Lean for Service Overview - Dubai Quality Group...•The Lean Office, 2005, Productivity Press....

Quality & Business Excellence Conference 26 – 27 November 2012


Lean for Service Overview

Elizabeth M. Keim

Past President ASQ


• Introduction to lean

• Introduction to waste

• Application to service processes

Learning Objectives


3

Role Of Lean

• Efficient way to reduce waste

• Eliminate preventable demand

• Stop doing wrong things righter


4

Lean Principles

• Define value from customers’ perspective

• Document value stream

• Reduce waste

• Improve flow

• Drive for pull

• Continuously improve


5

Lean Goals

• Best quality

• Lowest cost

• Shortest lead time

• Best safety

• Highest morale


6

Lean Is and Is Not

Lean is not

telling people how to do their jobs more effectively

Lean is

empowering people to plan how they will implement changes that simplify satisfying customers


7

Purpose of Value Stream Map

• Customers/transaction perspective

• Single view

– Complete

– Fact-based

– Time-based

• Common view for analysis

• Information triggers and flows

• Time and value for activities


8

Total Value Stream • All actions currently required to bring

service/transaction through organization

– Big picture

– Cross-functional

Suppliers

Put requirements

on these

Organization Process

Improve this

Customer End User Consumer

Determines

value


9

Waste Categories • People

• Process

• Information

• Asset

• Value-add

• Over-processing

• Transportation, storage

• Over-production

• Waiting, delays

• Rework, defects

• Unclear communication

• Work-in-process

• Unnecessary movement

• Value-add

95%

5%


10

Value

• Three categories of tasks in process:

• Value-add (essential) tasks

– Cause actual change

– Customer notices and wants change

– Done right first time

• Waste

– Business value-add (BVA) - currently necessary

– Non-value-add (NVA) - not necessary


11

Toyota Production System • Operational stability &

Cultural alignment

• Just-in-time

• Built-in quality

• Continuous improvement

– People and teamwork

– Waste reduction

Continuous Improvement

Just- in-

Time

Built-in Quality

Operational Stability Cultural Alignment


12

Cultural Alignment & Operational Stability


13

Liker Model of Culture

Philosophy

Problem Solving

Process

People and Partners

Challenge

Genchi Genbutsu

Respect and Teamwork

Kaizen


14

Process and Problem Solving

• Flow • Pull • Workload balance • Error reduction • Standardization • Visual controls • Mistake proofing • Going to problem, getting hands dirty • Decisions based on facts • Continual learning


15

Operational Stability

• Leveled production

– Standard times for different services

• Standardized work

– Countermeasure to problems

• Visual management

– Transparency and ability to see what is going on

• 5S

– Tools to facilitate teamwork


16

5 S

• Tool to facilitate teamwork

• Create and maintain organized, clean, safe, and high-performance workplace


17

Sort

• Distinguish between what is essential and what isn’t

– Discuss value of items in work area

– Understand more about work and how to work differently


18

Straighten

• Put things where best meet functional purpose rather than neat workplace

• Improve flow, putting everything at point of use


19

Shine

• Identify and eliminate root causes of waste, dirt, and damage

• Gather data for root cause analysis (uncovering)


20

Standardize

• Visually maintain agreed-upon conditions rather than writing work instructions

• Employees value doing right things right way every time

• Provides means to speak same language and road map


21

Sustain

• Do what is required even if difficult

• Constant vigilance

• Management deploys ways for teams to more easily follow standards


22

Just-in-Time


23

Just-in-Time

• Takt time

• Continuous flow

– Preceding process must always do what subsequent process says

• Quick setup

• Pull system

• Kanban – ticket or signal


24

Built-in Quality


25

Built-in Quality

• Stop the process

– Automatic stops

– Signal for assistance

• Mistake proofing

• In-station quality control

• 5 Whys


26

Continuous Improvement


27

Future State Map

• Identify utopia

• Identify more grounded future state

• Develop plan to achieve future state


28

Eliminate Obstacles to Flow

• Functional organization

• Inadequate resources

• Unnecessary documents, approvals, waits

• Excessive work-in-process

• Batch processes


29

Pilot

Test solution on small scale

• Test solution in small part of organization

• Find possible failure points

• Validate/refine cost/benefit estimates

• Evaluate process measures

• Increase buy-in


30

Criteria for Pilot

• Two areas to test

– Implementation

– Solution

• Success criteria established for both


31

Lean

• Principles to achieve

– High performance

– Add value to customers and society

• Focus on

– Value-adding processes

– No interruptions

– Customer pull

– Continuous improvement


32

Lean for Service Overview

Elizabeth M. Keim

Past President ASQ

Integrated Quality Resources, LLC

[email protected]


33

References

• 5S for Service Organizations and Offices, Debashis Sarkar, 2006, ASQ Quality Press. (office processes)

• Kaizen Event Fieldbook, Mark R. Hamel, 2010, Society of Manufacturing Engineers. (planning Kaizen events)

• Lean for Dummies, Natalie J. Sayer and Bruce Williams, 2007, Wiley Publishing Inc.

• The Lean Office, 2005, Productivity Press. (implementation)

• Lean Thinking, James P. Womack and Daniel T. Jones, 2003, Free Press. (philosophy)


34

References • Mapping Work Processes, Dianne Galloway, 1994, ASQ

Quality Press. (basic process mapping)

• Office Kaizen 2, William Lareau, 2011, ASQ Quality Press. (waste categories)

• Metrics-Based Process Mapping, Karen Martin and Mike Osterling, 2008, Productivity Press. (value stream mapping)

• The Toyota Way, Jeffrey K. Liker, 2003, McGraw-Hill. (culture)

• Value Stream Management, Don Tapping, Tom Luyster, and Tom Shuker, 2002, Productivity Press. (people side)

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