Transcript Introduction to Lean - OK

Transactional Change in
Action - Using Lean
Principles
Presenter
• Karen Kusler
– Process Improvement for UCO
• Formerly with Institutional Assessment
– Lean Facilitator
University of Central Oklahoma
100 N. University Drive
Edmond, OK 73034
(405) 974-2540
[email protected]
Lean Enterprise is….
A systematic approach to
identifying and eliminating
waste (non-value-added
activities) through
continuous improvement.
History
• Began in the Manufacturing Industry
• Executive VP Kreidler introduced Lean to
UCO in 2002
– Methodology to improve efficiency, reduce
waste, and streamline processes
– Result in employee satisfaction, clarity of role
in process, and standardize work where
appropriate
Words To Live By
• “Do not believe that it is very much of an
advance to do the unnecessary three times
as fast”
– Peter Drucker
• “Bureaucracy defends the status quo long
past the time when the quo has lost its
status”
Lean Thinking
• Fundamental Objective:
– To create the most value while consuming the
fewest resources
• Define value from the customer’s perspective
• Identify which process steps create value
and which are only waste
• Work to eliminate the root causes of the
waste and allow for continuous flow of work
and tasks
Lean is Not…
• A headcount reduction program
• A toolbox
• A method for reducing resources that are
needed to support the “customer”
Goal is Quality of Service
• Quality is not a program – it is an
approach.
• Quality’s goal is excellence – anything
less is an improvement opportunity.
• Quality implemented properly – increases
customer satisfaction, reduces time and
cost.
• Waste (Muda)– anything that is more
than the minimum amount of
– process,
– workers’ time,
– materials, space, or
– equipment
and adds no value to the product or
service for the customer.
Lean and Eliminating Waste
Typically
95% of
lead
time is
non
valueadded
VA
NVA
8 Wastes in Processes
1. Overproduction – producing more sooner,
or faster than is required by the next
process.
• Office examples – printing paperwork out
before needed, purchasing items before
needed (results in inventory storage,
processing paperwork before the next person is
ready for it
8 Wastes in Processes
2. Inventory (Inbox) – any form of batch
processing
• Office examples – filled in boxes (electronic
and paper), office supplies, sales literature,
batch processing transactions and reports.
8 Wastes in Processes
3. Waiting
• Office examples – System downtime, system
response time, approvals from others,
information from customers
8 Wastes in Processes
4. Extra Processing
• Office examples – Re-entering data, extra
copies, unnecessary or excessive reports,
transactions, cost accounting, expediting, labor
reporting, budget processes, travel expense
reporting, month-end closing activities
8 Wastes in Processes
5. Correction – any form of defects
• Office examples – Order entry errors, design
errors and engineering change orders, invoice
errors, employee turnover
8 Wastes in Processes
6. Excess Motion – movement of people
• Office examples – Walking to/from copier,
central filing, fax machine, other offices
8 Wastes in Processes
7. Transportation – movement of paperwork
• Office examples – excessive email
attachments, multiple hand-offs, multiple
approvals.
8 Wastes in Processes
8. Underutilized People – people’s abilities,
not their time
• Office examples – Limited employee authority
and responsibility for basic tasks, management
command and control, inadequate business
tools available
Lean Project Phases
– Lean Team!
Preparation
Agreeing on the process to study, how
to map it, who will participate, and
logistics.
Current State
Agreeing on a well understood map of
the current situation.
Future State
Agreeing on a shared vision of a Lean
future state.
Planning
Agreeing on how to implement the
future state vision.
Project Preparation
• Select potential project with sponsor/Champion
• Scope effort with functions represented in the
selected value stream
–
–
–
–
Confirm business objective
Identify measures of success
Develop SIPOC
Identify participants & decision panel
• Confirm scope with Decision Panel
• Walk the flow
Case Study – Fixed Assets
• Reason Selected
– The current process results in undocumented
and over-documented assets in the computer
system.
• Customer
– Accounting staff that needs the information to
prepare end of year reports and respond to
external auditors is the customer.
Case Study Goals
• Capitalize all qualified fixed assets.
• Create processes to capture qualified
fixed assets.
• Identify miscoded fixed assets when
ordered.
• Validate Procard purchases of qualified
fixed assets.
• Define the process to write-off disposed
assets.
Current State
Whenever there is a product or service for
a customer, there is a value stream. The
challenge lies in seeing it.
• Draw a Current State Value Stream Map (VSM)
– Visualize work
– Point to problems
– Focus direction
• Ask the 7 review questions
Review Questions
1. What does the customer really need?
2. How often will we check our performance
to customer needs?
3. Which steps create value and which are
waste?
4. How can we flow work with fewer
interruptions?
Review Questions
5. How do we control work between
interruptions? How will work be
prioritized?
6. How will we balance the work load and/or
different activities?
7. What process improvements will be
necessary?
Future State
• Draw a Future State Value Stream Map
based on responses to the review
questions
A&E and Grants Fixed
Assets coded with a
Commodity Code exempt
from the extract report
Evaluate
Asset Needs
Requistion
Submited
Financial
Manager
1
Financial
Manager
1
PO Emphasize delivery
or check in at Central
Receiving added to
training of end-users
preparing PO's
Accounting &
Commodity Codes
& training.
Purchasing
Process
Purchasing
1
Total C/T = 30 minutes
review, modify,
convert to PO
One Change through
Teamwork
• Commodity
Codes were not
being used
effectively
– Train staff on
consistent coding
– Expand and
clarify description
codes used to
determine
Generate
FPROEXT
REPort
Evaluate
Fixed Asset
FPROEXT
Report
Request
Script to
Clean file
John
IT Jan
1
John
1
1
Total C/T = 30 minutes
14 pcs
extract, correct,
rerun, email
Total C/T = 10 minutes
Formalize process
with Foundationand
donations to UCO
Total C/T = 30 minutes
Have John extract and
review reports. Trained by
Mark.
Define steps Grants
takes to captialize
items
Evaluate
Fixed Assets
FPROEXT
Report
Review
Corrected
Report
John
Accounting
(Connie)
1
Total C/T = 2 hours
14 pcs
research PO 10% time,
uncaptalize items,
sent to Mark for audit
list confirmation
Total C/T = 3 minutes
1000 pcs
assign p-tag,
accounting, org,
location, type,
depreciation
John
1
Total C/T = 15 minutes
Capitalize
Asset in Fixed
Asset Ledger
1
Link donation forms to
Foundation website,
Accounting website, and
Inventory website
Finding
• Sources of University Assets Vary
– Foundation
– Purchases
– Grants
• Items under $2500 not captured for
capitalization
Response
• Consistent information gathered
– Foundation – link form to document donations
– Purchases – expand inventory management
input to include as capitalized items (even under
$2500)
– Grants – train staff to document assets
Result
• End of year report and asset capitalization is
more accurate
Making the Change
in a Process
• Establish the main objectives
– Kaizen bursts
• Create master plan (Lean Team)
• Create detail plan (breakout groups)
– Emphasis who, what, when, and why
• Establish project review dates
• Present the plan to the Decision Panel
No Pain – No $Gain
• When the pain of
staying put is greater
than the pain of
changing, then you
have a chance to make
cultural change. Can
you find employee and
customer pain and
help them out of it in a
less painful way?
• The pain I know is
almost always less
than the pain I don’t
Learn More About Lean
• UCO offers educational programs on “Using
Lean Principles for Transactional Change”
– Next seminar is April 12 (registration fee $49)
• For details go to
http://administration.ucok.edu/ucocsi or call
(405) 974-2540
Some Books That Helped Us Along the Way
“The
Agenda”
“Good to Great”
By – Michael
Hammer
By – Jim Collins
“Execution”
By – Larry Bossidy,
Ram Charan
Some Books That Helped
Us Along the Way
“Leadership On The Line”
“Lean Thinking”
By – Ronald Heifetz,
Marty Linsky
By – James Womack,
Daniel Jones
“Using Lean For Faster Six
Sigma Results”
By – Mark Nash, Sheila
Poling & Frony Ward
QUESTIONS