1. Welcome 1 Lean Overview

2. Housekeeping  Emergencies  Bathrooms  Breaks  Food/drinks 2

3. Class At-a-Glance IntroductionUnderstanding Lean Basics Lean CultureWrap Up Objectives Lean Definition PDCA Summary History Value of Lean Root Cause Analysis Evaluations Lean in Washington Core Lean Concepts & Tools Lean vs. Traditional Culture Departure 3 1234

4. Section 1 4

5. Objectives  Define Lean  Discuss why Lean is of value to state government  Recognize, understand, and use basic Lean terms and tools 5

6. History of Lean 6 Mid- to Late 20 th Century Early to Mid- 20 th Century 19 th Century Craft Production Mass Production Lean Production

7. Lean in Washington  Learn About Lean  Build Capacity for Lean  Embed Lean Thinking in the agency culture  Results Washington site: http://results.wa.gov/whatWeDo/applyLean/about.aspx 7 Lean Transformation Journey

8. Do Deliver Washingtonians services with innovation, efficiency, and integrity Washington State Government Lean Deployment Model November 2011 State Government Agency Division Unit Model Area Accountability & Performance, Office of the Governor

9. Section 2 9

10. Lean Definition 10 Acronym Budget or FTE reduction strategy Magic formula for success

11. Lean Definition 11 Business term Set of tools that maximize value and minimize waste Way to think – a philosophy for an entire organization

12. Lean Definition 12 A systematic way to identify and eliminate waste through continuous improvement

13. Why is Lean of value?  Allows staff to do their best every day  Improves customer experience  Increases efficiency and capacity  Encourages problem-solving 13 The Lean approach respects people and honors their contributions

14. Lean Culture Lean is more than just tools…  People operate without fear  Management creates time for Lean efforts  Employees turn to the Lean tools without prompting  Everyone feels ownership of a process

15. Core Lean Concepts & Tools Value/Voice of the Customer 15 Standard Work Flow Mistake-proofing

16. Lean Improvement Cycle 16 Define Value Map Value Stream Create Flow Establish Pull Work Toward Perfection 1 2 3 4 5 Improvement Cycle

17. Defining Value 17 Who is your customer? ______________________________

18. Defining Value 18 Produces a product or service. Process Performs a function. P roduct/ Service Meets a need. Function Met need = Value. Need Copyright © 2000-2013 by T. S. Marshall & Associates, Inc. All rights reserved.

19. Lean Improvement Cycle 19 Define Value Map Value Stream Create Flow Establish Pull Work Toward Perfection 1 2 3 4 5 Improvement Cycle

20. Value-added Work 1.Changes the form, fit, or function of the product or service 2.Is something the customer is willing to “pay for” (in time, effort, money, etc.) 3.Is done right the first time

21. Value-added Work Non- value- added Value- added Traditional Work Process Traditional Improvement Lean Improvement LeadTimeLeadTime

22. Waste (Non-value-added) 22 7Wastes Overproduction Waiting Transportation Over Processing Inventory Movement Defects Anything that adds time, cost, or resources without adding value, as perceived by the customer.

23. Mapping the Value Stream 23

24. Lean Improvement Cycle 24 Define Value Map Value Stream Create Flow Establish Pull Work Toward Perfection 1 2 3 4 5 Improvement Cycle

25. Flow 1.Work in process is a known, fixed level 2.Scheduling is predictable 3.The product or service moves quickly and continuously through the system

26. Lean Improvement Cycle 26 Define Value Map Value Stream Create Flow Establish Pull Work Toward Perfection 1 2 3 4 5 Improvement Cycle

27. Pull vs. Push 27 Pull: Sending work to the next role when they are ready for it Push: Sending work to the next role whether they are ready for it or not

28. Kanban 28  Literally, sign or signboard  A visual signal that instructs one to produce or supply something  Can use kanbans to establish acceptable min/max quantities at each step in the process

29. Lean Improvement Cycle 29 Define Value Map Value Stream Create Flow Establish Pull Work Toward Perfection 1 2 3 4 5 Improvement Cycle

30. Perfection 30 Non- value- added Value- added

31. Keep only what you need to do your job Sort Organize Label Simplify Clean Examine Sweep Agree on & use best practices Standardize Make 5S a habit Monitor Celebrate Self- Discipline 5S+Safety 31 Identify Investigate Correct Safety

32. Standard Work 32 The safest, easiest, most effective way of doing something that we currently know Benefits:  Provides baseline for improvement  Enables more predictable results  Simplifies on-boarding and cross-training  Fosters organizational learning

33. Tools for Standard Work 33 Fail-safe Visual Control Tools Visual Aids Procedures, Manuals, Instructions The only way to do it Warn for abnormalities Show how to do it Tell how to do it

34. Section 3 34

35. Plan-Do-Check-Act (PDCA) 35 ImproveMeasure Study Define Measure Analyze Adjust Standardize ActPlan DoCheck

36. Root Cause Analysis 36 Go See Root Cause Why 5 Why Analysis Problem  Identify the specific problem  Go see what actually happens  Compare it to the standard or ideal  Ask ‘Why?’ until the root cause is found  Ask ‘How can we prevent it?’  Identify countermeasure(s)

37. Lean vs. Traditional 37 LeanTraditional  Simple and visual  Complex  Management by sight  Management by status report  Pull System  Push System  Inventory as needed  Just-in-case inventory  Reduce non-value added  Speed up value-added work  Single item or small lot size  Batch production  Minimal lead time  Long lead time  Quality built in  Quality inspected in  Value stream managed  Functionally managed

38. Lean Culture  People trust each other  Management facilitates  Everyone participates  Customer-focused  Problem-solving is process-oriented

39. Section 4 39