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Copyright © Institut Lean France 2012
22 & 23 November, 2012 Paris, France
Lean@TIPS
Lean transformation of large
distributed product development
Copyright © Institut Lean France 2012
Martin Chmelař,
Lean&Agile Coach
Matěj Kastner,
TIPS PLAN Team Leader
Speakers
Lean@TIPS – Matěj Kastner & Martin Chmelař 2
Copyright © Institut Lean France 2012
The leading IT service company in
Northern Europe providing IT and
product engineering services
Tieto
Lean@TIPS – Matěj Kastner & Martin Chmelař 3
More than 18,000
employees in close to
30 countries
Copyright © Institut Lean France 2012
Lean transformation@Tieto
Lean@TIPS – Matěj Kastner & Martin Chmelař 4
Driven by Mentor Pair work with Internal Coach
New coaches Independent
Team
An individual case
Driven by Internal Coach
Company wide (Year 2015)
Doubled speed
Doubled efficiency
Half of effort Bottom-up
realization
Top-down
support
DMN
Copyright © Institut Lean France 2012
Tieto Integrated Paper Solution
TIPS
Lean@TIPS – Matěj Kastner & Martin Chmelař 5
• A comprehensive sales,
logistics and production
management solution for
the pulp, paper, board
and tissue industries
• Management of the
whole order-to-cash
value chain
The leading manufacturing execution system
for paper mills
Copyright © Institut Lean France 2012
22 & 23 November, 2012 Paris, France
CHALLENGES
TIPS Product Development
Lean@TIPS – Matěj Kastner & Martin Chmelař 6
Copyright © Institut Lean France 2012
Geographical setup
Lean@TIPS – Matěj Kastner & Martin Chmelař 7
250 people in more
than 3 countries
100
100
50
Finland
Czech Republic
Germany
Copyright © Institut Lean France 2012
Matrix organization
Lean@TIPS – Matěj Kastner & Martin Chmelař 8
Profit Utilization
Head count
Disconnected goals
Copyright © Institut Lean France 2012
Process organization
Lean@TIPS – Matěj Kastner & Martin Chmelař 9
Customers
Service 1
Core Product
Development
X
X
X
Y
Z
Heavy overload
Copyright © Institut Lean France 2012
Value for customer???
Lean@TIPS – Matěj Kastner & Martin Chmelař 10
CZ
GER
FIN
Customer Flow Value delivery chain
Copyright © Institut Lean France 2012
Disaster
Lean@TIPS – Matěj Kastner & Martin Chmelař 11
Customers
Employees
Defects
Profit
Copyright © Institut Lean France 2012
22 & 23 November, 2012 Paris, France
SOLUTION
STOP! We need to change something
Lean@TIPS – Matěj Kastner & Martin Chmelař 12
Copyright © Institut Lean France 2012
Don’t control – improve!
Lean@TIPS – Matěj Kastner & Martin Chmelař 13
TIPS product development
Mill execution system – TIPS
Lean@Manufacturing
Paper mill
Complex
• Learn and adapt
“Simple”
• Stabilize and control
Copyright © Institut Lean France 2012
Continuous improvement
Lean@TIPS – Matěj Kastner & Martin Chmelař 14
Lean@Tieto/TIPS
TIPS product development
Mill execution system – TIPS
Lean@Manufacturing
Paper mill
Copyright © Institut Lean France 2012
Ask for help with
implementation!
Lean@TIPS – Matěj Kastner & Martin Chmelař 15
Coaching & Mentoring
Lean@Tieto framework
Lean@TIPS continuous improvement
TIPS product development
Copyright © Institut Lean France 2012
22 & 23 November, 2012 Paris, France
LESSONS LEARNT
From the trenches
Lean@TIPS – Matěj Kastner & Martin Chmelař 16
Copyright © Institut Lean France 2012
Pull people out of their boxes
Lean@TIPS – Matěj Kastner & Martin Chmelař
Lean Awareness Workshops
• Cross countries, units and functions
• Lean tools – practical experience
Kaizen workshop
• Synchronize
• Focus
• Go!
!
!
!
!
!
C C !
!
!
Copyright © Institut Lean France 2012
Break the silos
Lean@TIPS – Matěj Kastner & Martin Chmelař 18
Communication
Carsten Henke
Director, TIPS
6%
(76% mgmt.)
ROI for time
investment
200% Shared targets & Balancing KPIs
(2011->2012)
Truly global organization
with international teams
CZ
GER
FIN
Copyright © Institut Lean France 2012
Solve problems together
Lean@TIPS – Matěj Kastner & Martin Chmelař 19
?
Copyright © Institut Lean France 2012
Solve problems together
Lean@TIPS – Matěj Kastner & Martin Chmelař 20
? ?!
Copyright © Institut Lean France 2012
Solve problems together
Lean@TIPS – Matěj Kastner & Martin Chmelař 21
? ?! ?!?
@#&!
Copyright © Institut Lean France 2012
Solve problems together
Lean@TIPS – Matěj Kastner & Martin Chmelař 22
? ?! ?!?
C C
?
@#&!
Copyright © Institut Lean France 2012
Question value of every activity
Lean@TIPS – Matěj Kastner & Martin Chmelař 23
Code change
Propagation of code changes
limited to 3 versions
(from original 5-8)
~150 k€/year
saved
Example
Copyright © Institut Lean France 2012
Slow down to speed up
Lean@TIPS – Matěj Kastner & Martin Chmelař 24
1. Establish pull concept
2. Prioritize
3. Dedicate capacity for improvement
Service 1
Core Product
Development
P
U
L
L
Available
Improvement Overrun
Capacity
X
X
X
Y
Z
Customers
Copyright © Institut Lean France 2012
Make it sustainable
Lean@TIPS – Matěj Kastner & Martin Chmelař 25
1. Learning
2. Focus
3. Improvement
Behavior AVG DEV Data
We create enough improvement ideas/A3s 4,1 0,38 5 4 4 4 4 4 4
A3s are prioritized by estimated benefit (and complexity) 3,0 0,82 3 4 3 4 2 3 2
We resolve A3s fast enough 1,7 0,76 2 3 2 1 1 1 2
Every A3 has set "good enough goal" (acceptable level) 2,0 1,41 2 2 1 5 2 1 1
There are regular follow-ups on A3s in progress 2,1 0,69 3 3 2 2 1 2 2
Every A3 in progress has an agreed future next step 2,9 0,90 2 4 4 3 3 2 2
1. Regular self-reflection: “How much do you think we do this?” (1-5)
2. Well, it seems we don’t resolve A3s fast enough due to vague goals…
3. Let’s define more concrete A3s’ goals
Copyright © Institut Lean France 2012
Grow internal Lean coaches
Lean@TIPS – Matěj Kastner & Martin Chmelař 26
E E I
I I
External coaches/mentors:
• Experience tools, solutions, shortcuts
• Focus on what is important speed
• Spreading information breaking silos
• Step back let internal coaches drive
? ?
!
E E
E
E
I I
I
Copyright © Institut Lean France 2012
22 & 23 November, 2012 Paris, France
RESULTS
Lean@TIPS – Matěj Kastner & Martin Chmelař
27
Copyright © Institut Lean France 2012
Results
Lean@TIPS – Matěj Kastner & Martin Chmelař 28
Profit
2x
* Average monthly profit
in 2012 compared to 2011
Satisfaction
Customers
Employees
-10
0
10
20
30
40
50
Start
Copyright © Institut Lean France 2012
Results
Lean@TIPS – Matěj Kastner & Martin Chmelař 29
Defects
Lead time (from order to closure)
35
45
55
65
75
85
95
105
115
125
135
1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10
2011 2012
0
200
400
600
800
1000
1200
1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10
2011 2012
Start
Start
Copyright © Institut Lean France 2012
Feedback
Lean@TIPS – Matěj Kastner & Martin Chmelař 30
Lean@Tieto significantly contributed by: x
• Cross-functional, cross-country Lean workshops providing brand new perspective on improvements, pulling people out of their boxes. x
• Sharing experience and providing on-job coaching.
Carsten Henke
Director, TIPS
Copyright © Institut Lean France 2012
• Break the silos Bring people together – pull them out of their boxes
Align targets – shift them upwards
• Slow down to speed up Reduce incoming work – create space for improvement
Question value of everything you do
• Make it sustainable Grow up internal Lean coaches
Establish regular self-reflection
Key take-aways
Lean@TIPS – Matěj Kastner & Martin Chmelař 31
Copyright © Institut Lean France 2012
Do
Check
Act
Plan
Future work?
Lean@TIPS – Matěj Kastner & Martin Chmelař 32
Limit improvements WIP
Stabilize and standardize improvements
Help internal coaches grow
Copyright © Institut Lean France 2012
22 & 23 November, 2012 Paris, France
QUESTIONS
Thank you
Lean@TIPS – Matěj Kastner & Martin Chmelař 33
Copyright © Institut Lean France 2012
22 & 23 November, 2012 Paris, France
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