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How vertical integration drives the need for 
Standardized Work and enables improvement 
JEROMY MARKWORT – LEAN COACH, PACIFIC NORTHWEST NATIONAL 
LABORATORY 
December 2, 2014 1 
AGx Three Rivers Convention Center Kennewick, WA 
December 1st 2014 
jeromy@pnnl.gov 
@jmarkwort 
PNNL-SA-106947
Background 
Vertical integration example 
Challenges 
Shift from Manage By Objectives to Manage By Means with focus on 
staff development 
Understand “OK” vs. “Not OK” 
Grasp the situation 
Standardize 
Coach staff to ID opportunities for improvement 
PDCA for the win 
December 2, 2014 2 
Outline
The vertically integrated apple pie 
How do we think from our customers’ needs 
backward, not from our assets forward? 
Golden Delicious apples 
No worms 
Ripe 
Un-blemished 
Clean 
Firm 
Consistent size/taste 
–Steve Bell
Making sure what we make is 
what they want 
12/2/2014 5
Making sure what we make is 
Rework 
12/2/2014 6 
what they want
We must first have a shared 
understanding of "OK," "Not 
OK" 
UNDERSTAND THE DIRECTION
Where are we today? 
UNDERSTAND THE GAP
You can't get there from here… 
HOW DO WE GET THROUGH UNCERTAINTY TO OUR GOAL?
Standardize our processes in 
order to deliver consistent 
results
Not scrapbooking 
for the business! 
Standard Work 
Vs. 
Documentation 
DATA AND FACTS
Standardized Work as the 
"current best known way to do 
the work” 
December 2, 2014 12
Once our process has been 
stabilized/standardized, now 
look to improve
What are the obstacles? 
What are the opportunities for 
improvement? 
December 2, 2014 14
Manage By Objectives 
to 
Manage By Means
Experimentation: Shewhart Cycle 
16 
A3 thinking 
Title 
Plan 
Do 
Check Adjust
Books 
Lean Thinking, Womack and Jones 
Toyota Kata, Rother 
The Lean Startup, Ries 
2 Second Lean, Akers 
Videos 
Meals Per Hour, Toyota helps a food bank improve efficiency 
Lean is simple, Paul Akers 
December 2, 2014 17 
Resources

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The Vertically Integrated Apple Pie: How vertical integration drives the need for Standard Work and enables improvement.

  • 1. How vertical integration drives the need for Standardized Work and enables improvement JEROMY MARKWORT – LEAN COACH, PACIFIC NORTHWEST NATIONAL LABORATORY December 2, 2014 1 AGx Three Rivers Convention Center Kennewick, WA December 1st 2014 jeromy@pnnl.gov @jmarkwort PNNL-SA-106947
  • 2. Background Vertical integration example Challenges Shift from Manage By Objectives to Manage By Means with focus on staff development Understand “OK” vs. “Not OK” Grasp the situation Standardize Coach staff to ID opportunities for improvement PDCA for the win December 2, 2014 2 Outline
  • 3. The vertically integrated apple pie How do we think from our customers’ needs backward, not from our assets forward? Golden Delicious apples No worms Ripe Un-blemished Clean Firm Consistent size/taste –Steve Bell
  • 4. Making sure what we make is what they want 12/2/2014 5
  • 5. Making sure what we make is Rework 12/2/2014 6 what they want
  • 6. We must first have a shared understanding of "OK," "Not OK" UNDERSTAND THE DIRECTION
  • 7. Where are we today? UNDERSTAND THE GAP
  • 8. You can't get there from here… HOW DO WE GET THROUGH UNCERTAINTY TO OUR GOAL?
  • 9. Standardize our processes in order to deliver consistent results
  • 10. Not scrapbooking for the business! Standard Work Vs. Documentation DATA AND FACTS
  • 11. Standardized Work as the "current best known way to do the work” December 2, 2014 12
  • 12. Once our process has been stabilized/standardized, now look to improve
  • 13. What are the obstacles? What are the opportunities for improvement? December 2, 2014 14
  • 14. Manage By Objectives to Manage By Means
  • 15. Experimentation: Shewhart Cycle 16 A3 thinking Title Plan Do Check Adjust
  • 16. Books Lean Thinking, Womack and Jones Toyota Kata, Rother The Lean Startup, Ries 2 Second Lean, Akers Videos Meals Per Hour, Toyota helps a food bank improve efficiency Lean is simple, Paul Akers December 2, 2014 17 Resources

Editor's Notes

  1. My requirements at the end of the process must be considered throughout the process
  2. Apples will have no clear signs of blemishes
  3. ~20% of our apples are blemished when harvested ~2% have worms ~90% are dirty
  4. Need consistent results to know what and where to improve and understand the effects of change.
  5. Agree on a way to do the work. It will not be perfect, but it will be the standard and provide repeatable results. Once the work is repeatable, then you can improve. Your first improvement is standard work. Remove variability in the work so you can remove variability in the process.
  6. Important as this drives the following step of improvement Drop the apples from the top of the tree is our agreed upon method of work.
  7. Staff know the standard, and are expected to not just do the work, but improve the work. "Current best known way…”