25 okay and how many got 30 let's see your hands get 29 I mean we're just like this okay okay well let's look at this chart so we've gone from a system it has high variability and low productivity to a system that has high productivity and low variability how many of you would how many how many of you found this environment where you produce so much so much more to be more stressful to work in this environment nobody right okay that's what leans about kaeleen is about doing simple things to improve your workplace that when I toured the Sikorsky plant where they make the blackhawk helicopter the plant manager said Earl lean is the focused application of common sense okay this is not complicated stuff okay and lean is not about making the worker work harder lean is about making putting the worker in a an environment where they can be more productive and happier okay so this is what leans about most organizations start with 5s is their first first thing and let me just share it just under oh you an example is I live in a small town of 9,000 people Holt County only has 30,000 people it's a rural community our hospital start adopting lean the very first thing they did was they went into the hospital laundry implied 5s the laundry was so dysfunctional they had high turnover employees the linens and gowns were not on the floors when they needed to be the laundry bin they did didn't get to the bottom of it each day dirty laundry so the next day more laundry was on top it's on in one week the women in the laundry who operate the laundry took 5s with a facilitator a coach they reorganized their laundry and it went from that to now they get all in all the laundry done every day I've been in this laundry the women are so happy they just can't they just want to tell you about their workplace they've have no turnover since they did this and everybody in the hospital is affected by the laundry and they all knew is a success so if you want to start in a hospital start in the laundry with 5s okay the last s is to sustain often the hardest part I like the Virginia Mason version of its self discipline sustainment should be the trap is you do this one-week event like I mentioned in the laundry and then you know you drift back into old habits so the hard part is is keeping this as a mindset sometimes you have to have a chart but usually you should just be able to do it okay so that's your first lean experience let's now talk about why lean is being applied in these in these areas okay we're going to look at aerospace health here and we're going to look at also a New Balance shoes just for three comparisons so aerospace is a really interesting industry it's a flagship industry of the of the United States it's one of these things that goes with the image of the country it enables the movement of people and goods it's not enables communication it's critical to national security and it's a source of inspiration for many people for it exploration now here's what why did aerospace turn to adopting lean here's an industry where we think we're the world leader and I pause because we may not be but we think we are but why do we turn to lean well here's why this is a study that came out of the Sloan School by Jim Utterback that shows the natural progression of many different industries plotted by the number of companies in a particular industry so this is the typewriter industry so it started in late 1870s and companies came in they reached a peak of about 80 companies and then somewhere they reached a peak around 1910 and then the number of companies started declining and of course there's probably no typewriter companies now okay what happens when this phase this is where the product architecture and product characteristics are not set so many inventors come up with new ways of doing things eventually somehow the best design emerges and that's where the market consolidates around and then instead there's not really real opportunities for new companies what happens is companies buy up other companies and merge and at this point it's very hard to change the product architecture this keyboard we all use came out of this era it's pretty well known that there's more efficient keyboard layouts okay but it's impossible to change that now it's just it's impossible to change it because it's a standard okay here's the automobile industry same kind of thing here the the main product architecture was the enclosed steel body okay here's aerospace now this this is representative aerospace that's probably it's just some of the major companies but throughout the 1900s up to about 1960 we had a growth of the number of companies then along came something that looks like a 747 707 okay and other things and we sort of reached the product architecture and then we would have gone on this decline just this company's back but but we get to this point here and there's a plateau we're in the Cold War okay and the government for strategic reasons one to keep a big industrial base so they invested in that industrial base when the Cold War was over the Secretary of Defense invited all of CEOs of the major aerospace companies to dinner is called the last supper and he said we don't need this many companies and so we're not going to have as many but it's up to you to sort it out well let the marketplace sorted out so you know Boeing buys McDonnell Douglas you know so on so forth and we have now consolidation and fewer aerospace companies had we not had the Cold War we probably would have done this but here's where Aris but here's where la I started okay we had an industry which was inefficient and couldn't survive in the new world okay and so they turned to lean so we had a company with companies that have mature products can't survive on a business strategy that's designed for early growth here's one of the things that happens in an early phase when there's not when the competition hasn't developed you can charge what you want you know you can charge what you want for a new device okay and and then you subtract your costs and you get whatever profit competition builds up or the government says we're not going to pave as much for airplanes anymore okay the customer sets the price the only way for you to make a profit is to reduce your cost okay so you have to you have to become more efficient it's just the way it is or you don't survive here's an example of some of the problems in the aerospace industry here are three programs the second block of the GPS satellites the Joint Strike Fighter Boeing 787 these are new airplanes years behind schedule one two three four okay billion dollars overrun twelve billion dollars over beyond the development cost 90 the the price per unit they're going to buy a lot of f-35s the price is doubled okay and it's still in trouble other programs where their costs and schedules overruns the f-22 and so on the a340 a380 so on this is what's called the burning platform okay most the paradigm here is people adopt lean when the platform they're staying on is burning if they don't do something they're going to disappear okay now there are also many aerospace programs which are executed very well okay and we've learned a lot from studying those so I don't want to say the aerospace can't do anything but there are a lot of problems with the aerospace programs health care it's a book published in 2003 called crossing the quality chasm published by the Institute of Medicine and the paradigm here was this is the health care we're delivering this is the health care we know how to deliver and there's such a wide gap in quality of health care that we have a big chasm between what we're doing what we should be doing and they outlined what the objectives of healthcare are and that these are not new aims these are aims that have been there for many years and most people go into health care because they want to do this you know probably all of you guys are going in healthcare because you you don't want it you don't want you probably inside picked health care because it's inefficient system I can work in right you picked health care because you want to help people and do things so we need to we need to do that okay but what are some signs well I think we've all heard about the cost of how CAIR they're different metrics here I don't think we have to go through those in detail they're quality issues this is the one that is was staggering to me the study done in 1999 that between about fifty and a hundred thousand people a year in our country died from perfectly preventable medical mistakes okay that's more people than die on the highway and by the way that number still has not changed too much it's gotten a little bit better maybe but not change many people don't have access to healthcare that's this slides a little bit out of date because of the Affordable Health Care Act and you know 60% of the doctors in the survey said they wouldn't recommend going in healthcare to their children here we got bows and eat emergency doctor emergency medicine doctor is 50% here time spent on tape paperwork what I'm on a good day 50% is waste and Susan's a nurse Maine studies showed we have a big shortage of nurses coming up here okay so we got some problems and you all know about so basically what we say in health care is there's a value crisis value is defined as what you deliver and what / what you pay for it and roughly about half the health care we know how to deliver to the patient gets delivered in the cost this is the percent of GDP in 2007 we were spending 16 percent of our gross domestic product on health care in 2050 s supposed to be 37 percent that's just unsustainable and the same with Medicare so we hope that Lean Thinking can be one piece of a puzzle of improving health care it's it's a complicated complicated field and there's no simple solution but lean can help okay so those are two industries as to why they're applying lean now let's talk a little bit about what is an enterprise because in this course we very much focus on applying lean across an enterprise not just a manufacturing or clinic thing so an enterprise is a broadly defined as one or more organizations having related activities a unified operation in a common business purpose and so you might have in an engineering enterprise customer engineering products product development engineering manufacturing suppliers finance and so on and support okay and enterprises can be pretty complex so it's hard to define the boundaries in the enterprise somewhat contextual you might draw it around your table here as an air price but most enterprises have partners that they have closely closed operating agreements with and so we call the core Enterprise the organization plus its most closely related partners and that worked with them and then beyond that there's an extended enterprise which is all their suppliers and actually their customers too and and also their community and regulatory agencies and things like that all can affect their enterprise okay so a company like Boeing has maybe 2,000 suppliers okay that's by the way those 2,000 suppliers our suppliers to Airbus in Embree air and so this gets very complicated okay okay so who are the stakeholders of an enterprise they're any group or individual who can affect or is affected by the organizational objective so you have your employees partners suppliers unions customers shareholders these are all stakeholders who can affect or are affected by your enterprise Jennifer it at Boston Medical Center do you have any I don't know how long you've been at Boston Medical Center and whether you you know do do any of these kind of things resonate with you in terms of who your stakeholders are their what the part you're in radiology so you have some suppliers of touch games and all those ghosts oh sure I mean I was actually in the broader sense community health centers who sent so we can reference an ordinary surgery in patients we serve our own BMC outpatients and we also serve on a very large network of community health centers who send all of their patients to us for imaging but really and provide then there's the technical arena all of the key provides most of our our equipment room but we have different suppliers for MRIs and their cities and our ultra senses are all different corporations and then they all have their own technical support services I think you made the point so there are a lot of stakeholders and each of these stakeholders this is a very high level definition of value we're going to come in the next module to a much more specific definition of value this is a very high level but every one of these stakeholders expects some value from the enterprise just like Jennifer just outlined ok any return they supposed to contribute some value to that enterprise ok so there's a kind of a value proposition here you know values how various stakeholders find worth utility or a benefit reward in exchange for their respective contribution to the enterprise so there's this kind of value relationship going on here in an enterprise and now what's a Lean Enterprise when we started this work so this is a Lean Enterprise course or Lean Enterprise Initiative people say well what is the Lean Enterprise turns out that's a good question and here's our definition it's an enterprise of an it's an integrated entity that efficiently creates value for its multiple stakeholders by employing the principles and practices we're going to cover in this course now these principles apply across the entire enterprise so in a in an engineering enterprise you have generally what's called the product lifecycle from you know the initial concept of a product like this through the design definition design gain supply chain line up production distribution of support that's what generates money for the enterprise okay selling this product but it also has finance information technology Human Resources various support functions which are needed in in the leadership processes and the point is Lina prize to all these it doesn't apply just manufacturing applies across the whole enterprise and we'll show you some example that in a minute in healthcare it's very much the same instead of having the product life cycle you have the patient life cycle okay the lean doesn't apply just the treatment you know it applies to from preventive monitoring through long-term care management if you have to really be thinking in fact they're people who feel that the healthcare system should be reorganized along along you know this called disease pathways or something like that you know instead of segmented into imaging and so on okay and again you have the same supporting functions and I'm really glad that a couple of our students here in healthcare our administrative fellows looking into Healthcare Administration it's really important okay so it doesn't work well I told you how la I got started in 1992 and it took us 10 years to respond to the general with a book we wrote and we said after 10 years we said to the general he didn't by then we'd been through three or four generals we said yes lean does apply to aerospace if we take it at the enterprise level if it's applied to all the functions of aerospace not just to manufacturing okay here's the thing here's a really good example of the f-18 aircraft this is a fighter aircraft for the Navy they were going through an upgrade to the model EF it was a upgrade but is actually completely new aircraft was 25% bigger but it was sold to Congress as an upgrade five billion dollar budget eight and a half years to do the engineering and upgrade design the program performed on schedule within cost met all its technical requirements very unusual compared to those burning platform programs I showed you we went in and studied it and looked at what they had done with what the lean principles are they were lean enterprise they didn't call themselves Lean Enterprise but they had done this and in fact we went and gave them this briefing and we said to them we've concluded your lean enterprise and they said whoa no we're not we have so much more to do don't tell us where Lean Enterprise that's the attitude you want okay wonderful program here's a completely different area electronics Rockwell Collins we're going to come back to them on on Thursday with a case study Rockwell Collins but they applied Lean Thinking across their whole company in the office environment as well as in the factory and the great results and we'll see data from them on their operating performance tomorrow healthcare many examples in healthcare and Susan will give you a lot more when she talks on on Thursday but just hear a few there's number of books out now theta care in Wisconsin waiting time from when you first call to when you get scheduled for orthopedic surgery went from 14 weeks to 31 hours okay here's a hospital in Pennsylvania where they reduce the readmission rate for COPD patients Jones Hospital in Seattle reduced its capital expenditures by 180 million by using lean improvements in Susan mentioned about architecture that's becoming a big area for capital saving and capital improvements and here's a hospital in Nebraska where reduce the time it took to turn around the lab results over six year period by 72 percent by using the same people in the same facilities okay okay here's the new balance story we're going to see a video on this shortly but they're a shoe company they're the only company that manufactures athletic shoes in the United States okay used to take them eight days to make a pair of shoes now it takes three hours okay they're actually doing the same amount of work so here they were only of the eight days only two tenths of a percent of the time are they doing anything useful on the shoe a number of items they have to have an inventory went from well the inventory turn is the number of number of times you turn over the inventory here it took from 3.5 to 13 they can make a pair of shoes they get a call say we need some more shoes they can strip it in three days floor space reduced production went up and so on let's let's just talk about this Kanban Japanese word whose word who's ever heard the word Kanban one Catharines heard Kanban kind of a strange word isn't it who's how many of you at home keep a shopping list okay so tell me what how do you make your shopping list Whitney will kind of pick what things I've been doing imports a list for me so you how do you make that list of things you well it's a grocery shopping just makes some grocery shopping what you probably would take the rest of you create okay so you click what you need maybe also how do you do your shopping listen to me I I go to my fridge and I do got he what is missing I want to be my Michael Pollan see dad things I missed and I need to reflux and I think I've done this so he's got five Nestle hegemony discovered and she's missing something right okay you have some kind of standardized way of storing things in your recovery yeah okay you spot what you're missing you put it on us okay those are con bonds okay Kanban is nothing more than a queuing system a visual system to indicate what material parts or other information you need to keep going okay in a factory environment typically it's a card a bar coded card of some kind and at some station where they're manufacturing something or in a healthcare environment where they need some supplies they need more of that and so they they make a little system and then someone delivers it okay now the opposite is instead of instead of deciding what recipes you have and what you're going to buy you go the story so this is on special I'm going to load up on whatever you know hamburger or toilet paper or catsup okay what you do is you're buying because you gain volume discount but you may not need it so a Kanban system is one where you only deliver what's needed to whoever's doing the work and and there's some queue usually visual queue it can be a bar coded car could be a bin that's empty some space on the floor that's you know the need a new delivery there in an engineering environment or work office environment might be an empty inbox when they also an interesting combine I saw this is a factory McDonnell Douglas in East st. Louis and they have supplies something coming from a company in California they make a packaging container that this product went into and so the companies in California the factories in the st. Louis and on the ceiling is a camera looking down at the number of these boxes that are there and when the company in California season need more boxes they ship them okay that's a convoy okay so Toyota implemented Kanban in their production system took them 20 years you wouldn't think it would take that long okay when they first started doing it actually came the United States and saw the supermarket's and then supermarket you know the potato chips you buy potato chips in the Shelf looks empty so the potato chip guy comes sees you need more potato chips that's where it came from supermarkets so they introduced it took them 10 years after they did the experiments to make it across the whole company and our 10 years to make it across their suppliers ok and they continued to work on so now think a little bit about whatever enterprise you might think about get out your colored cards here think about you know in where you've had some experiences how long do you think it would take to implement lean in some environment you could think about your company or your department at MIT think about Lean Thinking in your department think about your parents work environment just to pick some work environment knowing that all that we could teach you in three days how long do you think it might take to implement lean into whatever work environment you're thinking about and then hold up the colored card when you make up your mind okay I don't see any blues I see a lot of yellows a lot of greens that's good some Reds okay so it's going to take a little while maybe looks like I'd say the bulk of the numbers I have up here or five years Susan you work with a lot of healthcare organizations you said you've been doing this for five years what kind of how long are you seeing that a typical health care organization so the hospitals before at least five years because you really have to spread it throughout the organization that it takes that one can't just teach five people and say okay repeat so it's at least five years if none and that's what that all-out effort but with an all-out effort not a half-hearted effort okay okay so this is a big commitment for an organization to implement lean okay they're not going to see quarterly bottom-line profit changes which their shareholders may be looking for what are some questions that this introductory module kind of brings up in your mind or do you have comments you'd like to make or suggestion you would ask me to sort that stuff in the very beginning I probably would have ended at the end page first and everything in it just that sort of these things it would have been super sub selected which might just be my personality but because sort so I'm a little unclear with the difference between sorted standard straight and standard avatar that's a good question you know I I think the sort one is first of all just get rid of stuff that shouldn't be there okay and I have slides from a lot of different examples of storerooms that had you know totally obsolete equipment in them and people were spending lots of time looking for something that was not all that obsolete equipment so I think the sort part is pretty quick now that the straightening standardize I think might be done as a single step okay but it I'm not going to I think it's you're fine it's a good comment but what's amazing to me is how often an organization starts with 5s I mean you would think why isn't anybody doing it this way it's because and we hear this term often it's the way we've always trying to do so we always hear because it's the way to go and workarounds and do-overs have been built into the system so nobody even recognizes that they're doing it just becomes part of the day lord your question mark I was just wondering you said that the average time is five years so I'm just wondering in our culture for the media response crisis that's a really good question well I'll answer what I can and Beau and sue and others can pipe in virtually you have to have this so-called burning platform that is there sort of no other option either we do it or we go out of business okay so it's very hard for an organization that's doing extremely well to adopt something like this secondly it takes leadership you know it has to be that the the organizational leadership says this is important and we're going to have constancy of purpose and sustain this and we're going to start this and do it and stay with it and then third it has to align with the strategy the organization that is has to be built into what the organization is trying to do it can't be something separate we're trying to do this and meanwhile we're going to do lean the two have to be together and frankly many organizations can't do it I can answer that to result it's also a series of incremental changes so if something happens like a medication error that's disastrous you can certainly start with that and as you have improved you celebrate those improvements and distribute that information so that it's a continuous improvement and it can happen over time with really good things happening along the way but to roll it out to an entire organization takes a long time but we tell me we have start somewhere and it's not like it's going to alter your whole organization overnight its celebrating those incremental things that you do looking at your data looking at your outcomes looking at your step turnover and using that to build your lead program so it takes time but you can celebrate things along the way the biggest I think the biggest barrier to this is if there's a change in the leadership at the top and the new person doesn't really understand it and then you know the whole thing can crash well I think it's well it's important that you have a vision that your organization has a vision and that everybody knows what that vision is and then the beginning is the hardest but in reality we all want to do value-added work we want to do the work that we're actually important to do people they enjoy that when they can see with the first steps that the waste that there were sucked into every day that that goes away and you're more productive that's nice people they enjoy that we're just good what are some questions that come from from the from the engineering folks here yeah how many hours a train United States exactly a generic workers and it seems that p41 pretty much so if they're spending so much time workers and getting so much profit on that hello there how are we so it's question there's a question is does the trainee detachment we're doctor you know my question is why are we investing more into training oh yeah so that's been a real change in the US companies as they've adopted these as if they've come to realize the importance of training they do invest a lot in training the typical company that I know of the US will invest at least 40 hours a week for every employee to be trained during the year in training can be broad it can be it could be specific to that particular job but it could be much broader just communication skills or sometimes even just awareness about their culture of the customers and other countries I don't know I'm not sure I can answer I can say that they are investing more in training hours whether it's because the workers are different I don't know yeah there may be a chicken and egg situation one tape question you're no commander okay so you commissioned that I lean into price creates value to multiple staple right but we're having impose value for money a lot of white everything sometimes you have the shareholders they might be willing to move the enterprise transformed into Preston for what direction yeah you can have the employees you know what change their comfort level in that situation matter not it's a great question is tiresome yeah Tai says is the shareholders values are not always will normally not be aligned completely okay so you have to do the best you can okay I mean you're you have to find something I mean the ideal is if you could find something where every stakeholder gains something maybe they don't gain everything they want but they gain something something's better than before okay so let me take an employee thing I think one of the question mark I asked relates that to one of the things that one of the things that successful organizations do lean is they they make it known to their employees that nobody is going to lose their job because of increase in productivity okay so it's very hard if you go into an organization and say Emily I want you to help improve us and by the way we probably won't need you when we're finished okay your heart's not going to be in in that so so instead you say Emily we want to have a better organization and you're going to be part of it you may not be doing the same thing you were doing before we may have to train you to do something else or we may have to do something but but you're valuable to us and we want you here no we want you to help us improve so emily is going to come out she'll probably happier when she's done because she's probably not completely satisfied with her job and they'll be more productive and maybe they end up outsourcing stuff but they'll find a place for Emily in the organization so you want to make sure it's as much of a win-win as you can and that's a challenge I mean sometimes you you know sometimes it's hard and you end yet and it unfortunately the short-term focus of our financial system is a barrier for some of these long term commitments so it takes a lot of strong leadership we're coming ahead and I think Susan's good you want to show it show incremental improvement on try to get better and better and better not they also think that the equation in healthcare traditionally has been that employees are on the expense side of the equation and so when they needed to cut cost they cut physicians and what Toyota does is their employees are on the value side of the equation and so they value those employees and that makes the difference in the expense side as well and I think that makes a difference because if Toyota expects their employees to make suggestions and they implement their suggestions and healthcare we haven't done a good job and doing that employees were just employees and now we're starting to see that employees are the experts at what they do is something had to start listening to them and have an example I was doing work at a small rural hospital in northern New England 50th hospital and this class I did two classes of 16 people and they were working on some productivity kinds of issues and they came up with three million dollars in savings from delaying our start times and and canceled imaging tests and all those kinds of things they really did a beautiful job with their projects and the last day of report out the CEO was there he didn't hire us that was a grant through the state so they did this report out and talked about what they found and at the end he said this really makes me look bad actually saves me and he said I should have fixed these things goodbye it was just it was the old traditional model of the hierarchy I tell you what to do what you do it five tell you to cut 10% you budget you do it not show me how you can increase throughput and revenue so we need to just change our thinking and healthcare and it's happening but very slowly and valuing the employee is the most important thing we need to do and unfortunately the term lien gives people the absolute fear that we're going to cut musicians that's what they immediately think when you say we're coming in to do me to ever do that word it's like exact it's like the evolution of industry I showed you we can't change the word now it's just become part of it it came actually from MIT graduate student in a research seminar one day when they were talking about the things they were learning about the Japanese automotive industry and they said what are we going to call this and he said well let's call it lean because we're doing more with less and it's stuck but it's unfortunately has a negative sound to it lean and mean and all that kind of stuff so we have time for one more question did you have a question how do you establish causation between these methods ah and your house is not just an improvement in that's a really good question how can we show that the kind of results we showed here come from lean because there are a lot of confounding factors going on there's a changing business environment there may be other things going on and I guess in a scientific sense it might be very hard to do that but you know when you go and look at organization after organization Africa organization that adopts this and sees improvement there's a correlation there that you know adopting lean thinking in the way we teach it here that one of the pitfalls in adopting Lean Thinking is and let's take the five s or success a lot of people think leans a tool oh okay now I know I do 5s I can fix it that's not what lean lean is this change in culture that in a way of thinking that Susan mentioned that that takes some time you

the following content is provided under a Creative Commons license your support will help MIT OpenCourseWare continue to offer high quality educational resources for free to make a donation or to view additional materials from hundreds of MIT courses visit MIT opencourseware at ocw.mit.edu okay well this is uh this is literally for most of you in the start of your lean journey because we&#39;ve seen the value data and we know that for many of you these this whole subject matter is something you&#39;ve hardly heard about and that&#39;s perfect because that&#39;s what this course is designed for so welcome so at the end of this module we hope you&#39;ll be able to explain the origins of lean and Six Sigma explain the Lean Six s tool you&#39;re going to learn your first lean tool here you&#39;re going to be able to define what is lean what&#39;s a lean enterprise and what our stake who are stakeholders of the Lean Enterprise you&#39;ll recognize why Lean Six Sigma principles are being implemented in aerospace healthcare and other sectors we&#39;re going to talk about why these sectors are moving in this direction and you&#39;ll be able to explain that lean is a journey it&#39;s not a state you never are lean you&#39;re always trying to become lean and we&#39;ll talk a little bit about that so this this subject matter comes out of the Japanese automotive industry and unlike aerospace engineering in structures and controls and aerodynamics where you can go to the laboratory and see what&#39;s happening and do experiments things in this field you have to go to work where it&#39;s actually being practiced because that&#39;s the body of knowledge comes from that field so this all kind of came to the surface in 1990 when MIT published a book called the machine that changed the world there was a study of the Japanese North American and European automotive manufacturing and this is a plot given them a production of cars these are all the u.s. car manufacturers and here&#39;s Japan and what do you see in that chart what jumps out at you what&#39;s the first thing you see yeah yeah that&#39;s one thing Japan has just steady growth what&#39;s the next thing you see inconsistent right this is the the typical us thing you know you kind of over produce under produce over produced so the Japanese are nice smooth and steady there&#39;s a lot of data in the machine that changed the world and we&#39;re not going to go through all this but I want to make a couple points first of all the data in this chart is product development and manufacturing now a big mistake a lot of US companies made when they read this book was that leans a manufacturing paradigm it&#39;s a manufacturing system in fact most of my friends when they talk to me say oh you&#39;re in lean manufacturing ok the Japanese never saw it that way they implement lean right back and engineering and product development okay so in product development for exams the average engineering hours in a new car 1.7 million for Japanese 3.1 million for us almost twice the number of engineering hours for the same car supplier share of engineering how many of the suppliers are actually doing engineering compared to just supplying parts 51 percent in Japan 14 percent in u.s. so we&#39;re going to be talking about that tomorrow in the engineering section this that that&#39;s design here&#39;s production let&#39;s just get a couple numbers quality defects per hundred vehicles 64 Japanese 82 for us training hours of new workers 380 for Japan 46 for us that&#39;s probably not because the Japanese need more training probably because Japan invests more in training okay so this is what started the whole length of activity around the world in the u.s. now how does lean compare what are the fundamental comparisons of lean with what we already know well we have here lean thinking mass production and craft production as sort of three paradigms let&#39;s just we&#39;re going to spend a bit of time in this chart because this is going to set your your thoughts for the whole course so let&#39;s look at the these are different focus area so in operations in crafts thing persons working on a single item in mass production the idea is you make a lot of them and you put them in a queue you make more and you put them in a queue in Lean Thinking it&#39;s all flow everything&#39;s flowing very smoothly and synchronized and we&#39;re going to talk a lot about flow what&#39;s the overall aim in craft it was the mastery of the craft in mass production is reduced unit cost and increase efficiency in lean it&#39;s eliminating all wastes and only doing value-added activities you&#39;re going to be hearing a lot about this by the way most of the things that we talked about today we&#39;re going to come back and talk about tomorrow and they&#39;re going to come back and talk about on Wednesday so if something goes by you today and you go home and said I don&#39;t think I really got it that&#39;s good because tomorrow you&#39;re going to get it again probably okay so we&#39;re going to be talking about all these things quality in math and craft production it was just part of how they did things it was integrated into their whole system in mass production qualities was treated as a second step we inspect and we correct in Lean Thinking is built is the qualities built in at every step of the whole activity from engineering right through production and one of the things that was so hard for Westerners to grasp was most Westerners thought I&#39;ll give you a quality output but it&#39;s going to cost you more money and what the Japanese found was I&#39;ll give you a quality output and it cost less money okay quality and this is really important in health care it&#39;s really important in health care focusing on quality will drive down cost okay it always has business strategy here was customization here it&#39;s the economies of scale and automation here is being flexible and adaptable to the changing customer demands and I think this is the really the heart of lean this last one in the craft who does the improvement in the craft world it was the master of driven continuous improvement in the mass production world there was the expert driven periodic improvement we bring in the consulting company they tell us how improve here it&#39;s the worker does the improvement in a continuous way the worker is a continuous problem solver so this I spent a lot of time on that chart because this this really sets up the whole course and when we wrote a book on this we struggled with how we define lean and here&#39;s the term we came up with lean thinking is the dynamic knowledge driven customer focused process to which all people in an enterprise continuously eliminate waste and create value so you guys are actually little enterprises for this course you guys are going to be airplane manufacturing enterprises and you guys are going to be clinics ok and tomorrow when we do our Lego simulations you&#39;re going to be applying these principles in your enterprises okay so what about lean and Six Sigma they&#39;re very interrelated they came from somewhat different backgrounds Six Sigma was developed by Motorola in the 1980s when they decided that the big problem they had was that all their processes had too much variation so when they were built something they weren&#39;t sure what the output was going to be and so they didn&#39;t have very good what you might call yield they had a lot of scrap and not just in production but in office processes and everything so so Motorola focused on reducing the variation of every process so that every process would have a predictable output to deliver value to their customers it was very problem focused and the assumption is you&#39;ve got the process isn&#39;t working so you go in and do a very kind of quantitative analysis and fix that process and get the variation down lean has the same end objective of delivering value to the customer but its focus is to reduce waste to get all the waste out of the system and we&#39;ll find out that most the thing most of the inefficiency is not the people it&#39;s the system in which the people are working is wasteful and it&#39;s focused on keeping everything flowing and so the assumption is that waste removal will improve businesses and that many small improvements are better than a big giant step so lean is very much a process of starting where you are taking whatever system you have making a little bit better or a lot better and then making a lot better and then making a lot better and just continually trying to improve it that&#39;s why it&#39;s a journey now what&#39;s happened over the past 10 15 years is that is that well let me back up and say 15 years ago there were people say oh I&#39;m doing Six Sigma or I&#39;m doing lean it was like there were two camps and luckily that eventually we got past that and and most organizations now pick some portions of lean some portions of Six Sigma and bring them together they we think of leanness or optimizing flow and Six Sigma is reducing variation and the body of knowledge is have come together into something is generally called Lean Six Sigma they&#39;re there books you can buy called Lean Six Sigma and what happens is an enterprise will look at these principles they will tailor their own version of it they will name it and brand it and it becomes their operating strategy or their improvement strategy so Textron calls theirs Textron Six Sigma Virginia Mason Medical Center calls it the Phrygia Mason Production system some of you are either going to work or have been working a Boeing they call there is lean plus now and I was talking with Susan lil earlier Dartmouth which is a real leader in this area doesn&#39;t even call it lean at all okay and that doesn&#39;t matter it&#39;s it&#39;s that the organization understands their process improvement and identifies with it and takes ownership of it and doesn&#39;t get hung up on what the name is so our course is going to cover all the principles that underlie all these things if you are going if you were in a company or a hospital and went to their training they would give you specific training on their system because you&#39;re working for them but you&#39;re all going to go somewhere else different places so we give you the fundamentals that apply to any of those systems that&#39;s why end up the first part of this module with this slide that shows how important people are implementing continuous improvement I often hear that there are two jobs we all have one job is the work we do and the other job is improving how we do our work and we&#39;re going to emphasize the importance of people in implementing lean thinking throughout the whole course and we&#39;ll even get a hint of it in this exercise we&#39;re now going to do that&#39;s the background now let&#39;s get some something specific on the right-hand side of your folder is a exercise it looks like this and take it out and don&#39;t open it up yet just put it in front of you okay this is called 6&#39;s now there are two versions of this out there they&#39;re multiple versions there&#39;s 5s and 6s so 5s which came from the Japanese they were Japanese words which I don&#39;t remember but they&#39;ve been translated into basically short short straight and scrubs standardized and sustained and this is a way of improving your work environment very simple and we&#39;ll talk a little bit about it now what happened when this came to the Western world the Western world set off safety that starts with an s2 and safety is very important so we&#39;ll make it success and we&#39;ll add safety on to the list and when we put this is the only place in the course where we&#39;ve actually taken something that we didn&#39;t observe in the field when we did this we thought that&#39;s kind of an afterthought just to put safety at the end of the list and safety is more important than that so either if you either leave it off or if you&#39;re going to integrate it integrate it and so we put it as the second s and we call it safe which is an action verb this is probably the only place you&#39;ll see this version of success but that&#39;s okay don&#39;t worry about that so what we&#39;re going to do is we&#39;re going to little exercise and this is your workplace for right now this is your work environment and we&#39;re going to try to improve it applying the basic principles of success and we&#39;re going to do it in twenty second rounds you can think of each 22nd round is maybe a work shift or something like that and you have a bunch of supplies and this is in the medical context but we could do it otherwise you have some instruments some bandages and some medications and you&#39;re going to each of your work shifts you&#39;re going to be asked to fetch some of these supplies from your storeroom and don&#39;t turn it over yup at the first page represent your current work environment and then each next slide will show you what you have to in your first work shift and when you fetch it so what you&#39;re gonna do is just put an X through whatever you fetch or if you want to circle it you could do that too I don&#39;t care okay so here&#39;s what we&#39;re going to need to get on the first round you&#39;re going to have to find five syringes five of these band-aids five scissors and five of the medication twos so I wanna don&#39;t do it yet when I say go you&#39;re going to flip the page cross off five of each of these until I say stop and that&#39;s the end of the shift any questions on the mechanics of it okay so we&#39;ll do ready set go stop shift this over time to go home okay okay so now count up the number of items total number of items you got I don&#39;t need to know items by category just the total number of items okay super okay how many are kind of round eight nine ten okay probably ten is roughly about the middle I&#39;m we don&#39;t have to be too careful so let&#39;s so this is kind of our our work place well what do we see okay we didn&#39;t get the job done and there&#39;s high variability okay we got we have about c6c we have about 25 28 workers here in our plant then we got quite a variable outcome this is the kind of thing Six Sigma was worried about high variability okay so that&#39;s that&#39;s where we&#39;re starting now our first first s is to sort and you probably saw in your work place there&#39;s a lot of stuff there that you don&#39;t have to go collect there&#39;s some old equipment that&#39;s in your storeroom there may be some onion you know medications that have been there you know when this first started a lot of these companies go into the storeroom and they find out that somebody in purchasing got a good deal some time on some piece of equipment or supply they got a volume discount they bought ten years worth of it and a year later they stopped using that stuff and then other nine years are still in the okay that&#39;s waste okay so what we&#39;re going to do is we&#39;re just going to go through and clean up get everything out of the work place that we&#39;re not looking for and then we&#39;re going to redo this so it&#39;s the same thing but now you&#39;ve got rid of all the clutter but we&#39;re going to get just so we take the learning out we&#39;re going to get now five tape rolls five band-aids five tweezers in five medication threes okay ready set go stop okay now we count them up again and then we&#39;ll see where we&#39;re at okay anybody get all 20 19 19 okay okay how about how many are around 15 15 okay that&#39;s good enough okay 25 so we made up you made up we&#39;re going to talk a lot so I just a heads up one of the things about lean is you&#39;re trying to meet your customers demand and you exceeded customer demand okay sometime the customer won&#39;t pay you for it but this time it&#39;s probably okay how many got look at your medications everybody anybody get a medication one or a medication - ah okay okay okay so now we&#39;re going to safe getting the wrong medications is a big problem so that&#39;s an example why we set it up for that&#39;s why we put safe here so safe is just making the workplace safe gain you know if your workers get injured or if the customers get injured or suppliers get injured that&#39;s pure waste that&#39;s lost time that they can&#39;t contribute to your enterprise so safety is not good safety is important for many reasons but it&#39;s a it&#39;s very much a lien principle you don&#39;t want anything that well I&#39;ve already said sit accidents or waste so we&#39;ve we&#39;ve gone in and we&#39;ve made our workplace a little safe now we&#39;ve we put cheese on our syringes we&#39;ve made the medications different shapes we&#39;ve closed the scissors and so we&#39;re going to do the same thing get twenty items and ready set go stop I think everybody&#39;s got the mechanics down so okay anybody at ten or less than ten twelve eleven eleven eleven eleven twelve okay or had a little bit of improvement here anybody get all 20 18 19 19 okay okay how about 16 17 18 15 14 okay it&#39;s kind of hard to see I think we&#39;re still maybe a little bit better than before but about same so we we we&#39;ve closed down the variation a little bit we didn&#39;t expect to get too much improved improvement in productivity because all we did was we made the environment safe we didn&#39;t really do any reorganization okay now we&#39;re going to straight now that we&#39;ve gotten all the clutter out we&#39;ve made things safe now let&#39;s get our workplace a little bit better organized so it&#39;s not so helter-skelter so we&#39;re going to straighten things so we&#39;ve installed some racks in our storeroom because management seen this great increase in productivity they&#39;re going to ask for more now in the shift they want 25 125 things found okay so you can see the list up there okay ready set go stop okay bye 15 or less how many 14 14 okay 14 okay yeah you got 15 but she got 14 would you 15 okay anybody get 25 24 23 23 okay and how many are 8 19 20 21 okay it looks like it we&#39;re about in the middle here okay well we see the increase in productivity there okay now the next one the next a sister is basically clean things up to scrub by the way in these charts there multiple translate of the Japanese word and we&#39;ve given them all here so for scrub it scrub shine or sweep you might find in a particular five or six s incarnation and that&#39;s pretty important in a course in a healthcare environment it&#39;s critical for for all sorts of reasons but in an aerospace environment or a production environment you can walk a lean factory you can walk into you can eat off the floor I mean we&#39;ll see we&#39;re going to have a balanced new video of New Balance shoe and you&#39;ll see when we get into that factory how clean it is well-lit everything&#39;s clean it&#39;s just it&#39;s just a way of thinking so keeping your workplace tidy and neat is just part of it we can&#39;t find a good way to do that exercise here so we&#39;re going to skip this s and move on to standardize so now we want to make it now we got your things straightened up now we make make it real easy to find things so we got three clinics here okay be nice if each clinic had its own way of storing things ok we&#39;re going to talk about that tomorrow in our simulation or we got to production facilities here be nice that in the two production facilities may be the same company you have the same same way of storing things so you can go from one to the other and not have to be trained so we&#39;re now going to we&#39;ve done a good job of that we standardized this as an example it&#39;s hard to see but these are a bunch of binders and they just put a little tags on so you can immediately see which binder is missing because it&#39;s out of sequence ok well now we&#39;re up to 30 ok we want to get 30 items on this round it&#39;s the last shift of the week you&#39;re going to have the weekend off after this ready set go up okay anybody get 30 look at that Wow anybody get 25 or less how many 25 okay and how many got 30 let&#39;s see your hands get 29 I mean we&#39;re just like this okay okay well let&#39;s look at this chart so we&#39;ve gone from a system it has high variability and low productivity to a system that has high productivity and low variability how many of you would how many how many of you found this environment where you produce so much so much more to be more stressful to work in this environment nobody right okay that&#39;s what leans about kaeleen is about doing simple things to improve your workplace that when I toured the Sikorsky plant where they make the blackhawk helicopter the plant manager said Earl lean is the focused application of common sense okay this is not complicated stuff okay and lean is not about making the worker work harder lean is about making putting the worker in a an environment where they can be more productive and happier okay so this is what leans about most organizations start with 5s is their first first thing and let me just share it just under oh you an example is I live in a small town of 9,000 people Holt County only has 30,000 people it&#39;s a rural community our hospital start adopting lean the very first thing they did was they went into the hospital laundry implied 5s the laundry was so dysfunctional they had high turnover employees the linens and gowns were not on the floors when they needed to be the laundry bin they did didn&#39;t get to the bottom of it each day dirty laundry so the next day more laundry was on top it&#39;s on in one week the women in the laundry who operate the laundry took 5s with a facilitator a coach they reorganized their laundry and it went from that to now they get all in all the laundry done every day I&#39;ve been in this laundry the women are so happy they just can&#39;t they just want to tell you about their workplace they&#39;ve have no turnover since they did this and everybody in the hospital is affected by the laundry and they all knew is a success so if you want to start in a hospital start in the laundry with 5s okay the last s is to sustain often the hardest part I like the Virginia Mason version of its self discipline sustainment should be the trap is you do this one-week event like I mentioned in the laundry and then you know you drift back into old habits so the hard part is is keeping this as a mindset sometimes you have to have a chart but usually you should just be able to do it okay so that&#39;s your first lean experience let&#39;s now talk about why lean is being applied in these in these areas okay we&#39;re going to look at aerospace health here and we&#39;re going to look at also a New Balance shoes just for three comparisons so aerospace is a really interesting industry it&#39;s a flagship industry of the of the United States it&#39;s one of these things that goes with the image of the country it enables the movement of people and goods it&#39;s not enables communication it&#39;s critical to national security and it&#39;s a source of inspiration for many people for it exploration now here&#39;s what why did aerospace turn to adopting lean here&#39;s an industry where we think we&#39;re the world leader and I pause because we may not be but we think we are but why do we turn to lean well here&#39;s why this is a study that came out of the Sloan School by Jim Utterback that shows the natural progression of many different industries plotted by the number of companies in a particular industry so this is the typewriter industry so it started in late 1870s and companies came in they reached a peak of about 80 companies and then somewhere they reached a peak around 1910 and then the number of companies started declining and of course there&#39;s probably no typewriter companies now okay what happens when this phase this is where the product architecture and product characteristics are not set so many inventors come up with new ways of doing things eventually somehow the best design emerges and that&#39;s where the market consolidates around and then instead there&#39;s not really real opportunities for new companies what happens is companies buy up other companies and merge and at this point it&#39;s very hard to change the product architecture this keyboard we all use came out of this era it&#39;s pretty well known that there&#39;s more efficient keyboard layouts okay but it&#39;s impossible to change that now it&#39;s just it&#39;s impossible to change it because it&#39;s a standard okay here&#39;s the automobile industry same kind of thing here the the main product architecture was the enclosed steel body okay here&#39;s aerospace now this this is representative aerospace that&#39;s probably it&#39;s just some of the major companies but throughout the 1900s up to about 1960 we had a growth of the number of companies then along came something that looks like a 747 707 okay and other things and we sort of reached the product architecture and then we would have gone on this decline just this company&#39;s back but but we get to this point here and there&#39;s a plateau we&#39;re in the Cold War okay and the government for strategic reasons one to keep a big industrial base so they invested in that industrial base when the Cold War was over the Secretary of Defense invited all of CEOs of the major aerospace companies to dinner is called the last supper and he said we don&#39;t need this many companies and so we&#39;re not going to have as many but it&#39;s up to you to sort it out well let the marketplace sorted out so you know Boeing buys McDonnell Douglas you know so on so forth and we have now consolidation and fewer aerospace companies had we not had the Cold War we probably would have done this but here&#39;s where Aris but here&#39;s where la I started okay we had an industry which was inefficient and couldn&#39;t survive in the new world okay and so they turned to lean so we had a company with companies that have mature products can&#39;t survive on a business strategy that&#39;s designed for early growth here&#39;s one of the things that happens in an early phase when there&#39;s not when the competition hasn&#39;t developed you can charge what you want you know you can charge what you want for a new device okay and and then you subtract your costs and you get whatever profit competition builds up or the government says we&#39;re not going to pave as much for airplanes anymore okay the customer sets the price the only way for you to make a profit is to reduce your cost okay so you have to you have to become more efficient it&#39;s just the way it is or you don&#39;t survive here&#39;s an example of some of the problems in the aerospace industry here are three programs the second block of the GPS satellites the Joint Strike Fighter Boeing 787 these are new airplanes years behind schedule one two three four okay billion dollars overrun twelve billion dollars over beyond the development cost 90 the the price per unit they&#39;re going to buy a lot of f-35s the price is doubled okay and it&#39;s still in trouble other programs where their costs and schedules overruns the f-22 and so on the a340 a380 so on this is what&#39;s called the burning platform okay most the paradigm here is people adopt lean when the platform they&#39;re staying on is burning if they don&#39;t do something they&#39;re going to disappear okay now there are also many aerospace programs which are executed very well okay and we&#39;ve learned a lot from studying those so I don&#39;t want to say the aerospace can&#39;t do anything but there are a lot of problems with the aerospace programs health care it&#39;s a book published in 2003 called crossing the quality chasm published by the Institute of Medicine and the paradigm here was this is the health care we&#39;re delivering this is the health care we know how to deliver and there&#39;s such a wide gap in quality of health care that we have a big chasm between what we&#39;re doing what we should be doing and they outlined what the objectives of healthcare are and that these are not new aims these are aims that have been there for many years and most people go into health care because they want to do this you know probably all of you guys are going in healthcare because you you don&#39;t want it you don&#39;t want you probably inside picked health care because it&#39;s inefficient system I can work in right you picked health care because you want to help people and do things so we need to we need to do that okay but what are some signs well I think we&#39;ve all heard about the cost of how CAIR they&#39;re different metrics here I don&#39;t think we have to go through those in detail they&#39;re quality issues this is the one that is was staggering to me the study done in 1999 that between about fifty and a hundred thousand people a year in our country died from perfectly preventable medical mistakes okay that&#39;s more people than die on the highway and by the way that number still has not changed too much it&#39;s gotten a little bit better maybe but not change many people don&#39;t have access to healthcare that&#39;s this slides a little bit out of date because of the Affordable Health Care Act and you know 60% of the doctors in the survey said they wouldn&#39;t recommend going in healthcare to their children here we got bows and eat emergency doctor emergency medicine doctor is 50% here time spent on tape paperwork what I&#39;m on a good day 50% is waste and Susan&#39;s a nurse Maine studies showed we have a big shortage of nurses coming up here okay so we got some problems and you all know about so basically what we say in health care is there&#39;s a value crisis value is defined as what you deliver and what / what you pay for it and roughly about half the health care we know how to deliver to the patient gets delivered in the cost this is the percent of GDP in 2007 we were spending 16 percent of our gross domestic product on health care in 2050 s supposed to be 37 percent that&#39;s just unsustainable and the same with Medicare so we hope that Lean Thinking can be one piece of a puzzle of improving health care it&#39;s it&#39;s a complicated complicated field and there&#39;s no simple solution but lean can help okay so those are two industries as to why they&#39;re applying lean now let&#39;s talk a little bit about what is an enterprise because in this course we very much focus on applying lean across an enterprise not just a manufacturing or clinic thing so an enterprise is a broadly defined as one or more organizations having related activities a unified operation in a common business purpose and so you might have in an engineering enterprise customer engineering products product development engineering manufacturing suppliers finance and so on and support okay and enterprises can be pretty complex so it&#39;s hard to define the boundaries in the enterprise somewhat contextual you might draw it around your table here as an air price but most enterprises have partners that they have closely closed operating agreements with and so we call the core Enterprise the organization plus its most closely related partners and that worked with them and then beyond that there&#39;s an extended enterprise which is all their suppliers and actually their customers too and and also their community and regulatory agencies and things like that all can affect their enterprise okay so a company like Boeing has maybe 2,000 suppliers okay that&#39;s by the way those 2,000 suppliers our suppliers to Airbus in Embree air and so this gets very complicated okay okay so who are the stakeholders of an enterprise they&#39;re any group or individual who can affect or is affected by the organizational objective so you have your employees partners suppliers unions customers shareholders these are all stakeholders who can affect or are affected by your enterprise Jennifer it at Boston Medical Center do you have any I don&#39;t know how long you&#39;ve been at Boston Medical Center and whether you you know do do any of these kind of things resonate with you in terms of who your stakeholders are their what the part you&#39;re in radiology so you have some suppliers of touch games and all those ghosts oh sure I mean I was actually in the broader sense community health centers who sent so we can reference an ordinary surgery in patients we serve our own BMC outpatients and we also serve on a very large network of community health centers who send all of their patients to us for imaging but really and provide then there&#39;s the technical arena all of the key provides most of our our equipment room but we have different suppliers for MRIs and their cities and our ultra senses are all different corporations and then they all have their own technical support services I think you made the point so there are a lot of stakeholders and each of these stakeholders this is a very high level definition of value we&#39;re going to come in the next module to a much more specific definition of value this is a very high level but every one of these stakeholders expects some value from the enterprise just like Jennifer just outlined ok any return they supposed to contribute some value to that enterprise ok so there&#39;s a kind of a value proposition here you know values how various stakeholders find worth utility or a benefit reward in exchange for their respective contribution to the enterprise so there&#39;s this kind of value relationship going on here in an enterprise and now what&#39;s a Lean Enterprise when we started this work so this is a Lean Enterprise course or Lean Enterprise Initiative people say well what is the Lean Enterprise turns out that&#39;s a good question and here&#39;s our definition it&#39;s an enterprise of an it&#39;s an integrated entity that efficiently creates value for its multiple stakeholders by employing the principles and practices we&#39;re going to cover in this course now these principles apply across the entire enterprise so in a in an engineering enterprise you have generally what&#39;s called the product lifecycle from you know the initial concept of a product like this through the design definition design gain supply chain line up production distribution of support that&#39;s what generates money for the enterprise okay selling this product but it also has finance information technology Human Resources various support functions which are needed in in the leadership processes and the point is Lina prize to all these it doesn&#39;t apply just manufacturing applies across the whole enterprise and we&#39;ll show you some example that in a minute in healthcare it&#39;s very much the same instead of having the product life cycle you have the patient life cycle okay the lean doesn&#39;t apply just the treatment you know it applies to from preventive monitoring through long-term care management if you have to really be thinking in fact they&#39;re people who feel that the healthcare system should be reorganized along along you know this called disease pathways or something like that you know instead of segmented into imaging and so on okay and again you have the same supporting functions and I&#39;m really glad that a couple of our students here in healthcare our administrative fellows looking into Healthcare Administration it&#39;s really important okay so it doesn&#39;t work well I told you how la I got started in 1992 and it took us 10 years to respond to the general with a book we wrote and we said after 10 years we said to the general he didn&#39;t by then we&#39;d been through three or four generals we said yes lean does apply to aerospace if we take it at the enterprise level if it&#39;s applied to all the functions of aerospace not just to manufacturing okay here&#39;s the thing here&#39;s a really good example of the f-18 aircraft this is a fighter aircraft for the Navy they were going through an upgrade to the model EF it was a upgrade but is actually completely new aircraft was 25% bigger but it was sold to Congress as an upgrade five billion dollar budget eight and a half years to do the engineering and upgrade design the program performed on schedule within cost met all its technical requirements very unusual compared to those burning platform programs I showed you we went in and studied it and looked at what they had done with what the lean principles are they were lean enterprise they didn&#39;t call themselves Lean Enterprise but they had done this and in fact we went and gave them this briefing and we said to them we&#39;ve concluded your lean enterprise and they said whoa no we&#39;re not we have so much more to do don&#39;t tell us where Lean Enterprise that&#39;s the attitude you want okay wonderful program here&#39;s a completely different area electronics Rockwell Collins we&#39;re going to come back to them on on Thursday with a case study Rockwell Collins but they applied Lean Thinking across their whole company in the office environment as well as in the factory and the great results and we&#39;ll see data from them on their operating performance tomorrow healthcare many examples in healthcare and Susan will give you a lot more when she talks on on Thursday but just hear a few there&#39;s number of books out now theta care in Wisconsin waiting time from when you first call to when you get scheduled for orthopedic surgery went from 14 weeks to 31 hours okay here&#39;s a hospital in Pennsylvania where they reduce the readmission rate for COPD patients Jones Hospital in Seattle reduced its capital expenditures by 180 million by using lean improvements in Susan mentioned about architecture that&#39;s becoming a big area for capital saving and capital improvements and here&#39;s a hospital in Nebraska where reduce the time it took to turn around the lab results over six year period by 72 percent by using the same people in the same facilities okay okay here&#39;s the new balance story we&#39;re going to see a video on this shortly but they&#39;re a shoe company they&#39;re the only company that manufactures athletic shoes in the United States okay used to take them eight days to make a pair of shoes now it takes three hours okay they&#39;re actually doing the same amount of work so here they were only of the eight days only two tenths of a percent of the time are they doing anything useful on the shoe a number of items they have to have an inventory went from well the inventory turn is the number of number of times you turn over the inventory here it took from 3.5 to 13 they can make a pair of shoes they get a call say we need some more shoes they can strip it in three days floor space reduced production went up and so on let&#39;s let&#39;s just talk about this Kanban Japanese word whose word who&#39;s ever heard the word Kanban one Catharines heard Kanban kind of a strange word isn&#39;t it who&#39;s how many of you at home keep a shopping list okay so tell me what how do you make your shopping list Whitney will kind of pick what things I&#39;ve been doing imports a list for me so you how do you make that list of things you well it&#39;s a grocery shopping just makes some grocery shopping what you probably would take the rest of you create okay so you click what you need maybe also how do you do your shopping listen to me I I go to my fridge and I do got he what is missing I want to be my Michael Pollan see dad things I missed and I need to reflux and I think I&#39;ve done this so he&#39;s got five Nestle hegemony discovered and she&#39;s missing something right okay you have some kind of standardized way of storing things in your recovery yeah okay you spot what you&#39;re missing you put it on us okay those are con bonds okay Kanban is nothing more than a queuing system a visual system to indicate what material parts or other information you need to keep going okay in a factory environment typically it&#39;s a card a bar coded card of some kind and at some station where they&#39;re manufacturing something or in a healthcare environment where they need some supplies they need more of that and so they they make a little system and then someone delivers it okay now the opposite is instead of instead of deciding what recipes you have and what you&#39;re going to buy you go the story so this is on special I&#39;m going to load up on whatever you know hamburger or toilet paper or catsup okay what you do is you&#39;re buying because you gain volume discount but you may not need it so a Kanban system is one where you only deliver what&#39;s needed to whoever&#39;s doing the work and and there&#39;s some queue usually visual queue it can be a bar coded car could be a bin that&#39;s empty some space on the floor that&#39;s you know the need a new delivery there in an engineering environment or work office environment might be an empty inbox when they also an interesting combine I saw this is a factory McDonnell Douglas in East st. Louis and they have supplies something coming from a company in California they make a packaging container that this product went into and so the companies in California the factories in the st. Louis and on the ceiling is a camera looking down at the number of these boxes that are there and when the company in California season need more boxes they ship them okay that&#39;s a convoy okay so Toyota implemented Kanban in their production system took them 20 years you wouldn&#39;t think it would take that long okay when they first started doing it actually came the United States and saw the supermarket&#39;s and then supermarket you know the potato chips you buy potato chips in the Shelf looks empty so the potato chip guy comes sees you need more potato chips that&#39;s where it came from supermarkets so they introduced it took them 10 years after they did the experiments to make it across the whole company and our 10 years to make it across their suppliers ok and they continued to work on so now think a little bit about whatever enterprise you might think about get out your colored cards here think about you know in where you&#39;ve had some experiences how long do you think it would take to implement lean in some environment you could think about your company or your department at MIT think about Lean Thinking in your department think about your parents work environment just to pick some work environment knowing that all that we could teach you in three days how long do you think it might take to implement lean into whatever work environment you&#39;re thinking about and then hold up the colored card when you make up your mind okay I don&#39;t see any blues I see a lot of yellows a lot of greens that&#39;s good some Reds okay so it&#39;s going to take a little while maybe looks like I&#39;d say the bulk of the numbers I have up here or five years Susan you work with a lot of healthcare organizations you said you&#39;ve been doing this for five years what kind of how long are you seeing that a typical health care organization so the hospitals before at least five years because you really have to spread it throughout the organization that it takes that one can&#39;t just teach five people and say okay repeat so it&#39;s at least five years if none and that&#39;s what that all-out effort but with an all-out effort not a half-hearted effort okay okay so this is a big commitment for an organization to implement lean okay they&#39;re not going to see quarterly bottom-line profit changes which their shareholders may be looking for what are some questions that this introductory module kind of brings up in your mind or do you have comments you&#39;d like to make or suggestion you would ask me to sort that stuff in the very beginning I probably would have ended at the end page first and everything in it just that sort of these things it would have been super sub selected which might just be my personality but because sort so I&#39;m a little unclear with the difference between sorted standard straight and standard avatar that&#39;s a good question you know I I think the sort one is first of all just get rid of stuff that shouldn&#39;t be there okay and I have slides from a lot of different examples of storerooms that had you know totally obsolete equipment in them and people were spending lots of time looking for something that was not all that obsolete equipment so I think the sort part is pretty quick now that the straightening standardize I think might be done as a single step okay but it I&#39;m not going to I think it&#39;s you&#39;re fine it&#39;s a good comment but what&#39;s amazing to me is how often an organization starts with 5s I mean you would think why isn&#39;t anybody doing it this way it&#39;s because and we hear this term often it&#39;s the way we&#39;ve always trying to do so we always hear because it&#39;s the way to go and workarounds and do-overs have been built into the system so nobody even recognizes that they&#39;re doing it just becomes part of the day lord your question mark I was just wondering you said that the average time is five years so I&#39;m just wondering in our culture for the media response crisis that&#39;s a really good question well I&#39;ll answer what I can and Beau and sue and others can pipe in virtually you have to have this so-called burning platform that is there sort of no other option either we do it or we go out of business okay so it&#39;s very hard for an organization that&#39;s doing extremely well to adopt something like this secondly it takes leadership you know it has to be that the the organizational leadership says this is important and we&#39;re going to have constancy of purpose and sustain this and we&#39;re going to start this and do it and stay with it and then third it has to align with the strategy the organization that is has to be built into what the organization is trying to do it can&#39;t be something separate we&#39;re trying to do this and meanwhile we&#39;re going to do lean the two have to be together and frankly many organizations can&#39;t do it I can answer that to result it&#39;s also a series of incremental changes so if something happens like a medication error that&#39;s disastrous you can certainly start with that and as you have improved you celebrate those improvements and distribute that information so that it&#39;s a continuous improvement and it can happen over time with really good things happening along the way but to roll it out to an entire organization takes a long time but we tell me we have start somewhere and it&#39;s not like it&#39;s going to alter your whole organization overnight its celebrating those incremental things that you do looking at your data looking at your outcomes looking at your step turnover and using that to build your lead program so it takes time but you can celebrate things along the way the biggest I think the biggest barrier to this is if there&#39;s a change in the leadership at the top and the new person doesn&#39;t really understand it and then you know the whole thing can crash well I think it&#39;s well it&#39;s important that you have a vision that your organization has a vision and that everybody knows what that vision is and then the beginning is the hardest but in reality we all want to do value-added work we want to do the work that we&#39;re actually important to do people they enjoy that when they can see with the first steps that the waste that there were sucked into every day that that goes away and you&#39;re more productive that&#39;s nice people they enjoy that we&#39;re just good what are some questions that come from from the from the engineering folks here yeah how many hours a train United States exactly a generic workers and it seems that p41 pretty much so if they&#39;re spending so much time workers and getting so much profit on that hello there how are we so it&#39;s question there&#39;s a question is does the trainee detachment we&#39;re doctor you know my question is why are we investing more into training oh yeah so that&#39;s been a real change in the US companies as they&#39;ve adopted these as if they&#39;ve come to realize the importance of training they do invest a lot in training the typical company that I know of the US will invest at least 40 hours a week for every employee to be trained during the year in training can be broad it can be it could be specific to that particular job but it could be much broader just communication skills or sometimes even just awareness about their culture of the customers and other countries I don&#39;t know I&#39;m not sure I can answer I can say that they are investing more in training hours whether it&#39;s because the workers are different I don&#39;t know yeah there may be a chicken and egg situation one tape question you&#39;re no commander okay so you commissioned that I lean into price creates value to multiple staple right but we&#39;re having impose value for money a lot of white everything sometimes you have the shareholders they might be willing to move the enterprise transformed into Preston for what direction yeah you can have the employees you know what change their comfort level in that situation matter not it&#39;s a great question is tiresome yeah Tai says is the shareholders values are not always will normally not be aligned completely okay so you have to do the best you can okay I mean you&#39;re you have to find something I mean the ideal is if you could find something where every stakeholder gains something maybe they don&#39;t gain everything they want but they gain something something&#39;s better than before okay so let me take an employee thing I think one of the question mark I asked relates that to one of the things that one of the things that successful organizations do lean is they they make it known to their employees that nobody is going to lose their job because of increase in productivity okay so it&#39;s very hard if you go into an organization and say Emily I want you to help improve us and by the way we probably won&#39;t need you when we&#39;re finished okay your heart&#39;s not going to be in in that so so instead you say Emily we want to have a better organization and you&#39;re going to be part of it you may not be doing the same thing you were doing before we may have to train you to do something else or we may have to do something but but you&#39;re valuable to us and we want you here no we want you to help us improve so emily is going to come out she&#39;ll probably happier when she&#39;s done because she&#39;s probably not completely satisfied with her job and they&#39;ll be more productive and maybe they end up outsourcing stuff but they&#39;ll find a place for Emily in the organization so you want to make sure it&#39;s as much of a win-win as you can and that&#39;s a challenge I mean sometimes you you know sometimes it&#39;s hard and you end yet and it unfortunately the short-term focus of our financial system is a barrier for some of these long term commitments so it takes a lot of strong leadership we&#39;re coming ahead and I think Susan&#39;s good you want to show it show incremental improvement on try to get better and better and better not they also think that the equation in healthcare traditionally has been that employees are on the expense side of the equation and so when they needed to cut cost they cut physicians and what Toyota does is their employees are on the value side of the equation and so they value those employees and that makes the difference in the expense side as well and I think that makes a difference because if Toyota expects their employees to make suggestions and they implement their suggestions and healthcare we haven&#39;t done a good job and doing that employees were just employees and now we&#39;re starting to see that employees are the experts at what they do is something had to start listening to them and have an example I was doing work at a small rural hospital in northern New England 50th hospital and this class I did two classes of 16 people and they were working on some productivity kinds of issues and they came up with three million dollars in savings from delaying our start times and and canceled imaging tests and all those kinds of things they really did a beautiful job with their projects and the last day of report out the CEO was there he didn&#39;t hire us that was a grant through the state so they did this report out and talked about what they found and at the end he said this really makes me look bad actually saves me and he said I should have fixed these things goodbye it was just it was the old traditional model of the hierarchy I tell you what to do what you do it five tell you to cut 10% you budget you do it not show me how you can increase throughput and revenue so we need to just change our thinking and healthcare and it&#39;s happening but very slowly and valuing the employee is the most important thing we need to do and unfortunately the term lien gives people the absolute fear that we&#39;re going to cut musicians that&#39;s what they immediately think when you say we&#39;re coming in to do me to ever do that word it&#39;s like exact it&#39;s like the evolution of industry I showed you we can&#39;t change the word now it&#39;s just become part of it it came actually from MIT graduate student in a research seminar one day when they were talking about the things they were learning about the Japanese automotive industry and they said what are we going to call this and he said well let&#39;s call it lean because we&#39;re doing more with less and it&#39;s stuck but it&#39;s unfortunately has a negative sound to it lean and mean and all that kind of stuff so we have time for one more question did you have a question how do you establish causation between these methods ah and your house is not just an improvement in that&#39;s a really good question how can we show that the kind of results we showed here come from lean because there are a lot of confounding factors going on there&#39;s a changing business environment there may be other things going on and I guess in a scientific sense it might be very hard to do that but you know when you go and look at organization after organization Africa organization that adopts this and sees improvement there&#39;s a correlation there that you know adopting lean thinking in the way we teach it here that one of the pitfalls in adopting Lean Thinking is and let&#39;s take the five s or success a lot of people think leans a tool oh okay now I know I do 5s I can fix it that&#39;s not what lean lean is this change in culture that in a way of thinking that Susan mentioned that that takes some time you

Transcript for:Introduction to Lean and Six Sigma

Transcript for:
Introduction to Lean and Six Sigma