Date post: | 17-Nov-2014 |
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LEAN 101
Mike NugentPrevention Services Division
CDPHE
“At Toyota we get brilliant results from average people managing a
brilliant process. Others get average results from brilliant people
managing broken processes.”
Source: Toyota Motor Co.
3
Toyota Production System
• Approach to Production– Build only what is needed– Stop if something goes wrong– Eliminate anything which does not
add value
• Philosophy of Work– Respect for Workers– Full utilization of workers’
capabilities– Entrust workers with responsibility
& authority
Taiichi Ohno
Core Concepts of Lean • Create continuous process flow to bring
problems to the surface• Use “pull” to avoid overproduction• Level out the workload (hejunka) • Get quality right the first time• Standardize tasks• Use visual controls so no problems are
hidden• Use only reliable, thoroughly tested
technology that serves your people and processes
• In pursuit of perfection
Customer Define Value
• Value-Added (VA):– Any activity performed during the
production of a product or service that increases the value to the customer or citizen
• Non-Value-Added (NVA):– Any activity that does not add value to
the customer or citizen, or that is not necessary in support of the main purpose. (These activities should be eliminated, simplified, reduced, or integrated.)
Sample Lean Event Tools
• Waste Walk • Rapid Improvement
Events (RIE)• 5S• Kanban• Process Mapping
6
Waste
• Waste is disrespectful of humanity – Because it squanders scarce resources
• Waste is disrespectful of individuals – Because it asks them to do work with
no value - President Toyota• Waste is disrespectful to Colorado
citizens– By asking them to endure processes with
no value
Waste
Overproduction
Inventory
Extra Processing
Motion
Defects/Rework
Waiting
Transportation
• Processing that the customer does not need or want
• Duplication• Processing a small deal the same as a large deal• Navigating multiple screens to input data• Printing material• Looking/researching for data/info
• Incorrect data on application• Missed customer due dates• Rework
• Application waiting approval• Waiting on information from customer• Waiting on information from 3rd party
• Receiving hardcopies from customer• Shipping hard copies for customer signature• Manually walking the application for approval
7 Wastes Characteristics
• Staff Members waiting• Multiple applications awaiting approval
Waste Walk
Kaizen- Rapid Improvement Event (RIE)
• Goal: Generate ideas for improvements and test changes at the work site
• Typically 4 days and report out event• Appropriate scope• Prework and data gathering key• Cross-functional team (8-10)
– Black Belt team leader– Process owner– 1/3 fresh eyes– 1/3 Lean experience– 1/3 team doing the work
Kaizen- Rapid Improvement Event (RIE)
Day 1 Examine a process/function or area Identify areas of waste, non-customer value
and metrics
Day 2 Develop new process, standard work and communication to eliminate identified waste and increase value
Day 3 Implement the new processes, standard work Monitor production board and communicate
standards Observe new process and any change in
metrics
Day 4 Adjust and fine tune new standards
RIE Day 4
5S• Sort (does it belong here)• Set in Order (organize)• Shine (clean)• Standardize (repetition process)• Sustain (metrics posted,
accountability)
How 5S will be used at PSD
• Reduce searching• Trigger an activity• Define standards for
consistent results
• Gain flow• Enable
communication and information sharing
• Mistake-proof tasks
Push and Pull method of Work Flow
Push Method: A method in which production of the item begins in advance of customer needs.
Example: A buffet where food is prepared in advance.
Pull Method: A method in which customer demand activates production of the service or item.
Example: A restaurant where food is only prepared when orders are placed.
Lean systems use the pull method of work flow.
KANBAN
Kanban means “card” or “visible record” in Japanese & refers to cards used to control the flow of production through a factory.
KANBAN is a PULL System .
Kanban System
Office Supplies Kanban Project
Process Mapping • Diagram that visually displays a series
of events, activities or steps that occur within a given process– Helps to define and analyze a process– Identifies deviations from the norm – Shows relationships between steps or
departments involved– Highlights value-added and non
value-added step in a process
1. What you think it is...
3. What you would like itto be...
2. What it actually is...
Versions of a Process
Process Mapping
Yellow notes: steps in the process
Pink notes: identify opportunities for improvement
Accurate?
PM contacts grantee
PM contacts
mgr
PM contacts control analyst
Add to pending
file
Response from
grantee
Need to resubmit?
Move forward
Start over
Keep old until new received
When new received, check pile
PM signs
PM enters into SAP
PM routes to Mgr
Accurate?
Send back to PM
Manager signs
Sends to Control Analyst
Accurate?
Type claim return form
CA initials and returns
to PM
PM copies claim for file
Original claim goes to Teri for logging
Copy claim return form
Submit claim return form
to Mgr
File claim return form
Mgr goes to PM for claim
resolution
PM resolves and forwards to Control Analyst
for initials
PM closes loop with
Mgr
Paul logs MOST claims
and walks upstairs
Teri walks claims upstairs to
business office mail box
Al receives claims from
mailbox
Al date stamps and distributes
Janet receives all
claims
Janet logs all claims and assigns #
Write claim # down and
sign
Janet pulls copy of purchase order/
contract and attaches to claim
Some claims: enter match/local benefit info into
spreadsheet
Take purchase order and claim form to
assure correct fund/performance period
Check vendor and remittant
address
Accurate?
Hold claim and contact
PM via email/phone
Enter into SAP (“parking” invoice)
Hand packet to Michael K. (2-3 times/
day)
View document # and compare with claim and
contract
Compare contract period
“Post it”Mike K.
signs claim form
Return to Janet
Janet separates claim form
purchase order and returns to file
Batch claim forms, copy
page 1 & 2, and return to PM
Before 2pm?
Paid next business
day
Paid business
day plus 1
Scan page 1 & 2 of claim form and file
in EDM (OTS)
File original claim (hard copy)
(Business office)
PM receives claim form
from grantee
Data stamp
PM Actions:-Verifies info on claim form-Checks supporting document-Verify math accuracy-Verify match & local benefit-Verify expenses are eligible-OTS contract mgmt manual-NHTSA federal finance document-CONUS/Travel infoFiscal rules (state & OTS)
Mgr Actions:-Verifies expenses fall within claim period-Verifies travel expenses-Verifies eligibility of expenses-Reviews match/local benefits on claim form-Verifies spending rate
Control Analyst Actions:-Verifies expenses fall within contract period-Checks claim against prior expenses-Checks SAP against claim-Completes all PM and Mgr steps
No
Yes
No
Yes
No
Yes
No
Yes
No
Yes
No
Yes
CURRENT STATE
Claim submitted
Proj Mgr reviews claim
Accurate?
Send claim to Controls
Analyst for review
Compile list of errors
Send claim to Controls
Analyst for review
Accurate?
Put claim in outbox for business
office
Compile list of errors
Additional errors?
Add errors to list
Return claim form to Proj
Mgr
Proj Mgr contacts vendor
Errors corrected
Jenn takes claim(s) to business
office
Business office receives claim(s)
Distribute - Tech
Check remittant address
Accurate?
Contact PM W9
Park invoice
Claim to Mike
Mgr Review Post invoiceForm to Janet
Return original claim
to PM
No
Yes No
Yes
No
Yes
No
Yes
FUTURE STATE
LEAN GoalsApril 1, 2012-March 31, 2013
• Create a general awareness and enthusiasm regarding LEAN process improvement amongst PSD employees
• Provide managers and supervisors opportunities to attend training in LEAN process improvement philosophy, methods, and tools
• Provide mentorship and coaching to PSD managers and supervisors in the application of LEAN process improvement principles
• Demonstrate measurable improvements in PSD program delivery, business practice, and Division efficiency and efficacy
• Leverage PSD LEAN expertise in facilitating cross departmental improvement initiatives
LEAN ActivitiesApril 1, 2012-March 31, 2013
• Provide LEAN 101 presentation to PSD managers, supervisors, and employees
• Provide training to managers and supervisors related to LEAN tools including but not limited to 5S, standard work, process mapping, and waste walks
• Develop and regularly update LEAN tracking sheet for PSD operations documenting cost savings, cost avoidance, and improvements in efficiency and customer service
• Provide representation and support to CDPHE’s LEAN Advisory Group
• Conduct Rapid Improvement Events (RIE) with an emphasis on strong baseline metrics and process improvement sustainability
• Conduct Program Reviews in an effort to improve program efficacy and customer service
Measures for Activities• A minimum of 125 employees attend LEAN 101
presentation during performance period• A minimum of 50 employees attend at least one training
related to the use of LEAN tools such as 5S, standard work, process mapping, and waste walks.
• Using the PSD LEAN tracking sheet, document at least $500,000 in cost savings, cost avoidance, and/or waste reduction during the performance period
• Provide PSD representation to at least 75% of CDPHE LEAN Advisory Group meetings
• Conduct at least two PSD Rapid Improvement Events (RIE)
• Conduct at least two PSD Program Reviews
Progress Reports
RIEs n=2
Program Reviews n=2
LEAN 101 n=125
LEAN Tools n=50
Cost Savings n=$500,000
CDPHE Lean Advisory Meetings n=9
0%
50%
100%
GoalActual
Comments and Questions