Kaizen Facilitator Training June 2014 Kaizen Facilitator Training Kaizen Facilitator Training Planning and Facilitating Rapid Process Improvement Events

Learning Objective Learn and practice basic facilitation skills Learn the steps for facilitating a Kaizen event Practice swim lane mapping

Agenda Day 1 Day 2 Welcome Holding a Kaizen event Set team norms Facilitator overview Kaizen event overview Planning a Kaizen event Lunch (Noon to 1:00 p.m.) Facilitation exercise Debrief (Plus / Delta) Holding a Kaizen event Lunch (Noon to 1:00 p.m.) Implementing changes Studying results Sustaining improvements Process mapping exercise Debrief (Plus / Delta)

Introductions Please share your: Name Organization and role June 2014 Kaizen Facilitator Training Introductions Please share your: Name Organization and role Topic for your improvement project or why you are interested in becoming a Kaizen facilitator

Set Team Norms / Guidelines June 2014 Kaizen Facilitator Training Set Team Norms / Guidelines Define team norms and their purpose Inform participants that one of your facilitator responsibilities is to uphold the team norms Do not force a group into a set list of team norms – but have a list in your back pocket if needed. Ask participants if they need any norms clarified Get visual agreement from participants to abide by and uphold the team norms Establish a “Parking Lot” where you record items that are important, but off topic (define follow-up actions) Definition: Team norms are the agreed upon requirements for how participants want to interact with each other during the meeting If appropriate, team norms should include how decisions will be made and how you will address conflicts that arise. Team norms communicate meeting etiquette and help members establish a safe and productive environment for engagement. Common Team Norms: Attend all meetings and be on time Be respectful and a good listener Follow the agenda – stay focused The only stupid question is the one that isn’t asked No side-conversations – one conversation at a time Cell phones/pagers off and checked during breaks Keep the conversation in the room - confidentiality

June 2014 Kaizen Facilitator Training Common Team Norms Attend all meetings, be on-time and follow the agenda Share your experience and knowledge Listen first, evaluate later Don’t be afraid to ask questions Focus on the problem or issue; not the individual Only one person should talk at a time; avoid private conversations Set cell phones on silent and check messages at breaks Keep an open mind to change What is said here, stays here (Vegas Rule) Voice your concerns; do not leave in disagreement Be positive and supportive

June 2014 Kaizen Facilitator Training What is a facilitator? Neutral convener who manages the structure needed for effective human interactions (virtual or in-person) so meeting outcomes are achieved within designated timeframes. Facilitators focus on the meeting process so participants can focus on the substance of their work together.

Benefits of facilitation June 2014 Kaizen Facilitator Training Benefits of facilitation Increased engagement of participants More focused and productive meetings Clarity on areas of agreement and disagreement Conflicts managed by a neutral convener Improved decisions Increased buy-in and support Enhance relationships and trust

Facilitator responsibilities June 2014 Kaizen Facilitator Training Facilitator responsibilities Design Prepare Conduct Open Run Close Follow-Up Improve Items in order of the facilitation process. Design meeting (who, what, where, why, when, how) Prepare for meeting (room set-up, materials, self) Conduct meeting Open (welcome, agenda & objectives, facilitator role, ground rules) Run (Manage discussion and group dynamics): Encourage full participation Balance participation Promote mutual understanding Foster inclusive solutions Cultivate shared responsibility Manage conflict Guide decisions Close (summarize decisions, define actions/next steps, evaluation, thank participants) Follow-up (documentation, deliverables, sponsor feedback) Improve (improve process and enhance skills)

Attributes of a good facilitator June 2014 Kaizen Facilitator Training Attributes of a good facilitator The facilitator should: Be positive Be clear about instructions and expectations Recognize progress Know when to instruct, facilitate and intervene Sense the “mood of the group” Encourage and value all opinions Be objective, and non-judgmental

Facilitator tips DO DON’T June 2014 Kaizen Facilitator Training Facilitator tips DON’T DO Do clarify the purpose, outcomes, & process for the meeting Do define what decisions will be made and who and how decisions will be made Do encourage full participation “Let’s hear from someone who hasn’t spoken for a while” Do maintain neutrality Do ask people to expand on general statements Do probe for understanding & agreement Do check-in with participants and take breaks when people are tired Do give warning when the time to complete the conversation is near Don’t assume people know why they are meeting and what they need to accomplish Don’t let one or a few people dominate the discussion Don’t favor the “best” thinkers Don’t offer your opinions or engage in the discussion Don’t interrupt Don’t rush or pressure the group Silence usually means people are thinking – be patient Don’t say, “Ooh, good one!” or “Hey, you don’t want me to write that down, do you?”

June 2014 Kaizen Facilitator Training Kaizen Event A 1-5 day facilitated, rapid improvement project that engages the creativity of a team to remove waste from a process and enhance customer value. Engage the creativity of employees to make the process better But a Lean transformation is more than just a kaizen

Challenge the status quo Lean Methodology Hold event Implement Action Plan Monitor progress and results – 30, 60, 90-day reviews Define project (Project Charter) Adopt/Adjust/ Abandon & sustain improvement Act Plan Do Study Challenge the status quo Validate assumptions Plan Phase: Identify need/problem/opportunity Work with sponsor and team leader to agree on project scope, goals and performance targets – Prepare Charter Confirm project type is appropriate for a Kaizen event Select and invite team Schedule event Collect information on the current situation/process, including reliable data on customer needs and service speed, quality, and costs; Do Phase: Map and characterize current state process Assess the current situation (identify strengths & wastes, validate root causes) Generate, evaluate and select improvements Map and characterize the future state process Create action items/plan to accomplish improvements and measures Document standard work, lessons learned, and ideas for future improvements Present results to sponsor and stakeholders (Report Out ppt) Implement improvements, including training employees Check Phase: Monitor implementation and institute metrics for validation of project goals Act Phase: Adopt, adjust or abandon improvements Transfer responsibility for sustainment to process owner Following the Lean methodology ensures knowledge creation and continuous improvement

Kaizen Event - Plan Phase Select the project (define the business issue/case) Define project scope and goals (Project Charter) Identify and prepare the team Schedule kickoff/pre-work and event meetings and venues Collect information and data and hold kickoff/pre-work meetings Act phase Create standard work (document the process and forms, train managers and staff) Celebrate success and recognize/reward desired behavior Periodically assess opportunities for improvement Communicate! Communicate! Communicate! 14

Project Selection Criteria Select Project Define Scope Set Goals Engage Team Schedule Meetings Collect Info. Hold Kick-off Alignment Strategic importance - project links to strategic priorities and goals and will position the organization for future success Impact   Project will benefit a large number of stakeholders/customers Process involves a lot of internal resources to administer Process is important and has high visibility to stakeholders/customers Need Public perception/pressure regarding the need for improvement Process is not working well (customer complaints, rework, defects, unhappy staff) It is a core business process that affects many other processes. Ability Staff have the time and resources (equipment, materials, training, facilitation support) to participate in the project and implement changes Data is available to understand the current situation and track performance Willingness Manager is committed to making needed changes Employees are willing to serve on a project team and implement project changes Employees are dissatisfied with the current state (i.e., pain level is high)

Project Selection Tips June 2014 Kaizen Facilitator Training Project Selection Tips Clear start and end points (can be described as a process) Easily identifiable internal and external customers Improvement can be measured Start with quick wins before tackling larger projects Determine the appropriate project method and set of tools for achieving desired results

Improvement Project Types June 2014 Kaizen Facilitator Training Improvement Project Types

June 2014 Kaizen Facilitator Training Defining Project Type

Scope the Project Define what is IN scope Define what is OUT of scope June 2014 Kaizen Facilitator Training Scope the Project Select Project Define Scope Set Goals Engage Team Schedule Meetings Collect Info. Hold Kick-off Define what is IN scope What is the first step of the process? What is the last step? Define what is OUT of scope If we can’t define that, we may need a different tool (Process preparation-2P)

Project Scoping Tips How big is too big? (rule of thumb; if there are 10 or more functions, reduce the scope) Adjust the scope if you do not have the current state process documented by mid-morning of Day 2 Use a SIPOC diagram Supplier Inputs Process Outputs Customer

Set Goals & Complete a Project Charter June 2014 Kaizen Facilitator Training Set Goals & Complete a Project Charter Select Project Define Scope Set Goals Engage Team Schedule Meetings Collect Info. Hold Kick-off Establish SMART goals (time, defects, FPY) Set the bar high! (50% reduction in lead time) Goals should be clear, and easy to communicate Goals should be set by the project sponsor Complete a project charter SMART: Specific, Measurable, Aligned, Realistic, Time-bound FPY – First Pass Yield

Project Charter

Define and Prepare the Team June 2014 Kaizen Facilitator Training Define and Prepare the Team Select Project Define Scope Set Goals Engage Team Schedule Meetings Collect Info. Hold Kick-off Team Roles: Sponsor Team leader Facilitator Team members Sponsor: Set project purpose, goals, and scope Assign resources and remove barriers Team Leader or Project Manager: Lead team, guide process, liaison to sponsor and units impacted Coordinate implementation of action plan Facilitator: Train and coach team on Lean principles and tools Facilitate Kaizen event process Team Members: Collect, share and analyze information Recommend changes and develop an action plan *May have a Steering Team, Champion or Subject Matter Experts for larger projects Commitment is needed from everyone!

Sponsor Responsibilities June 2014 Kaizen Facilitator Training Sponsor Responsibilities Create or ratify project scope and goals Select the team leader, facilitator, and team members (often with team leader) Invite team members and communicate project to key stakeholders – transparency is key! Kickoff the event with words of support Stay involved with the team and attend check-in meetings at the end of each day Attend final presentation and recognize team Ensure improvements are implemented and sustained Sponsor should invite team members to a pre-event meeting to explain: Scope and goals Why they were selected Expectations – time commitment/ schedule Importance of the event

Team Leader Responsibilities June 2014 Kaizen Facilitator Training Team Leader Responsibilities Assist on scope, goals, and defining team members Gather process information and data Schedule kickoff and event meetings and venues Help the facilitator with team member involvement Lead check-in meetings Coordinate implementation of action plan Trouble shoot and bring issues to sponsor’s attention Monitor progress and performance Ensure standard work is followed and sustained and results achieved

Facilitator Responsibilities June 2014 Kaizen Facilitator Training Facilitator Responsibilities Help the sponsor and team leader define and prepare for the kaizen event Facilitate the event Train on Lean principles and tools Work with the team to provide deliverables Support implementation and sustainment 3. To train kaizen team members, you should: Train team members in the elements of the 7 wastes, process mapping, and process improvement Train team members in the purpose and application of standard work Team members may need to understand the elements of 5S 4. To facilitate the team and capture the results of the kaizen event you should: Manage the schedule, participation, and progress each day Capture and record decisions, and actions on the report out document Attend team leader meetings, ensure good communication between the team and sponsor As new facilitators, co-facilitate with some one more experienced Don’t give up Have fun, if you’re not having fun the team isn’t having fun

Facilitator Planning Tasks June 2014 Kaizen Facilitator Training Facilitator Planning Tasks Work with a potential sponsor to find a ‘good’ project Help the sponsor determine who the team leader should be Help the sponsor and team leader establish appropriate goals for the event Help the sponsor and team leader identify team members Arrange for project supplies and materials

Arrange for Supplies and Materials Item Price Paper Bond, 36” X 150 ft. (white butcher block paper for swim lane map) $15.00 Mailing Tape (2 inch width) or 1” magic tape $2.50 Magic (blue) Tape or masking tape (1 inch width) $2.00 Fat Tipped Colored Markers (e.g., Mr. Sketch – 12 set) $6.70 Black Sharpie Fine Point Markers (6 markers) $4.00 Light yellow Post-it notes (3”x3” – 14 note pads) $14.40 Colored Value Pack Post-it notes (4 bright color not pack pads) $18.50 Easel Pad Poster Paper (post-it style 25”x30” – 40 sheet flip chart pad) $17.00 Scissors Laptop and projector with necessary chords – may need portable speakers, DVDs and DVD player, camera Name tents, paper, handouts, PowerPoint agenda, training, report out

Facilitator Training Tasks June 2014 Kaizen Facilitator Training Facilitator Training Tasks Train team members on: Lean principles and tools (7 wastes, 5S, Kaizen, standard work, 5 Whys) How to process map Brainstorming rules and process Affinity Diagram (organizes ideas) Future/creative thinking (brain gym, Power of Future Conversation video, Embracing Change) Prioritizing ideas (Criteria Decision Matrix)

Facilitator Communication Tasks June 2014 Kaizen Facilitator Training Facilitator Communication Tasks Develop a communication plan with the sponsor and team leader Prepare project messages (e.g., project announcement, project invitation, team preparation, report out invitation) Manage the schedule, participation, and progress each day Capture and record decisions, and prepare the report out document with the team Attend check-in meetings to ensure good communication between the team and sponsor

Selecting Team members June 2014 Kaizen Facilitator Training Selecting Team members Team typically consists of: Process participants – Include information suppliers, and end of process customers if possible Technical support – IT, facilities, Internal control 1 outside set of eyes – Not essential but good idea if team size allows

Team Member Responsibilities June 2014 Kaizen Facilitator Training Team Member Responsibilities Knowledge and expertise on the current process (may also want a person from outside of the process to provide a fresh perspective) Use data to understand and solve problems Ability and willingness to participate – are they open to change or a CAVE dweller? Create and abide by team ground rules Develop project deliverables (future state process, action plan, report out presentation) Implement action plan and sustain improvements 32

June 2014 Kaizen Facilitator Training Schedule Meetings Select Project Define Scope Set Goals Engage Team Schedule Meetings Collect Info. Hold Kick-off Reserve rooms and peoples schedules 4-6 weeks prior to the event (including Kick-off meeting) Event venue criteria: Isolated - quiet for work and not disturbing others Lots of available wall space Technology for training Provides access to process materials and resources 33

Collect Information and Data June 2014 Kaizen Facilitator Training Collect Information and Data Select Project Define Scope Set Goals Engage Team Schedule Event Collect Info. Hold Kick-off Team leader collects process data: Volumes (# processed per month, year) Current metrics relevant to the process (time, first pass yield, rework, customer satisfaction) Forms/databases used in the process Defects – External, re-work Customer needs and requirements (CTQ)

Hold Kickoff Meeting (1-2 hours) June 2014 Kaizen Facilitator Training Hold Kickoff Meeting (1-2 hours) Select Project Define Scope Set Goals Engage Team Schedule Event Collect Info. Hold Kick-off Purpose: Get everyone on the same page Sponsor Kickoff (business issue and anticipated customer and staff benefits) Review project charter & roles and responsibilities – including time commitment Answer team members’ questions Sign Project Commitment Provide Lean overview training Business case/issue should stress the importance of the event and the sponsor should let team know how much she or he appreciates their time and focus on the project. Sponsors should encourage open and honest dialogue about the process without negative repercussions.

Communicate before, during and after the event June 2014 Kaizen Facilitator Training Communication is Key! Identify key audiences for the project and what they may need or want to know and how best to deliver the information E.g.: Let leaders and staff know that you are engaging a team to recommend changes to improving the process; share the process goal and timeline; who is involved, and who they may contact with questions, concerns and advice. Communicate before, during and after the event 36

Establish a Communication Plan Audience Message Purpose and Content Delivery Format Sender Date

Advice - Plan Phase Use a project charter and sign a project commitment Do not use a kaizen event to address employee performance issues Include someone from outside the process on the team Clarify team member time commitment before, during & after Educate/coach sponsors to manage their expectations Solicit input from staff and stakeholders upfront Provide an avenue to report concerns, questions, and improvement ideas before, during and after the project Publicize the project – it shouldn’t be a secret! Conduct sponsor check-ins (answer ?s, avoid zingers!)

White Albatross exercise June 2014 Kaizen Facilitator Training White Albatross exercise Please circle the appropriate response that follows each question (10 questions per Round and 4 Rounds = 40 total questions), where T = statement is true F = statement is false ? = story does not contain sufficient data/information to respond true or false Exercise Conditions: Individually complete the assignment Stand up when you are facilitating Maintain neutrality Everyone facilitates

White Albatross reflection June 2014 Kaizen Facilitator Training White Albatross reflection Which was higher, the individual score or the team score? What is the value of team deliberation? What was it like to facilitate? How would you rate your neutrality? How can you improve your facilitation skills?

June 2014 Kaizen Facilitator Training White Albatross

Plus / Delta What didn’t work for you (was difficult, unclear, etc.)? What did you like? What didn’t work for you (was difficult, unclear, etc.)? What changes should we make for the future?

Kaizen Facilitator Training Day 2

Kaizen Event – Do Phase Do 6. Map and characterize current process 7. Identify process strengths and “wastes” 8. Brainstorm, evaluate and select solutions 9. Map and characterize future process 10. Define performance measures 11. Prepare an action plan, include “quick wins” 12. Prepare, rehearse and deliver report out presentation – Celebrate! 13. Implement action plan Act phase Create standard work (document the process and forms, train managers and staff) Celebrate success and recognize/reward desired behavior Periodically assess opportunities for improvement 44

June 2014 Kaizen Facilitator Training Hold the Kaizen event Every Kaizen event is different. It follows a well-established script, but the flow, and outcomes are always different. Facilitators need to be flexible but consistent. 45

Theme: learning & discovery Agenda – Day 1 Welcome (ice breaker) Set team norms Lean overview training (if not provided at Kickoff meeting) Prepare a SIPOC diagram (larger projects) Identify customer requirements Training on how to process map Map current state process Debrief (Plus / Delta) Sponsor Check-in meeting Theme: learning & discovery

Customer Requirements Customer /Stakeholder Group Needs and Preferences List end-user customers first You may need to segment end-user customers Define needs using data, surveys, interviews, focus groups, observation Ideally, collect customer requirements in advance

Reasons, formats and steps for documenting work processes Process Mapping Reasons, formats and steps for documenting work processes Provide reasons, formats and steps for documenting work processes.

What is a Process? Process = a series of steps/tasks to achieve a result. Step 1 Step 2 Step 3 Step 4 Result

Benefits of Documented Processes Staff and customer clarity on the content, timing, sequence, and outcome of each process step (i.e., standard work) Staff clarity on who is responsible for each step and how long it should take to complete each step Standard work makes it easy to deliver consistent services/products to customers Ability to measure progress and performance Easier to onboard/train new employees Easier to improve service quality and efficiency!

Process Mapping Formats Process documentation table Good for capturing tasks, decisions, and process issues prior to a process mapping session and good for documenting standard work Spaghetti map Good for showing physical movement of people and materials Flow chart Good for showing tasks and decision loops Value stream map Good for showing where “value” is created, highlighting improvement opportunities, and is linear Swim lane map Combination of a flow chart and value stream map - good for showing who performs which tasks and when

Process Documentation Table Task / Decision Who When Task Time Form Observation / Comment 1. Get mail 2. Sort mail 3. Open bills 4. Is bill complete and accurate? If “yes”, send payment 6. If “no”, call company to resolve

Flow Chart Mail Stop No Resolved? Yes Get Mail Wait for Due Date -5 Call Company To Resolve Sort Put in Envelope & Attach Stamp No Correct? Yes Write Check & Due Date on Envelope Open Bills

Spaghetti Map Start cart 10 11 4a 4c 3 4b 1 2 12 Desk Table 6, 7, 8, 9 Staging Area 6, 7, 8, 9 Start 1 12 4c 4a 3 2 11 10 cart 4b

Value Stream Map (VSM) Time June 2014 Kaizen Facilitator Training Value Stream Map (VSM) Time Task/Touch Time: Wait/Delay Time: Lead Time: <Process Step> % CA: Task/Touch Time: Wait/Delay Time: Lead Time: <Process Step> % CA: Task/Touch Time: Wait/Delay Time: Lead Time: <Process Step> % CA: Task/Touch Time: Wait/Delay Time: Lead Time: <Process Step> % CA: Lead time = elapsed time Touch time = task time Delay time = Wait time % CA: Percent complete and accurate is a metric of the work that is error free (i.e., complete and correct the first time through and never returns again) relative to total work in that process step (AKA First Pass Yield).

Swim Lane Map Customer Service sends e-mail to Sales June 2014 Kaizen Facilitator Training Swim Lane Map Accounting Customer Order Entry Sales Supplier Shipping Customer Service Customer Calls in order. Customer Service sends e-mail to Sales Sales person is assigned to order and delivers paper copy of order to Order Entry Order is now entered into the company’s data base. An electronic order is sent to the supplier. 56

Swim Lane Map Key Task Handoff (Time) Decision? Wait (Time) Storage Location

Mapping Tips Every time you change lanes, there’s a handoff June 2014 Kaizen Facilitator Training Mapping Tips Every time you change lanes, there’s a handoff With every handoff, there is almost always a wait Putting information into storage requires a task and file/store denoting the storage location Subsequent tasks appear to the right of the prior task, unless the task occurs simultaneously (e.g., meeting attended by multiple people). After you have finished mapping assign average times, or use worst and best case scenarios for each wait and each task. 90:10 Rule - When mapping, consider what happens the majority of the time. Don’t focus on the exceptions. Identify value added steps

Process Documentation Questions What is the purpose of the process Who is/are the end-user customer(s) for the process and what are/is their needs or requirements What is the first step What is the next step, etc. Do you use any physical or electronic forms for the step On average, how long does it take to complete the step What percent of information is complete and correct Where does the information go from here

Walk the Process From the beginning…. …To the end

Handoff Passing transactional tasks to another department of person June 2014 Kaizen Facilitator Training Handoff Passing transactional tasks to another department of person

Missing or incomplete information June 2014 Kaizen Facilitator Training Missing or incomplete information A requested option was not included on the order form First Pass Yield (FPY): Percent of times that the information is accurate and complete

Waiting For someone to make a decision, do a task, etc. June 2014 Kaizen Facilitator Training Waiting For someone to make a decision, do a task, etc. Assign the wait to the swim lane that is responsible for the wait

Inspection Reviewing employees’ work June 2014 Kaizen Facilitator Training Inspection Reviewing employees’ work

Multiple copies or locations for physical or electronic forms Duplication Multiple copies or locations for physical or electronic forms Order Entry Shipping Department Sales

System Requirements = No Value Entering information for the sole purpose of making the business system work.

Characterize the process June 2014 Kaizen Facilitator Training Characterize the process What forms, tools, or systems does each step use? How long does each task and wait take? How many steps, waits, storage, handoffs, and decisions are there? 67

Process Data [ ] % reduction in lead time [ ] % reduction in task time June 2014 Kaizen Facilitator Training Process Data Current State Qty. Time Tasks Waits Handoffs File/Store Decisions Totals % Change = (Current hours – Future hours)/Current hours) x 100 [ ] % reduction in lead time [ ] % reduction in task time

2-4 weeks to complete (lead / elapsed / cycle time) Process Characterization It took…. 44 Process steps 5 People involved 8 Waits 1897’ of travel 2-4 weeks to complete (lead / elapsed / cycle time)

Create Current State Map

Theme: analysis & brainstorming Agenda – Day 2 Review agenda, team norms, and check-in report Complete current state map Assign task and wait time; characterize process Identify strengths and wastes (OFIs) Provide training on the “ideal” process Brainstorm ideas to improve the process Debrief (Plus / Delta) Sponsor check-in meeting Theme: analysis & brainstorming

Document Process Data [ ] % reduction in lead time June 2014 Kaizen Facilitator Training Document Process Data Current State Qty. Time Tasks Waits Handoffs File/Store Decisions Totals % Change = (Current hours – Future hours)/Current hours) x 100 [ ] % reduction in lead time [ ] % reduction in task time

Document Process Observations June 2014 Kaizen Facilitator Training Strengths Weaknesses (OFI) Where does the process work well? What are value-added steps? Where are the 7 wastes? Overproduction Waiting Transportation Extra processing Inventory Motion Defects * Underused creativity!

Creating our Future State

The Ideal Process Is completed entirely by one person June 2014 Kaizen Facilitator Training The Ideal Process Is completed entirely by one person Is completed one at a time (no batching) Is completed as soon as the request is made Is completed without interruption Is completed with the information provided Is completed correctly It never returns Lean Rules Document the content, timing, sequence, and outcome of each process step (standard work). Have simple and direct connections between process steps. Involve as few steps and people as necessary in process. Implement process solutions as close to the problem as possible (in time and person), test and adjust process changes to ensure that desired results are achieved Engage the people in the process to define and solve problems and make improvements.

Barriers to the Ideal Process June 2014 Kaizen Facilitator Training Barriers to the Ideal Process Poor Information Missing information Inaccurate information Assumptions Poor Information Flow Hand-offs Waiting Poor sequence Confusion on flow Linear processing Organizational structure Information/Knowledge silos

Eliminate Missing Information June 2014 Kaizen Facilitator Training Eliminate Missing Information Can be the result of long lead times, and usually the cause of longer lead times (Catch 22) Require all information from the customer before the job launches (don’t enable bad behavior) Put in hard stops that don’t allow partial information (online hotel reservations)

Eliminate Inaccurate Information June 2014 Kaizen Facilitator Training Eliminate Inaccurate Information Use menus where a small number of choices exist Only collect the information you need Clearly define the information you need Create a review process with the customer before the job launches Create and report on measurements for information accuracy

June 2014 Kaizen Facilitator Training Validate Assumptions Assumptions are usually the result of incomplete information, or information that does not arrive when it should Assumptions will usually add defects to the process Reduce the need for assumptions by getting the right information at the right time

Eliminate Poor Information Flow June 2014 Kaizen Facilitator Training Eliminate Poor Information Flow Reduce handoffs, which will reduce waits Ask and challenge responses to “Can fewer people perform more steps in process?” Give permission for people to take on more process steps. Provide training to help people take on new responsibilities.

Eliminate Poor Information Flow June 2014 Kaizen Facilitator Training Eliminate Poor Information Flow Make sure clear, accurate information is gathered at the earliest possible step of the process Identify parts of the process that can be done at the same time (concurrent)? Document standard work and note exceptions to the typical process.

Eliminate Poor Information Flow June 2014 Kaizen Facilitator Training Eliminate Poor Information Flow Structure/silos – do they know what I need….do I know what they need? Is control affecting the process. This is mine, you can’t have it? Is trust (you can’t be trusted to do this job correctly) an issue? Takt time

June 2014 Kaizen Facilitator Training Takt time The average rate at which the customer requires the product or service (i.e. #/day or #/hour) Example: The finance unit receives 30 invoices to pay each day 83

Takt time example 7.5 work hours per day (450 minutes) June 2014 Kaizen Facilitator Training Takt time example 7.5 work hours per day (450 minutes) 30 invoices must be processed daily to avoid a backlog (WIP) To meet Takt time, 1 invoice must be completed every 15 minutes (450/30) In a single, linear process no step can take longer than 15 minutes

Average staff invoice processing time June 2014 Kaizen Facilitator Training Average staff invoice processing time Time (minutes) Takt time=15 minutes What does the chart tell you?

Tracking Work-in-Process (WIP) June 2014 Kaizen Facilitator Training Tracking Work-in-Process (WIP) Invoices Team has a 9 invoice backlog or WIP per day. WIP = Backlog

Days to process backlog June 2014 Kaizen Facilitator Training Days to process backlog

Preparing for Future State June 2014 Kaizen Facilitator Training Preparing for Future State Use a video or group exercise to help the team prepare for thinking in the future - BHAGs Advise them to think of No or Low cost ideas Embracing Change video and reflection

Improvement Strategies Handoffs and batching are common barriers to process flow Eliminate non-value added tasks Combine tasks or functions Concurrent processing Co-locate work Shift roles and responsibilities Eliminate or reduce batching Automate Solve Problems Question: When are batches lean? Answer: Batches are effective when there is a high “switching cost” in setup time between activities and larger runs reduce unit cost. Question: When are batches un-lean? Answer: Batches can contribute to wait time for our customers when we effectively hold up work that is ready to move to the next step in a process while it waits for the batch to complete Batches often lead to additional non-value added activity just to keep track of batches. History Lesson: Single Minute Exchange of Dies (SMED) and Setup Reduction When a line needed to start producing a different car model, switching the dies took between12 hours to a few days to complete Single Minute Exchange of Dies was a technique the allowed Toyota engineers to reduce the changeover time to less than 10 minutes – reducing the effective lot size to one vehicle! When setup took multiple days to complete, Toyota had to produce Large lots of a given car in order to keep production costs down This also lead to high inventories! Why do we Batch? In service environments, batches are often used because functions aren’t co-located and moving one item at a time would be cost prohibitive Logging in and out of systems can impact productivity – so our team members complete large batches while they are logged in to a particular system When we perceive there is a cost to switching tasks, we will batch in our current task The Solution Remember: batching is non-value added activity! Setup Reduction prompts us to address the root cause of high switching costs Sometimes we batch for no good reason Creating work cells and combining tasks into fewer people can reduce handoffs – and significantly reduce the need to batch

Brainstorming Guidelines June 2014 Kaizen Facilitator Training Brainstorming Guidelines Defer judgment Strive for quantity Seek unusual and wild ideas Combine and build on ideas Brainstorming is: A versatile tool for working with groups to solve a problem Extremely useful in obtaining input from all group members Designed for creative collaboration by groups Set a goal of 10 ideas per person if you have a team of 6-8 (less ideas for larger groups)

Number each idea for easy reference when prioritizing Brainstorming Steps Record as many practical and wild ideas as possible that will remove wastes and move the process towards the “ideal”. Meet with one/two team members to come up with an unduplicated ideas list. Select 2 ideas that are most different or unique – ideas are recorded by facilitator. Select next 2 ideas that have not been stated – until all ideas have been recorded Number each idea for easy reference when prioritizing

Organizes LARGE GROUPS of information June 2014 Kaizen Facilitator Training Affinity Diagram Organizes LARGE GROUPS of information Into MEANINGFUL categories

Agenda – Day 3 Theme: change Review agenda, team norms, and check-in report Evaluate and select improvements Take Team photo Map the future state process Assign task and wait time; characterize process Identify performance measures Prepare an Action Plan Debrief (Plus / Delta) Sponsor check-in meeting Theme: change

Prioritize Ideas # # # # # # # # # # # # IMPACT DIFFICULTY Top Recommendations (high impact + low difficulty) Resource Intensive (high impact + high difficulty) Bad Ideas (low impact + high difficulty) Low Hanging Fruit (low impact + low difficulty) # # # # # Quick Win # This exercise is an expected Kaizen activity however there are two approaches to using this slide: Use it to organize all recommendations prior to including them on the previous slide. Then, only record the top recommendations. This slide may or may not need to be included. Record all recommendations on the preceding slides, prioritize all of them and record them here. (Recommended) # # # # # Quick Win # Impact and Difficulty Matrix for prioritizing ideas

Future State Mapping Tips June 2014 Kaizen Facilitator Training Future State Mapping Tips As facilitator try to insure every task is value-added. Challenge the ‘this is what we do now’, with, “how do we want to do it” Make sure sequence contributes to getting good information as early in the process as possible Establish wait time based on what is reasonable, but aggressive and consistent

Future State Map

Calculate Expected Improvement Current State Future State Quantity Time Tasks Waits Handoffs File/Store Decisions Totals <> % reduction in lead time <> % reduction in task time % Change = (Current hours – Future hours)/Current hours) x 100

June 2014 Kaizen Facilitator Training Develop an Action Plan What Who When Resources (Status*) 1. 2. 3. 4. * Green = on schedule, Yellow= slightly behind schedule, Red = significantly behind schedule

Implement the Action Plan June 2014 Kaizen Facilitator Training Implement the Action Plan Include in your action plan how and when you will monitor performance. Have a strategy for identifying and resolving issues, including resistance

Theme: sustainment & sharing Agenda – Day 4 Review agenda, team norms, and check-in report Finish up work from the prior day If there is time: Identify project risks and prepare mitigation steps Revise forms/templates Prepare communication plan Implement Quick Wins Prepare report out presentation Rehearse report out presentation Deliver report out presentation Celebrate! Theme: sustainment & sharing

Report Out Presentation Example Show video

Post Event Facilitator Actions Give documentation to Team Leader (e.g., process maps, poster documentation) Send thank you/summary message – may include project documentation (e.g., project summary, process handbook, etc.) Conduct 30, 60, 90-day status reports with sponsor and team leader

Advice - Do Phase Create & enforce team ground rules Provide just-in-time training Reduce the project scope - if you need to Prioritize ideas based on impact & ease of implementation ($) Provide snacks and have fun during the event! Make the action plan accessible and easy to change Manage resistance Expect and plan for challenges Hold yourself and others accountable Reward and recognize people for bringing up issues

Kaizen Event - Study Phase 14. Monitor performance (results achieved?) 30, 60, & 90-day status meetings with sponsor Assess results and capture learning: Was the plan followed? (Yes or No) and Why? Were desired results achieved? (Yes or No) and Why?

Advice – Study Phase Hold weekly or daily action plan status meetings June 2014 Kaizen Facilitator Training Advice – Study Phase Hold weekly or daily action plan status meetings The sponsor should check to see whether the action plan is being implemented If the team runs into resistance or roadblocks the sponsor needs to get involved – go to the Gemba (See, Ask, Lean, Show Respect) Monitor the demeanor of staff – are they energized or disheartened? Focus action plan discussions on yellow and red status tasks 105

Kaizen Event – Act Phase 15. Adjust actions and sustain improvement Adopt, adapt, or abandon the approach. Document the future process and centrally store process maps – transfer process sustainment to process owner Include in the action plan how and when you will review the process. At least annually revisit the process to assess opportunities for improvement (OFIs).

Document Standard Work PROCESS PROFILE Title: Date: Department/Office: Owner: Process Purpose/ Description: Ideal Process / Desired Future State Scope: (first and last step in process) References: (applicable federal, state and district requirements/policies/procedures) Customers: (from SIPOC Diagram)  Customer Requirements Suppliers: (from SIPOC Diagram) Supplier Requirements Tool/Equipment Requirements Templates and Forms (inputs & outputs) Process Map/Steps Roles and Responsibilities (RACI Diagram) Glossary Training Performance Measures: (2-3 success indicators)

June 2014 Kaizen Facilitator Training Advice – Act Phase Sustaining improvement is often the most difficult part – make sure people do not slip back to the “old way of doing things” When results are not sustained: Performance potential is not realized Momentum is lost Credibility diminished Cynicism and frustration increases Status quo prevails Expect to improve a process multiple times (3-5 times) to remove wastes and get closer to the “Ideal”

Kaizen Event Recap Plan Do Study Act 1. Select the project (define the business issue/case) 2. Define project scope and goals (Project Charter) 3. Identify and prepare the team 4. Schedule kickoff/pre-work and event meetings and venues 5. Collect information and data and hold kickoff/pre-work meetings Do 6. Map and characterize current state process 7. Identify process strengths and weaknesses (wastes) 8. Brainstorm, evaluate and select solutions 9. Map and characterize future state process 10. Define performance measures 11. Prepare an action plan, including “quick win” solutions 12. Prepare, rehearse and deliver report out presentation – Celebrate! 13. Implement action plan Study 14. Monitor performance (were goals/desired result achieved?) Act 15. Adjust actions as needed and sustain improvement Act phase Create standard work (document the process and forms, train managers and staff) Celebrate success and recognize/reward desired behavior Periodically assess opportunities for improvement 109

Project Success Conditions Visible and engaged management that communicates a clear business case and anticipated project impacts to staff who may be impacted by the project Skilled event team leader and facilitator Clear, reasonable plan and schedule for the project Sponsor, team leader and team member commitment to improvement and holding themselves and others responsible for follow through on assignments Clear roles and responsibilities before, during and after the project Information/data is collected to understand the current situation and inform decisions (may require pre-work before event) Standard work is developed and disseminated (training provided if needed) Supervisor holds team members responsible for complying with standard work and manages resistance Results are measured and evaluated Team leader and sponsor timely respond to problems and issues

Mapping Exercise Swim Lane video Mapping exercise June 2014 Kaizen Facilitator Training Mapping Exercise Swim Lane video Mapping exercise Team and group debrief

June 2014 Kaizen Facilitator Training Parting Advice As new facilitators, co-facilitate with some one more experienced Don’t give up Have fun, if you’re not having fun the team isn’t having fun Questions?

June 2014 Kaizen Facilitator Training Kaizen Resources Checklists, training PowerPoints, and other materials can be found on “Resources” tab at http://mn.gov/lean

Plus / Delta What didn’t work for you (was difficult, unclear, etc.)? What did you like? What didn’t work for you (was difficult, unclear, etc.)? What changes should we make for the future?

Stay Connected! Mary Jo Caldwell |CI Director June 2014 Kaizen Facilitator Training Stay Connected! Minnesota Office of Continuous Improvement Dept. of Administration, State of Minnesota MN.gov/Lean | Lean@state.mn.us Mary Jo Caldwell |CI Director Office: 651.201.2560 | Mary.Jo.Caldwell@state.mn.us Cristine Leavitt | Lean Expert Office: 651.201.2567 | Cristine.Leavitt@state.mn.us CI Users Group (MN.gov/Lean)