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LEAN IT - LEANING OUT YOUR IT PROCESSES CAN SAVE MONEY, REDUCE TIME TO DELIVER SERVICES AND HELP YOU...

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LEAN IT - LEANING OUT YOUR IT PROCESSES CAN SAVE MONEY, REDUCE TIME TO DELIVER SERVICES AND HELP YOU FOCUS ON THE PROJECTS THAT MATTER TO THE BUSINESS. Dr. George Royce Ph.D, PMP University of Nebraska at Omaha [email protected] or [email protected] Website: http://roycesite.com/george/index.html Also on LinkedIN and Facebook
Transcript

LEAN IT - LEANING OUT YOUR IT PROCESSES CAN SAVE MONEY, REDUCE TIME TO DELIVER SERVICES AND HELP YOU FOCUS ON THE PROJECTS THAT MATTER TO THE BUSINESS.

Dr. George Royce Ph.D, PMPUniversity of Nebraska at [email protected] or [email protected]: http://roycesite.com/george/index.htmlAlso on LinkedIN and Facebook

Agenda

2Dr. George Royce

Topic Time

Welcome and Introductions 8:30 – 8:40

Discuss Lean Concepts as it applies to Information Technology Processes and concept of customer value and waste in existing processes

8:40 – 9:00

Team Activity 1: Examples of Waste in IT Processes – Your team 5 minutes! 9:00 - 9:10

Kaizen Event Overview and Voice of the Customer 9:10 – 9:40

Team Activity 2: Build a SIPOC for the EFS New Hire Process or your process 9:40 – 9:55

Swim Lane Map and Value Stream Map and Value Add Verses Non Value Add 9:55 – 10:30

Break 10:30 – 10:45

Team Activity 3: Build a Swim Lane Value Stream Map 10:45 – 11:15

Review the Value Stream Maps from each team and discuss Lean Metrics and Methods 11:15 – 11:40

Team Activity 4: Teams Brainstorm analysis, additional data collection and experiments. Teams review/complete the Kaizen Charter

11:40 – 12:10

Teams present the their analysis and recommendations for additional data collection, experiments and improvements.

12:10 – 12:30

Summary and Wrap-up 12:30 – 12:40

Dr. George Royce

Lean Definition of LEAN: A business approach based on the

goal of eliminating waste and maximizing flow in business processes.

Lean began as a methods of driving cost of out of auto manufacturing. Toyota has been a leading user of the lean approach since the 1950’s.

Goals: Henry Ford’s low cost, fast lead time, high Quality with GM’s Variety of product.

Toyota Achieved these goals by the 1980’s. Focuses on the elimination of Waste. Reduction in waste leads to increased speed and reduced

cost. Value in products or processes should be viewed in

the eyes of the customer. What is the customer willing to pay for?

Lean Six Sigma for Service by Michael L. George

Dr. George Royce

What is Lean IT and why should we care? Lean IT is the application of LEAN

principles to all IT processes. – Steve Bell

Why?

“Technology is simply a vehicle for carrying out processes. The power of your company is contained in the processes themselves. The most valuable opportunities for establishing competitive differentiation are in how a product or service is created, sold, delivered, and supported.” – Jack Welch, former CEO of GE

It is involved in all the above processes today in most companies

Mutual of Omaha embraced Lean IT to eliminate wasteful processes and low value or no value software. We wanted to re-invest the savings in strategic business projects for our customers.

What Are the Information Technology Processes? – ask your IT auditor! COBIT 5 Defines each process in detail.

Dr. George Royce Source:  COBIT® 5, figure 16. © 2012 ISACA® All rights reserved.

Why focus on Lean IT?

Deliver more strategic projects and spend less time on service and support.

We still want “good enough” service and support that keeps us safe and productive!

IT can and will change our processes but to make this happens the business needs to change as well.

Dr. George Royce

Lean out Project Management and Development – Adopt Agile / SCRUM methods “Agility is the ability to both create and respond to change in

order to profit in a turbulent business environment.”—Jim Highsmith, Agile Software Development Ecosystems

Early indication that Agile/SCRUM provides better results: “In its 2011 CHAOS Manifesto report surveying the success of

software projects between 2002 and 2010, the Standish Group found that projects based on traditional waterfall methodology succeeded 14% of the time, whereas agile-based projects had a success rate of 42%”

IT really liked the collaboration with the business in building a backlog of stories and working from the backlog based on business product owner decisions.

Business also had to change as well: Needed to play a larger role in the form of Product owner

verses a sponsor. The required much more engagement and accountability for projects

Subject Matter Experts on co-located teams.

Dr. George Royce “Developing and Succeeding with Scrum” by George Ogata, Computerworld July 17, 2012.

Leaning out Service and Support processes Move to pull process

Adopt Kanban Kan means "visual" ,ban means "card" or "board” A signaling system to trigger action Uses cards to signal the need for work to be done Toyota Lean lesson focusing on Just in Time

production

Dr. George Royce

Rules of Kanban and a Sample Kanban Board

Dr. George Royce

Strict Queue Limits Pull Value Through Make it Visible Remember – “Value” in the eyes of the customer Big changes for customers: fewer items actively worked on but

completed more quickly

Leaning out Software/Hardware and support – Institute Application Portfolio Management

Dr. George Royce

“Application Portfolio Management (APM) initiative will measure and justify the benefits of all software applications in comparison to their cost. The process will allow the APM team to identify and eliminate unused or unnecessary applications and ultimately save the company money and free up resources that will allow Mutual of Omaha to sustain a competitive advantage.”

How: Class applications as: Invest, Tolerate, Migrate, Eliminate and obtain buy in from customers explaining how much applications really cost using TCO. Set goals in the business to eliminate or migrate applications.

A great time to do this is during a desktop upgrade. A number of companies have reduced their IT software /hardware budgets by

millions as a result of this effort. After the project, make it a part of your process going forward!

Tolerate

Migrate

Invest

Eliminate

158 185 210

374

0 0 0 0 0 0

00

0

100

200

300

400

500

600

700

800

900

1000

Dec 2010

Jan 2011

Feb 2011

Mar 2011

Apr 2011

May 2011

Jun 2011

Jul 2011

Aug 2011

Sep 2011

Oct 2011

Nov 2011

Dec 2011

Retired Applications

$0.0

$0.2

$0.4

$0.6

$0.8

$1.0

$1.2

$1.4

$1.6

$1.8

$2.0

Dec 2010

Jan 2011

Feb 2011

Mar 2011

Apr 2011

May 2011

Jun 2011

Jul 2011

Aug 2011

Sep 2011

Oct 2011

Nov 2011

Dec 2011

Return on Applications Retired- Annual Savings

Mil

lion

s$0.9

$1.0$1.1

$1.4

Time Model

Using Kaizen to help improve all your IT processes

Dr. George Royce

Kaizen means “a change for the good” Kaizen is an approach to continuous process improvement. It

is a way of thinking and behaving. It is about unleashing the creative power of people actually doing the work, in order to design more effective and efficient processes.

Practicing kaizen on a daily basis promotes lean thinking

Problems with IT Processes

Customers complain that the process: Costs too much (they are not willing to pay for it) Takes too long Delivers a “gold plated solution or product when the customer

wanted something simpler, faster and cheaper.

Processes can contain “hidden factories” – costly sub-processes that were put in place due to a problem that occurred years ago that has not re-occurred.

Processes contain waste in the eyes of the customer and need to be leaned out.

Waste is something the customer is not willing to pay for during a process.

What are other problems of processes you have encountered in your company or others?

Dr. George Royce

Lean Concept of Waste – Original 7 + 1

Dr. George Royce

1

2

3

45

7

6

Overproduction – To produce sooner, faster or in greater quantities than customer demand

Inventory – Raw Materials, work in progress or finished goods which is not having value added to it.

Waiting – People or parts that wait for work cycle to be completed

Motion - Unnecessary movement of people parts or machine within a process

Transportation - unnecessary movement of people or parts between processes

Rework – Not done right the first time. Repetition or Correction of a Process

Over-Processing – Processing beyond the standard required by the customer

8Intellect – any failure to fully utilize the time and talent of people

Dr. George Royce

Waiting and Over Production

Waiting – People or parts that wait for work cycle to be completedPeople waiting on systems or machines – applications, copiers, etc…People waiting on others

Sign offs Edit Client input

Overproduction – To produce sooner, faster or in greater quantities than customer demand Extra CopiesUnused storage, CPU CyclesInventory stockpiles

Dr. George Royce

Inventory and Motion

Inventory – Raw materials, work in progress or finished goods is not having value added to itBacklogs of work waiting on resourcesRetaining information not needed – documents, data files, etc…Creating product before there is customer demand

Motion – Unnecessary movement of people, parts or machine within a process Looking to find information or supplies. – Poor search capabilityMouse clicks needed to access informationCustomer suppliers too far apartTraveling verses conference call or Webex

Dr. George Royce

Transportation and Rework

Transportation – unnecessary movement of people, information or parts between processesWrong informationInformation that is relayed up and down the ladderInformation handoffsHand carried documentsComplex information management

Rework – Not done right the first time. Repetition or Correction of a ProcessMissing information and rework to collect itCorrecting errorsExtra manpower to check and redoRequirements not being metReactive organization (firefighting vs prevention)

Dr. George Royce

Over-Processing and Intellect

Over-processing – Processing beyond the standard required by the customerEndless refinementsRedundant ApprovalsReports with too much informationReports never used Excessive distribution

Intellect – any failure to fully utilize the time and talent of peopleFew improvementsDoing “MY” job mentalityLack of employee involvementPoor morale

ACTIVITY 1 : IT Waste Examples

Dr. George Royce

Directions:Work in Teams. List 1-2 forms of Waste in the IT processes.List on Flip Chart PaperYou have 5 minutes. Begin now.

1

2

3

45

7

6

Overproduction – To produce sooner, faster or in greater quantities than customer demand

Inventory – Raw Materials, work in progress or finished goods which is not having value added to it.

Waiting – People or parts that wait for work cycle to be completed

Motion - Unnecessary movement of people parts or machine within a process

Transportation - unnecessary movement of people or parts between processes

Rework – Not done right the first time. Repetition or Correction of a Process

Over-Processing – Processing beyond the standard required by the customer

8Intellect – any failure to fully utilize the time and talent of people

Principles of Kaizen 1. Say no to status quo, implement new methods and assume they will

work 2. If something is wrong, correct it 3. Accept no excuses and make things happen 4. Improve everything continuously 5. Abolish old, traditional concepts 6. Be economical. Save money through small improvements and spend

the saved money on further improvements 7. Empower everyone to take part in problems' solving 8. Before making decisions, ask "why" five times to get to the root cause.

(5 Why Method) 9. Get information and opinions from multiple people 10. Remember that improvement has no limits. Never stop trying

to improve – Continuous improvement

Dr. George Royce

Kaizen Event Are formalized activities that organizations use to achieve

rapid and dramatic improvements and progressively shift their culture.

The kaizen event may be a few days to a few weeks at the most to Determine the current state of a process (baseline) Describe the problems Agree on a future state Conduct experiments to determine the future state can be achieved

by the improvements Define and accomplish the quick wins to gain most of the benefits Add remaining tasks to a backlog to achieve continuous

improvement

Why Do a kaizen Event? – Establish, change and improve a process.

Dr. George Royce

Steps in a Kaizen Event

Dr. George Royce

Define ProcessProblem

Define ProcessProblem

Identify Waste in Current Process

Identify Waste in Current Process

Conduct Gap & Root Cause

Analysis

Conduct Gap & Root Cause

Analysis

Measure Current Performance

Measure Current Performance

Define Should-BeProcess

Define Should-BeProcess

Develop 60 Day Action Plan

Develop 60 Day Action Plan

Improve Current Process

(This may include multiple experiments

before implementing)

Improve Current Process

(This may include multiple experiments

before implementing)

Standardize Operating Procedures

Standardize Operating Procedures

Expose ProblemsExpose Problems

Find theRoot CauseFind the

Root Cause

ImplementChanges

ImplementChanges

StandardizeWork

StandardizeWork

Do

It

Do

It

Source: Wyndham

Develop Measurements

for Success

Define the Process Problems

Listen to the Voice of the Customer: Your competition is offering a similar or better

product or service for less. Customers complain about how long it takes to

deliver a product or service. Your site or code is not secure and customers don’t

trust your service or product. What are other problems customers my point

out???

Dr. George Royce

Dr. George Royce

Define - Voice of the Customer (VOC)

Whenever you define a process, ask these questions about the process:

Who is the customer?

What are their Requirements?

How do we validate the requirements?

How do these impact our process?

Voice of the Customer (VOC) and Defining Value Added Steps in a process

Voice of the Customer (VOC) is listening to the actual customers of the product you deliver and translating the information into the needs of the customer.

Value added Steps in a Process are steps that the customer is willing to pay for.

Dr. George Royce

Dr. George Royce

Define – Listening to the Voice of the Customer (VOC) Interviews

Customer Observation

Surveys

Competitive Benchmarks

“Be A Customer”

Focus Groups?? How does your company collect voice of the customer information?

Value Add verses Non-Value Add Steps in a Process

Dr. George Royce

Our customers can tell us what they are willing to pay for. Process cycle efficiency is a measure of value added verses total time.

Mapping an Information Technology Process

How do we define a process that we find is broken or in need of improvement?

You need to understand the Internal and External customers in any process.

For example the Process is : PC Helpdesk Support

Dr. George Royce

Internal External

1. Clients/Customers 1. Field Clients/Customers

2. Internal Developers

What are the inputs and outputs of this process?

Defining a Process - SIPOC

Dr. George Royce

Mapping a high level process - Use a SIPOC

Suppliers The suppliers of work May be internal or external

Inputs Products, information or other material needed for process.

Process The steps used to go from the inputs to the outputs. Includes value add work and non-value add work.

Outputs The outcome such as the service provided or product

provided. Ensure you meet the Critical to Quality (CTQ) measures.

Customers Customers of the process

Defining a Process - SIPOC

Dr. George Royce

Examples of a SIPOC for a PC Helpdesk Process

Suppliers Inputs/CTQ Process Outputs/CTQ Customers

Client Telephone Call

Webform

Vendors

Incident Tickets

Service Requests

Client places Call on Problem

Service Desk opens

incident/request

Connects to client

desktop

Issue Resolved or Completed

• Answer call within 45 seconds.• First Call resolution is 65%

Customers

• Problem resolved and email sent within 5 minutes or phone contact is made

• Meets expectations / needs of customer

SIPOC

Internal Developers

Incident /Service Request is Closed

Internal Developers

ACTIVITY 2 – Create a SIPOC for Sample Problem Team should read the sample problem. From the sample determine the:

Suppliers• The suppliers of work• May be internal or external

Inputs• Products, information or other material needed for process.

Process• The steps used to go from the inputs to the outputs.• Includes value add work and non-value add work.

Outputs• The outcome such as the service provided or product provided.• Ensure you meet the Critical to Quality (CTQ) measures.

Customers• Customers of the process

Create a SIPOC for this process on a sheet of easel paper. Your Team has 10 minutes.

Dr. George Royce

Traditional Value Stream Map Value stream mapping is a lean manufacturing technique used to

analyze and design the flow of materials and information required to bring a product or service to a consumer. At Toyota, where the technique originated, it is known as "material and information flow mapping".

Dr. George Royce Rother, Mike; Shook, John (2003). Learning to See: value-stream mapping to create value and eliminate muda.

Why Create a Value Stream Map?

Helps everyone understand the current process.

When preparing for a Kaizen event it helps determine what additional metrics are needed to determine the value /cost of each step in a process

Helps create a vision for process improvement

As more data for each task is identified, it can be easily added to the Value Stream Map.

Dr. George Royce

Standard Swimlane Diagram Swimlane is a convenient way to show tasks as they move

from one department to another and can also illustrate the current and future state.

Dr. George Royce

Books Online: Order Fulfillment Process

Web

Por

tal

Web

Por

tal

Cre

dit C

ard

App

rova

l

Cre

dit C

ard

App

rova

lS

hipp

ing

Shi

ppin

gP

acka

ging

Pac

kagi

ngC

usto

mer

Cus

tom

erO

rder

S

yste

m

Ord

er

Sys

tem

Exc

eptio

ns

Cle

rk

Exc

eptio

ns

Cle

rk

(order rejected)Receive Order

Order Process

Review Approve Charge

Close Order

Review Order

Credit Card Approval

Revise Order

Re-Review Order

Fill Order

Ship Order

Receive Books

(order incomplete ask customer for more information)

(order accepted; send work order

to shipping)

Books Confirmations

Sys

tem

sO

rder

Fu

lfill

men

ts

Swimlane Value Stream Map Add key metrics such as lead times and value added times for each

task. Add this on each task. Save room for costs of each task.

Dr. George Royce

Swimlane Value Stream Map Add key metrics such as lead times and value added times for each

task. Add this on each task. Save room for costs of each task.

Dr. George Royce

Swimlane / Value Stream Map created with Sticky Notes

Dr. George Royce Task

Decision

Description

Cost VAT

VA/NVA/RNVA

ACTIVITY 3 Create a Swimlane / Value Stream Map of the Sample Problem using Sticky Notes

Dr. George Royce Task

Decision

Description

Cost Time

Using the task descriptions in the sample problem, create a swimlane value stream map using Easel pad paper (you may need more than one sheet and sticky notes). Use the approach shown below to document task costs and value added time. Leave room at the bottom of the chart show a line indicating value added time and lead time. Total these at the end of the line.

Use an additional sheet of easel paper to document the current problems with the process, opportunities for improvement, any additional metrics you need to collect to ensure you are changing for the better.

You have 25 minutes

VA/NVA/RNVA

Dr. George Royce

Lean – Work in Process

Work in process sound like manufacturing, but we should think of them as things in process (TIP). This includes the phone call you have to return, checks waiting to be processed, applications for loans or insurance that need to be processed.

Delays/ Queue Time: If you have WIP, you have work that is waiting to be worked on. Any time that work sits in a queue you can consider that a “delay.”

Lean Six Sigma for Service by Michael L. George

?? What are examples of items you have or had in your jobs that had a work in process queue? For example in insurance an important WIP queue is the policy underwriting/issue queue.

Dr. George Royce

Lean – Value Add / Process Efficiency

Value –Added activities are those that add value in the eyes of the customer.

Non Value-Add activities are everything else. Process Cycle Efficiency (PCE) relates the amount of

value-add time to the total lead time of a process.

PCE = ___Value-Add Time____ Total Lead Time

Lean Six Sigma for Service by Michael L. George

?? In registering for a class what do you as a customer think is a value added activity? What is a non-value added activity??? Give another example of value add and non value add in bank or where you work.

Dr. George Royce

Calculate process cycle efficiency of your process Most processes are “un-lean.” 50% or more of work is non-

value add. Process Cycle Efficiency (PCE) is usually less than 10%.

PCE = ___Value-Add Time____ Total Lead Time To improve this:

Look for non value added work and eliminate whenever possible.

Reduce the lead time

DIRECTIONS: using your data calculate the PCE for your process and discuss ways to improve this.

Lean Six Sigma for Service by Michael L. George

Dr. George Royce

Lead Time

Lead time is how long it takes for you to deliver your service or product once the order is triggered.

Little’s Law

Lead Time = ____Amount of Work-In Process____ Average Completion Rate

The idea is that you don’t have to track an item to know lead time, so long as you know how many items you are working on and how often you finish one of them.

Lean Six Sigma for Service by Michael L. George

Dr. George Royce

Lean Lesson #2: Reduce Work In Process

A primary goal should be to reduce Work In Process

Lead Time = ____Amount of Work-In Process____ Average Completion Rate

In any operation that doesn’t deal directly with customers – that is, where WIP is orders or calls or emails or reports, not people – controlling WIP is much easier than improving completion rate.

Sample problem: A graduate admission office has 30 applications awaiting review. The reviewer has been able to complete 5 files per day. What is the average lead time for the graduate admission process?

Lean Six Sigma for Service by Michael L. George

Dr. George Royce

Lean Lesson #3: Creating a Pull System

In non customer-facing processes, WIP can be reduced by using a Pull system.

In any operation that doesn’t deal directly with customers – that is, where WIP is orders or calls or emails or reports, not people – controlling WIP is much easier than improving completion rate.

Whenever, and wherever possible, limit how much work goes into a process queue at a given time.

Work released into pull systems in a service environment means making deliberate decisions about timing of work released into a process For example, you may want to triage bid opportunities based on Difficulty of bid Gross Profit dollars Competitive advantage

Lean Six Sigma for Service by Michael L. George

Dr. George Royce

Pull System For Sales Quotes

5

4 3

2

3

11

11 3

5

4

1

5

4

2

22

Pull SystemModerate complexity quotation work cell

WIP Limit = 48 Units of Work

5

1

24

3

1 Input/prioritizationUsed to manage staffing requirements

5

2

1

3

1

4

23

4

Production

Exits = 20 Units/Day

Average Cycle Time = “Quote WIP” /Exit Rate= 48 units/20 units per day = 2.4 days

?? How are work queues managed in your company? How is it prioritized?

Dr. George Royce

Create Your Own Pull System

Identify/confirm the service level you want to achieve (ask your customers about this)

Determine your work group’s completion rate. Use Little’s law to determine WIP. Cap active work in the process to the maximum WIP. Put all work in the incoming buffer Develop a triage system for determining which incoming

work should be released into the process. Continue with other process improvements so you can

improve completion rates and further reduce lead time. Use a Kanban board with WIP limits to limit work in

process.

Lean Six Sigma for Service by Michael L. George

What Is Kanban?

Kan means "visual" ban means "card" or "board” A signaling system to trigger action Uses cards to signal the need for work to be done Toyota Lean lesson focusing on Just in Time

production Example: 20 car doors, 5 left = “time to make more

doors” Doors are requirements, requirements are inventory

Dr. George Royce

3 Rules of Kanban

Strict Queue Limits

Pull Value Through

Make it Visible

Remember – “Value” in the eyes of the customer

Dr. George Royce

Sample Kanban Board – Note Limits to each step.

Dr. George Royce

Dr. George Royce

Lean Lesson #4: Quantify the Opportunity

A Lean Process is one in which the value-added time is more than 20% of the total cycle time of that process.

Lean Six Sigma for Service by Michael L. George

Application Typical Cycle Efficiency

World Class Cycle Efficiency

Continuous Manufacturing 5% 30%Business Processes (Service) 10% 50%Buisness Processes (Creative/Cognitive) 5% 25%

Dr. George Royce

20% of the activities cause 80% of the delays.

The 20% activities are called “Time Traps”

Use Value Stream Mapping to highlight the wasted time that usually isn’t apparent to people in the middle of the process.

Lean Lesson #5: Lean 20/80 Rule

Lean Six Sigma for Service by Michael L. George

?? What are examples of time traps in your company for the work you do or others do in your company?

Dr. George Royce

Q

SaraFinanceManager

50 minC/T 6 min

Q

SueSecretary

184 min5 min

Supplier

Sales Order

PocketPonyInc.

Q

10 minC/T 0 min

10 min

Customers

Fancy Carriage Company

Prod.Depts. 240 min

FileAway

Mail Room

Q

92 min

Filing Dept.

Q

1440 min

BOBContracts Manager

CT 15 minQ

125 min

C/T 20 min

20 min

Q

120 min

JudySecretary

60

120

15

JerryProgram Admin.

Q

195 minCT 17 min

CarlSecretary

Q

53 min5 min

845

10 min

Q 155 min

C/T 22 min

145 10

22 min

C/T 8 min

Q

103 min

6835

C/T 2 min

163 min

Q

945 min

195480270

25 min

Q 90 min

C/T 53 min

4050

5 min

Q 35 min Q 50 min

5 min

1040

How do we know if a process is wasteful? Value Stream Mapping and Process Cycle Efficiency

LeadTime Total

timeAdd ValueEfficiency Cycle Process

Lean Six Sigma for Service by Michael L. George

ACTIVITY 4A: Analyzing the Value Stream Map – Suggest Improvements Your team should now determine what additional data is needed before you

can conduct an effective kaizen event? Collect that before you begin the event.

What non value added steps can be eliminated? What can we stop doing? Which steps can be streamlined or combined if they need to be done. Where does inventory build up? Why? What can we do to avoid this backlog. When is lead time longer than the time you promise your customer? Why is

that? Use tools a like a Pareto chart to determine items to go after as quick wins.

Your team should take 10 minutes and complete the analysis of the value stream map and determine next steps and proposed experiments to test your ideas before implementing in production.

Dr. George Royce

ACTIVITY 4B: Time to create your Kaizen Event Charter!!!

Create a problem statement: Explain what is wrong Where and when does it happen Explain how you know this

Write the objective of the Kaizen event: Improve X metric from the current levels to Y by Z time.

Team should complete in 15 minutes

Dr. George Royce

Filename: Kaizen Event Charter

Steps we have developed in preparation for a Kaizen Event

Dr. George Royce

Define ProcessProblem

Define ProcessProblem

Identify Waste in Current Process

Identify Waste in Current Process

Conduct Gap & Root Cause

Analysis

Conduct Gap & Root Cause

Analysis

Measure Current Performance

Measure Current Performance

Define Should-BeProcess

Define Should-BeProcess

Develop 60 Day Action Plan

Develop 60 Day Action Plan

Improve Current Process

(This may include multiple experiments

before implementing)

Improve Current Process

(This may include multiple experiments

before implementing)

Standardize Operating Procedures

Standardize Operating Procedures

Expose ProblemsExpose Problems

Find theRoot CauseFind the

Root Cause

ImplementChanges

ImplementChanges

StandardizeWork

StandardizeWork

Do

It

Do

It

Source: Wyndham

Develop Measurements

for Success

Dr. George Royce

Automating a bad business process just adds to cost without improving the process.

Lean is: More of a mindset, a cultural framework focusing on the customer and

eliminating waste. Lean applies to all types of work (knowledge work)

Even though it became popular in manufacturing (Toyota Production System) Lean principles can be applied to virtually any process Lean project management is the use of Agile and Kanban for software Kaizen is an approach to continuous process improvement. It is a way

of thinking and behaving. It is about unleashing the creative power of people actually doing the work, in order to design more effective and efficient processes.

Value added and non- value added processes are determined by the customer.

Consider PCE (process cycle efficiency) in reviewing a value stream. Try to eliminate as many non value added steps in a process.

Use a Pull System where new work is released into the process only when work has exited to the next process.

Summarizing Lean Thinking

Lean Six Sigma for Service by Michael L. George


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