Lean Ideas And Methods Heath 07 21 11

transcript

LeanKey Ideas and Methods

Tony Heath, 07-21-11

What you can learn

• Brief history of Lean• Definition of Lean & how it works in business• Value and waste• Core Lean philosophy• Essential Lean techniques • Building Lean takes discipline

Ask yourself this…

How could Lean ideas apply to:• Our company• My career and life

Brief History

• A business term first used at MIT in 1988• Popularized by this book in 1990

• The Machine book described - through U.S. eyes - the Toyota Production System (TPS)

Taichi Ohno

Revolutionary creator of the Toyota Production System

Definition, etc.

Definition of Lean

Lean – a business improvement philosophy:– Reduce waste +– Increase value

Definition of Lean

• Lean includes principles, methods and tools used to improve process efficiency by removing wasteful steps.

The most important objective of the Toyota system has been to increase production efficiency by consistently and thoroughly eliminating waste (Ohno,1988, pxiii)

Lean as an adjective

– Thinking

– Enterprise

– Production

– Services

– Consumption

– Logistics

– Management

– Product development

“Lean” is also used to modify terms such as…

How Lean works in business

Profit = Revenue – Expenses

Lean…………………………..

Profit = Revenue – Expenses

Also…

Better products/ services at lower $

Profitability and Growth

The Lean community

Lean is a leading philosophy of change in…– Manufacturing, world-wide– Computer engineering– US Military– State and national government*– Healthcare, esp. hospitals

*See www.leanamerica.org

• “Lean” = 34,000,000 hits

The Lean community

One true Lean community

We strive to answer the simple question, "What can I do on Monday morning to make a difference in my organization?"

The Lean community in health care

1996 – Donald Berwick, then of IHI, told Jim Womack to create the Lean Enterprise Institute

April 2006 - Lee Fried, Lean Sensei at Group Health Cooperative in Seattle, launched www.dailykaizen.org.

Value and Waste

What is value?

• Customer is willing to pay for the activity, per se• The activity must alter or change the product or service• The activity must be done right the first time

What is NOT value

• Counting• Sorting• Moving• Inspecting• Waiting• Handling• Rework

• Signoffs• Delays• Regulatory work• Reporting• Risk• Safety

Value in organizations

• Value is created by frontline staff • Every value stream must have a business owner • Value streams are often organizational orphans

More on value in organizations

• Value flows horizontally across vertical departments or functional areas.

• Value streams are complex, often moving across several outside organizations on their way to customers.

• The current state of a value stream is hard to grasp, until you take a walk along the value stream.

Value streams in vertical organizations

Lean sees the value streams

What is waste?

Any human activity that absorbs resources

and delivers no value

3 words for waste in Japanese

• Muda – waste of resources• Mura – unevenness of demand • Muri – overburden of people and equipment

• The worst form of waste: Thinking you can’t

Muda, Mura, Muri

7 Types of waste in services

1. Transportation - temporarily locating files, hand carried documents

2. Inventory - transactions not processed, unnecessary copies, cabinets full of unnecessary files

3. Motion - multiple screens/clicks, processing transactions in multiple systems, looking for information and/or supplies

7 Types of waste in service settings

4. Waiting – waiting for approvals, information, and systems (computer, copier)

5. Over-production - unused reports, broad distribution, extra copies. The worst waste in manufacturing.

6. Over-processing - endless refinement, redundant approvals, collect data that's never used, redundant data entry

7. Defects - incorrect data entry, incorrect information

Core philosophy

• Workers create and own the value of the company• Everyone in the company is accountable for identifying

problems and helping to fix them, NOW• For Lean to flourish, everyone has to work to eliminate

waste every day• Teamwork is vital - Cross-area and within-area

The philosophy of Lean

Lean is a journey, not a destination

Lean is all about people

Lean is a life of experiments

Lean is about small steps, repeated

Lean is learning by doing

“There’s no expertise, only experience”

There’s never one best way to solve a problem

“Let’s figure this out together”

Continuing learning = Continuing improvement

“Thank you for identifying this problem!”

The keys of Lean management

• Provide clear direction• Go see, ask why, show respect• Build and maintain a Kaizen (improve) spirit• Nurture teamwork

Not just getting along, but solving difficult problems together People learn the best in groups The ultimate goal of teamwork is individual development

• Nurture mutual trust

Essential techniques

Gemba walk

• Gemba – any place in an organization where people create value

• Gemba walk – a walk along a value stream, following a work process from beginning to end – to see and understand how > value can be created with < waste

Reference:• Read Jim Womack’s new book Gemba Walks, 2011.

Gemba walks help us…

• Test hypotheses and improve judgments• Build consensus on problem definition before debate

on solutions• Achieve goals at desired speed by checking and

helping• Empower people by involving them in change

Kaizen events

• Kaizen – “improvement or change for the better”• Kaizen event – a focused meeting that is designed to address

a single issue– 3 days, typically– Pre-meeting work is essential and can take weeks

• Many books are available on how to lead a Kaizen event

Amazon lists 425 paperbacks on Kaizen

Kaizen events involve the whole team

All of us create value

Kaizen events and more Kaizen events…

Kaizen events must run continuously, educating staff and addressing… New problems Stable and unresolved problems

Value stream map

• VSM is a visual image of the value stream• More steps = more errors• Typically prepared in Kaizen event• Includes volumes, times, workload – collect B4 Kaizen• Both current state and future state are drawn

My thanks to Enterprise Quality for their presentation on this topic

Steps to a value stream map

• Start with a gemba walk• Establish group ground rules• Draft VSM with full team

– Identify value-add vs. wasteful steps

Steps 2

• Encourage debate and build consensus• Clean up the VSM• Develop future state VSM - find easy fixes• Publish, check, adjust• Realize it will be out of date within 6 months

Images of value steam maps

A3 analysis

• A3 analysis – a structured, single page (11x17) summary of an issue.

• A3 thinking – A way of thinking through problems in a structured manner

• A3s include present and future state process maps

A3 analysis – more details

• Many working A3 analyses are written in pencil• Lean managers maintain portfolios of A3 analyses• Organizations can have scores of A3s• Must contain names of owner and manager

alysis – A start

Complete example A3

5S for services

• A process designed to quickly surface problems so they can be addressed

• In hospitals, cleanliness & order = efficiency & safety• In office workplaces 5S applies to shared spaces only• Office examples include mail rooms and files

5S for services

1. Sort – necessary vs. unnecessary

2. Simplify – organize/straighten

3. Sweep – daily clearing/shining exercise

4. Standardize – including the 5S process

5. Self-Discipline – sustain the 5S/CI effort

Building Lean takes discipline

Lean discipline

• I am a problem solver• I hate waste• My goal is continuous improvement thru waste removal• I always involve the doers

Lean discipline

• I work to build trust and collaboration among everyone • I work hard to understand true root causes • I commit to continuous “Go & See” learning

Lean discipline

• I commit to working and reworking every stage of PDCA• I accept that no problem is ever solved forever

Lean discipline

• I accept that problems are only solved where they live• All problem solving is about experimentation• I work to maintain the discipline to make this all true

That’s it for the content

Take aways

• Name three things you’ve learned• What should we do differently as a team?• What more do you want to learn about Lean?

Homework (if you catch the Lean bug)

• Create a simple value stream map of any problem• Identifying 3 wasteful steps in your work• Identify an opportunity for a Kaizen event

What questions do you have?

Lean Ideas And Methods Heath 07 21 11

Business