Transcript SWCofE Introduction to Lean Systems Thinking

An Introduction to
Lean Systems Thinking
… a better way to make the work work
© Vanguard Consulting Ltd
"We cannot solve the problems
we have created with the
thinking that created them."
Einstein
Two main design and management
thinking approaches …
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Mass Production / Command & Control
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Orders
Foundry
Power Train
Hundreds
Of
Suppliers
Body & Frame
Painting
Rework
Material flow
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Information flow
W
A
R
E
H
O
U
S
E
Final Assembly
(& Rework)
Dealers
Customers
MANAGEMENT FACTORY
Planning
Stamping
Production
Programme &
Forecast
Arise Command & Control!
Perspective
Design
Decision making
Top down, hierarchy
Functional
Separated from work
Output, targets, standards related to
Measurement
Management ethos
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budget & plan
Manage people, hit budget and plan
An alternative solution…
MANAGEMENT FACTORY
Customer
Worker
Worker
Worker
Worker
Company
Material flow
Information flow
Variety in the context of continuous flow
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Summary of TPS Features
• Pull
• Flow
• Waste
• Measures
• Decision making
• Management role
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The Toyota Production System
“The number of man hours it takes to build a
Lexus is less than the man hours used in reworking a top-of-the-line German luxury car at
the end of the production line, after it has been
made."
The Machine that Changed the World
Womack, Roos & Jones 1990
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Vanguard - translation for Service
Service differs from manufacturing!
The customer is involved in ‘production’,
• Their Demand triggers our work…
i
• Variety of customers and demand is huge!
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Systems Thinking Principles
Perspective
Design
Decision making
Measurement
Outside - in
Demand, value, flow
Integrated into the work
Related to purpose, and show
capability
Management ethic
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Act on the system
Change this
Tools here
improve
Thinking
System
Performance
Service
Efficiency
Revenue
Morale
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The rise of Tools
• Six sigma
– Centred on a powerful problem solving and
process optimisation methodology, 6 Sigma is
credited with saving billions of dollars for
companies over the past ten years.
•
•
•
•
•
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Define
Measures
Analyse
Improve
Control
… and plenty more!
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5s
4 actuals
7 wastes
Tact time
Value Stream Mapping
Brainstorming
Cause and Effect
Control Charts
Decision analysis
Failure Modes Effects Analysis (FMEA)
Force field Analysis
Pokeyoke (Failure Proofing)
SIPOC (Suppliers, Inputs, Process, Outputs and Customers)
Spaghetti Chart
Treatability Matrix
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Do they
change
this?
Thinking
System
improve
Performance
Service
Efficiency
Revenue
Morale
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Focus outside in, design to absorb variety
CUSTOMERS
DEMANDS
PROCESSES
OUTCOMES
“WHAT MATTERS?”
These Vary!
Unhelpful? Costly?
i
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£
Nominal Value
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Costs of departure from the nominal value
Fisherman
Mum &
Kids
Businessman
Quick & Hot Coffee
I/V
Kids 1st
Laptop
then me
DnD
i
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Customer sets nominal
value and thus the
response of the service.
The place to start is Check
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Check
Do
i
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Plan
Understanding your organisation as a System
The Vanguard model for ‘check’
1 What is the purpose (in customer terms)?
3 Capability of response
2 Demand : T&F, V&F
What matters?
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Understanding capability data
• Much of what we currently report on are
percentages or averages in relation to
targets (static data points)
• Few of these targets relate to the real
experience of the customer
• Because of the way it is reported it is hard to
see the effects of changes and decisions that
we may be taking
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Understanding capability data
• Statistical process control charts (SPC) or
Capability Charts are a powerful way of
looking at our data and understanding the
performance of our system
• They capture statistically the capability or
predictability of our system in delivering
service for customer over time
• Normally used to understand frequency of
an occurrence or elapsed time (end-to-end)
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How they work
Statistically we can measure the
variation orWhat’s
predictability
it
important–iswhat
knowing
feels the
like extent
for ourofcustomers
this variation and
No. of Days
why – the causes
100
Every system
has inherent
variation
x
x
50
x
x
x
x
x
x
x
x
x
UCL
x
x
x
mean
x
x
LCL
We tend to only pay
attention to the average
Cases
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Understanding your organisation as a System
The Vanguard model for ‘check’
1 What is the purpose (in customer terms)?
6 Thinking
3 Capability of response
5 System Conditions
4 Flow : Value work + Waste
2 Demand : T&F, V&F
What matters?
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Change based on knowledge…
change
action
…act on the
improve
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Thinking
System
Performance
analysis
Case Study 1: Housing benefits
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What you learn from Check
What do customers want?
“Can I make a claim?”
“My circumstances have changed”
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What matters to customers?
• “I get an answer quickly so that I know whether or not
I’m going to get help”
• “Deliver payments quickly so that I don’t get hassle
from my landlord or the CTax department”
• “Make sure my benefits keeps track with changes in
my situation…”
• “You help me through the process”
• “I can understand the letters & forms”
• “I don’t mind waiting a bit if I know it is going to be
sorted”
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Purpose
Pay the right money to the right people as
quickly as possible
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Capability
(how well are we meeting the purpose in customer
terms?)
• We don’t know!
– Because we don’t measure it!
• But … we do measure:
–
–
–
–
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BVPIs & position relative to ‘similar’ authorities
Waiting time in reception
AvHT, wrap, etc. in the Call Centre
Number of cases per day in the back office
So what do customers experience?
Ucl = 152
mean = 52
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Learning to see HB as a System
“I want to claim”
34%V 66%F
64% passed back
Manage queues
Hand out forms
Take in documents
22%V 78%F
Multiple Sorts & Checks
Cases fragmented
Scanning/Indexing errors
44%V 56%F
Handoff
Sort
Scan
Index
HO
Workers’ activity ‘managed’
1-10 cycles to clean (ave.4)
95% cases over-specified
20% docs. duplicated
Letters unclear
87%
Allocate
99% claims ‘dirty’
No case ownership
CTax fragmentation
HO
Decide
Pay
0-152 days to pay
3% visit once
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HO
Notify
HO
Inspect
60% errors
Rework
HO
Is there opportunity to improve?
How would you realise it?
i
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What is the
Thinking
System
… to result in
i
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Performance
That has
caused the
Learning to see HB as a System
“I want to claim”
34%V 66%F
64% passed back
Manage queues
Hand out forms
Take in documents
22%V 78%F
Multiple Sorts & Checks
Cases fragmented
Scanning/Indexing errors
44%V 56%F
Handoff
Sort
Scan
Index
HO
Workers’ activity ‘managed’
1-10 cycles to clean (ave.4)
95% cases over-specified
20% docs. duplicated
Letters unclear
Allocate
99% claims ‘dirty’
No case ownership
CTax fragmentation
HO
Decide
Pay
0-152 days to pay
3% visit once
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HO
Notify
HO
Inspect
60% errors
Rework
HO
Case Study 2: The IT Helpdesk
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What’s its
PURPOSE?
If there is an
issue, sort it:
One-stop
or manage my
expectations
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The IT Helpdesk … What a user experiences?
What’s going on?
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A Story of IT Support
Work done
Calls not being fully
R &first
R time
fixed
Diagnosis
Ongoing
problem
Predictably up to 5 people
3 teams
@
LOG QSM
TO TEAM
A or S
DW
CUST
1:1
CLOSE 33%
CLOSE 16%
Reasons
for
wait:
Bounced1:1
between
people
/ teamsFIX
Reallocation
WAIT
FIX
FIX
Fixing
Not
set up properly
MORE WORK
Ordering
…CUST
Calls
closed
DW
suppliers
CLOSE 51%
engineers
1.5 min
user
1 Hr
58 Hrs
Vanguard
83 Hrs
www.lean-service.com
What underpins this design & performance?
Handoff
Batch
Check
Rework
= DELAY
Functional Design
Operations
HelpDesk
@
Remote Techs.
MORE WORK
LOG QSM
TO TEAM
A or S
DW
1:1
FIX
CLOSE
Core Techs.
DW
CUST
WAIT
CUST
1:1
FIX
FIX
CLOSE
CLOSE
Development
83 Hrs
Vanguard
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What underpins this design & performance?
Focus on Close NOT Fix
= MORE WORK
Functional Design
Reopen
Raise Job
@
Prioritise jobs
KPI’s
Stop Clock
= DELAY
Close Job
Logging data
MORE WORK
LOG QSM
TO TEAM
A or S
DW
DW
CUST
1:1
CUST
1:1
WAIT
FIX
FIX
FIX
CLOSE
CLOSE
CLOSE
83 Hrs
Vanguard
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What underpins this design & performance?
Control over IT people and costs
= DELAY
= STAFF
FRUSTRATION
Functional
Design KPI’s Procedures & Authorisation
We say “No!”
= USER FRUSTRATION
@
MORE WORK
LOG QSM
TO TEAM
A or S
DW
1:1
Vanguard
DW
CUST
WAIT
CUST
1:1
FIX
FIX
FIX
CLOSE
CLOSE
CLOSE
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What underpins this design & performance?
BUDGET
Functional Design
KPI’s
Focus on the numbers
@
LOG QSM
TO TEAM
A or S
“Lower Cost”
staff for
“Simple” jobs
Juggle resources between support
andFIX
development
Say “It’s chargeable!”
Authorisation
CLOSEto “control” spend
Vanguard
CONTRACT
Procedures & Authorisation
StickMORE
toWORK
the letter
CUST
DW
Ensure
we
CUST
DW (and
hit the numbers
don’t
get
fined) 1:1
WAIT
1:1
Juggle
FIX resources between support
FIX
and development
CLOSE
CLOSE
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Thinking
System
Performance
© Vanguard Consulting Ltd
•
•
•
•
•
Focus on revenue
Meet the budget
Stick to the contract
Manage the people
Improve through Projects
•
•
•
•
•
•
Demands equal units of work
Functionalised design
Managers make decisions
Focus on productivity, output and prizes
Workers follow procedures
Hand-off, batch & Q, checking, reworking
•
•
•
•
•
•
•
•
Hard to get through
Poor first time resolution
Long E2E time
High failure demand
Rising complaints
Poor retention
Rising costs
High staff turnover
Principles for ‘Plan’ (Re-design)
Where do we need
6 to act? Remove
System Conditions
1 Clarity of purpose
C
U
S
T
O
M
E
R
S
3 What are the value steps?



5 What are the
management roles?
Add value
4 What are the ‘core’ roles?
Design against demand
2 Clarity of the permanent measures
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Learning to see HB as a System
“I want to claim”
34%V 66%F
64% passed back
Manage queues
Hand out forms
Take in documents
22%V 78%F
Multiple Sorts & Checks
Cases fragmented
Scanning/Indexing errors
44%V 56%F
Handoff
Sort
Scan
Index
HO
Workers’ activity ‘managed’
1-10 cycles to clean (ave.4)
95% cases over-specified
20% docs. duplicated
Letters unclear
Allocate
99% claims ‘dirty’
No case ownership
CTax fragmentation
HO
Decide
Pay
0-152 days to pay
3% visit once
© Vanguard Consulting Ltd
HO
Notify
HO
Inspect
60% errors
Rework
HO
Change thinking, improve performance
Purpose
Measures
Method
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Pay the right people the right money fast
mean = 142
Experiment: find & act on causes of variation
Change thinking, improve performance
Purpose
Measures
Pay the right people the right money fast
mean = 142
mean = 12
Method
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The Systems Solution: design against
demand
Demand
Value Work
Expertise
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“I want to claim”
• Obtain clean information
• Make a decision
• Notify the claimant
• Pay if entitled
• Put the claims expertise at the front end
• Enable assessors to pull support on demand
• Build Ctax expertise into the flow
• And measure against purpose
Service Level, AvHT
Diagnosis & SoR
Repairs as a System
Parts/material
Priority
Activity, Time, Cost
Prop. o/heads
Bonus
“Something’s broken…”
Target
Times,
Budget
“What’s going on!”
“It’s not fixed!” 65%
Repair
Call
Centre
Works
order
Supervisor
Cancel WO’s
favouritism
95% WO’s Reworked
Diagnosis,
Bonus, Fix
Re-allocate
Argue
Access
40% fail
No. Jobs
Type of job
Tradesman
Materials
Delay
Distrust
© Vanguard Consulting Ltd
What would you do?
• Think about…
–
–
–
–
“What Matters?” to the tenants
What is the VALUE work?
How could we just do the value work?
What would we need to do to help those to do
their jobs?
– What are the implications on roles?
– What should we measure?
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Should we worry about people of process?
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The importance of measures
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Causes of Variation?
UCL
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
LCL
© Vanguard Consulting Ltd
Setting a target that exceeds capability
Target
UCL
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
LCL
© Vanguard Consulting Ltd
Setting any target ?
UCL
x
x
x
x
x
x
x
x
x
x
x
x
x
Target
x
x
x
LCL
© Vanguard Consulting Ltd
What’s important?
What’s important is knowing
the extent of this variation and
why – the causes
UCL
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
LCL
© Vanguard Consulting Ltd
Capability vs Targets
Targets
Capability Measures
Arbitrary – “plucked out of the air”
Derived from the work
Increase disorder in systems
Lead people to work in ways that
increase order and control
Focus people on the wrong things –
survival not improvement
Focus ingenuity on how the work
works
No value in understanding and
improving performance
Understanding causes of variation
provides a focus for improvement
De-motivating – no understanding of
capability
Motivate – put control and
understanding in the right place
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What makes a good measure?
i
• Measures must be derived from the work – relate to
purpose
• Measures must help us understand and improve
performance
• Measures must demonstrate capability and variation
over time
• Measures must be in the hands of the people doing
the work, to control and improve the work
• Measures must be used by staff and managers to
take action on the system
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Summary – the key issues
1. Not paying attention to demand
2. Damaging the ability to absorb variety
3. Managing people not the process
4. Using the wrong measures
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Reading List
Vanguard Stuff : www.lean-service.com
• Freedom from Command & Control, John Seddon
• I Want you to Cheat, John Seddon
Recommended
• The New Economics, W. Edwards Deming
• The Toyota Production System, Taiichi Ohno
• The Machine that Changed the World, Womack Jones & Roos
• Lean Thinking, Womack & Jones
• Understanding Variation, Donald Wheeler
• Punished by Rewards, Alfie Kohn
Interesting but Dangerous - you work out why…
• The Principles of Scientific Management, Frederick Winslow Taylor
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