Transcript Evolution

Implementing Continuous
Process Improvement in
Our Schools
John Helbling, PE, CLSSBB
Director, Lean and Six Sigma Outreach
Alliant Energy
Objectives
Be able to:
• Explain the Principals of Lean
• Explain the difference between Value Added and
Non-Value Added activities.
• Describe the seven types of waste and give
examples of each type in your processes.
• Explain the key steps in Lean Business Process
Improvement Process
• Explain the key steps in a 5 S event.
• Identify a Business Process Improvement
opportunities in your area.
Principles of Lean
Thinking
• Precisely define value from the
customer's perspective
• Identify the value stream for each process
• Allow value to flow without interruptions
• Let the customer pull value from the
process
• Continuously pursue perfection
When is Lean Used?
Applies to any process where an employee*:
• Chases information in order to complete a task
• Must jump through multiple decision loops
• Is constantly interrupted when trying to complete a task
• Is engaged in expediting (of reports, purchases,
materials, etc.)
• Does work in batches
• Finds work lost in the "white space" between
organizational silos
• “Doesn't know what they don't know"
*From “Lean Six Sigma for Service” by Michael L. George
What are the Benefits
of Using Lean?
Using Lean tools an organization can expect to:
• Eliminate or dramatically reduce backlogs
• Reduce lead times by more than 50%
• Decrease the complexity of processes
• Improve the quality of applications and the
consistency of reviews or inspections
• Allocate more staff time to “mission critical” work
• Improve staff morale and process transparency
Lean Tools
Strategic Tools – Determines WHAT
• Vision Mapping Kaizen Event - Value Stream
Mapping (VSM)
Tactical Tools – Determines HOW
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5-S Kaizen – Workplace Organization
Work flow Kaizen
2 P – Process Preparation / Replication Kaizen
3 P – Product Process Preparation Kaizen
Safety Kaizen
Changeover Kaizen
Total Preventive Maintenance Kaizen
5S
– Discuss the main concepts and
benefits of workplace organization
– Discuss what constitutes a 5S
Why is Workplace
Organization Important?
• Safe, clean and neat
• Place for everything, everything in
its place (Go APE – “A Place for
Everything”)
• Only what is needed to support
the employee
Definition of 5S
• Step 1: Sort - Remove unnecessary items;
keep only what is needed.
• Step 2: Set - Assign and label for ease of use;
designate a home for everything; (a.k.a.
Straighten/Store).
• Step 3: Shine – Keep area clean on a
continual basis.
• Step 4: Standardize – Create a process that is
easy to follow and maintain.
• Step 5: Sustain – Training and discipline; stick
to the rules and maintain motivation.
5S Applies to Everyone
1. Sorting:
Decide What is Needed
• Definition
– Sort out necessary
and unnecessary
items
– Dispose of items that
are not needed
• Why:
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Removes waste
Safer work area
Gains space
Easier to visualize
process
The
Mess
1. Sorting (Cont):
Decide What is Needed
• Things to remember
– Start in one area, then sort
through everything
– Discuss removal of items
with all persons involved
– Use environmental/safety
procedures
– Items that cannot be
removed immediately
should be tagged (“redtagged”)
Is This
Item
Needed?
2. Set:
Arranging the Workplace
Definition
• Arrange all necessary items
Why:
• Have a designated place for
everything
• Visually shows what is required or
is out of place
• More efficient to find
items/documents/files
• Saves time by not searching for
items
• Shorter travel distances (motion)
3. Shine:
Sweep and Cleanliness
• Definition
– Keeping areas clean
on a continual basis
• Why
– A clean workplace
(office) is indicative of
a quality process,
product or service
New Labels are Now
On File Cabinets!
– Helps to identify
abnormal conditions
‘Everything in its place’
4. Standardize
• Definition
– Create a new process that is
easy to follow and maintain
• Why
– Maintain the workplace/office
at a level which uncovers
and makes problems
obvious
– Need to sustain the
improvements
– Sustain sorting, storage and
shining activities every day
5. Sustain:
Trained & Disciplined Culture
• Definition
– We need to practice
and repeat until it
becomes a habit
• Why
– To build 5S’s into our
every day process
• Things to Remember
– Develop schedules,
check lists
– Good habits are hard
to break
– Commitment and
discipline toward
housekeeping is
essential in taking the
first step to world class
performance
Before & After
A Place for Everything!
So, Why Don’t We Just
Do It?
• It is a habit issue – sounds easy, difficult to
implement and sustain
• Discipline exists only if there is
commitment on all levels
A well organized 5S program delivers significant results
with minimum investment
Value-Add vs. Non-Value-Add
Definitions
Value-Adding Activities…
...transform materials and information into
products & services which the customer
wants.
– “Customer” must be willing to “pay” for it.
– Must transform the product or service in some
way.
– Must be done correctly the first time.
Value-Add vs. Non-Value-Add
Definitions
Non-Value-Adding Activities...
…consume resources, but don't directly
contribute to the product or
service…waste (muda) !
 Type 1 – Business necessary – does not add
value but we do not know how to eliminate it
right now.
 Type 2 – Unnecessary.
Improvement
Objectives
• ELIMINATE Type 2 Non-Value Added
steps
• REDUCE Type 1 Non-Value Added steps
• OPTIMIZE Value Added
Waste and its two
cousins!
• Muda – Waste – divided into seven types.
• Mura – Unevenness – consists of all
resources that are wasted when quality
cannot be predicted (testing, inspection,
rework, returns, unscheduled travel, etc).
• Muri – Overburden/overdoing –
unnecessary or unreasonable
overburdening of people, equipment or
systems.
Categories of Waste
• Production of Defects
• Overproduction ahead of demand
• Unnecessary Transport of materials
• Waiting for the next process step
• Inventories (Excess material/information)
• Unnecessary Movement by employees
• Over Processing due to poor tools and product design
Lead time reduction is achieved by
identifying and eliminating waste.
Defects
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Internal or external suppliers providing incomplete or
incorrect information or material.
Evidence: CAC: Correcting information that has
been supplied. Adding missing information that
should have been supplied. Clarifying information
that should have been clear when supplied. Material
that does not work. Handling customer complaints.
Risks: Errors become defects that require rework.
Produces dissatisfied customers, frustrated workers,
lost productivity, and extended lead times. Make
decisions based on incorrect or incomplete data.
Overproduction
• Producing too much, too fast or too soon.
• Evidence: Build up of work-in-progress (WIP)
•
between process steps. Build up of queues,
people waiting, filled in-boxes or email
queues, etc.
Risks: Excessive lead times. Unnecessary
complexity and confusion due to
reprioritization of tasks and the development
of multiple tracking systems.
Transportation
• Movement of “things” – paperwork, electronic
•
•
information, material, drawings, equipment,
and supplies.
Evidence: Hand carrying. Traveling to shared
equipment. Searching for information;
seeking information clarification. Searching
for material.
Risks: Damage or loss during transport.
Delay in work being available.
Waiting
• People waiting for people. Information,
•
•
product, or equipment waiting for people.
People waiting for information. Product, or
equipment. Idle time created when
Evidence: “The Thing” passing through the
system stops. Idle people. Idle bottleneck
equipment. Waiting for meetings to begin.
Waiting for information, input, decisions,
approvals or authorization to proceed.
Risks: Extended lead times, long work days,
and paid overtime. Unnecessary capital
expenditures for equipment.
Inventories/WIP
• Excess paperwork, supplies, materials,
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•
equipment, etc. Work waiting in que. Work
partially completed. Work completed but not
utilized.
Evidence: Stockpiles of supplies, forms,
materials, etc. Disorganized storage areas.
Risks: Reduced cash flow. Lost productivity
due to searching. Excess space. Damage.
Obsolescence.
Movement
• Movement of people.
• Evidence: Hand carrying work product.
•
Functional layout. Traveling to shared
equipment. Searching for information;
seeking information clarification. Excess
reaching, repositioning, stacking. Not carpooling. Meeting face-to-face instead of
teleconferencing.
Risks: Reduced capacity to perform valueadding work, which results in increased
staffing requirements. Injury.
Over Processing
• Doing more to anything than the customer is
•
•
willing to pay for. Effort that adds no value
from the customers point of view.
Evidence: Inspections, audits, and reviews..
Redundant task. Duplicate data entry.
rewriting, etc. Too many handoffs. Multiple
approvals/signatures. Unnecessary meetings.
Risks: Excessive lead times. Low productivity.
Frustrated workforce.
Waste Examples
• In your group identify examples of waste in
•
•
your area.
Identify an group spokesperson
As a group identify at least one example of
each of the seven types of waste.
Time limit: 10 minutes
Waste Examples
Type of Waste
Defects
Overproduction
Transportation
Waiting
Inventories
Movement
Over processing
Examples of waste
Waste is a Symptom
• Waste is merely a symptom of an
underlying root cause.
• To permanently eliminate waste, we must
determine the root cause of that waste and
elimininate it!
Root Causes of Waste
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Functional Silos
Technology Gaps
Excessive Controls
Dated Process Design
No Back-up/Cross
Training
Unbalanced Workload
Batching of Forms /
Applications
Data Entry Batching
Just-in-case logic
Mistrust
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Changing Government
Practices and Policies
No Decision Rules
Poor Visual Control
Disorganized Workplace
Lack of Training
Obsolete Forms or Form
Design
• Poor Layout
• Government Regulations
w/ Ambiguous
Interpretation
Business Process
Kaizen
(Change – Good)
Lean Transformation:
A Time-Based Strategy
Kaizen Methodology
• Is focused on lead-time and variation
reduction
• Is measurement focused
• Is data driven, and fact based
• Provides a baseline for future
improvements (Kaizen)
• Drives cultural change
Time-Based Impacts on
Processes and
Delivery of Services
 Quality & Time
 Cost & Time
 Delivery & Time
 Safety & Time
Steps to Implementing
Business Transformation
• Identify who is the customer.
• Identify what is the value add to the
customer.
• Identify the areas of pain or dissatisfaction.
• How do we know?
Steps to Implementing
Business Transformation
• Create a business process map to identify
areas of opportunity.
• Identify value adding and non-value
adding activities and set new performance
targets
• Create process flow
• Reduce variation and improve quality
• Intense focus on daily performance
management and visual control
Steps To Implementing
Business Transformation
Who is the customer?
Scope of Business Process?
What is the Value Added to the Customer?
Measurable Objectives?
DATA
Gathered
from your
Data Display
Current State Map
Process Steps
Process Flow
Identify Value Added and Non-Value
Added
Future State Map
Eliminate Non-value Added
Challenge Type 1 Non-Value Added
Question Value Added – Why, Why, Why
Creative Leap and Kaizen bursts
Implementation Plan
Do It!
Evaluate
What? When? Who?
Training Plan
Communication Plan
Establish Process Metrics
Begin during event
Continue after event
Visually track progress
Continuous Improvement
Event Identification
In your Group:
• List the various department processes.
• Identify the value of each process and how the process
links up with and advances the District’s and
Department’s goals.
• Identify who are the customers.
• Identify areas of customer pain with the processes.
• Pick the process with the greatest pain or impact on your
Department’s goals.
• Complete the Lean Activity Checklist.
Time Limit: 20 Minutes
Questions
References and
Acknowledgments
• State of Iowa, Department of Management, Lean Enterprise http://www.dom.state.ia.us/planning_performance/lean/index.html
• Lean Enterprise Institute - www.lean.org
• Rand Corporation, “Organizational Improvement and Accountability,
Lessons for Education from other sectors” http://www.rand.org/pubs/monographs/2004/RAND_MG136.pdf
• Lean Education – www.leaneducation.com
• Alliant Energy
• “Kaizen Event Planner”, Karen Martin and Mike Osterling,
Productivity Press
5 S Examples
What are we trying to
solve?
• Problem Statement - Cluttered Work Room, File Cabinets, Supplies,
Empty Cubicles, Etc. resulting in inefficient use of space.
• Objective - Complete 5S in order to:
1. Assign designated storage area for files, supplies
and documents and label accordingly.
2. Eliminate congestion and clutter.
3. Review old files for long-term storage or
destruction/removal.
4. Designated work area for total compensation
department.
• Defect - Disorganized, unattractive work area.
What are we trying to solve?
Cabinets cluttered
and disorganized
How did we dispose of
the excess material?
Pareto Chart of Disposal Type
50
40
40
30
20
20
10
10
0
Number of Items
Count
Percent
Cum %
Retain
44
35.5
35.5
Shred
36
29.0
64.5
Trash
20
16.1
80.6
Facilities Auction
13
10.5
91.1
Recycle
11
8.9
100.0
0
Several methods of disposal were utilized.
Percent
30
How many pounds of excess
material was removed?
Pareto Chart of Disposal Type
1400
60
1200
50
1000
800
30
600
20
400
10
200
0
Total Pounds
Count
Percent
Cum %
Percent
40
Shred
1100
48.5
48.5
Trash
720
31.7
80.2
Recycle
450
19.8
100.0
0
A total of 2,270 pounds or 56,750 pieces of paper
What did the team
accomplish?
• Completed Kaizen Event in 8 hours
• Thorough review of all materials
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Total Compensation
Staffing
Document Management
Legal
Facility Services
• Supply Cabinet
– 5-to-1
– Moved to centralized location
What did the team
accomplish?
• Files Relocated
• Coat Closet relocated closer to employees
• Cabinets
• Moved storage cabinets to cubicles
• Total Compensation Work Room
• No longer excess storage area
• Conference Room
• Work Space – New work area created
• Hoteling Workstation
• Safety
• Disposed of coat rack from aisle way