Lean Thinking Quality Management
By
Baljit Singh Modi
Manager QSE
WS Atkins
Sharjah
Baljit Singh Modi – MCQI WS Atkins, Sharjah
Here is Edward Bear coming down stairs now, bump, bump, on the back of his head, behind Cathy. It is, as far as he knows, the only way of coming downstairs but sometimes he feels that there is really another way, if only he could stop bumping for a moment and think of it
Baljit Singh Modi – MCQI WS Atkins, Sharjah
Two Views of an Organization
THE WAY WE ARE ORGANISED
THE WAY AN ORGANISATION SHOULD WORK
SUPPLIERS CUSTOMERS
Baljit Singh Modi – MCQI WS Atkins, Sharjah
The Manager’s New Job
People work IN the System The Manager’s new job is to work ON the System and improve it – continuously
– with their help Myron Tribus
Baljit Singh Modi – MCQI WS Atkins, Sharjah
Fundamentals of Lean Management System
• Thinking in terms of systems• Understanding the variability of work• Understanding how we learn• Understanding people and behavior• Understanding the interdependence and interaction
between the above• Giving vision, meaning, direction and focus
Baljit Singh Modi – MCQI WS Atkins, Sharjah
Lean Thinking origin
• Define value from the perspective of the end customer• Provide what customers want, when they want it• Work on the processes that lead to results – rather than
the results themselves• Identify the entire value Stream and eliminate waste• Make the remaining value steps flow• Pursue perfection
Baljit Singh Modi – MCQI WS Atkins, Sharjah
What is a Process?
Inputs PROCESS Outputs
CUSTOMERS
Collect Data
Analyze Data
Improve
Insight
Plan
DoCheck
Act
How do we Improve a Process?
Baljit Singh Modi – MCQI WS Atkins, Sharjah
The Lean Approach
Hidden Costs
Examples:• Wastes• Morale• Reputation• Goodwill
Visible Costs
Examples:• Staffing• Transport• Training• IT renewals• etc
Hidden Costs• Morale• Reputation• Goodwill
Visible Costs
• Wastes
Hidden Costs
Visible Costs
More Cost saving (long term)
Baljit Singh Modi – MCQI WS Atkins, Sharjah
The Three Voices
VOICE OF THE CUSTOMER
VOICE OF THE PROCESS
VOICE OF THE PEOPLE
LEADERSHIP
THE VOICE OF
THE
CUSTOMER
•Improvement Statements•Operational Definitions
Baljit Singh Modi – MCQI WS Atkins, Sharjah
IMPROVEMENT STATEMENT
• A statement that gives purpose and structure to process improvement
VOICE OF THE CUSTOMER
• An indicator of change and direction• An indicator of quality• A process
Three parts of an Improvement System:
Baljit Singh Modi – MCQI WS Atkins, Sharjah
Improvement Statement Examples
•SUPPORT
•PRODUCTION
•SERVICE
•ADMINISTRATION
• To reduce the waiting time for the vehicle to be serviced by the
authorized dealer
• To reduce the variation in in Fat content (1.5 – 3%) in the Milk produced
• To shorten the time for hotel guests to check out
• To reduce the customer wait/hold time during telephone transfers
VOICE OF THE CUSTOMER
Baljit Singh Modi – MCQI WS Atkins, Sharjah
OPERATIONAL DEFINITIONS
• Express the Quality indicator in terms you can do business with.
• Are developed by customer and supplier together
What do the following MEAN?
“on-time”
“accurate”
“safe”
“clean”
VOICE OF THE CUSTOMER
Baljit Singh Modi – MCQI WS Atkins, Sharjah
THE SEVEN QUESTIONS
1. Who are my customers?
2. What do they want?
3. What is my product or service?
4. What are my customers’ measures/expectations?
5. Is my product meeting my customers’ expectations?
6. What is my process for providing the product?
7. What action is required for improvement?
VOICE OF THE CUSTOMER
Baljit Singh Modi – MCQI WS Atkins, Sharjah
The Eighth question
What do my customers DO with my product or service
-and, can I HELP the customers to do that better?
VOICE OF THE CUSTOMER
• Reacting to customers approaching you• Proactively asking customers • Gemba visits
Gathering their voice:
THE VOICE OF THE PEOPLE
• Process Maps• SIPOC• Value and the 7+1 Wastes
Baljit Singh Modi – MCQI WS Atkins, Sharjah
PROCESS MAPS - FLOWCHARTS
• Are powerful tools that enable people to understand the processes they are involved with
• Are the pictures that represent the steps in a process, and how work or information flows through the process from beginning to end.
• Can be working documents used for analyzing a process• Can be planning tools to help design a new process.
VOICE OF THE PEOPLE
Baljit Singh Modi – MCQI WS Atkins, Sharjah
Practical Guidelines for Flowcharting
Involve people who do the work. Make sure everyone in the team participates.
Keep it simple – use shadow boxes..
Treat as working document – subject to constant change and improvement.
Generate lots of objective questions.
Discuss with others affected by the process
(Customers and Suppliers).
VOICE OF THE PEOPLE
Baljit Singh Modi – MCQI WS Atkins, Sharjah
The Customer-Supplier Chain
S I P O C
Measures Measures
Process Map
Suppliers Inputs Process Outputs Customers
Requirements Requirements
VOICE OF THE PEOPLE
Baljit Singh Modi – MCQI WS Atkins, Sharjah
Value Assessment or Stream Mapping
Steps that are considered essential to produce and deliver the product or service to meet the Customers needs and requirements. The Customers are willing to pay for these steps.
Steps that are not essential to the Value Flow – but which enable it to operate
Steps that are considered non-essential to produce and deliver the product or service to meet the Customer’s needs and requirements. The Customers are not willing to pay for these steps.
VOICE OF THE PEOPLE
VALUE ADDED WORK
NON-VALUE ADDED WORK
VALUE ENABLING WORK
Baljit Singh Modi – MCQI WS Atkins, Sharjah
The 7+1 Wastes (TIM WOOD)
• Transportation
• Unnecessary movement of materials, products or information
• Inventory
• Any work in process that’s in excess of what is required to produce for the customer
• Motion
• Needless movement of people
• Waiting time
• Any delay between when one process step ends and the next begins
• Over-processing
• Trying to add more value to a service than your customers will pay for
• Overproduction
• Production of service outputs beyond what is required for immediate use
• Defect
• Any aspect of the service that does not conform to customer needs
PLUS
• Unused employee creativity• Losing time, ideas, improvements, learning
VOICE OF THE PEOPLE
THE VOICE OF THE PROCESS
• Data Collection approaches• Cause & Effect• Root Cause Analysis – 5 Why’s• Check Sheets & Tally Charts• Time series data – Run Charts• Variation• Stratification – Pareto Charts• Histograms & Scatter diagrams
Baljit Singh Modi – MCQI WS Atkins, Sharjah
Three Approaches – Data Collection
• Jump in with both feet– No data, gut feel– Take an Uncontrolled Risk– If lucky, steal market place – if unlucky, immediate bankruptcy– Illusion of learning (wing it, seat of pants)
• Analysis Paralysis– Take loads of data – don’t use it effectively– No controlled risks– No growth, no learning
• PDSA– A “learning” approach
VOICE OF THE PROCESS
Baljit Singh Modi – MCQI WS Atkins, Sharjah
Why do we need to measure?
• To understand current performance• As a basis for taking action to solve problems• To know when not to take action (new one this!)• To be able to predict the future and decide whether this
is the future we want• To drive and evaluate improvement efforts
VOICE OF THE PROCESS
Baljit Singh Modi – MCQI WS Atkins, Sharjah
Cause & Effect Root Cause Analysis
Practical guidelines for Brainstorming
• 5 mins thinking time – each person writes down his/her ideas.
• Each person at a time gives one idea from the list
• Ideas are written on flip chart (choose a scribe).
• No idea too obvious or stupid
• No criticism
• Ideas should not be enlarged upon.
• Leader leads the group.
• Process is repeated until ideas dry up.
THEN:• DISCUSS IDEAS/EXPLAIN THEM
• ELIMINATE UNLIKELY ONES
• IDENTIFY THOSE WITH HIGH POSSIBILITIES
CONVERGENT
DIVERGENT
VOICE OF THE PROCESS
Baljit Singh Modi – MCQI WS Atkins, Sharjah
Example : Cause & Effect
Problem:
Eg project does not deliver on budget
Possible
causes
Possible
causes
People
Processes
Finance
Resources
Inexperienced
Poor communications
Late invoicing
Cash flow not monitored
Change not managed
Inefficient
Computer network
problems
VOICE OF THE PROCESS
Baljit Singh Modi – MCQI WS Atkins, Sharjah
The Five Whys
• Why?
• Why?
• Why?
•Why?
•Why?
VOICE OF THE PROCESS
PLANNING IMPROVEMENT
• Design, Select, and Test Solutions• Cause Solution Diagrams• Concept Solution (Pugh) Matrix• Measurement of Improvement - Process Behaviour
Chart
Baljit Singh Modi – MCQI WS Atkins, Sharjah
Improve
Three simple steps
• From the Insight gained from process analysis – design possible alternative solutions
• Select best solution
• Test the solution
PLANNING IMPROVEMENT
Baljit Singh Modi – MCQI WS Atkins, Sharjah
Selecting Solutions: Eliminate Low Payoff Solutions
Low High
Low
High
Benefit
Eliminate all Low Effort/Low Payoff and High Effort/Low Payoff solutionsFrom further Consideration
Effort
A payoff Matrix looks at theRelationship of Benefit And effort to reduce the number of Solutions to address
PLANNING IMPROVEMENT
Baljit Singh Modi – MCQI WS Atkins, Sharjah
Concept Selection (Pugh) Matrix
+ -
= +
Timeliness
Accuracy
Cus
tom
er R
equi
rem
ents
Concept 1 Concept 2
PLANNING IMPROVEMENT
• Possible designs identified compared to customer requirements
• Better(+), Same(=), or worse(-) than the datum
Baljit Singh Modi – MCQI WS Atkins, Sharjah
Aligning the Voice of the Process and the Voice of the Customer
TIME SERIES OR SEQUENCE
The Voice of the Customer
The Voice of the Process
What was, what is
And what will be
BA
D
GO
OD
PLANNING IMPROVEMENT
• Standardization• Monitoring• Problem Prevention
• Poka – Yoke• FMEA
Holding the Gains
Baljit Singh Modi – MCQI WS Atkins, Sharjah
Standardization
• Involves formally agreeing and implementing the best known ways of carrying out each process.
• If a process is operated consistently in the best currently known way, the outputs at each stage will remain predictable.
• Customers will be able to rely on the outputs.
HOLDING GAINS
Baljit Singh Modi – MCQI WS Atkins, Sharjah
The Purpose of Standardisation
A
D
S
C
A P
CA S
C DD
A P
C D
Improvement
Improvement
Maintenance
Maintenance
There can be no improvement where are there are no standards
HOLDING GAINS
Baljit Singh Modi – MCQI WS Atkins, Sharjah
What are recommendations for formalization and documentation?
• Process maps• Measures, with operational definitions• Charts indicating the state of the process• Descriptions and diagrams of how the process
operates• Monitoring and review schedule
HOLDING GAINS
Baljit Singh Modi – MCQI WS Atkins, Sharjah
Failure Mode Effect Analysis
FMEA is a systematic process approach for identifying potential design and process failures before they occur, with the intent to eliminate them or minimize the risk associated with them
HOLDING GAINS
Baljit Singh Modi – MCQI WS Atkins, Sharjah
The FMEA Process
IDENTIFY FUNCTIONS
IDENTIFY FAILUREMODES
IDENTIFY EFFECTS OF THE FAILURE MODES
DETERMINE SEVERITY
IDENTIFY POSSIBLE CAUSES
DETERMINE LIKELIHOOD
CALCULATE CRITICALITY
IDENTIFY DESIGN OR PROCESS CONTOLS
DETERMINE DETECTABILITY
FINAL RISK ASSESSMENT
ACTION TO REDUCE RISK
HOLDING GAINS
Baljit Singh Modi – MCQI WS Atkins, Sharjah
POKA YOKE
• What could go wrong?• What check could we put in place
that would either prevent it happening or reduce the chances of it happening?
HOLDING GAINS
Baljit Singh Modi – MCQI WS Atkins, Sharjah
Continuous Improvement-desirability Vs acceptability
Acceptable
Acceptable
Acceptable
Not acceptable
Most desirable
Less desirable
Even less desirable
HOLDING GAINS
Baljit Singh Modi – MCQI WS Atkins, Sharjah
RESULTS
IMPROVED LEADERSHIP
ENHANCED CUSTOMER
SATISFACTION
VOICE OF THE CUSTOMER
VOICE OF THE PROCESS
VOICE OF THE PEOPLE
Baljit Singh Modi – MCQI WS Atkins, Sharjah
Here is Edward Bear coming down stairs now, bump, bump, on the back of his head, behind Cathy. It is, as far as he knows, the only way of coming downstairs but sometimes he feels that there is really another way, if only he could stop bumping for a moment and think of it
IMPROVEMENT !!
Baljit Singh Modi – MCQI WS Atkins, Sharjah
Many Thanks………..