Lean Process Improvement From WACUBO Fall 2016 Workshop Series LEAN ORGANIZATION CALS Business Services – Rates and Review Team January 31, 2017 Lean Process Improvement From WACUBO Fall 2016 Workshop Series WACUBO workshop presented by Robyn Pennington and Alexis Naiknimbalkar from California State University Chancellor’s Office.

LEAN THINKING HISTORY Henry Ford started the process that would lead to Lean thinking with the idea of improving the flow of auto manufacturing and production in 1913. Kiichiro Toyoda and Taiichi Ohno took the idea and used it to develop the Toyota Production System in the 1930s. Their goal was to increase productivity and eliminate waste, and their approach was to look at the manufacturing process from a new perspective, the customer’s perspective. Lean thinking resulted in the elimination of waste and improvement of productivity in the manufacturing process. Lean thinking is a new way of looking at an old process. Henry Ford Lean also brings together science (teaching a new pattern) and behavior, resulting in change that is self sustained by habit. Kiichiro Toyoda Taiichi Ohno

WHAT IS THE LEAN GOAL? “Deliver the most value from your customer’s perspective while consuming the fewest resources.”

WACUBO – Lean Process Improvement HOW DO I GET THERE? Identify who your customers are and what their needs are; Focus on each product/service and its value stream (how it’s created); Ask which activities are waste and which truly create value; Enhance the value and eliminate the waste to optimize the whole. WACUBO – Lean Process Improvement

WACUBO – Lean Process Improvement WHAT IS WASTE? Any step or action in a process that is not required in order to complete the process. Elements of an activity that do not add value (from the customer perspective). WACUBO – Lean Process Improvement

WACUBO – Lean Process Improvement WHAT ARE THE RISKS Waste increases cost & time! WACUBO – Lean Process Improvement

So how do we measure success? ARE WE THERE YET? So how do we measure success? Success is measured in cost and time savings!

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WACUBO – Lean Process Improvement LEAN TOOLS Waste Walk: Identify the causes of waste: Defects Overproduction Waiting Non-Utilization of Talent Transportation Inventory Motion Extra Processing WACUBO – Lean Process Improvement

WACUBO – Lean Process Improvement LEAN TOOLS 5S: Improvement process to create and maintain a clean, neat and high performance workplace: Sort Straighten Shine Standardize Sustain 5S – Workplace organization method. Organize a work space for efficiency and effectiveness by following these steps: Sort – Eliminate unneeded items Straighten – Keep items in correct place for easy access. Use signs, naming conventions for electronic files. Shine – Clean and tidy. Standardize – Create a method for making the 3S a habit. Maintain a control system (checklist, audits, visual controls), quick reference checklist. Maintain everything in order and according to its standard Sustain – Sustaining the new order. Communicate importance, train, stablish procedures. = “do without being told”. WACUBO – Lean Process Improvement

WACUBO – Lean Process Improvement LEAN TOOLS A3: Template for problem solving: Background Current Conditions Root-Cause Analysis Target Condition Countermeasures Implement Evaluate Follow-up PLAN DO CHECK ACT A3 – Paper size 11 x 17. Problem Solving tool. Why? To structure effective dialogue. Create understanding of the problem and process, followed by agreement. A3 tool forces to slow down and not jump into conclusions. Clarifies what is causing the problems. 1.Use to clearly tell a story and simplify/clarify complicated issue. And Identify the problem or need. Why is it important? 2.Understand the current situation and the magnitude of the problem – effects on the business 3. Perform root cause analysis. WHY? 4. Develop the goal statement – develop the target state 5.Brainstorm/determine countermeasures -> actions required to eliminate the problem 6. implementation plan – what actions to be taken, by who, and when? 7. Check results – confirm the effect -> compare before and after 8. Keep the plan in place! –schedule follow up 30/60/90 days after implementation WACUBO – Lean Process Improvement

WACUBO – Lean Process Improvement LEAN TOOLS Personal Kanban: Japanese for “sign board,” it is a scheduling tool Process Mapping: A graphical presentation of a process. Sequence of steps Visual identification of roles and responsibilities. We are very busy, and it can be difficult to rely on our memory for a To Do list. Visual way to track your work -> tangible Tool to manage and keep track of personal tasks. Sticky note will travel through out the board. Helps you prioritize, and notice patterns. Process Maping Makes work visible Why? To orient and train employees and customers To improve a process by eliminating redundancies, automate processes, identify metrics to improve. WACUBO – Lean Process Improvement

Cross-Functional Flowchart PROCESS MAPPING Cross-Functional Flowchart Define and Identify current processes. View department relationships and handoffs -> ‘touches’ Helps clarify roles and the flow of events

BASIC PROCESS MAPPING PI buys batteries for computer mouse with own money at Circle K: 1. Submit receipt to Business Office 2. Receipt received, logged, date stamped 3. Receipt placed in in box of eDoc initiator 4. Initiator creates eDoc 5. Payee is contacted to sign cover page of eDoc 11. eDoc is received by FSO: logged and date stamped 10. eDoc is mailed to Campus 9. Scan or photocopy is filed 8. eDoc is scanned and photocopied 7. Approver receives and approves eDoc 6. eDoc is routed for approval 12. Back up documents are scanned by FSO to eDoc 13. eDoc is assigned to a FSO Specialist 14. eDoc is reviewed and approved by FSO Specialist 15. Direct deposit/ check process is initiated 16. Payee receives reimbursement

BASIC PROCESS MAPPING PI uses PCard to buy batteries for computer mouse at Circle K: 1. Submit receipt and PCard Use Form to Business Office 2. Reconciler prepares supporting documents according to FSO requirements. 3. PCard documents are held until eDoc is available in Action List 4. Receipt is reconciled in UAccess Financials 5. Receipt is given to PCard approver for review/approval 11. Documents scanned to eDoc 10. Original supporting documents are mailed to FSO 9. Documents are reconciled to Statement 8. Copies of supporting documents are filed 7. Supporting documents are scanned or photocopied 6. eDoc is reviewed and approved by PCard approver

BASIC PROCESS MAPPING Business Office places an order through Shop Catalogs to purchase batteries for PI’s computer mouse. 1. Business Office receives request from Agent 2. eDoc is initiated and routed for approval (s). 3. eDoc is approved 4. Order is received. 7. Business Office approves PREQ 6. Payment Request is initiated by FSO and routed to unit for approval 5. Order is given to requester

BASIC PROCESS MAPPING

CSU California State University – Quality Initiatives RESOURCES CSU California State University – Quality Initiatives Lean Principles, Waste Walk and 5S Organization System A3 CSU Problem Solving Template

QUESTIONS? Lynda Silvain Adriana Prado (520) 626-5597 (520) 621-4757 slynda@u.arizona.edu adriana.prado@arizona.edu