7 Lean wastes eventually turn into 8!!

welcome to complexity made simple my name is paul allen and before we get on to today's video just a reminder of how you can support the channel please subscribe please leave comments on all the videos because that really does help but if you want to support the channel further there is a donation page please go to buy me a coffee and leave a donation which is always fantastically helpful keeps the channel keeps the channel moving and allows me to make all of this fresh material but if you want a textbook that contains all the good stuff from the videos please click on the link and buy drink tea and read the paper from lulu.com all of these things really help the channel thank you to all the people that continue to buy this textbook it really is fantastically helpful now let's get on to today's video welcome to the latest video and in this video newsletter we're going to go and discuss the seven or eight wastes again from lean and this is a bit of a this is a reply to a recent video by tom mentic go and look at tom i i do love lots of tom's videos so he recently made a video about seven or eight lean wastes and i think tom knew when he when he made the video that he might be just giving me a little prod and waking up a waking up a bee's nest so i thought i would just uh make another video on this subject and what i what i'd like to do though in this video is explain my rationale by why i like to stick with the seven wastes okay so there is a very particular rationale behind my thought which isn't just about whether it's right or wrong it's actually about whether it's useful to helping my clients so part of what i'm trying to do i'm trying to get clients to think in a different way okay so i'm trying to get clients to think in a different way now if i look at the let's look at the um what i'm going to call the seven the seven wastes all right so we're gonna go tim wood so let's see if i can remember these things sometimes i can't always remember all seven so transport inventory i would say unnecessarily inventory to be honest motion over process processing overproduction defects work in progress okay so they're the traditional seven waists and of course the eighth waist is unused human capability people waste essentially all right so there's the seven plus one all right now this my view about this all goes to my history of process improvement all right so if you talk to any business about process improvement they will undoubtedly tell you that they have spent the last 40 years doing process improvement okay so i'm gonna go back 40 years to when i first became a work study engineer so i was a work study engineer now in the uk what does that mean it means concentrating on people productivity that's basically what we did we measured people and we worked out efficiency and we worked out bonus systems and we concentrated on people productivity and to be quite honest when i'd learned to do this back in 1980 people had been looking at people productivity for 40 50 years that's what we've been working on now there was a good reason for looking at people productivity because the biggest cost in a manufacturing company was usually the labor so they were concentrating on getting rid of people waste all right so that's what we we focused on but even as i left this role um back in the 1990s even as i left this role i knew that this behavior there was something wrong with it and here's the reason why back in the 1990s manufacturing company that i was working in and this was my experience of most manufacturing at the time i don't know what the numbers are today but anyway for every pound that we spent making a product 10 of it was people 10 percent was direct labor okay direct labor 30 of it certainly the companies i was in was material so this is people and sixty percent was always so why were we spending all our time here obsessing about this thing when actually this is the biggest cost now to me this is what lean does lean challenges this thing here that's why it's so powerful you can smash this number to pieces with lee and i mean smash it to pieces i mean lop 50 60 percent off that thing and literally knocked lumps out of your costs yeah so and that's what all of these are they're all about they're all about overhead so we're obsessed we've been obsessed about people for a hundred years so if i put anything related to people on here like this thing i know the the companies that i'm working with will just go and behave the same old way and go to the people productivity waste and focus on that this must never be about people it is never about people this is never about machinery none of this is about people or machinery it's only one thing floating and i say that to my clients to keep their thought process completely clear and also to completely change their their way of thinking to say forget productivity look at flow time and then when i say to them lean is about thinking completely different i can be clear and unambiguous with them they don't get confused and they get on the right road to thinking the right way about the wastes okay now this does appear however i'm gonna concede this eighth waste but what we're gonna do we're gonna have a look at dan jones i was fortunate enough to spend a little bit of time in dan's company a couple of weeks ago at the international lean six sigma conference in cambridge and john was awarded um something like a lifetime achievement award and dan dan made a little speech about lean and lean implementation and what he learned over his uh over his career and i want to use that that little speech to just go through the seven wastes and where the eighth waste eventually appears so let's take a look at dan speaking now helping companies engage in pioneer experiments to try lean in pretty well every sector you can imagine from government to healthcare to construction to manufacturing to retailing and through that actually we've learnt that there's a lot more to them in fact i think lean is a journey and we've been on a very long journey and we're still learning all the time so the first important thing he says there it's a journey and it's a and this is really important it's a very long journey so the start of the journey is this is going to be the seven wastes the seven wastes are going to come in very very early in our journey okay this thing is very late in our journey so we're going to follow dan's logic through and we're going to see where the seven are and where this last one eventually appears constantly facing complex questions and going back to the toyota senseis and asking well why doesn't this quite work and the toyota sensei of course immediately replies with another question not with the answer and tells us i'll ask you a question that provokes you to think in a different way about the challenge that you're trying to face so initially i think all of you we start off by realizing that a lot of work has to be done to organize away from managing discrete activities to trying to create flow in work so there is dan step one first thing about this we're going to think differently you got to be provoked to think differently so the first thing is it's about flow it's about flow of your orders or your service obviously to service the customer so that's point one we're starting with flow that's what makes us think differently that's why but i want to keep away from this because i want people to change their point of view about where the opportunity lies it lies in flow let's carry on with dan's video i mean work is not configured that way it's often not synchronized it's often subject to multiple interruptions and it's often subject to completely chaotic forecasts of demand and so the first step of course there's another one at dan's key point so it keeps this very simple the chaotic forecast you have to learn how to get rid of this thing by the way it's very easy to do it takes about one hour to get rid of the chaotic forecast if you just know how to look at your numbers correctly and it really is job one but there's more to what dan's gonna say about getting rid of the chaotic forecast let's continue it's really to use the lean tools to begin to integrate steps together tackling the obstacles to doing that so that you begin to create flow and you realize of course the first step is to create stability basic stability in all of the steps that you're trying to integrate without that you get nowhere okay so the chaotic forecast is part of creating stability now of course create stability we have these two japanese words i wish we just used the word create stability but we want to get rid of the mura and the moory one is unevenness variability usually coming from this one is unevenness one is overburden extra activities that your operators have become used to doing which is over and above the standard work that you expect them to do which is weighing them down and it creates instability so chaotic forecast creates stability so flow creates stability by the way none of this is about people at this point this is completely different to anything we've done for the last 100 years and i want people to know that so i don't want people on this list because they will default to their old habits let's keep listening to dad without that you don't have a basis for improvement so basic stability and then linking steps ideally back from the customers steps one at a time sorting out the obstacles to putting them in flow and addressing the issues of interruptions and so on and creating a visual management system to see the performance of the system in real time so now as we get stability now what we start to do is we look at the reasons for the interruptions and the things that get in the way of flow now what are we turning to now we turn to the seven wastes okay and now we spend time and by the way this is this is relatively easy to do at this point it's it's not quick to do but most of the things most of the seven waste big lumps of seven wastes exist because of the rules that you use in your factory and the systems that you use and if you quickly replace those systems the seven wastes just get ripped out of your factory relatively easily no um there's no investment needed uh accept your time accept your time and your your inspiration to do this all right so now we're onto the seven ways at this point i'm keeping the people out of here because i want to change everybody's mind about what lean really is let's look at dan now and what he continues to say so that you can respond to those interruptions quickly rather than wait for somebody else to come and sort them out for you so basic stability visual management uh quickly leads to the situation where so that little bit there of course what's he talking about well it's step five here kind of handy because really what are we talking about 5s visual management as i say this is cheap to do but it's hard yards you've got to do the whole factory the whole environment has got to be changed the whole culture has got to be changed and the whole way of thinking has got to be changed chasing people has got to go let's keep looking it down you get stability and you begin to get some compression of the time but uh that's just the first step of course then you're ready for some more serious experiments to improve the the way the system works as a whole the synchronization and the interruptions and that's that's when you really get seriously into problem solving and the problem solving teaching problem solving is the beginning of a really long journey step six problem solving and really important giving people to permission to experiment to try new ways of working to trial things to do a pilot to prove so that they can move them they can move the lean waist on getting rid of the seven waist initially as i say you'll take lumps out really quickly but then what you need you're going to need to sit and think about it and experiment with new ways and now we start to move into this guy right here but by the way this thing is going to take you years down to here this potentially this is three four years of hard work embedding the first five of those steps there before we get into problem solving now initially you're going to have experts work to lead teams to problem solve but what dan's going to suggest is that we get everyone to do this so let's just go back to the video and hear the last few statements now and that means a management system on the shop floor uh in the teams and around the teams and across the the plants that is very different that is focused on engaging people in creating stability in creating flow but also in making improvements conducting experiments to submit to reduce the amount of waste and so on in the process and that management system leads you to realize that in fact the job of lean managers is actually to develop the capabilities of people in solving problems it isn't just the answers to the specific questions that you're solving that that is actually important what's important is how you learn to use the scientific process and there's the apt waste there's the last bit so what's he saying well okay problem solving and experiment but then finally what do you want you want a management system that actually underpins all of this and promotes all of this and it needs to support all the teams all the sites yeah so the management system is going to do this and what are you trying to do you're trying to develop problem solving in all of your people and there is the eighth waste right there because currently what have you got you've got a thousand people in your company maybe a hundred them on management it's only the 100 management that do the thinking sometimes you wonder if the 100 management do anything at all but anyway um and you've got all these people who are just doers and you're missing all their human capability and the fact that they could help come up with new ideas better ideas to improve flow in other words to remove the seven wastes so that's the journey that you go on this is late in your journey think about it we're driving from york to london if you include this thing on the list what you're trying to do you're trying to decide how to navigate london before we've traveled the 200 miles down the m1 and that's what we got to do put the seven wastes on the table let's get moving let's get out to york let's get on to the m1 let's get this journey really moving moving fast and furious and we're learning a new way of thinking and then when we start to slow down and get bogged down what have we got to do well we've got to negotiate the flipping hard yards of going through london you've got to negotiate this but this is going to come after three or four years if i let my clients think about people at the very beginning they will just concentrate on people productivity and now they're thinking the same old way i haven't changed their thinking that is why i don't want the 8th waist anywhere near my list i want my clients to be thinking a new way clearly and unambiguous and once they've spent three or four years doing that i'm gonna eat them with navigating through london i'm gonna hit them with the more difficult thing to do which is to do this but if you put this on the list they'll never change their mind i'll just consider that they'll just continue with the same old crap that they've been going through for the last 100 years they'll never go lean and that my friends is why i don't like the eighth waist it's a personal thing i'm not saying it's the right thing we all have our ways of convincing people to work in a new way i'm not saying that my way is right or wrong it just is what i use and i'm very comfortable with it and so when i say to you don't have eight wastes i'm trying to pass that piece of knowledge on and i thought rather than have a rant and sound like a grumpy old man i'd explain my thinking a little bit more clearly hopefully you've got that hopefully that's helpful and it'll help you to go lean and of course what do i want you to do make bucket loads of

Channel: Paul Allen

Views: 183

Keywords: lean, six sigma, Six Sigma greenbelt training, Six Sigma Blackbelt Training, Shewhart, Juran, Deming, Taguchi, SPC, MSA, FMEA, DOE, X bar chart, Wheeler, Janam Sandhu, Mrnystrom, Gemba Academy, Full Factorial, Central Composite Design, Ronald Fisher, Hypothesis Test, p value, Histrogram, minitab, Pareto, multi-vari chart, https://youtu.be/QH984PnwRDE, https://youtu.be/f_fjqCpd67Q, https://youtu.be/AGJ1QYI2B4c, https://youtu.be/gsD8V2_eZ0A, https://youtu.be/mM6EyMvvAKk, quality hub india, simplilearn

Id: 6-USeUwVfhg

Length: 23min 17sec (1397 seconds)

Published: Mon Oct 25 2021