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Simulation: Taking “Lean Thinking” to the Next Level

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As we spread the word about how valuable simulation can be – and how it can inform better decision making – we are frequently asked to speak about how simulation fits into the bigger picture

In addition, improvement practitioners (including Lean, Six Sigma, industrial engineers, and many other varieties of backgrounds) often have concerns about how simulation can interface with their own practice, or if it is the competition.

In my experience, you can achieve more from your improvement efforts by integrating simulation into your standard tool belt. It does not replace, but rather complements traditional change management approaches.

Published in: Healthcare

Simulation: Taking “Lean Thinking” to the Next Level

  1. 1. Simulation: Taking “Lean Thinking” to the Next Level Brittany Hagedorn, Healthcare Lead for North America
  2. 2. My Evolving View of Simulation & Lean Management Consulting. SIMUL8 Corporation | SIMUL8.com | info@SIMUL8.com 1 800 547 6024 | +44 141 552 6888 Advocate for Integration. TODAY Pure Lean and Six Sigma. Simulation as a risk reduction tool. Simulation as an engagement tool.
  3. 3. SIMUL8 Corporation • Established 1994 • Suite of Simulation Products – SIMUL8 Professional – Core Product – LeanHDX – Architectural Layout Design – LeanSim Toolkit – Teach Lean Concepts – Scenario Generator – Strategic Planning – SIMUL8 Web – Collaborate on Models Online SIMUL8 Corporation | SIMUL8.com | info@SIMUL8.com 1 800 547 6024 | +44 141 552 6888 Easy to Use Quick to Learn Visual & Interactive
  4. 4. “Thinking Lean” What does it mean to “Think Lean”? SIMUL8 Corporation | SIMUL8.com | info@SIMUL8.com 1 800 547 6024 | +44 141 552 6888
  5. 5. Continuous Improvement QUALTIY SIMUL8 Corporation | SIMUL8.com | info@SIMUL8.com 1 800 547 6024 | +44 141 552 6888 ADD VALUE ELIMINATE WATE CREATE FLOW MEASUREMENT
  6. 6. Challenges for Improvement As improvement practitioners, we face challenges when it comes to implementing a culture of continuous improvement. • Sustainment of change. • Lots of high priorities. • Adoption/stakeholder engagement. • Complex process interactions. • Interdependent changes/projects. SIMUL8 Corporation | SIMUL8.com | info@SIMUL8.com 1 800 547 6024 | +44 141 552 6888
  7. 7. Mounting Pressures • Need to get more done, faster. • More improvement opportunities than you can handle with existing staff. • Mandate to quantify results. • Requirement to reduce risk and ensure the success of every implementation. SIMUL8 Corporation | SIMUL8.com | info@SIMUL8.com 1 800 547 6024 | +44 141 552 6888
  8. 8. Lean & Simulation’s Shared Philosophy  Variability impacts outcomes.  Measure performance.  Value everyone’s ideas.  Pilot before you implement. 10/20/2014 ALL RIGHTS RESERVED. BONSAI RESOURCE GROUP, INC. 4 SIMUL8 Corporation | SIMUL8.com | info@SIMUL8.com 1 800 547 6024 | +44 141 552 6888
  9. 9. Models of Integration SIMUL8 Corporation | SIMUL8.com | info@SIMUL8.com 1 800 547 6024 | +44 141 552 6888 Independent Simulation Small Model built during a Lean Project Simulation Integrated into the Standard Lean Process
  10. 10. Value Stream Mapping Even Value Stream Mapping can benefit from simulation. SIMUL8 Corporation | SIMUL8.com | info@SIMUL8.com 1 800 547 6024 | +44 141 552 6888 10/20/2014
  11. 11. Value Stream Mapping Use simulation to get even more from a VSM. 1. Validate the VSM by examining inventory levels. 2. Prioritize potential projects based on projected SIMUL8 Corporation | SIMUL8.com | info@SIMUL8.com 1 800 547 6024 | +44 141 552 6888 10/20/2014 impact on key metrics. 3. Identify interactions between projects. 4. Set evidence-based improvement targets.
  12. 12. Compare Scenarios SIMUL8 Corporation | SIMUL8.com | info@SIMUL8.com 1 800 547 6024 | +44 141 552 6888
  13. 13. Risk-Free Pilots Visualize everyone’s suggestions and their impact on key outcome measures – for minimal time or cost. SIMUL8 Corporation | SIMUL8.com | info@SIMUL8.com 1 800 547 6024 | +44 141 552 6888
  14. 14. Post-Kaizen Implementation After a Kaizen event, there is always some uncertainty about how the new process will work after “go live”. For critical business processes, simulation can help mitigate implementation risk. Answer questions such as: • Do I have enough resources to handle the increased throughput? • Is the new process robust enough to handle unusual or unexpected SIMUL8 Corporation | SIMUL8.com | info@SIMUL8.com 1 800 547 6024 | +44 141 552 6888 situations? • What downstream effects have we forgotten to plan for?
  15. 15. Simulation in Lean & Six Sigma Simulation is a powerful tool, but it is most effective when integrated with the Lean Six Sigma approach. By doing so, we can maximize the impact of our improvement efforts. Understand dependencies. Validate your current state. SIMUL8 Corporation | SIMUL8.com | info@SIMUL8.com 1 800 547 6024 | +44 141 552 6888 Value Stream Mapping Identify Improvement Opportunities Prioritize Projects Develop Charters Map Current State Design Future State Pilot Future State Implement Sustain • Conduct observations. • Collect data. • Document value stream statistics. • Document all barriers, rework, and wait times. • Estimate the impact and effort for each improvement. • Combine for prioritization. • Define process and outcome metrics. • Establish target (%) for improvement. • Create a detailed process map. • Identify potential interventions. • Develop and document a future state process map. • Implement the proposed future state on a small scale. • Identify issues & unexpected effects. • Modify the future state as needed. • Conduct training. • Go live. • Document standard work and policies & procedures. • Monitor and sustain improvements Incorporate . variability Set evidence-based into VSM. targets. Reduce risk. Gain buy-in. Visualize improvement results. TEACH LEAN CONCEPTS
  16. 16. Situations For Simulation SIMUL8 Corporation | SIMUL8.com | info@SIMUL8.com 1 800 547 6024 | +44 141 552 6888 • Average is not enough • Complex process • Many possible input variables • Dependent relationships between variables • Need a “Sand Box” test environment • Risky (potential danger) • Expensive (moving equipment, building walls) • Time & Resource (running many tests to find the optimum) • Rare occurrence (extremely high demand, disaster response) • Data constraints (estimational, not available, or “dirty”) • Stakeholder engagement (visualize the future in order to gain buy-in) 10/20/2014 ALL RIGHTS RESERVED. BONSAI RESOURCE GROUP, INC. 9
  17. 17. Key Takeaways 1. Lean and Simulation share a common philosophy. 2. There are many opportunities to incorporate Simulation into standard Lean practice. 3. Lean ROI can be enhanced by integrating Simulation. 4. Careful deployment and strong advocacy will be required in order to fully integrate Lean and Simulation. SIMUL8 Corporation | SIMUL8.com | info@SIMUL8.com 1 800 547 6024 | +44 141 552 6888
  18. 18. Additional Resources Visit SIMUL8.com for case studies that demonstrate how Lean and Six Sigma benefit from simulation. For free downloadable booklet and models from Warwick University, visit SimLean.org. SIMUL8 Corporation | SIMUL8.com | info@SIMUL8.com 1 800 547 6024 | +44 141 552 6888

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