A presentation

about:

LEAN
OPERATING
SYSTEM
Presented By:
Bernas, Lauro
Chentes, Ronalyn
Dauag, Elliane Nel
 CONTENTS
01 02 03 04

EXPLAIN THE 4 DESCRIBE THE EXPLAIN THE DESCRIBE THE

PRINCIPLES OF BASIC LEAN CONCEPT OF CONCEPTS AND
LEAN TOOLS AND LEAN SIX SIGMA PHILOSOPHY OF
OPERATING APPROACHES AND HOW IT IS JUST-IN-TIME
SYSTEM APPLIED TO OPERATING
IMPROVING SYSTEMS
OPERATIONS
PERFORMANCE
LEAN OPERATING
SYSTEM
A Lean operating system, also known as
Lean management or Lean manufacturing,
is an approach to business operations that
focuses on minimizing waste.

It originated from the Toyota Production

System (TPS) and has since been applied
across various industries and sectors.
 01. PULL 02. ZERO DEFECTS
In Lean operating systems, the concept of Zero Defects is all about identifying errors
"pull" refers to a method of production control or defects as closely as possible to where
where the flow of work is determined by they occur. By so doing, and by neither
customer demand. Instead of pushing PULL accepting nor passing on defects, issues
products through the production process are resolved quickly and efficiently,
based on forecasts or predetermined avoiding subsequent re-work and quality
schedules, production is initiated in response TAKT/ issues.
4 PRINCIPLES
to specific customer orders or requests. CONTINUOUS
OF LEAN ZERO
IMPROVEMENT
PROCESS OPERATING
SYSTEMS
DEFECTS
04. TAKT/ CONTINUOUS
03. ONE PIECE FLOW
IMPROVEMENT PROCESS
Value should be added in a smooth,
ONE One of the main ideas behind Lean operating
uninterrupted flow, from the start to the PIECE FLOW
systems is continuous improvement, which is
end of the production process. The ultimate
also called Kaizen. It means constantly and
effect of this principle is that all process
gradually making processes, goods, and
steps are focused and aligned to adding
systems better so that they work better, are
value, one piece at a time, removing all
of higher quality, and make customers
wasteful and unnecessary activities from happier. Continuous Improvement isn't just an
the process. event; it's a way of thinking and working that
everyone in the company follows.
 BASIC LEAN TOOLS AND
APPROACHES

01 BOTTLE NECK ANALYSIS 06 ERROR PROOFING

02 JUST-IN-TIME 07 5S

03 VALUE STREAM MAPPING 08 KAIZEN

04
OVERALL EQUIPMENT
EFFECTIVENESS
09 SINGLE-MINUTE
EXCHANGE OR DIE

05 PLAN-DO-CHECK-ACT 10 ROOT CAUSE ANALYSIS

11 STANDARDIZED WORK
Bottle Neck Analysis

Bottleneck analysis is a structured

way of looking at the processes and
workflows for developing a product
or service. Bottleneck analysis is
also used to address both present
and future issues, by identifying and
addressing operational and process
challenges.
Just-In-Time

Just-in-time manufacturing is an on-

demand system that allows
manufacturers to go into production
only after the customer has requested
a product. This means that companies
do not have to stock up on
unnecessary inventory, lowering the
risk of some components or products
being overstocked or damaged while
being stored.
Value Stream Mapping

Value stream mapping is a

technique developed from Lean
manufacturing. Organizations use
it to create a visual guide of all the
components necessary to deliver a
product or service with the goal of
analyzing and optimizing the entire
process.
Overall Equipment Effectiveness

Overall equipment effectiveness (or

OEE) measures how much planned
productive time is actually productive.
For example, imagine you’re planning
to work on a project for an hour, but
then spending 20 minutes of that time
answering a client call, meaning your
OEE would be about 67% (40 minutes
of actual production time, divided by
60 minutes of planned production
time).
Plan-Do-Check-Act

Plan-Do-Check-Act is a scientific method

used to manage change, and is also known
as the Deming Cycle. It was developed by
Dr. W Edwards Deming in the 1950s. The
PDCA cycle involves four parts:

Plan – Recognize an opportunity or

process that needs improvement.
Do – Create a small test.
Check – Analyze the results of the test.
Act – Move forward based on those
results.
Error Proofing

Error proofing—also known as poka-

yoke—is a common process analysis
tool that is based on the idea of
prevention. Poka-yoke focuses on
making sure that the right
conditions exist before any process
is put in place. This step lessens the
chance of defects and human error
happening.
5s: Sort, Straighten, Shine,
Standardize, and Sustain

5S originated in manufacturing and

is best suited for cleaning up and
organizing workspaces. Cleanliness
and organization can do wonders
for any workspace, whether it’s a
factory or a cubicle (or your home).

The five Ss stand for: SORT,

STRAIGHTEN, SHINE,
STANDARDIZE, and SUSTAIN
KAIZEN
Kaizen is the Japanese word for
“continuous improvement”
The strategy involves five primary steps:

• Identify problem areas to focus on, and

prioritize them
• Observe (or even film) the current
method to analyze it for possible
improvements
• Test, evaluate, and validate your
improvement tactics
• Implement the improvements
• Analyze your results and present them to
upper management for feedback
Single-Minute Exchange or Die

SMED stands for Single-Minute

Exchange or Die.

The goal of SMED is to get all

changeovers and startups down
to 10 minutes.
Each step should take no more
than one minute to complete.
Root Cause Analysis

Root Cause Analysis is a

problem-solving methodology
that focuses on resolving
underlying problems instead
of simply applying quick fixes
that only treat the immediate
symptoms of the pain.
Standardized Work

It involves detailed documenting of

procedures to deduce and capture
best practices (as well as the time it
takes to complete each task). It
should be done on a shared
document that is easily changed and
accessible. Once the document is
created, simply have your team
members add to and modify it. It will
then become your tutorial on how to
do complete specific tasks.
Kanban

Kanban is a visual management tool and

workflow system that originated from
Lean Manufacturing and has been widely
adopted in various industries and
functions, including software
development, project management, and
service delivery. The primary purpose of
Kanban is to optimize workflow, improve
efficiency, and enhance productivity by
visualizing work, limiting work in progress
(WIP), and continuously improving the
process.
LEAN SIX SIGMA
Lean Six Sigma is a process
improvement strategy that seeks to
eliminate inefficiencies in a
company's process flow by
identifying the causes of waste or
redundancy and developing solutions
to address them.
 SIX SIGMA
Six Sigma is a data-driven approach aimed at
reducing defects and variations in processes. The goal
is to achieve near-perfect performance by reducing
defects to a level of 3.4 defects per million
opportunities (DPMO). Six Sigma methodology
includes DMAIC (Define, Measure, Analyze, Improve,
and Control).
THE CONCEPT OF LEAN SIX SIGMA:
 LEAN SIX SIGMA TECHNIQUES

KANBAN KAIZEN
Workflow management practices,
Practices that engage employees
such as work visualization and limited
and promote a work environment
work in progress, which maximize
that emphasizes self-development
efficiency and promote continuous
improvement. and ongoing improvement.

VALUE STREAM MAPPING 5S

Method to ensure that the
Analyze places to eliminate
workplace is efficient,
waste and optimize process
productive, safe, and
steps.
successful.
LEAN SIX SIGMA PHASES The DMAIC phases of Lean Six Sigma are Define, Measure,
Analyze, Improve, and Control. They are used to identify
and improve existing process problems with unknown root
causes.

Define: Lean Six Sigma initiatives begin with determining

the objectives, parameters, and needs of the client.

Measure: Information is gathered to define the

performance of the process as it stands and to estimate
any flaws or deviations.

Analyze: To find the underlying reasons of errors or

inconsistencies in procedures, data is examined.

Improve: To address found underlying causes and

enhance process performance, solutions are put into
place.

Control: Controls are put in place to maintain and stop

regression in process improvements.
LEAN SIX SIGMA PHASES EXAMPLE
Problem: The hospital's ED is experiencing long
wait times for patients, leading to patient
dissatisfaction, overcrowding, and inefficiencies
in patient flow.

Define:
Goal: Reduce patient wait times in the ED.
Scope: Focus on the patient flow process from arrival
to discharge.
Customer Requirements: Ensure timely and efficient
care delivery to patients in the ED.

Measure:
Collect data on patient wait times, including arrival
time, time to triage, time to physician assessment, time
to treatment, and time to discharge.
Measure process metrics such as average wait time,
length of stay, and patient satisfaction scores
LEAN SIX SIGMA PHASES
EXAMPLE
Problem: The hospital's ED is experiencing long
wait times for patients, leading to patient
dissatisfaction, overcrowding, and inefficiencies
in patient flow.

Analyze:
Analyze the data to identify bottlenecks and
inefficiencies in the patient flow process.
Conduct a value stream mapping exercise to visualize
the current state of the patient flow process and
identify areas for improvement.
Use tools like diagrams to track the movement of
patients and identify unnecessary steps or delays.
LEAN SIX SIGMA PHASES EXAMPLE
Problem: The hospital's ED is experiencing long
wait times for patients, leading to patient
dissatisfaction, overcrowding, and inefficiencies
in patient flow.

Improve:
Implement solutions to streamline the patient flow
process and reduce wait times:
Standardize triage procedures to prioritize patients
based on acuity.
Implement a rapid assessment protocol to
expedite physician evaluations.
Optimize staffing levels and resource allocation to
match patient demand.
Introduce lean concepts such as 5S to organize
workspaces and reduce clutter.
Pilot test the solutions and gather feedback from staff
and patients.
LEAN SIX SIGMA PHASES EXAMPLE
Problem: The hospital's ED is experiencing long
wait times for patients, leading to patient
dissatisfaction, overcrowding, and inefficiencies
in patient flow.

Control:
Establish controls to sustain the improvements:
Monitor key performance indicators (KPIs) such as
wait times and patient satisfaction scores on a
regular basis.
Implement visual management tools such as
dashboards to track performance metrics in real-
time.
Conduct regular observation of the process and
identify opportunities for further improvement.
Provide ongoing training and support to staff to ensure
adherence to new processes and protocols.
LEAN SIX SIGMA PHASES
EXAMPLE
Problem: The hospital's ED is experiencing long
wait times for patients, leading to patient
dissatisfaction, overcrowding, and inefficiencies
in patient flow.

Results:
After implementing Lean Six Sigma improvements, the
hospital observes a significant reduction in patient wait
times in the ED.
Patient satisfaction scores improve, and overcrowding
issues are alleviated, leading to a more positive patient
experience.
Process performance metrics such as length of stay
and throughout efficiency improve, indicating
enhanced operational efficiency and resource
utilization.
 LEAN
SIX
SIGMA
BELT
LEVELS
 How is Lean Six Sigma applied to improving
operational performance?

Lean Six Sigma is applied to improving operations

performance by improving customer satisfaction.
Lean Six Sigma tools are used to understand
customer requirements and expectations. By
focusing on what is important to customers,
organizations can improve processes to meet or
exceed customer expectations. By improving
customer satisfaction, organizations can increase
customer loyalty, gain a competitive advantage,
and increase profitability.
The concept of JIT
operating systems JUST-IN-TIME
revolves around the idea (JIT)
of delivering the right
product, at the right time,
in the right quantity, and at
the right quality. JIT is
about optimizing
resources and processes
to create a lean and
efficient operation.
The concept and Philosophy of Just-in-Time
Operating System.
Just-in-Time (JIT)
it is a concept and philosophy
in business and manufacturing
that aim to minimize waste
and maximize efficiency.

The idea behind JIT

To produce and deliver goods
or services exactly when they
are needed, in the quantities
required, and with the highest
level of quality
 JIT Operating System

Inventories are kept This helps to reduce Enables companies to

low, and the cost associated with be more responsive to
production are excess inventory, changes in customer
synchronized with storage, and preferences and
customer demands. absolescences. market conditions.
 Philosophy in JIT
Emphasizes continues improvement, teamwork, and
close collaborations with suppliers. It encourages the
companies to streamlines their processes, eliminate
non-value-added activities, and focus on quality
control.

Reducing Effective Companies

waste Communication that adopt JIT

Overproduction, waiting Relies on accurate Benefit from reduced

time, and defects. forecasting and demand lead times, improved
By this, the companies planning to ensure that cash flow, and
can achieve higher materials and resources
increased
productivity and are available when
competitiveness.
customer satisfaction. needed.
Thank You!