Certified Lean Master study sharing (III)

The final section of “Certified Lean Master” course has just completed. I would like to share what I have learnt in this section as follows:

i) Cash-to-cash Cycle Time: By definition, it is a financial ratio that shows the length time for which a company must finance its own inventory.
ii) Mass Customization: it moves the final product configuration closer to the customer and provides small volume make-to-order capabilities with a hi-vol make-to-stock cost structure. There are three types as adjustable, dimensional and modular.
iii) Customer satisfaction is equal to “What customer expects to get” less “What customer perceives they got”. Customer sacrifice is equal to “What customer exactly wants” less “What customer settles for”. (where settling equals no desire to build a loyal relationship)
iv) Lean accounting such as Total Landed Cost and Carrying Cost
v) Lean Supply Chains and its audits

The figure shows the relationship between Value Stream and Cash-to-Cash Cycle.

The photo is the first class participants of CLM in Hong Kong.

I got my certificate.

The followings are classmates’ feedback on the course.

Certified Lean Master study sharing (II)

In the previous section, we learnt how to define business case and value stream map of current state, as well as, Kaizen Blitz event in the process selected. During CLM section B course, the most important things that I explored were “Balanced Flow” and “Measurement”.

A game called “Red Bead Experiment” was played, which was originated from Deming. The game demonstrates one of golden rules that system variation (frequently referred to as random variation) is inevitably present in any process, operation or activity.

Where white beads represent goods and red beads represent defects.

Classmate is playing.

I also try the execrise.

After all classmates tried the game, the results were recorded as follows:

Mr. Mike Sheahan (our teacher) brought some interesting snacks from USA for tea time. (Remember the last time Lean Simulation using Lego!)

Certified Lean Master study sharing

In order to improve our internal process, I have joined Certified Lean Master course organized by International Supply Chain Education Alliance (ISCEA). I would like to share something I have leant from the class.

Lean is the systematic elimination of waste.
Five Principles of Lean
1) Specify Value
2) Identify Value Streams
3) Create Flow
4) Leverage Pull
5) Seek Perfection

Our daily operation could be classified as Value Added (VA), Business Value Added (BVA) and Non-Value Added (NVA). Their definition is:
VA activities are necessary for meeting customer requirements.
BVA activities are not involved with meeting customer requirements, but are necessary (i.e. legal or internal policy).
NVA activities are not necessary for meeting customer requirements.

Example of Value Stream Mapping
7 types of waste (Muda)
1) Overproduction
2) Waiting
3) Transporting
4) Inappropriate Processing
5) Unnecessary Inventory
6) Unnecessary Motion
7) Defects

The most interesting section is Lean Simulation. Lean Lego Simulation (LLS) which has proven valuable for students to better understand lean principles and applications

In the beginning, I was a supplier and worked very easy because of kindly customer's Raw Material Receiving Dept.

During the production, we found that there were many stock (high inventory level) in raw material receiving dept.

and also in WIP (Head assembly, body assembly and final assembly).

Too far to transport the goods to QA dept. (Some defect happened during transportation.)

We drew the operation into Value Stream Mapping.

After that we re-designed the process using Kanban and reduced the inventory level. We ordered a specified and small quantities of raw material from supplier and sorting by QA and Receiving Dept.


Supplier cannot afford so many orders of small quantities. So the long lead time appeared.

See... The Head assemibly dept. was idle and enjoyed his drink to wait parts!

Very good practice!! We got experience from the real production line situation through this simulation.

At the end of workshop, I took a photo with the trainer "Mr. Mike Sheahan".