1. Operational Excellence Molina Healthcare Washington Lora Nelson & Alexander Thompson

2. Introductions Lora Nelson Master Business Operational Excellence Alexander Thompson Master Business Administration 2

3. What is Lean? 3 MindsetMethodsManagement A way of thinking and acting aimed at maximizing value delivered to the customer

4. Map the Value Stream Create Flow Establish Pull Seek Perfection Identify Value 4 Basic Principles Respect for People Develop people by providing a direction and holding them accountable to achieving through learning and experimentation Learning Organization Managers learn through direct observation what is happening Value is placed on continual self reflection Lean

5. Instructions Ensure all 1-10 steps are assigned to someone at the table Share your sequence but not your work Produce 6 pictures in 30 seconds Each picture should have only one intersecting line Each picture should span all nine quadrants You will be using the gridded paper to complete your drawing 5 Drawing Activity: Round 1

6. Value Streams 6 All of the activities – value added and non-value added – from the time a customer requests a product or service to the time that product or service is delivered, where the customer request triggers the activities to occur.

7. Value Added Task – Tasks that change the form, fit, or function of the product or service offered in order to meet the customer’s requirements Non-Value Added Tasks – Unnecessary: Tasks which may or may not change the form, fit, or function of the product or service offered but are not necessary to meet the customer requirements (e.g. Waiting) All unnecessary and non-value added tasks are waste Some tasks are necessary but may not be value-added (e.g. Law, Regulation, etc.) 7 Value Add vs. Non-Value Add

8. 8 Value Streams

9. 9 Drawing Activity Example

10. 10 Value Stream Task Instructions: Draw a letter M in the top left corner of the grid with the bottom of the M touching the intersection of squares one and two Task Instructions: Draw the letter W at the bottom left intersection with the top center of the W touching the intersection of squares seven and eight Task Instructions: Draw the letter W at the bottom right intersection with the top center of the W touching the intersection of squares eight and nine Task Instructions: Draw an arc from the letter M to the top right intersection of the grid between squares two and three Task Instructions: Draw an arc from the top right intersection between squares two and three to the bottom right W Task Instructions: Draw an arc between the two bottom W’s connecting them at the top of each W Task Instructions: Draw a circle in the middle of the fourth box Task Instructions: Draw an arc from the bottom of the letter M to the tangent of the circle. Then draw a smaller arc branching out from the first sweeping up and slightly above the center middle of the larger arc. Draw an arc from the top of the left W to the tangent of the circle. Then draw a smaller arc branching up about one-third of the way down the larger arc. Task Instructions: Draw a cursive letter “e” near the top of where two arcs meet in box six Task Instructions: Draw two small black dots in the middle of the circle in the fourth box

11. 11 Group Activity: Round 2 Instructions Ensure all 8 steps are assigned to someone at the table Produce 6 pictures in 30 seconds Each picture should have only one intersecting line Each picture should span all nine quadrants You will be using the gridded paper to complete your drawing

12. 12 Waste Overprocessing : Doing more than what is necessary to deliver value to the customer Overproduction: Producing more than what is necessary to meet customer demand Transportation : Product or information movement Motion: Unnecessary or exaggerated motion by the worker in order to complete activities Inventory : Raw material, work in progress or finished goods Waiting : Whenever the product or service we deliver is not in transport or being processed Defects: Errors or omissions in information or work that are passed on to other internal departments or to the customer Waste

13. 13 Group Activity: Round 3 Instructions Ensure all 8 steps are assigned to someone at the table Produce 6 pictures in 30 seconds Each picture should have only one intersecting line Each picture should span all nine quadrants You will be using the gridded paper to complete your drawing The pig must look the same

14. Debrief What waste did you reduce? What improved and what did not? What waste still exist? Did you create any new waste? 14 Waste

15. Continuous Improvement 15 Plan DoStudy Adjust

16. How You Can Start 16 Waste

17. Questions 17