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Lean Fundamentals
Pulling Your Enterprise to Agility & Marketplace Leadership
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Lean Fundamentals
Pulling Your Enterprise to Agility & Marketplace Leadership
GR8PMTraditional Agile HybridTraining Coaching Consulting
Copyright, GR8PM, 2018, all rights reserved.
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Lean FundamentalsPulling Your Enterprise to Agility & Marketplace Leadership
Treasure Map (Course Outline)Introductions & Team Formation1. The Power of Pull2. Lean from the Beginning3. The Power of Flow4. Lean & Lean Principles
Invitation to Discovery
The Most Dangerous Words in Any Language…
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Lean FundamentalsPulling Your Enterprise to Agility & Marketplace Leadership
Step 1 – Join teammates in your Breakout Room.* Quickly choose a PM to facilitate your team.* Also choose a Time Keeper
Step 2 – Use your personal collage to introduce yourself.
* Keep in mind, this is not a comparison or competition. It is the first step to building professional friendships so be a good listener.* You will each have about 2 minutes. Taking other people’s time is a bad networking move!
Step 3 – Based on what you enjoyed about each other’s story, choose 2 teammates to share 1 area with the Large Group.
Step 4 – Rejoin the Group… on time!
Student Introduction & Team Challenge
TEAM CHALLENGEUsing the Car Companies List
worksheet, as a Team, make a subjective, non-scientific assessment and rank the
top 3, and the bottom 3, brands.
GuidelinesPlease do NOT do anything until I say “Go!”
You have 10 minutes to complete this.
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Lean FundamentalsPulling Your Enterprise to Agility & Marketplace Leadership
Treasure Nuggets & Prizes (Learning Objectives)1. Describe the foundations of Lean.2. Demonstrate the principles of Lean.3. Learn the time aspect of value.4. Summarize value stream mapping.5. Analyze what an effective value stream looks like.6. Compare management roles and their effect on
culture.7. Explain how to use PDSA for continuous
improvement.
Invitation to Discovery
Exciting Ideas in Any Language…
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Lean FundamentalsPulling Your Enterprise to Agility & Marketplace Leadership
Invitation to Discovery
Maximizing Today’s Value for You
Agile is accountability-driven. You must choose to be a constructive irritant… to yourself! Laszlo Retfalvi
“Great things in business are never done by one person. They’re done by a teamof people.” Steve Jobs
Learn by Doing!(us too!)
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Lean FundamentalsModule 1 –The Power of Pull
The Power of PullEvery required mistake must be made…
Understanding Lean• Toyota invested 30 years
developing the Toyota Production System (TPS).
• Lean thinking came from TPS.• 1950s = Kanban experiments• 1960 = Company-wide Kanban• 1970 = Supplier Kanban
Which Approach is the Most Rational?
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Lean FundamentalsModule 1 –The Power of Pull
The Power of Pull
Organizations with “mature products” will not survive (much less thrive)
with an obsolete strategy!
Innovation linked to Product Evolution drives Success!
Age of
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Lean FundamentalsModule 1 –The Power of Pull
The Power of Pull
Mature products must lower costs or increase perceived value to achieve profitability and survive!
Maturing Industries Face a Fundamental Changein the Cost-Price Relationship Driving Success!
Mature Industry: Customers & Competition = Price
COST
PROFIT
Price Customer Will Pay
Emerging Industry: Cost + Profit = Price
COST
PROFIT
Price Charged
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Lean FundamentalsModule 1 –The Power of Pull
Understanding the DOT Simulation• Using Stickies and colored Dots, a
team of 4 SMEs, a Tester and a Product Owner are going to produce an outcome – As many correctly configured Stickies with Dots on them according to the specification.
• The specification requires each Sticky to have 6 Dots on it. One yellow in bottom left corner. One red in top right corner. Two green in the remaining corners. Two blue in the center, touching each other.
Leveraging DOT Game EvidenceEvery required mistake must be made…
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Lean FundamentalsModule 1 –The Power of Pull
Understanding the DOT Simulation• An Expert Consultant has advised the organization that
having each SME working independently, on their task, as fast as possible, is the most efficient, and therefore best, process design choice.
• The process is designed in steps. First, the Product Owner creates a Lot (Group/Batch) with six Stickies on an 8.5 by 11 sheet of paper. Then passes it left to the first SME who completes their task and passes it to the left.
• The physical layout of the production floor has been arranged so each SME can easily pass completed Lots to the left following the production process. Each SME has an inventory of parts (Dots, Stickies, etc.). The Tester works as they receive completed Lots to be tested.
Leveraging DOT Game EvidenceEvery required mistake must be made…
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Lean FundamentalsModule 1 –The Power of Pull
Understanding the DOT Simulation• Each SME specializes in one color of Dots and cannot help
with other colors of Dots.• Each SME does their specific task as fast as possible on all
six Stickies before passing the Lot to the next SME and starting on the next Lot in their Inbox.
• Observers cannot talk, comment or send non-verbal messages. They are looking for process improvement insights.
• The work is executed in 5-minute Production Cycles (Rounds).
Leveraging DOT Game EvidenceEvery required mistake must be made…
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Lean FundamentalsModule 1 –The Power of Pull
Understanding the DOT Simulation• The “Manager” approaches the Team and says the
Customer is wondering why he hasn’t seen anything 2/3 of the way through the process.
• The Tester then shares all the completed Lots with the Customer who rejects them all as non-compliant.
• Then, for the first time, the Team asks, “What are you looking for?”
• Because only specific SMEs can correct/adjust the Dots positioning to meet the Customers expectation, the rework results in zero successfully completed Lots
Leveraging DOT Game EvidenceEvery required mistake must be made…
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Lean FundamentalsModule 1 –The Power of Pull
Questions to Consider:• What impact did the Specification have?• What bearing did performance pressure
have? How did it effect collaboration?• How did the “task focus” impact quality?• Would you describe the process as
“engineering-oriented” or “value-oriented”?• What difference might planning have made?• Energy of Compliance vs. Commitment?• Is it Simple or Easy?
Leveraging DOT Game EvidenceEvery required mistake must be made…
Good people and good stuff got sucked into a defective process so failure occurred!
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Lean FundamentalsModule 1 –The Power of Pull
Process VisualizationPrecursor to Improvement & Success
What is a Process1. Inputs – Tangible, Intangible, Human 2. Actions – Changes directed to a Result3. Outputs – As desired, or not
ACTIONSINPUTS OUTPUTS
PRODUCERSSUPPLIERS CUSTOMERS
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Lean FundamentalsModule 1 –The Power of Pull
Process VisualizationPrecursor to Improvement & Success
What happens to Process outputs?Customers accept or reject them.
• External Customers – Arms-length Value Exchanged• Internal Customers – Conditional Commitments Made
Customers needs drive the Inputs and Actions of the Process.
ACTIONSINPUTS CUSTOMERSOUTPUTS
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Lean FundamentalsModule 1 –The Power of Pull
Process VisualizationPrecursor to Improvement & Success
Process Management Guidelines• Processes underpin everything we do• Lean thinking is the foundation of
process improvement• Only understood processes can be
improved• Visualization makes processes more
understandable• Process Maps are organized
visualizations of all activities and their interrelationships
• Improving processes is the key to unleashing productivity
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Lean FundamentalsModule 1 –The Power of Pull
Process VisualizationPrecursor to Improvement & Success
TASK
ISSUE
INVENTORY or WAITING
A
B
C
QUESION or
DECISION
Process Management Guidelines• Begin with simple, easy to
interpret symbols• Use clear, connectors at right
angles (avoid ‘spaghetti’)• Map highest level with low
granularity, first• Drill down into lower layers and
add granularity, second
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Lean FundamentalsModule 1 –The Power of Pull
Process VisualizationPrecursor to Improvement & Success
Process Management Guidelines• Maps do not seek “right” answers• Maps do seek to accurately reflect reality• Maps are 2-D visualizations of 3-D realities• There are many ways to map even the simplest processes• Capture and communicate key process features is the goal• Adding unneeded detail to the map is waste
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Lean FundamentalsModule 1 –The Power of Pull
Kanban – The Power of SignalsTransforming Processes from Push to Pull
Kanban Basics• Improves quality and lowers cost
• by eliminating delays • by managing WIP
• Visualizes work being done so:• standardized work definitions can be the basis for learning• constraints can be removed, feedback can be accelerated, and
efficiency increased
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Lean FundamentalsModule 1 –The Power of Pull
Kanban – The Power of SignalsTransforming Processes from Push to Pull
PARTSIN
PRODUCTOUT
Operating Rules for Illustration• Only work if/when downstream task pulls• Pull signaled when downstream inventory equals zero
INVENTORY TASK #1 INVENTORY TASK #2
INVENTORYTASK #3INVENTORYTASK #4INVENTORY
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Lean FundamentalsModule 1 –The Power of Pull
Kanban – The Power of SignalsTransforming Processes from Push to Pull
PARTSIN
PRODUCTOUT
Operating Rules for Illustration• Only work if/when downstream task pulls• Pull signaled when downstream inventory equals zero
INVENTORY TASK #1 INVENTORY TASK #2
INVENTORYTASK #3INVENTORYTASK #4INVENTORY
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Lean FundamentalsModule 1 –The Power of Pull
Kanban – The Power of SignalsTransforming Processes from Push to Pull
PARTSIN
PRODUCTOUT
Operating Rules for Illustration• Only work if/when downstream task pulls• Pull signaled when downstream inventory equals zero
INVENTORY TASK #1 INVENTORY TASK #2
INVENTORYTASK #3INVENTORYTASK #4INVENTORY
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Lean FundamentalsModule 1 –The Power of Pull
Kanban – The Power of SignalsTransforming Processes from Push to Pull
PARTSIN
PRODUCTOUT
Operating Rules for Illustration• Only work if/when downstream task pulls• Pull signaled when downstream inventory equals zero
INVENTORY TASK #1 INVENTORY TASK #2
INVENTORYTASK #3INVENTORYTASK #4INVENTORY
TASKDONE
TASKDONE
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Lean FundamentalsModule 1 –The Power of Pull
Kanban – The Power of SignalsTransforming Processes from Push to Pull
Kanban Basics• Kan (card) + Ban (signal)• Uses a Pull approach to
managing work • Creates visibility with signals
that start work• Kanban boards show Work-in-
Process (WIP).• .PMP ALERT – WIP is now
Work-in-Process not Work-in-Progress
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Lean FundamentalsModule 1 –The Power of Pull
Kanban – The Power of SignalsTransforming Processes from Push to Pull
Pull Inhibitors… You Already Know
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Lean FundamentalsModule 1 –The Power of Pull
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Lean FundamentalsModule 2 –Lean from the Beginning
Lean from the BeginningTransforming the World Through Persistent Improvement
Simple Beginnings … Amazing Achievements!• The Toyota Production System (TPS) developed with
consistent, persistent, unyielding pursuit of perfection• TPS started as a Production Method and became a
Management System. Lean Thinking emerged from that management system
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Lean Thinking emerged from TPS• Lean is based on systems thinking• It is dynamic, knowledge-driven, customer-focused• It is people-centric, process-aligned• Lean integrates continuous value-creation and waste-
elimination• Lean requires continuous learning
Lean FundamentalsModule 2 –Lean from the Beginning
Lean from the BeginningTransforming the World Through Persistent Improvement
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Lean became more than just what Toyota did• Lean evolved into a philosophy with principles and practices• Lean has been expanded to virtually all industries.• Lean is about building great organizations via learning• Lean is foundational to Disciplined Agile
Lean FundamentalsModule 2 –Lean from the Beginning
Lean from the BeginningTransforming the World Through Persistent Improvement
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Lean FundamentalsModule 2 –Lean from the Beginning
Lean Applies to Tangible, Intangible & Knowledge WorkTransformation via Waste Elimination
Team DiscussionTeam 1 & 4 = Tangible vs Intangible Team 2 & 5 = Tangible vs KnowledgeTeam 3 & 6 = Intangible vs Knowledge
Document & Deliver1. Write a definition for each Term.2. Compare (similar) and Contrast
(different) each term.3. Names of 2 types of items in each
category (i.e., not apple and orange, fruits and automobiles)
QUESTIONS?
Exercise GuidelinesPlease do NOT do anything until I say “Go!”
You will have 10 minutes.
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Lean FundamentalsModule 2 –Lean from the Beginning
Lean Applies to Tangible, Intangible & Knowledge WorkTransformation via Waste Elimination & Continuous Improvement
Tangible Intangible Knowledge-Work
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Comparison of Lists of Lean PrinciplesAnd, yes, they all begin with, “The…”
Lean FundamentalsModule 2 –Lean from the Beginning
Lean Principles for the Virtual World Persistent Improvement
5 Principles of Lean• Define Value.• Create Flow.• Establish Pull.• Pursue
Perfection.
6 Principles of Lean• Map the Value
Stream. • Flow Processes. • Make What is
Necessary. • Reduce Waste. • Ask Employees. • Continuous
Improvement.
7 Principles of Lean• Eliminate waste.• Build quality in.• Create
knowledge.• Defer
commitment.• Deliver fast.• Respect people.• Optimize the
whole.
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PMI List of Lean Principles
• Optimize the Whole• Systems-thinking looks at interactions across all of the value stream.
Value delivery and value realization goes beyond team-level Agile.
• Focus on Quick Value Delivery• Fast, incremental value feeds the learning cycle.
• Attend to Delays • Delayed value delivery is deadly. It obscures workflow feedback
reducing continuous improvement opportunities.
• Build Quality In• Inconsistent process quality breaks the “continuous” cycle.
Lean FundamentalsModule 2 –Lean from the Beginning
Lean Principles for the Virtual World Persistent Improvement
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PMI List of Lean Principles (cont’d)
• Make Decisions Where the Work is Done • People at the “gemba”, doing the work, need to be able to make
decisions about the work.
• Guided Continuous Improvement • Lean principles enable ‘guided’ continuous improvement.
• The Role of Management • Lean-management creates an environment for teams to be awesome.
Teams look across the system with a holistic view to achieve quick value delivery.
Lean FundamentalsModule 2 –Lean from the Beginning
Lean Principles for the Virtual World Persistent Improvement
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Lean Strategy before Six Sigma Process Improvement• Starting with Six Sigma risks improving a process that
should not exist in the first place.
Lean FundamentalsModule 2 –Lean from the Beginning
Lean Extension to Six SigmaSix Sigma Specialization
PROJECT IRIDIUMDeployment:• 72 Satellites; 12 mo. & 12 days• 3 Countries, 3 Launch Vehicles• 14 Satellites each, 13 days• 22 consecutive successful launchesManufacturing:• Cycle time = 25 days vs. Industry avg
= 12 – 18 mo.• Dock-to-Dock rate = 4.3 days
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Lean Strategy before Six Sigma Process Improvement
• Six Sigma (6σ) is a set of process improvement techniques and tools.
• Developed by engineer Bill Smith at Motorola in 1986.
• Jack Welch made it core to General Electric’s business strategy in 1995.
• Six Sigma (6σ) can be referred to as 6S.
Lean FundamentalsModule 2 –Lean from the Beginning
Lean Extension to Six SigmaSix Sigma Specialization
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Comparing Lean & Six Sigma (6σ) • Motorola focused on systematically improving quality, by eliminating
defects, to improve results. • Six Sigma is a data-driven method to dramatically improve the quality of
products and services, and thereby increase customer satisfaction.
Lean FundamentalsModule 2 –Lean from the Beginning
Lean Extension to Six SigmaSix Sigma Specialization
OBJECTIVEMETHOD
FOCUS
PRINCIPLES
SIX SIGMA (6σ)Deliver Customer Value
Reduce VariationProblem Resolution
• A problem exists.• Improved process quality across the
enterprise via reduced variances fixes it.• System output increases as input
variation decreases.• Numbers and analysis are valued.
LEANDeliver Customer Value
Remove WasteFlow Improvement
• Optimize flow and eliminate waste to improve business performance.
• Many small improvements, via the PDSA cycle with many small experiments is better than numerical analysis.
• Lean and Six Sigma are synergistic.• Lean Six Sigma is a unified framework.
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Does Inspection Add Value?
Lean FundamentalsModule 2 –Lean from the Beginning
Lean Extension to Six SigmaSix Sigma Specialization
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Six Sigma (6σ) Lexicon1. Muda (waste)
• A common lean mantra, “Eliminate waste” is only the first focus.
2. Mura (unevenness)• Mura causes Muda. Unevenness causes workflow delays, a waste.
3. Muri (overburden)• Overburden causes multi-tasking, waiting on others, delays in
workflow, and waiting for feedback driving unsustainable quality.
4. Gemba (workplace)• The place where the work is actually being done.
5. Genchi genbutsu (going to [the gemba]) • The act of going to the gemba to observe the actual work being done
and talk to the actual people doing the work.
Lean FundamentalsModule 2 –Lean from the Beginning
Lean Extension to Six SigmaSix Sigma Specialization
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Lean in the Enterprise• Every enterprise is now part of a complex global web.• Understanding your position is required to improve it.
Lean FundamentalsModule 2 –Lean from the Beginning
Lean Extension to the EnterpriseEnterprise Specialization
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Lean application to the Enterprise• Lean applies to every production and life-cycle process that
delivers value to the customer and revenue to the enterprise.• Lean applies to enabling leadership and infrastructure
decision-making process required to direct programs to deliver value.
Lean FundamentalsModule 2 –Lean from the Beginning
Lean Extension to the EnterpriseEnterprise Specialization
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Lean application to the Enterprise – Healthcare • Lean applies to treatment and all other life-cycle processes
that deliver value to the patient and revenue to the enterprise.• Lean applies to enabling leadership and intervention-vs-life-
style-choice investment decision-making process required to optimize the delivery of value.
Lean FundamentalsModule 2 –Lean from the Beginning
Lean Extension to the EnterpriseEnterprise Specialization
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Minimum Viable Product (MVP)• The smallest piece of work used to validate a hypothesis
about a potential product.• Geared towards:
• Startups• First-time product / service release• Small team builds that can pivot / adapt
• Challenges for:• Established companies / business units• Existing product / service enhancement(s)• Dedicated teams not aligned to build it
Lean FundamentalsModule 2 –Lean from the Beginning
Lean Integration to the Disciplined AgileDisciplined Agile Utilization – Minimum Business Increment (MBI)
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Minimum Business Increment (MBI)• Minimum amount of business value that can be built and
deployed, or consumed, sensibly from business’ perspective.• Unit that contains all required pieces for value realization.• Useful when Epic is too large and Feature is too small to size
item to be built, deployed and realized.• MBIs are containers:
• What’s of value?• Who builds and releases?• How is value realize?
• Note: MBI is expansion of Denny and Cleland-Huang’s Minimum Marketable Feature but not SAFe’s MMF.
Lean FundamentalsModule 2 –Lean from the Beginning
Lean Integration to the Disciplined AgileDisciplined Agile Utilization – Minimum Business Increment (MBI)
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Minimum Business Increment (MBI) Discussion
Consider a project where, after it was over, you realized:
• You could have delivered smaller “stages” sooner.
• You could have built it incrementally.
• Doing that to verify and validate the design would have been a value-added outcome.
QUESTION: How would starting with an MBI have improved the customer’s perceived-value?
Lean FundamentalsModule 2 –Lean from the Beginning
Lean Integration to the Disciplined AgileDisciplined Agile Utilization – Minimum Business Increment (MBI)
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Minimum Business Increment (MBI)
Lean FundamentalsModule 2 –Lean from the Beginning
GR8PM’s Contribution
Minimum Viable Outcome (MVO) is the product or service or option with sufficient features to satisfy Early Adopters and entice the Early Majority.
Minimum Marketable Feature (MMF) is a small, self-contained item that has value to both the organization delivering it and the Stakeholders using it.
Features, Functions and Capabilities (FFC) are “natural” groups, such as engine, transmission, and differential for automobiles, can be intelligently fragmented into more detail as the workflow progresses, providing transparent inspection that aids discovery, adaptation and innovation.
Minimum Viable Product (MVP)
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Lean FundamentalsModule 3 –The Power of Flow
Document & Deliver1. A Process Map for Subway Sandwich
Artists with 11 steps to the Perfect Subway Sandwich.
2. Use the Exercise - Power of Flow file provided.
3. Choose:• a Tech Writer to document and send
the file.• a Spokesperson to describe the
Team’s process documentation.
QUESTIONS?
Exercise GuidelinesPlease do NOT do anything until I say “Go!”
You will have 10 minutes.
The Power of FlowValue Streams that Drive Business Agility and Success
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Make Value Flow (to Customers, User and the Enterprise)Creating Flow• Focus on WHAT is flowing through the process / stream
• Tangible = Materials • Intangible = Information• Knowledge Work = Innovation• Services = People
• Challenge organizational boundaries• Eliminate bottlenecks, minimize buffers
• DISCUSSION• At Subway, what are the bottlenecks? the buffers?• In healthcare, what are the bottlenecks? the buffers?• Why do we want to eliminate and minimize them?
Lean FundamentalsModule 3 –The Power of Flow
The Power of FlowValue Streams that Drive Business Agility and Success
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Time is a vital metric for improving flow• There are different ways to
measure time• Wait time• Processing time• Cycle time• Customer Demand or Lead time
• It is critical to know how time is being measured
Lean FundamentalsModule 3 –The Power of Flow
The Power of FlowValue Streams that Drive Business Agility and Success
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Wait Time• The time Work in Process (WIP) is idle it is in
• Queues – Time spent waiting for activity to begin• Buffers – Time spent suspended between each operation in
a production process; think of tangible parts stores and intangible in-boxes.
• aka Queue time or Delay time
Lean FundamentalsModule 3 –The Power of Flow
The Power of FlowValue Streams that Drive Business Agility and Success
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Processing Time• The time that activities are being performed on WIP• It may consist of
• Value Added Time (VAT)• Transforms inputs, correctly the first time, into customer desired
outputs.• Non-Value Added Time (NVAT)
• Customer Value is not created. May be necessary (e.g., infrastructure or compliance) or pure waste (e.g., wait time, rework or excess).
• VAT and NVAT labels can describe the quality of• Touch Time (TT)• In Process Time (IPT)• Response Time (RT)
Lean FundamentalsModule 3 –The Power of Flow
The Power of FlowValue Streams that Drive Business Agility and Success
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Cycle Time• The time required to execute activities in a process• It can be measured for:
• A single task or activity• A group of tasks or activities• A single process• A group of processes (e.g., customer order to delivery)
• Cycle time includes processing and wait time. • Other names: Lead time, Span time, Throughput time
Lean FundamentalsModule 3 –The Power of Flow
The Power of FlowValue Streams that Drive Business Agility and Success
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Interpreting Time Measurements
Lean FundamentalsModule 3 –The Power of Flow
The Power of FlowValue Streams that Drive Business Agility and Success
(A)
(B)
(C)
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Interpreting Time Measurements
Lean FundamentalsModule 3 –The Power of Flow
The Power of FlowValue Streams that Drive Business Agility and Success
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Time Value Charts• Visual display of time composition / elements for a process• Numbers may be actual (measured) or estimated
Lean FundamentalsModule 3 –The Power of Flow
The Power of FlowValue Streams that Drive Business Agility and Success
Time is $$!!Removing Wait and NVAT for a process produces big cycle time
savings … and potentially huge costs!
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PUSH Systems• Typically built in batches• Each activity delivers its
output independent of demand
• Results go into Inventory• Inventories hide defective
goods• Inventories suffer
obsolescence when customer demands drive design changes
• Inventories trap $$
Lean FundamentalsModule 3 –The Power of Flow
The Power of FlowValue Streams that Drive Business Agility and Success
PULL Systems• Each activity creates output “as
needed” for next production step• Production triggered by demand
(external or internal)• Production flow is smooth• Minimizes Inventories
• Reduces defect rework• Frees capital $$ for other uses
• Little inherent waste• Responsive to customer required
design changes without financial loss
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Creating Pull-Activated FlowPredictable cycle time enable Pull-Activated Flow. It uses: • Takt time• Balanced work• Standard work• Single piece flow• Kanban systems• Just in time (JIT) material and information delivery
Lean FundamentalsModule 3 –The Power of Flow
The Power of FlowValue Streams that Drive Business Agility and Success
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Creating Pull: • Start with the Customer and design the workflow
system backwards to the beginning• If cycle time is < or = to customer expectation time,
then Pull can be accomplished• If cycle time is > customer expectation time, then
buffers (inventory) will be required for Pull to be accomplished
• Alternately, System design could be altered to reduce cycle time so it is < or = to customer expectation time
• Financial analysis can determine if / when to choose an option or invest to transition to the other option
Lean FundamentalsModule 3 –The Power of Flow
The Power of FlowValue Streams that Drive Business Agility and Success
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Takt Time – Measure of Customer Demand• Takt Time – A reference number for a process cadence• From German “taktzeit”
• Takt means “stroke”• Zeit means “time”• For example, drum beat for a marching band
Lean FundamentalsModule 3 –The Power of Flow
The Power of FlowValue Streams that Drive Business Agility and Success
Takt Time =Available Time
Customer Demand Ratefor Available Time
Takt Time Example:Available Time = 1 Year (220 days)Customer Demand = 40 Units
Takt Time = 222 / 40 6 Days (5.5)≈
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Lean FundamentalsModule 3 –The Power of Flow
The Power of Flow – Exercise #2
Document & Deliver1. Using the Exercise – Power of Flow
02 file provided, analyze the process flow on page 1 and complete the 3 Steps on page 2.
2. For STEP #1 you will assess the VAT or NVAT condition of each process step.
3. For STEP #2 you will identify and describe 3 areas of waste.
4. For STEP #3 you will use the Assumptions provided and calculate several values for CT, VAT and NVAT.
QUESTIONS?
Exercise GuidelinesPlease do NOT do anything until I say “Go!”
You will have 30 minutes.
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You Can’t Improve a Process You Can’t See
• Lean is not a set of tools.
• Lean is continuous improvement cycles
• Lean is achieved through continuous PDSA cycles
Lean FundamentalsModule 3 –The Power of Flow
The Power of FlowDisciplined Agile Utilization – Guided Continuous Improvement
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Lean FundamentalsModule 3 –The Power of Flow
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Lean FundamentalsModule 4 –Lean & Lean Principles
House of Lean & Lean PrinciplesParadigms, Lexicons & Perspectives
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Lean FundamentalsModule 4 –Lean & Lean Principles
PMI’s Lexicon of Lean Principles1. Optimize the Whole2. Focus on Quick Value Delivery3. Attend to Delays (Queues and Pull)4. Build Quality In5. Make Decisions Where the Work is Done6. Guided Continuous Improvement7. The Role of Management
House of Lean & Lean PrinciplesParadigms, Lexicons & Perspectives
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Lean FundamentalsModule 4 –Lean & Lean Principles
House of Lean & Lean PrinciplesParadigms, Lexicons & Perspectives
PMI’s Lexicon of Lean Principles1. Optimize the Whole
• Organizations are complex adaptive systems that require systems-thinking. Reductionist thinking does not work.
• Interactions within the value stream impact value delivery.• Optimizing a team while sub-optimizing value realization, is not agility.
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Lean FundamentalsModule 4 –Lean & Lean Principles
PMI’s Lexicon of Lean Principles (cont’d)
2. Focus on Quick Value Delivery• Be quick, or be dead! We’re in the Age of FAANG!
3. Attend to Delays (Queues and Pull)• Delays are deadly. • Beyond delayed value realization, when work waits it cascades into
unplanned work and more delays. • Ultimately, that complicates understanding feedback reducing
continuous improvement opportunities.
4. Build Quality In• Inconsistent process quality breaks the “continuous” cycle.• Lack of quality creates an endless loop of rework.• How a product / service is produced affects the Customer’s
perceived value.
House of Lean & Lean PrinciplesParadigms, Lexicons & Perspectives
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Lean FundamentalsModule 4 –Lean & Lean Principles
PMI’s Lexicon of Lean Principles (cont’d)
5. Make Decisions Where the Work is Done• People at the “gemba”, doing the work, need to be able to
make decisions about the work.
6. Guided Continuous Improvement• Lean is about continuous improvement. • Disciplined Agile is about guided continuous improvement
with Lean principles supporting decisions.
7. The Role of Management• Lean-management creates an environment for teams to be
awesome. • Teams look across the system with a holistic view to
achieve quick value delivery.
House of Lean & Lean PrinciplesParadigms, Lexicons & Perspectives
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Lean FundamentalsModule 4 –Lean & Lean Principles
The goal of business agility is the realization of the highest business value in shortest amount of time, consistently, sustainably, and with high quality. • Business value created by customer-value focus.
• Consistently delivered work improves the probability of predictable customer-value delivery.
• Sustainably designed and developed with sustainably-paced effort.
• Quality in the product design and build as judged by the customer.
Small increments, continuously adjusted to what is needed, delivered quickly, enables marketplace adaptation at the lowest cost.
House of Lean & Lean PrinciplesParadigms, Lexicons & Perspectives
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Lean FundamentalsModule 4 –Lean & Lean Principles
Lean’s “Magic Pixie Dust”• Continuous Improvement• Eliminate Waste• Respect People
House of Lean & Lean PrinciplesParadigms, Lexicons & Perspectives
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The MBA’s Guide to Enterprise Agility Moving Beyond Scrum Into Scalable Agile Practices
GR8PM, Inc.Training Coaching Consulting
Connect with me on Linked In
or via email for a copy of
this presentation or info on the Mastermind Group
ComingWinter2020
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Lean FundamentalsModule 1 –The Power of Pull
Kanban – The Power of SignalsTransforming Processes from Push to Pull
Pull Inhibitors… You Already Know• Handbacks• Delays in
• Feedback• Other’s Input• Customer-furnished Input
• Hidden work• Lack of visibility• Lack of transparency
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Lean FundamentalsModule 2 –Lean from the Beginning
Lean Applies to Tangible, Intangible & Knowledge WorkTransformation via Waste Elimination & Continuous Improvement
Tangible• Overproduction• Inventory• Waiting• Transportation• Motion• Excess Processing• Under-utilized talent
Intangible• Unneeded analysis/tests• Deficient reports• Overcomplex validations• Delayed decision making• Delayed information
source• Unneeded features• Excess processing• Deficient processing • Under-engineered
solutions• Over-engineered solutions
Knowledge-Work• Creating unneeded
features • Issues in partially done
work• Stop and Go multitasking• Unplanned work• Lost of information. • Shifting value stream
focus• Incompatible assumptions• Deficient research • Deficient preparation • Rework due to regulatory
changes
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