Simulation: Taking “Lean Thinking” to the Next Level

Simulation: Taking
“Lean Thinking”
to the Next Level
Brittany Hagedorn, Healthcare Lead for North America

My Evolving View of
Simulation & Lean
Management
Consulting.
SIMUL8 Corporation | SIMUL8.com | info@SIMUL8.com
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Advocate for
Integration.
TODAY
Pure Lean and
Six Sigma.
Simulation as a
risk reduction tool.
Simulation as an
engagement tool.

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
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Easy to
Use
Quick to
Learn
Visual &
Interactive

“Thinking Lean”
What does it mean to “Think Lean”?
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Continuous Improvement
QUALTIY
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ADD VALUE
ELIMINATE
WATE
CREATE FLOW
MEASUREMENT

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.
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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.
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Lean & Simulation’s
Shared Philosophy
 Variability impacts outcomes.
 Measure performance.
 Value everyone’s ideas.
 Pilot before you implement.
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Models of Integration
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Independent
Simulation
Small Model
built during a
Lean Project
Simulation
Integrated into
the Standard
Lean Process

Value Stream Mapping
Even Value Stream Mapping can benefit from simulation.
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10/20/2014

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
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10/20/2014
impact on key metrics.
3. Identify interactions between projects.
4. Set evidence-based improvement targets.

Compare Scenarios
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Risk-Free Pilots
Visualize everyone’s suggestions and their impact on key
outcome measures – for minimal time or cost.
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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
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situations?
• What downstream effects have we forgotten to plan for?

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.
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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

Situations For Simulation
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• 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)
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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.
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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.
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Simulation: Taking “Lean Thinking” to the Next Level

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