Lean Tools forThe Rest of the Enterprise
Presentation Materials Also Contributed by:
Tim Swanson, TSG Associates
Drew Locher, Change Management Associates
Beau Keyte, Branson Inc.
Mike Rothmeier410-935-1011
Today’s TopicsOverview of Lean Concepts applied in
offices, support areas and admin processesThe Lean Briefcase
“Basic Tools" - standard work, quality at the source, workplace organization, visual controls, people involvement, and batch reduction.
“Secondary Tools” - pull, flow, leveling and management timeframe or "pitch".
Actual applications in a variety of processes.Discuss successes at your facilities:
Aerospace, Automotive, Bio-Med, Chemicals, Communications, Electronics, Foods, Government, Healthcare, Info Services, Insurance, Logistics, Metals, Military, Realty, Research, Tool & Die, Transportation, Utilities
Lean Enterprise
LeanLean represents our represents our
abilityability to turn to turn
customer customer interestinterest into into
customer customer satisfactionsatisfaction..
Perfection
Value StreamValue
CUSTOMER
FlowPu
ll
The Lean Pentagon
Adapted from:Lean Thinking
by Jim Womack, 1996
What Are the Customer’sReal Requirements?
Who is the customer?
What do they really want, need or value?
Lead time, features, quality, service level, cost…
When do they want the product or service?
Where do they want the process output, product or service?
Why, Why, Why, Why, Why?
How often do they want the product or service?
Lean Office Opportunities
Order to Cash Cycle
Purchasing
Designing Producing
Shipping
Accounting
Training Quoting
Order to Cash Cycle
Hiring
Implementing Lean…Redefining the work
of functions, departments and firms
so they can make an
increasingly positive contribution
to the value stream
Common Causes of WasteChanging priorities
No decision rules
Poor visual control
Free-form processes
Lack of training
Miscommunication
Unclear objectives
Organization structure
Technology gaps
Excessive controls
Outdated tasks
No cross-training
Unbalanced tasking
Informal batching
Becoming Lean is…
• Examining the Process
• Improving the Systems
• Identifying NVA (Non Value Adding) activities
• Selecting the right tools to eliminate NVA
• Protecting the new changes
• Doing it better, and better, and better—every day
Lean Briefcase
The Lean Briefcase– Standardized Work– Quality at the Source– Workplace Organization– Visual Controls & Management– People Involvement– Batch Reduction or Elimination– Pull Systems– Cellular/Team Concepts– Equipment Reliability– Leveling– Management Timeframe – Takt Image
– Teams
Actively engaged in planning & goal-setting
Cross-trained and multi-skilled employees
Can perform many tasks within a work area and
eventually work in a variety of areas
Team members rotate into highly skilled jobs
– Expanded responsibilities and authority
– Participate regularly in suggestion programs
People Involvement
Steps to get People Involved
– Eliminate the need to obtain specific approvals by providing guidelines that assure quality outputs
– Increased spending authority levels– Hourly associates involved in interviewing
process– Establish training charts with mentors– 360o performance evaluations– Others?
Don’t “Publish” a Linear Schedulefor the team membersActivity 1/29 2/5 2/12 2/19 2/26 3/5 3/12 3/19
1. Explanation of deductions
Resp: all departments status: complete
2. Type definitions & edit them
Resp: mary status: complete
3. Printing, proofing, & small order
Resp: outside printer status: @ printer
4. Develop q&a brochure
Resp: team status:
5. Make changes to book
Resp: team status:
6. Send book out to everyone
Resp: team status:
7. Follow-up interview
Resp: team status:
…Develop a Compressed Schedule with the Team Members
G
DeliveryB
2 wksD
2 wks
C
3 wks
F
2 wks
E
2 wks
A
3 wks
Float
Consistent time interval – weekly for this example
The TECHNICOLOR® Suggestion Form
“QUICK AND EASY IMPROVEMENTS”
Condition BEFORE: Condition AFTER:
The EFFECT:
Employee NAME: DATE:
Consistent business processes, independent of which individual is performing task• Quote• Order• Drawing• Invoice• Bill of Lading
Standardized Work
Standardizing Project Reviews
ConceptDesignExecution PlanningExecutionReview• Acceptance of Deliverables• Assessment of Project Management• Evaluation of the Original Concept
Standard Project Review Process
• Acceptance of Deliverables– Did we deliver what we said we would?
• Assessment of Project Management– How well did we manage the project?
• Evaluation of Original Concept– Was this a good idea after all?
– People must be certain that the product or information they are passing to the
next work area is of acceptable quality.
– People must be given the means to perform inspection at the source before they pass it along
Quality at the Source
Two Options to Prevent Mistakes
Demanding Vigilance –Exhort workers to “Be more careful”; Discipline worker for mistakes (negative feedback)
Mistake Proofing –Eliminate the chance of making an error (Poka-yoke)
Mistake ProofingA method of developing tools,
techniques and processes which prevent or detect an error before it turns into a defect.
–Simple signals that provide an immediate understanding of a situation or condition.
Visual Controls for the Office
Visual Project Management• Team Project Tools
• Stoplight Status Devices
• “Live” status updates
• Done/Doing/Do/CI Walls
• Project Problems List
• Common Status Room
• Global Grass-catcher List
• Others?
Description
Start Date
Finish Date
Team Member
Why Visual vs. Computer
• Everyone can see anytime
• Always available
• Simplicity is a requisite
• Always updated by the team
• Not reliant on system accuracy
• No delays from batching updates
Event Name: Location: Date(s) & Time(s): Facilitators: Deann Elfering & Joan Edvenson Process Owner(s):?????????????? Scope: ????????????? Goals & Objectives:
1. ????????? 2. ?????????
Agenda:
♦ Vision of the day ♦ Lean Training ♦ Finalize scope and goals ♦ Map the process at a high level ♦ Interview at high level to get process details ♦ Map the process including the details ♦ Review the mapped process ♦ Determine if steps are value added or non-value added ♦ Map the future state ♦ Assign the action items to team members ♦ Determine the timeframe for follow- up meetings ♦ Review & Close! Team Members: ♦ ♦ ♦ ♦ ♦ ♦ ♦ ♦ ♦ ♦ ♦ ♦ ♦ ♦ ♦
Schedule: 8:30AM –Coffee/Juice and introductions 8:40AM – Opening Remarks
Lunch will be provided ?????. Snacks and beverages will be served all day, each day.
Please dress comfortably!
Communicating Lean Events
Lean Event: Contracts 06/10/03
Consultant Services Time (hrs) $/unit
# of units Savings Totals
# of units
Monthly
Monthly Savings
Monthly Totals Annual Savings
Double HandlingDuplicate contracts 0.033 $14.43 7 $3.33 140 $66.67 $800.00Contacting new recruit for information 75% 0.4 $14.43 45 $259.74 900 $5,194.80 $62,337.60Rekeying kit order for ATP 0.033 $14.43 7 $3.33 150 $71.43 $857.14Vertex 0.017 $14.43 3 $0.74 75 $18.40 $220.78Retry payment issue contracts 0.05 $14.43 7 $5.05 150 $108.23 $1,298.70
$0.00 $0.00 $0.00$0.00 $0.00 $0.00$0.00 $272.19 $0.00 $5,459.52 $0.00
Error Prevention$0.00 $0.00$0.00 $0.00 $0.00 $0.00
Error Reduction$0.00 $0.00$0.00 $0.00 $0.00 $0.00 $0.00
Steps EliminatedSort through faxed paperwork/staple/stamp date 0.25 $14.43 4 $14.43 20 $72.15 $865.80Verify information on contract & in Summit-NSF 0.017 $14.43 150 $36.80 3000 $735.93 $8,831.16Processing adendums 0.5 $14.43 3 $21.65 60 $432.90 $5,194.80Key contract in Summit 0.05 $14.43 150 $108.23 3000 $2,164.50 $25,974.00Enter kit in SAP 0.025 $14.43 150 $54.11 3000 $1,082.25 $12,987.00Tax rate issues 0.017 $14.43 1 $0.25 50 $12.27 $147.19Payment issues 0.05 $14.43 15 $10.82 300 $216.45 $2,597.40Key in support guide order 0.025 $14.43 15 $5.41 300 $108.23 $1,298.70Processing Candian contracts 0.5 $14.43 2 $14.43 40 $288.60 $3,463.20Filing contract 0.09 $14.43 150 $194.81 3000 $3,896.10 $46,753.20
$0.00 $0.00 $0.00$0.00 $460.92 $0.00 $9,009.37 $0.00
Steps Added$0.00 $0.00 $0.00$0.00 $0.00 $0.00$0.00 $0.00 $0.00 $0.00 $0.00
Total Savings: $733.12 Monthly: $14,468.89 Annual:
Benefit Results
Action Items Worksheet
Lean Event: Consultant Services Contracts Process Owner: Arlie Nydeen Lean Event Dates: June 10 -11, 2003
Task / Action Item Responsible
Person(s) Due Date Date
Complete Action Taken :Detailed Information
1.
Review contract form • Online • Easy to use • Capture all necessary information • Automated (online) • Training • Investigate check boxes (SP/CAN/?) • Canadian Issues • Money Order information fields
Jennifer August 2004
Brainstorming meeting held on Thursday, July 17. Follow-up meeting scheduled for Tuesday, August 5. At follow-up meeting, changes to improve the Consultant Agreement were discussed and approved. The contract will change next August, along with other Showcase changes. The contract will no longer be Legal size, it will c hange to 8 ½ x 11 with no carbon copies. The Spanish section will be reworded so the Consultants better understand it. The revised contract will capture all the necessary information and will be easier to use. Jen did a PDR to have the PDF file that is onl ine for the contract changed to HTML so that the Consultants can fill out the information and then print it off.
2.
Do we need a separate fax machine for contracts?
• CSR’s have to sort out orders, etc… When they are received
• Separate bin
Teresa N/A Complete
In June I requested a study by IS on ability/feasibility of adding a second Right fax printer. This action item is no longer needed due to digitizing.
1. Sort - sort through everything and eliminate what we can from the workplace. “When in doubt, sort it out!”
2. Set-in-Order - whatever should be kept should be visible and self-explanatory so everyone understands
3. Shine - everything that remains. Cleaning processes are established for equipment & work spaces
4. Standardize - Set standards for the first 3 S’s
5. Sustain - encouraging discipline, sticking to the rules and making new rules into new habits
5S Techniques
One Piece Flow
• Requires prioritizing!!!!!!• REPEAT AFTER ME—PRIORITIZING• ONE MORE TIME— P R I O R I T I Z E• Eliminate Multi-taskingØ Multi-tasking is the biggest killer of lead time (30%+)
1.Start a task, 2.Finish that task, 3.Move on to the next task
Q1 Q2 Q3 Q4
Traditional Project Approach
4 Simultaneous Projects• None of them get finished on-time• No benefits of completion• Negative “nothing ever gets done” attitude
Traditional Batch & Queue Approach!
Q1 Q2 Q3 Q4
Lean Project Approach (Reduced Batch Sizes)
4 Effective & Efficient Projects• Each project finished on time & in time• Receive all benefits of completion• Positive “Things get Done” approach
Lean “One Piece Flow” Approach!
Project Benefit Payback Period
Where Must We Batch?
• Activities that cannot be performed in one-piece
– UPS pick-up, mail delivery once per day
• Activities that are not practical to do in one-piece
– Payroll processing, Payables checks
• Activities dependent on daily “meetings”
– Morning planning meeting
– Beware of customer time requirements!
Office Leveling Examples
Annual price book changes staggered by quarter
Month-end close activities at weekly intervals
Assessing project team performance daily
Cut-off times for new orders each day
Management check-in every 2 hours
Pre-planned intervals for infrequent tasks
Applying Takt Time
GOAL: ALWAYS Produce to DemandGOAL: ALWAYS Produce to Demand
Takt =Takt =2700 sec90 slides
= 30 sec / slide
Takt Time =Takt Time = Work Time AvailableWork Time Available
Number of UnitsNumber of Units
– Push SystemResources are provided to the consumer
based on forecasts, schedules or “when we get to it.”
– Pull SystemA method of controlling the flow of
resources (people, information) based on pre-established rules, consumption, and the actual status of the system at any time.
Pull Versus Push
Overcoming “Parkinson’s Law”and “The Student Syndrome”
Traditionally Planned Project
Buffer
Step 1 – Globalize Safety Buffers
Buffer
Step 2 – Right Size Safety Buffers
Project Time Reduction
Lean Equipment in the OfficeRight-sized equipmentPreviously “expensive” equipmentReliability of office equipmentAvailability of equipment
Potential issues:• Limited software licenses (# of users)• Excessive system downtime• Machine startup / re-startup processes
• Slow system response time• Automatic Update and Archive cycles• Office Equipment changeover time• Uniquely identified for quick service
The physical linking of people and support technology into the most efficient combinationto maximize value-added content while minimizing waste.
Cellular Teams in the Office
OrderEntry
TechSupport
Scheduling
Invoicing
Office Cells: Highly Transactional Processes
Quote or Proposal developmentMortgage processingClaim processingProduct DesignOrder EntryMonth-end closingPayroll processingHot Seat Roles
WIIFM: What’s the Impact?
If you:• Miss one product launch• Launch an inferior product• Deliver a great product—
3 months late• Always follow the competition
to market -
Do These Sound Familiar?1. My teammates are disorganized2. We don’t have enough time to do the job3. We never improve the process4. We don’t trust our teammates5. I can’t focus on one thing at a time6. There aren’t enough resources7. The teams don’t understand the objective8. We can’t get all the approvals in time9. We repeat the same mistakes over & over
Lessons Learned in the Office
Be prepared to show the WIIFM
Use Lean to build value, not for “Waste Hunts”
Challenge existing roles and responsibilities
Address current reasons for batching habits
Verify the results to reinforce new behaviors
“It’s my cubicle, why do I need to organize
it differently?”
Lessons Learned in the Office
“Whether you think you can, or think you can’t
—You’re Right in Either Case”
Concentrate on non-standardized processes
Never underestimate the advantages of
Shorter timeframes
Judge yourself Harshly
Keep things Simple
Mike Rothmeier Mike Rothmeier Experienced consultant, coach,
trainer, engineer and project manager
Consulting background includes:ì Lean Toolbox Deployment
ì Business System Improvement
ì Product Engineering
ì Facilities Layout, Relocation & Design
ì Project and Program Management
Assignments include Engineering, Production, Facilities, Customer Service, Product Design and R&D