Continuous improvement is about removing stuff that get in the way of your things working well. Lean Thinking

What is Lean? Visit in a small group for a few min. Share what you know. Share experience/expertise

What is LEAN Maximize customer value Minimizing waste. More value – fewer resources. Understands customer value Focuses key processes to continuously increase value.

LEAN Approach Optimize flow Across Value Stream vs. Departments respond to changing customer desires simpler information management becomes much simpler and more accurate. Eliminating waste Along entire value streams vs. Each Step less human effort - less space - less capital - less time - much fewer defects – more accurate

Lean Goal is to provide perfect value by improve process flow, eliminate waste, deliver value to customers faster.

Misconceptions NOT just for manufacturing. Lean applies in every business and every process. It is not a tactic or a cost reduction program Lean is a way of thinking and acting for an entire organization.

Best Resource The characteristics of a lean organization are best described in: Lean Thinking by Womack and Dan Jones

Lean Method

Identify Value Map the Value Stream Create Flow Establish Pull Seek Perfection Express value in terms of a specific product or service, which meets the customer's needs Identify the value stream – Identify and categorize waste in the current state, and eliminate it in the future state Create value by continuously adding value and remove obstacles that don’t add value or clog the value stream Let the customer pull products and services as needed Give them access to draw on services as needed There is no end to the process of reducing effort, time, space, cost, mistakes, rework, and back stepping Return to the process & service over and over again

Lean Method Identify Value Map the Value Stream Create Flow Establish Pull Seek Perfection Express value in terms of a specific product or service, which meets the customer's needs

Specify Value Define value from the perspective of the final customer Express value in terms of a specific product/service, which meets the customer's needs

Customer and Supplier Customer = any person who receives the product/service anyone who directly touches or uses the output of a process/service Supplier = someone who provides the inputs or supplies for a process

Customer Supplier Relationship Caller orders a pizza Register person takes order Pizza makers make pizza Supplier? Customer? Customer Need? Supplier? Customer? Customer Need? Delivery person delivers pizza Supplier? Customer? Customer Need?

Customer Needs Analysis What do you do? (key services you provide) Who do you do it for? (Customers) What do they need? (quality requirements) How do you know? How are you doing? (± feedback) How do you know?

Customer Supplier Exercise Form groups of 4-5 people Consider: You are coaching a change leader – They are trying to start a change project but aren’t clear on a lot of things (i.e. aim, current facts, project value) and lack support of leaders -they are not sure why or what to do – they come to your for coaching – Answer the following Questions Who are the customers? What are the customer expectations? What are the customer needs? What are the suppliers capable of doing? What can the suppliers realistically provide?

Lean Method Identify Value Map the Value Stream Create Flow Establish Pull Seek Perfection Identify the value stream – Identify and categorize waste in the current state, and eliminate it in the future state

Value Stream All specific actions required to bring a value to the customer Create a map of the Current State and the Future State Identify and categorize waste in the Current State, and eliminate it!

All Work is Part of a Process “If you can't describe what you are doing as a process, you don't know what you're doing.” - W. Edwards Deming

Top Three Reasons Processes Struggle E. Deming 1. No, unclear or differing purpose/intention 2. No, unclear, differing and inconsistent methods 3. No or unclear determination of performance

What is a Process? An orderly series of steps, activities or operations where inputs are modified to achieve value INPUTS PROCESS OUTPUTS  Process Thinking vs. Activity Thinking NOT – Ad-hoc, ill defined or personality dependent

Process Flow What things flow along? 1. People 2. Information 3. Material 4. Combination of 1, 2 & 3

What Could Go Wrong? Problems/Obstacles in hand-offs between steps Problems/Obstacles in execution within steps

Lean Process Current Process Ideal Process Our vision of this process delivering VALUE With every things going as planned Simple for customer with no wasted resources

Lean Process What is the Ideal Coaching Process? When everything goes as planned The Coaching processes as you originally envisioned it Service delivers VALUE with limited use of time and resources Current Process Ideal Process

Consider: The Change Leader who came to you for coaching – what were the steps required to access your coaching services – get needed information – and provide them with your coaching services - VALUE!

Process Steps Value Analysis Value Added (VA) Any activity that increases the form or function of the product or service. (These are things the customer would be willing to pay for.) Non-Value Added (NVA) Any activity that does not add form or function or is not necessary. (These activities should be eliminated, simplified, reduced, or integrated.) Non-Value Added Required (NVAR) Any activity that does not add form or function but is mandated by law or regulation to happen. (Can be simplified, reduced and integrated so long as mandates are met.)

Circle: VA steps – Estimate time difference { All steps – (NVA + NVAR) } – What if you could reduce NVA + NVAR by ½?

Lean Method Identify Value Map the Value Stream Create Flow Establish Pull Seek Perfection Create value by continuously adding value and remove obstacles that don’t add value or clog the value stream

Smooth Flow Make the remaining steps in the value stream flow. Eliminate functional barriers to delivering products or service. Eliminate waste.

Lean Process What is the Problem – Obstacles – Waist – etc. that could be eliminated or how could the steps be rearranged to flow? How can we achieve the Ideal Process? Current Process Ideal Process Our vision of this process if every things goes as planned

Lean and Waste Lean focuses on removing waste because waste increases effort, time, space, cost, and mistakes. Reduces Value to customer Waste is the enemy of Lean – because waste dishonors the provider of products and services

7 types of Service Waste Delay – Customers waiting for service, for delivery, in queues, for response, not arriving as promised. Duplication – Having to re-enter data, repeat details on forms, copy information across, answer queries from several sources within the same organization. Unnecessary Movement – Queuing several times, lack of one-stop, poor ergonomics in the service encounter.

Unclear communication – Seeking clarification, confusion over service use, time finding a location – result in misuse or duplication. Incorrect inventory – Being out-of-stock, unable to get exactly what was required, substitute products or services. An opportunity lost to retain or win customers – a failure to establish rapport, ignoring customers, unfriendliness, and rudeness. Errors in the service transaction – Defects in providing the service. Not knowing what the customer actually needs.

Where is the waste in the coaching process? For 2-3 of the different kinds of waste – Identify a specific waste in the coaching process that should be eliminated. Share examples in the services you are supporting.

Lean Method Identify Value Map the Value Stream Create Flow Establish Pull Seek Perfection Let the customer pull products and services as needed Give them access to draw on services as needed

Pull Inputs Let the customer pull products and service as needed Initiate work only to actual demand, and only to the specific specifications of the customer Services delivered as needed Just-In-Time services Eliminate barriers/controls to accessing services Customers always have access

Achieving PULL How could we better achieve PULL in the coaching process?

Lean Method Identify Value Map the Value Stream Create Flow Establish Pull Seek Perfection There is no end to the process of reducing effort, time, space, cost, mistakes, rework, and back stepping Return to the process & service over and over again

Perfection There is no end to the process of reducing waste, effort, time, space, cost, and mistakes – improving flow Return to the first step and begin perfecting the process of delivering value. Perfection is the destination – achieved by continuously defining a new start point.

Lean Tools Value Stream Mapping 5S Standard Work Leveled Scheduling FMEA Stakeholder analysis

5S Put things in order [Sort] Proper arrangement [Straighten] Clean [Shine] Purity [Standardize] Commitment [Sustain]

LEAN Goals Reduce Costs Reduce Time Eliminate Waste Improve Quality Understand its customers' wants and needs and design processes to meet their expectations and requirements Eliminate any activity that consumes time, resources, or space but does not add any value to the product or service Reducing the time it takes to finish an activity from start to finish is one of the most effective ways to eliminate waste and lower costs To minimize cost, a company must produce only to customer demand 7 types of Waste Value Stream Quick Changeover 5S Error Proof One-Piece flow S.O.P Work Cells

4 LEAN Standardized Service Principles 1. All service provided shall specify content, sequence, timing, and outcome 2. Every customer-supplier connection must be direct, and unambiguous (how to send requests and receive responses) 3. The pathway for every service must be simple and direct. 4. Improvements in service use a change model with the guidance of a teacher/coach

Using Lean What have you learned? Will this support your service? How?