Todays Topics – For Managers
Duration: 1 DAY (From 9 AM – 4PM : Location: Learn IT)
The class will be presented our IT DPH Lean RoadMap and we will have a Q&A.
Who can take this class? Anyone can take this course, but IT Service Operations Professional
with the aim of learning the language and culture of Lean will benefit most.
Course Description
Where does Lean come from?
What is Lean?
What does Lean have to do with IT?
Who decides value?
Respect & Humility at work
Class Discussion on :
the principle of "just-in-time" and “continuous flow”
why Lean embrace technology to improve processes
why Lean focuses on systemic improvement
45 Mins
15 Mins
Todays Topics
Course Description
The Eight Types of Waste and Hardships
You will learn critical question that will help you in your problem solving, initiatives,
projects and communication
Q1 What is the target?
Q2 Where are we now (Current Condition)?
Q3 What are the barriers (Gaps) preventing progress?
Q4 Where can we go and see (The Gemba)?
Q5 What is your next step?
For Managers: When to use & manager exercise
• DMAIC
• PDCA
• Cause-and-effect diagram
• Pareto Chart
• Check Sheet
When I leave class what will I take with me? A better understanding of what IT DPH
is doing and why. Understand how my role as Manager can impact the group when
using Lean daily.
60 Mins
30 Mins
3 Hours
What is Lean? A culture of respect and
humility.
Where does Lean come from? Lean cultural roots come from Taiichi Ohno who codified
the Lean Philosophy, Practices and the Toyota Production System, which became Lean, a
culture of respect and humility. With Strong Executive Support from Eiji Toyoda, Taiichi
Ohno helped establish the Toyota Production System, and built the foundation for the
Toyota “Spirit of Making Things / Toyota Way" and “Just in Time”.
What do we practice daily? We practice a philosophy of "Daily Improvements" and the
“Elimination of Waste and Hardship”.
What does Lean have to do with Information Technology? Lean key practices are very
transferable to IT. One of our primary goals in Information Technology is to deliver IT
services in predictable processes. Lean teaches us how standard work produces
predictable results and outcomes.
IT DPH Transformation - 3 Year Roadmap
• Gain a predictable
communication
and business
cadence
• Collaborative
Conversations
• Coaching
Phase 0 - 2018
STABILITY
• Add workforce
capabilities
• Foster Lean
Learning
• Focus on Value
• Adopt Lean
Principals
Phase 1 - 2018
LEARNING
• Plan that addresses
implementation
strategy and
workforce changes
• Define customer
value.
• Consistent direction
and communication.
• Goals and Metrics
Phase 2 - 2018
HOSHIN / KPO
Phase 3 - 2019
Lean Pilot
• Conduct pilot to
capture the
current situation.
• Apply 5S,
Conduct VSM, A3,
process / work
flow.
• Visual Controls
• Establish
Standards
• Lessons
Learned from
Pilot
• Refine Plan
Phase 4 - 2020
Roll Out Lean to Org
• Monitor & Nurture
• Continue Training
• Sustainable
Improvement
Capability, in all
people at all levels
Phase 5 - 2020
Cultural change Kaizen Continuous Improvement
Team Development 5S Enterprise Wide Continuous Evaluation v. Metrics Succession Planning
Measure Benefits Realization Ongoing Kaizen Events Ongoing review of Ops & Strategy
Standardize
Level and Balance Continuous Flow
Strive for Perfection
Entry Point
Plan DO Check / Act / Adjust
Who decides value?
At DPH the customer decides value.
How does the customer communicate value to us?
Respect & Humility
Respect: We work at fostering a culture that enhances individual
creativity and teamwork value, while honoring mutual trust and
respect between labor and management.
A "Lean" culture is characterized by two learning elements: Humility
and Respect. Learning begins with humility.
How do I practice humility at work?
I don’t pretend - I know - I don't know.
I coach only 1 step ahead of the other person.
Everyone has their own perception of what
constitutes value.
What customers value and how they value it changes with circumstance and time.
In lean, we teach that in all cases, value is defined by the customer.
As you work with your customers to define value, you are also defining your activities and
action items:
What needs to be done
What I need to be doing
How I need to be doing the activities
and even...
...should I be doing this work?
Consider this question: When a barista writes your name on the cup for your double
espresso are they “adding value” to your drink? It all depends on how you define value.
You could decide yes, adding my name adds value, it lets me and the barista know the
drink belongs to me.
You could decide no, adding my name adds NO value to my double espresso.
Defining “value” is important
Defining “value” is important because it forms the foundation upon which you build Lean
processes to deliver that value and satisfy your customer.
What is more difficult to understand is what these customers deem worthy and then how
to define, apply, measure, and translate their definition of value into a real product, new or
improved process or service.
In lean, we teach that in all cases, value is defined by the customer.
Waste & Hardship
In Lean you will here a lot about Waste and sometimes you may hear and
read about hardship… what is this all about? In Japan the word MUDA
means Waste. Taiichi Ohno who codified the Lean Philosophy, Practices
taught a culture of respect, humility, and the philosophy of "Daily
Improvements" and the “Elimination of Waste”.
In the USA we remember Waste using the acronym T-I-M-W-O-O-D-S
Transportation: In hospital's moving patient’s unnecessarily causes waste in
human resources, the nurse could be doing more important work, also
causes hardship for the patient being moved around while they are just laying
there. In IT Operations moving equipment, data, people around unnecessarily
is a waste of time, effort, and increases the likelihood that equip may be
damaged or a person could get hurt…
In Japan the word is MUDA = Waste
There are many types of waste and some are called Hardship
In the USA we can remember T-I-M-W-O-O-D
Inventory: In hospital’s we need stock but sometimes we have unused old materials just
sitting around for one day… one day we might need it. In the meantime, its right in front
of me, just taking up space in my mind, and in my work space. The same could be said
for IT.
Motion: The “wear and tear” on the body going up and down the same isle, “wear and
tear” on the equipment or the people involved in the process. In a pharmacy, reaching
across a counter or shelve to get the right medicine is waste, do it 10,000 times a year
and it becomes hardship. In IT, shuffling through equipment or materials to get the right
component, file or part is waste as well.
In Japan the word is MUDA = Waste
Here is a another type of Waste, its called Hardship
In the USA we can remember T-I-M-W-O-O-D-S
Waiting: Time that ‘stuff” is just sitting there – not being transported or processed.
• Waiting to be told what to do next.
• Waiting for a previous process to complete a batch.
• Waiting for a decision to be made or information to be transferred.
Over-processing: Doing more than is necessary.
Over-production: Making more than is necessary, adding work that is not required.
Defects: Anything that has to be re-done, defects in production. MANAGERs, we can
expect defects when we don’t provide training to our people; we throw them straight
into the deep end.
Skills - Under utilizing capabilities, delegating tasks with inadequate training
Why does Lean embrace technology?
We embrace and utilize technology that is useful now. We also
acknowledge the difficulty faced when it comes to change, because risks exist
in change. Resistance to change stops you from exposing yourself to new
things, then change becomes an impediment to the elimination of hardships
and waste and no one wants that.
Explain to me what is meant by systemic improvement in lean
organizations? Lean focuses on identifying a target, understanding the current
condition, identifying the gaps and conducting root causes analysis of problems, then we
scientific method of proposing a change. This is systemic scientific method.
Plan, Do, Check, Act (PDCA) -and- Plan, Do, Study, Act (PDSA)
When we propose a change in a process, implement change, measure the results or
outcomes, and taking appropriate action. While Shewhart created PDCA in 1925, Deming
later adapted it for Japan and the Deming Cycle is known as PDSA (S for Study).
Both are Iterative
BELOW, example of questions you can use when tackling projects, issues, initiatives etc.
1. What is the target (goal)? For example, we need to improve our current
order intake and inventory process.
2. Where are we now (current condition)? Today, the process begins when we receive
an order from a customer and proceeds to check stock levels. If there is enough stock we
fulfill the order, but usually we end up ordering equipment. Equipment takes a long time to
in because orders are customized, customers have long wait times.
3. Manager - THINK ABOUT THE LAST STEP TAKEN
1. What did you plan or do to address the issue systemically?
2. What did you expect would happen?
3. What actually happen?
4. What did you learn?
4. SME and IC – We have identify (GAPS) preventing progress? For starters, we
do not have an E2E inventory tracking system, improve cross department communication,
supplier provides inconsistent deliver schedules (no forecast), need further data analysis...
5. TEAM - Go and See the problem firsthand (The Gemba)? What did you learn?
6. TEAM – What’s the next step?
Plan, set expectation with customers, teams and
vendors, and understand clearly why your
customer needs this solution. How much do you
know about the current situation?
Do, means to run the propose pilot or process
Check, compare expected vs. actual outcomes
and results, then analyze.
Adjust, the process in order then set a new target
Follow up all work with a Gemba walk.
Go out to the area and see for yourself.
PMI
What is PDCA (Plan Do Check Act)
For Managers: When to use PDCA
Continuous improvement: The repeated PDCA cycle drives forward process
improvement irrespective of the goals and shuts the door on complacency
Implementation of new projects or processes: PDCA allows fixing snags and
improving things at the process implementation stage, without putting entire resources or
reputation at stake.
Process trails: The PDCA cycle entails checking the implemented changes for
consistency before adopting it across the board
Process: Utilizing the plan-do-check-act cycle allows breakdown of a project into small
manageable steps and allows gradual incremental improvements.
Displaying data: Effective way to display data and a good first step in understanding the
nature of the problem as it provides a uniform data collection tool. It is very useful to help
distinguish opinions from facts in the Define and Measure phase in DMAIC.
Managers, when to use a Check Sheet
Using a check sheet is appropriate when the data can be observed
and collected repeatedly by either the same person or the same
location.
It is also an effective tool when collecting data on frequency and
identifying patterns of events, problems, defects, and defect location,
and for identifying defect causes.
For Managers: Medical Examples
The problem: Frequent interruptions in the operating room, but everyone had a different
opinion about the causes and was unable to quantify (data) the magnitude of the
problem.
The Solution: We developed a check sheet to quantify (data) the interruptions and
distractions in the operating room and piloted the form for four weeks; the data helped the
team identify via data and not opinion what the leading causes of interruptions in the
operating room were.
The Results: Interruption down by 90%, no mobile phones or hospital pager allowed
When to Use Ishikawa or Fish
head Diagram
Managers use the Fish Head diagram in process improvement to
identify all of the contributing root causes likely to be causing a
problem.
The Fishbone chart is an initial step in the screening process. After
identifying potential root cause(s), further testing will be necessary to
confirm the true root cause(s).
This can be used on any type of problem, and can be tailored by the
user to fit the circumstances.
Benefits:
• Constructing a Fishbone Diagram is easy to learn and do
• Excellent visual tool for organizing critical thinking
• Involves workers in problem resolution
• Explore root causes and record them helps organize the
discussion
When to use Pareto Chart
The Pareto analysis is based on the Pareto Principle, also known as the
80/20 rule, which states that 20 percent of effort yields 80 percent of
results.
A Pareto analysis requires identifying organizational problems and they
are ranked in order from the (most) to the (least) severe. As a Manager,
problems ranked (most) in severity should become the main focus for
problem resolution or improvement.
Teams get along best when employees identify the root causes of
problems and spend time resolving the biggest problems to yield the
greatest organizational benefit.
When to use Pareto Chart
To organizes problems into cohesive categories, facts, not opinion or
emergency. You argue for change based on data. Once you've clearly
outlined facts, you can begin the planning to solve the problems within
the framework we have to work with.
Budget Prioritize Time and Changes
Balance and Focus
When to use Pareto Chart
Have your SME conduct a Pareto analysis and measure and compare the
impact of changes that take place in your group.
As a manager focus on outcomes, not dates. Why? While dates are
important and sometimes necessary, begin to think systematically and long
term. Small continuous improvements long term is the answer to a stress
free environment.
A relentless push to small incremental improvements is the answer to
relieving the pain of fighting fires everyday. Pareto will prepare you for
your improvement decision making for future changes.
What is Lean? The core principal of Lean is
respect for the individual, provide value for
the customer while minimizing waste. Who
defines value? The customer. We help guide
and execute.
At the heart of Lean
is a focus on the
customer and a
spirit of continuous
improvement.
What the customer thinks is happening.
What is actually happening.
Without a target, its hard to get anywhere.
1. Set a direction
1. Set a goal
2. What is the challenge
1. Be SMART about goals and decisions
2. Understand the Current Condition
1. Where are we?
2. Can we do this?
3. What are the gaps?
3. Establish the Next Target Condition
4. Conduct Experiments until you get there (PDCA)
Strong set of tools, practices and principles
Lean provides a strong set of implementation tools, practices and most important
principles. We see (the current situation – as-is state) in a realistic (data driven) point of
view, instead of listening to (or) speaking in opinions. Lean is also about creating a vision
for the (future state - the to-be), all the while eliminating waste continuously.
Waste can be easily recalled using the acronym DOWNTIME:
• Defects
• Over-Production
• Waiting
• Non or Under Utilized Talent
• Transportation
• Inventory
• Motion
• Extra-Processing
Key Lean Concepts: Lean Enterprise
Institute: Source: Lean Lexicon.
Continuous Flow
Producing and moving one item at a time (or a small and consistent batch of items)
through a series of processing steps as continuously as possible, with each step making
just what is requested by the next step. It is also called one-piece flow, single-piece flow,
and make one, move one.
Cycle Time
How often a part or product is completed by a process, as timed by observation. This
time includes operating time plus the time required to prepare, load, and unload. The
appropriate calculation of cycle time may depend upon context. For example, if a paint
process completes a batch of 22 parts every five minutes, the cycle time for the batch is
five minutes. However, the cycle time for an individual part is 13.6 seconds (5 minutes x
60 seconds = 300 seconds, divided by 22 parts = 13.6 seconds).
At its core, Lean revolves around a
few key concepts.
Jidoka
Providing machines and operators the ability to detect when an abnormal condition has
occurred and immediately stop work. This enables operations to build-in quality at each
process and to separate men and machines for more efficient work. Jidoka is one of the
two pillars of the Toyota Production System along with just-in-time. Jidoka is sometimes
called autonomation, meaning automation with human intelligence.
Just-in-Time (JIT) Production
A system of production that makes and delivers just what is needed, just when it is
needed, and just in the amount needed. JIT and jidoka are the two pillars of the Toyota
Production System.
At its core, Lean revolves around a
few key concepts.
Kaizen
Continuous improvement of an entire value stream or an individual process to create
more value with less waste. There are two levels of kaizen: (1) System or flow kaizen
focuses on the overall value stream and (2) process kaizen focuses on individual
processes.
Kanban
A signaling device that gives authorization and instructions for the production or
withdrawal (conveyance) of items in a pull system. The term is Japanese for sign or
signboard.
At its core, Lean revolves around a
few key concepts.
Lean Thinking
A 5-step thought process proposed by James Womack and Dan Jones in their
1996 book Lean Thinking to guide managers through a lean transformation.
The steps are:
1. Specify value from the standpoint of the end customer.
2. Identify all the steps in the value stream.
3. Make the value creating steps flow toward the customer.
4. Let customers pull value from the next upstream activity.
5. Pursue perfection.
Lean revolves around a few key concepts
Plan, Do, Check, Act (PDCA) -and- Plan, Do, Study, Act (PDSA)
An improvement cycle based on the scientific method of proposing a change in a
process, implementing the change, measuring the results, and taking appropriate action.
It is also known as the Deming Cycle. While Shewhart created PDCA in 1925, Deming
later adapted it for Japan and the Deming Cycle is known as PDSA (S for Study).
At its core, Lean revolves around a
few key concepts.
Production Lead Time (also Throughput Time and Total Product Cycle Time)
The time required for a product to move all the way through a process from start to
finish. At the plant level this is often termed door-to-door time.
The concept can also be applied to the time required for a design to progress from
start to finish in product development or for a product to proceed from raw materials
all the way to the customer.
At its core, Lean revolves around a
few key concepts.
Takt Time
The available production time divided by customer demand. For example, if a widget
factory operates 480 minutes per day and customers demand 240 widgets per day, takt
time is two minutes. Similarly, if customers want two new products per month, takt time is
two weeks. The purpose of takt time is to precisely match production with demand. It
provides the heartbeat of a lean production system.
Value Stream
All of the actions, both value-creating and nonvalue-creating, required to bring a product
from concept to launch and from order to delivery. These include actions to process
information from the customer and actions to transform the product on its way to the
customer.
At its core, Lean revolves around a
few key concepts.
Value Stream Mapping (VSM)
A simple diagram of every step involved in the material and information flows needed to bring a
product from order to delivery. A current-state map follows a product’s path from order to delivery to
determine the current conditions. A future-state map shows the opportunities for improvement
identified in the current-state map to achieve a higher level of performance at some future point.
Waste
Any activity that consumes resources but creates no value for the customer.
At its core, Lean revolves around a
few key concepts.
A Process is a group of steps, tasks, or activities, which take Inputs (People, Material, Information)
and changes them to produce an Output (Service, Product)
Measure of “What is important to Customer”. In DMAIC, projects CTQ stands for a measurable
Critical to Quality attribute. Ex: of CTQ is improving customer waiting time in clinic waiting room.
Defect is nonconformance on one of many possible quality characteristics of a product or service that
causes customer dissatisfaction. Not delivering what the customer wants or needs.
Process Capability: What the process can deliver.
Variation: What the customer sees and feels.
Stable Operations: Ensuring consistent, predictable processes to improve what the customer sees
and feels.
Design : Designing to meet customer needs and process capability.
Customers feel the variance, not the means. Meaning they feel the mistakes not the daily operations.