1. LeanSigma® Facilitator Training
Module 7 – Kaizen

2. Topics
Lean event preparation
Event facilitation
Event follow-up

3. Lean Sigma has six steps to optimize processes.
Lean has a methodology (similar to DMAIC for Six Sigma). You’ll will use this methodology each time you run a kaizen or lean project.

4. Waste can be removed from processes in many different venues.
Simple improvements every day (just do it!)
Projects
Kaizens & point kaizens
New process design studies
Capacity studies
Opportunity assessments
New process design studies: Remove the waste before the process is initially deployed!

5. One of the most common Lean venues is a kaizen.
Current Process
Collaborative problem solving leveraging front-line employees to determine how to improve their own work
Designed to be scalable and flexible (3 – 5 day events common, 1 – 2 day point kaizens possible)
Most changes implemented in 90 days.
Target Process
Sample Metrics
Current
Target
Process Steps 47 24
Handoffs 11 5
Rework Loops 2
Value Add Steps 8
TBM Kaizen

6. Front-line employees hold the secrets to improving the work.
“The secret [of a perfect swing] is in the dirt.”
-Ben Hogan
The answers are there, you just need to look for them.
Ben Hogan’s swing is the PGA logo
Time-based Lean techniques are the standard for operational excellence – and produce results far in excess of any other approach – without additional space, equipment, software or people
Lean companies consistently outperform competitors who are not

7. There are three key components to kaizens.
Event preparation
Identify and prioritize events
Create solid charters
Select and train participants
Collect pre-work
Event facilitation
Break the ice &
manage team dynamics
Work the agenda
Apply the Lean tools
Event follow-up
Conduct 30 / 60 / 90 day reviews
Ensure implementation and sustainment are happening
Identify when processes should be revisited
The rule of 1/3s:
Expect to spend equal amounts of time doing each component. 3 3 3

8. We follow standard work to execute the kaizens.
Lean stresses standardization.
We need to “walk the talk” when running kaizens!
Standard templates are available on the ARC web site to help you organize and run events. Click here for Lean Templates and Guidelines Folder
Charters
Training materials
Event agendas
30 / 60 / 90 day review guidelines
But, expect that each kaizen event will be a bit different and you’ll need to think on your feet!

9. There are very detailed instructions for you on every aspect of the lean event.
Click here for Lean Kaizen Prep Instructions

10. Identifying and prioritizing the kaizen begins the planning process.
Lean event ideas may come from many different sources:
Front-line employees
Process owners
Senior management
Lean leaders
You!
Make sure that the kaizen is the right tool for the business challenge.
After you have identified some potential kaizens, work together with your lean leader and sponsor to prioritize the work.

11. Some warning signs tell you process improvement is needed.
Labor-intensive (labor cost and effort is high)
High number of errors or defects; excessive rework
High DAP
Peaks and valleys in the workload
Use of non-standard procedures, forms, outputs, etc.
Excessive administrative tasks, including approvals
Multiple delays
A mismatch between resource skills and assigned work (e.g. overqualified resources used)
The need for more automation
Duplicate verification steps
Frequent miscommunication

12. Not every issue should be addressed with a kaizen.
Kaizens are best for:
fixing existing processes
when you don’t know the solution
when you need buy-in to the solution
Click here for LEAN Tools Decision Tree

13. Our prioritization tool ranks ideas based on feasibility, impact and likelihood of success.
Click here for Lean event prioritization tool

14. The facilitator will build a charter for every Lean event.
Click here for Charter Template
What will you address and why is it important to IMS to address this issue?
Quantify what you want to achieve and the financial impact if you don’t.
What is the problem? How often does it happen? Why does it matter?
1/3 of participants do the process,
1/3 are customers or suppliers,
1/3 are outsiders
What will you include and not include in your analysis?
Be specific! Quantify! Engage your sponsor!

15. Store information about your kaizen event in our central information repository (the Lean PMO).
Click here for Lean Project Roadmap

16. Invite kaizen participants and give basic Lean training.
Stress key messages in the Talking Points for Kaizen participants document
Explain what is a kaizen
This does not mean you’ve been targeted for reduction
Front-line employee input is valuable
Just before or at the start of the event, provide the training for participants new to the kaizen experience in person or via Live Meeting. The training will take just over one hour. Click here for link to participant training

17. Collect relevant data prior to the event to help with decision-making.
Examples:
Historical performance – quality, productivity, costs
Current standard work
Errors – by type/frequency
Product/service breakdown by revenue/contribution/vol.
Cycle times
Macro map of process
Where data is not available/measured, implement a means to capture the required data
This data can help you determine at which points in the process you should focus your process improvement efforts.

18. Kaizen events have three segments.1
Discovery
Review charter, create current state process maps and compile measures (# delays, # value-added steps, etc.) 2
Opportunity
Brainstorm ideas to eliminate waste; improve pull, flow and quality
Create the future state map
Assign action items for 90 day plan 3
Implementation
Complete some action items
Report results
Kai = Change Zen = for the good

19. You can rely on the standard kaizen agenda but be prepared to adapt.
Day before kaizen
Day 1
Day 2
Day 3
Delivery 1 hour of training to kaizen participants
Introductions & welcome by sponsor
Day 1 recap / lessons learned
Day 2 recap / lessons learned
Review charter, build SIPOC
Review day 2 agenda
Review day 3 agenda
Map Current state process
Brainstorm ideas (ask 3 – 4 probing questions to generate ideas, post on the process map and remove dupes)
Identify future state process measures (VA/NVA, cycle time, etc.)
Collect process measures (VA / NVA, cycle time, lead time, # delays, # decisions, etc.)
Prioritize ideas according to impact & difficulty
Assign tasks and due dates & begin implementation
Begin brainstorming (if time permits)
Map future state (using improvement ideas)
Create & practice “Report out deck”
Team lead / sponsor meeting
Deliver “report out” to stakeholders

20. Each kaizen goes through the steps in the Lean roadmap.
Lean has a methodology (similar to DMAIC for Six Sigma). You’ll will use this methodology each time you run a kaizen or lean project.

21. Kaizens use team work to map the processes and estimate times.
An important benefit of kaizens is that they motivate employees.
The vast majority of their suggestions are implemented.
Facilitators enable the discussion, they don’t dictate the decisions! You are the Lean tools expert, not the process SME.

22. We’ll discuss team dynamics & additional lean tools you could leverage during kaizens in the next modules. 5S
Routing Standardization
Smoothing
Capacity management
Brainstorming
Mistake-proofing
Root cause analysis
Risk analysis

23. Participants brainstorm opportunities and assess their impact and difficulty.
Some opportunities will naturally come up as you map the current state – capture these on the side!
Most kaizens result in 20 – 40 unique ideas for process improvement.
High impact / low difficulty ideas are the most appealing for kaizens, since they can make a big difference within 90 days.

24. Kaizen Newspapers or implementation plans show owners & timing of kaizen action items.
Click here for Implementation Plan Template
Frequently, some action items are completed before you leave the kaizen.

25. Document a sustainment plan to start continuous improvement.
Identify the end-to-end process owner responsible for maintaining the process and associated documentation
Identify next steps required for effective process deployment
Establish KPI tracking process and responsibilities
Conduct the pilot study(s)
Change management efforts (communication, training)
Begin planning the next kaizen
Identify on-going tasks and responsibilities
Monitor KPIs
Incorporate lessons learned into the process
Solicit ideas for additional process improvements for the process and/or related processes
Incorporate next steps into the implementation plan

26. Every kaizen ends with a report out of the results.
The final presentation (report out) allows the team to document and publicize its accomplishments.
Sponsors and other important stakeholders are invited.
The final presentation should be limited to minutes.
Every participant presents one to two slides.
Issues Notes
Expected improvement
Show NL Report out
Key changes
Sustainment measures

27. Before and after process measures are a focal point of the report out.
Current State
Future State
% Improvement/ Comments VA 1 -
NVA 50 40
20%
Handoffs 15 10
33%
Loopbacks 3 2
Delays 12 8
Decision Points 6
25%
Cycle Time
5 – 33 HRS
3 – 25 HRS
24 – 40%
Delay Time
7 – 45 DAYS
7 – 37 DAYS
0 – 18%
RTY
19%
42%
121%
Click here for Report-Out Template

28. After the event, stay engaged to ensure implementation.
Document the future state map in VISIO
Create a one page executive summary of your event
Hold the 30 / 60 / 90 day reviews to assess progress
Work with the sponsor to remove any barriers
Update the PMO with results of your kaizen
Measure actual cycle time post-implementation
Click here for a timeline of typical post-event activities

29. National Order Fulfillment Kaizen
Sponsor: Manny Triggiano
Process Owner: Brenda Capobianco
Lean Process Lead: Carissa Blair
Team: Kevin Downing, Debbie Clark, Joy Cross, Michele Gulla, Shelley Shollenberger, Lucy Ridge, Bonnie Puzio, Lisa Cooney
Facilitator: David Pate (TBM)
Kaizen Team
Optimize process & resources to
achieve / exceed our financial targets.
Objective
Total Lead time, % reruns due to order fulfillment errors, Number of ad hoc reports by client and by complexity.
Metrics
Key Kaizen Breakthroughs
Goal
Reduce number of hours required, staff, and costs
Issues Noted
Process Changes
It requires multiple loopbacks to collect client requirements.
Create a standard requirements gathering checklist.
Results
There are variations in the process based on complexity of the request and CSA experience.
Create a best practice document for how our most successful CSAs gather requirements.
Delays and hand-offs occur when CSAs request discount approval.
Give CSAs request discount approval up to a specified amount.
There were unnecessary hand-offs to TCS and Finance.
Give Finance direct access to proof of delivery. Give back history form directly to TCS.
Validating price and budget with clients resulted in loopbacks.
Create ballpark price early in process and standardize pre-qualification of client budgets.
Approximately 17% of total time to fulfill orders was eliminated
March 2011

30. Topics for the 30 / 60 / 90 day review
Implementation progress and mitigation for tasks at risk
KPIs and sustainment measures
Cost-benefit analysis (cost savings, time reduction)
Additional opportunities for continuous improvement
Click here for Guidelines for Day Reviews