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Lean workshop 2015
- 1. Introduction to Lean Edmund J. Sutcliffe @EdmundSutcliffe Simon Carter @smescrater
- 2. A bad system will beat a good person every time. -W. Edwards Deming
- 7. Intelligent laziness. What is Lean?
- 8. Why Go Lean?
- 9. Why Go Lean? Run the Business
- 10. Why Go Lean? Grow and Transform Run the Business
- 11. Why Go Lean? Grow and Transform Run the Business Lean Operational Excellence
- 12. Why Go Lean? Grow and Transform Run the Business Run the Business Lean Operational Excellence
- 13. Why Go Lean? Grow and Transform Run the Business Run the Business Lean Product Development Lean Operational Excellence
- 14. Why Go Lean? Grow and Transform Run the Business Run the Business Grow and Transform Lean Product Development Lean Operational Excellence
- 15. The Building Blocks of Lean Culture
- 16. The Building Blocks of Lean Culture Flow
- 17. The Building Blocks of Lean Systems Thinking Mistake Avoidance Customer Insight Culture Flow
- 18. The Building Blocks of Lean Behaviour Systems Thinking Mistake Avoidance Customer Insight Culture Flow
- 19. The Building Blocks of Lean Constancy of Purpose Knowledge Management Continuous Improvement Behaviour Systems Thinking Mistake Avoidance Customer Insight Culture Flow
- 20. Flow
- 21. The Coin Game Sticker Colour Role Green Product Owner Blue Analyst Manager Violet Analyst Pink Development Manager Red Developer Orange Test Manager Yellow Tester
- 22. The Coin Game Analyst Developer Tester Product Owner Flips coins in a batch then moves batch to next person. Repeats for all batches. Manages the process. Records time taken for entire batch to be completed. Records time taken for each batch Times each batch. Time starts once first coin is flipped and ends once last coin is flipped. Reports batch time to product owner. Times each batch. Time starts once first coin is flipped and ends once last coin is flipped. Reports batch time to product owner. Times each batch. Time starts once first coin is flipped and ends once last coin is flipped. Reports batch time to product owner. Flips coins in a batch then moves batch to next person. Repeats for all batches. Flips coins in a batch then moves batch to next person. Repeats for all batches.
- 23. The Coin Game Actual Results R1 (batch size 20) R2 (batch size 5) R3 (batch size 2) Analysis 12.475 14 13.3 Development 10.66 17.045 14.275 Test 12.75 16.22 14.7 Product Delivery 43.615 23.6375 17.1775
- 24. The Coin Game Debrief ● Small batch sizes were more fault/defect tolerant ● Smaller batches increased phase time but decreased overall time ● Once a sense of flow has been established great results can be reproduced consistently ● Empowering your team leads to innovative results!
- 25. Value Stream Mapping Nature does constant value stream mapping. It's called evolution.
- 26. How do you do it Gemba walks Scientific thinking (PDCA) Kanban Ticketing system
- 27. Lean Behaviours
- 28. Lean Behaviours Know how the business serves the customer
- 29. Lean Behaviours Know how the business serves the customer Focus on process and results
- 30. Lean Behaviours Know how the business serves the customer Show a continuous improvement mindset Focus on process and results
- 31. Lean Behaviours Know how the business serves the customer Show a continuous improvement mindset Demonstrate an understanding of the value stream at a macro and micro level Focus on process and results
- 32. Lean Behaviours Know how the business serves the customer Show a continuous improvement mindset Demonstrate an understanding of the value stream at a macro and micro level Focus on process and results Create a culture to sustain improvement
- 33. Lean Behaviours Know how the business serves the customer Show a continuous improvement mindset Build ability in people Demonstrate an understanding of the value stream at a macro and micro level Focus on process and results Create a culture to sustain improvement
- 34. Waste Only the last turn of a bolt tightens it—the rest is just movement -Shigeo Shingo
- 35. The Standard Pig One of the main types of waste to avoid is waste by variation. The next activity will demonstrate how this can be avoided simply.
- 36. The Standard Pig Actual Results 1 Images courtesy of @RyzJenvey
- 37. The Standard Pig Actual Results 2 Images courtesy of @RyzJenvey
- 38. The Standard Pig Actual Results 3 Images courtesy of @RyzJenvey
- 39. The Standard Pig Debrief ● Round One ○ Many different pigs produced ○ Which is the right one? ● Round Two ○ Less variation in pigs ○ Standard instructions helped ● Round Three ○ Much less variation ○ Diagram and clear instructions reduce waste
- 40. Who are your Customers? Oh, they may be weary customers get weary All the problems that they have to address, yeah yeah But when they get weary Try a little tenderness, yeah yeah
- 41. Who are your Customers? You know they're waiting Just anticipating For systems that'll never, never, never, never cause stress, yeah yeah But while they're there waiting, without them Try a little tenderness (that's all you gotta do)
- 42. AQ&
Editor's Notes
- http://www.ame.org/sites/default/files/qrl_docs/LeanGlossary_01_08.pdf At a very simple level, Lean is about three things: The elimination of waste The addition of value for the customer to work The continual improvement of performance Lean is a commitment to a set of principles and practices not only to introduce improvement, but to ensure continuous improvement. Historically Lean practices come from Dr. James. P. Womack of MIT’s study of the manufacturing practices of the Toyota Motor Company of Japan. Lean allows your business to do a lot more with less.
- http://www.ame.org/sites/default/files/qrl_docs/LeanGlossary_01_08.pdf At a very simple level, Lean is about three things: The elimination of waste The addition of value for the customer to work The continual improvement of performance Lean is a commitment to a set of principles and practices not only to introduce improvement, but to ensure continuous improvement. Historically Lean practices come from Dr. James. P. Womack of MIT’s study of the manufacturing practices of the Toyota Motor Company of Japan. Lean allows your business to do a lot more with less.
- http://www.ame.org/sites/default/files/qrl_docs/LeanGlossary_01_08.pdf At a very simple level, Lean is about three things: The elimination of waste The addition of value for the customer to work The continual improvement of performance Lean is a commitment to a set of principles and practices not only to introduce improvement, but to ensure continuous improvement. Historically Lean practices come from Dr. James. P. Womack of MIT’s study of the manufacturing practices of the Toyota Motor Company of Japan. Lean allows your business to do a lot more with less.
- http://www.ame.org/sites/default/files/qrl_docs/LeanGlossary_01_08.pdf At a very simple level, Lean is about three things: The elimination of waste The addition of value for the customer to work The continual improvement of performance Lean is a commitment to a set of principles and practices not only to introduce improvement, but to ensure continuous improvement. Historically Lean practices come from Dr. James. P. Womack of MIT’s study of the manufacturing practices of the Toyota Motor Company of Japan. Lean allows your business to do a lot more with less.
- http://www.ame.org/sites/default/files/qrl_docs/LeanGlossary_01_08.pdf At a very simple level, Lean is about three things: The elimination of waste The addition of value for the customer to work The continual improvement of performance Lean is a commitment to a set of principles and practices not only to introduce improvement, but to ensure continuous improvement. Historically Lean practices come from Dr. James. P. Womack of MIT’s study of the manufacturing practices of the Toyota Motor Company of Japan. Lean allows your business to do a lot more with less.
- To get more from IT capabilities using Lean is a two step process. Firstly, take a Lean approach to operational excellence. Emphasise continuous improvement or speed, quality, cost and customer satisfaction by aggressively reducing waste, unnecessary variation, and overburden. As operational excellence improves, focus and effort can shift towards enabling and enhancing the business strategy. Lean practices help businesses and IT stakeholders work together in rapid and continuous cycles of experimentation, improvement, and innovation to reach a balance of three complementary objectives: Running the business Growing the business Transforming the business
- To get more from IT capabilities using Lean is a two step process. Firstly, take a Lean approach to operational excellence. Emphasise continuous improvement or speed, quality, cost and customer satisfaction by aggressively reducing waste, unnecessary variation, and overburden. As operational excellence improves, focus and effort can shift towards enabling and enhancing the business strategy. Lean practices help businesses and IT stakeholders work together in rapid and continuous cycles of experimentation, improvement, and innovation to reach a balance of three complementary objectives: Running the business Growing the business Transforming the business
- To get more from IT capabilities using Lean is a two step process. Firstly, take a Lean approach to operational excellence. Emphasise continuous improvement or speed, quality, cost and customer satisfaction by aggressively reducing waste, unnecessary variation, and overburden. As operational excellence improves, focus and effort can shift towards enabling and enhancing the business strategy. Lean practices help businesses and IT stakeholders work together in rapid and continuous cycles of experimentation, improvement, and innovation to reach a balance of three complementary objectives: Running the business Growing the business Transforming the business
- To get more from IT capabilities using Lean is a two step process. Firstly, take a Lean approach to operational excellence. Emphasise continuous improvement or speed, quality, cost and customer satisfaction by aggressively reducing waste, unnecessary variation, and overburden. As operational excellence improves, focus and effort can shift towards enabling and enhancing the business strategy. Lean practices help businesses and IT stakeholders work together in rapid and continuous cycles of experimentation, improvement, and innovation to reach a balance of three complementary objectives: Running the business Growing the business Transforming the business
- To get more from IT capabilities using Lean is a two step process. Firstly, take a Lean approach to operational excellence. Emphasise continuous improvement or speed, quality, cost and customer satisfaction by aggressively reducing waste, unnecessary variation, and overburden. As operational excellence improves, focus and effort can shift towards enabling and enhancing the business strategy. Lean practices help businesses and IT stakeholders work together in rapid and continuous cycles of experimentation, improvement, and innovation to reach a balance of three complementary objectives: Running the business Growing the business Transforming the business
- To get more from IT capabilities using Lean is a two step process. Firstly, take a Lean approach to operational excellence. Emphasise continuous improvement or speed, quality, cost and customer satisfaction by aggressively reducing waste, unnecessary variation, and overburden. As operational excellence improves, focus and effort can shift towards enabling and enhancing the business strategy. Lean practices help businesses and IT stakeholders work together in rapid and continuous cycles of experimentation, improvement, and innovation to reach a balance of three complementary objectives: Running the business Growing the business Transforming the business
- To get more from IT capabilities using Lean is a two step process. Firstly, take a Lean approach to operational excellence. Emphasise continuous improvement or speed, quality, cost and customer satisfaction by aggressively reducing waste, unnecessary variation, and overburden. As operational excellence improves, focus and effort can shift towards enabling and enhancing the business strategy. Lean practices help businesses and IT stakeholders work together in rapid and continuous cycles of experimentation, improvement, and innovation to reach a balance of three complementary objectives: Running the business Growing the business Transforming the business
- Culture An organisation’s shared beliefs and values, manifested as attitude and behaviour. Lean culture is a shared capability which enables people to seek out and solve problems. The result being superior performance, competitive advantage, and observable results to bottom-line costs Whatsapp – 4 servers, 45 employees $16B
- Flow Flow is the uninterrupted progression of materials, services, and information through the business to the customer. “Flow is where you can pull if you must” - Jeffrey Lister Work should flow smoothly through the business. If work does not flow, using pull techniques like a kanban to initiate work will restore flow. A kanban (card board) is a system that visibly lists work to be done in the form of cards. People can take cards at their own pace, work on them and deliver the work. Allowing people to control their own flow of work avoids losing time due to waiting for work and avoiding overburdening. Poor flow manifests as delays, interruptions, rework, and added cost to the customer.
- The voice of the customer Kokyaku no koe At all times, the customer’s values, wants, and needs must be understood. By understanding how customers define value, lean thinkers position themselves to begin with the customer’s end result in mind. If organisations do not know or understand what the customer desires, they will deliver products and services that do not address the real needs of the customer. Quality at the source/Mistake Proofing/Poka-Yoke Lean promotes doing things right first time. Effort should not go into fixing things later. The best time to solve a problem is at the time it occurs. The focus of daily work should be producing quality at the source. In a lean environment there is an obligation to stop and fix the problem, and a shared commitment to avoiding passing known defects downstream towards the customer. Systems Thinking Lean requires learning to view and assess the business in a new way. Systems thinking is the ability to view the interconnected processes that make up the entire value stream (the flow of work and addition of value through the business and to the customer) while being aware of the cause and effect interdependencies that either add value or create waste. A value stream is comprised of all processes, tasks, and activities used to bring a product or service from concept to customer, and includes all information, work, and material flows. To facilitate systems thinking in organisations, lean practitioners should avoid solutions that create localised optimisation and silo thinking.
- Proactive Behaviour Lean practices empower staff to take initiative and assume personal responsibility for the quality of work produced and the working environment. Being proactive means seizing the opportunity to make a difference every day. Many businesses fail in this area because staff are seasoned firefighters and too used to reacting to problems as they occur. Lean practitioners are best seen as police officers who take a methodical, proactive approach to problem solving. This is best visualised using the time-management matrix from Stephen Covey’s 7 habits of highly effective people. Urgent|Non-Urgent |Important Fire-fighting|Lean Thinking ---------------------------+-------------------------- | |Non-Important |
- Constancy of Purpose Leadership provides the direction and clarity needed to focus on the things that matter most, maintaining clarity on important long-term objectives. The maintaining of focus on what matters most ensures continued coordination within departments and functional areas. Effective leaders lead by example, this is a responsibility that cannot be delegated. The way management reacts to setbacks either reinforces proactive behaviour or discourages it. Effective leadership embraces an essential truth: poor processes not people are the cause of most problems. W.Edward Deming proposed the 96/4 rule. that is 96% of the problems in a business were inherent to process design and not controlled by the people doing the work. Respect for People All individuals possess a unique collection of experience and insight and can make a distinctive contribution when they participate in process improvement. When people sense their input is disregarded or not respected, they tend to withdraw their support, concern, and active participation. Respect for people unlocks personal excellence and creative potential. Good leaders tap into this inexhaustible resource by mentoring, coaching, and collaborating with their associates. Lean transformation requires the input, support, and active participation of everyone in the organisation. Pursuit of perfection Change is relentless and new ideas are needed whenever current standard ways of working no longer produces acceptable results. In lean culture people embrace change as inescapable (and even desirable), proactively meeting challenges. Everybody should see their job as having two inseparable components: Daily Work Daily Improvement The pursuit of perfection is aspirational, it is never achieved. Over automation and striving for hyper-efficiency of the “perfect solution” should be avoided. These ultimately create waste and rigidity, and resist further cycles of improvement.
- http://www.youtube.com/watch?v=8NPzLBSBzPI ACTIVITY: The Dice Game We all drink water, when we turn on the tap, we expect to have a clean, consistent flow of water. As the customer, we assume the water is disease free, safe to drink, and fully available when we want it, all at a reasonable price. If a pump breaks or a controller fails somewhere in the delivery system that is somebody else’s problem. We, the customer, expect flowing water on demand. The water supplier must maintain its equipment, verify the water quality, and ensure that the delivery system is safe and reliable. The supplier has little or no room for mistakes. This is an example of a system of flow. From the time a first action is taken, products and services never stop until they reach the customer. From the moment a customer asks for it, products and services make their journey through a set of only value adding activities until they reach their destination.
- Value stream mapping is a lean management principle used to analyse and design the flow of materials and information required to bring a product or service to a consumer. Producing a value stream map consists of the following steps: Assemble a cross-functional team that has representatives from all areas of your process. Consider the customer. Draw the customer near the top right of your VSM and capture the events or signals that trigger the start of the process. Capture the process steps. Add the process time line. Summarize the key operational metrics for your process on the VSM. Identify improvement opportunities. Get team input Because of a VSM’s end-to-end scope, you need to gather input from a wide set of domains: production planning, supply chain, inventory/stores, manufacturing, shipping, and so on. Including all these inputs is critical to creating an accurate and useful VSM. Start with the customer After gathering inputs, consider the customer. You can see the “product customer” drawn toward the upper right. Ask yourself what the customer does to signal the need to start the process. Whatever the impetus is, the customer always does something to start the ball rolling. Draw the customer near the top right of your VSM and begin by capturing the events or signals that trigger the start of the process. To follow typical VSM conventions, use thin, solid lines to indicate signals or the flow of information in your process. Use thick solid lines to designate external material flow, like from a supplier. And use thick dotted lines to document material or flow that occurs within your organization. You can see a customer order being first routed to production control. Production control, in turn, sends out forecasts and weekly material orders to suppliers. In a parallel path of the value stream, the production supervisor also receives a signal from production control and sends out daily production instructions to each of the process steps. Capture the process steps Next, you want to capture the process steps. Usually, you place the as-is internal process steps at the bottom of the VSM in a horizontal layout. These steps are designated by blocks with characteristic measures for each step. Capture as much information as possible about each step, including cycle time, changeover time, number of operators, number of pieces, work in process, inventory quantities, reliability, yield, and so on. Add the process timeline Value stream maps contain a unique feature — a highly insightful timeline — beneath the horizontal line of main process steps. The timeline captures not only the time required for each step but also the time spent waiting between steps. In this way, you document how long the entire process takes to be completed. The timeline also includes a vertical component. To highlight waste, any segment of process time that doesn’t add value is drawn in the timeline with an elevated step. So, you can see what portion of overall process time is spent adding real value and how much isn’t. Don’t confuse takt time with cycle time. Cycle time is a measure of how long a process takes to complete.Takt time is the pace needed to exactly meet customer demand. It’s calculated by dividing the available production time by the number of parts needed to meet customer demand during that time. To minimize waste, a process should produce its output no faster or slower than the customer-determined takt time. When you compute takt time, take into account your current production efficiency. A realistic takt time is multiplied by your efficiency number (for 80-perent efficiency, multiply the takt time by 0.8). This step means you build in enough capacity that you can meet customer demand while sustaining production losses of 20 percent. Supply the box score Place a summary of the key operational metrics — known as the box score — right on the VSM, usually near the top. Be sure to include the total lead time, including the value add and non-value add times. You may also include information like the total distance traveled, total parts per shift, scrap, pieces produced per labor hour, changeover time, inventory turns, uptime, downtime — whatever is critical in your situation. Identify improvement opportunities
- The basic toolkit of a lean business contains: * A3 thinking An A3 report is simply an 11 x 17 inch piece of paper outlined into several structured sections. The exact structure depends upon the type of A3 and the needs of the situation. A general one consists of the following pattern 1) Background, 2) Current Situation & Problem, 3) Goal, 4) Root Cause Analysis, 5) Action Items / Implementation Plan, 6) Check of Results, and 7) Follow Up. The report is used to standardised and simplify report writing, proposals, status updates, and other common methods of communication. The content follows the logic of the Plan-Do-Check-Act cycle. * Kanban Kanban is a method for managing knowledge work with an emphasis on just-in-time delivery while not overloading the team members. In this approach, the process, from definition of a task to its delivery to the customer, is displayed for participants to see and team members pull work from a queue. Kanban can be divided into two parts: * Kanban – A visual process management system that tells what to produce, when to produce it, and how much to produce. * The Kanban method – An approach to incremental, evolutionary process improvement for organizations. * Value stream mapping Value stream mapping is a lean management principle used to analyze and design the flow of materials and information required to bring a product or service to a consumer. Pioneered by Henry Ford in the 1920s, perfected by Toyota. At Toyota, it is known as "material and information flow mapping".[1] It can be applied to nearly any value chain. * Kaizen events Kaizen refers to activities that continually improve all functions, and involves all employees from the CEO to the assembly line workers. It also applies to processes, such as purchasing and logistics, that cross organizational boundaries into the supply chain. By improving standardised activities and processes, kaizen aims to eliminate waste. * Plan-->Do-->Check-->Act PDCA (plan–do–check–act or plan–do–check–adjust) is an iterative four-step management method used in business for the control and continuous improvement of processes and products. It is also known as the Deming circle/cycle/wheel, Shewhart cycle, control circle/cycle, or plan–do–study–act (PDSA). Another version of this PDCA cycle is OPDCA. The added "O" stands for observation or as some versions say "Grasp the current condition." This emphasis on observation and current condition has currency with Lean manufacturing/Toyota Production System literature. * Gemba Walks Gemba (現場?, also romanized as gemba) is a Japanese term meaning "the real place." In business, gemba refers to the place where value is created; in manufacturing the gemba is the factory floor. It can be any "site" such as a construction site, sales floor or where the service provider interacts directly with the customer. In lean manufacturing, the idea of gemba is that the problems are visible, and the best improvement ideas will come from going to the genba. The genba walk is an activity that takes management to the front lines to look for waste and opportunities to practice gemba kaizen, or practical shopfloor improvement.
- They know how the business serves the customer by Understanding what customers want, need, and value, or what will thrill them Knowing how the business satisfies the customer Improving the effectiveness of how the business satisfies the customer
- They focus on process and results by Obtaining results Ensuring that how the results are achieved is the most effective utilization of all resources, in the direction of the ideal state Improving how the organization accomplishes results
- They show a continuous improvement mindset by Continually challenging the status quo Knowing that there is always room for improvement Understanding that the customer changes — what delights today is a necessity tomorrow
- They demonstrate an understanding of the value stream at a macro and micro level through Knowing what the customer requires and how the value stream satisfies them Having knowledge of the overall value stream, including tributaries Asking questions when changes are made at the local level to ensure that the team understands how the change will impact the customer and the rest of the value stream
- They create a culture to sustain improvement by Identifying, modeling, and encouraging Lean behaviors Finding the lessons in every “failure” — blame does not foster improvement or innovation Respecting and improving standards — questions when the organization is deviating from the standard
- They build ability in the people through Guiding problem solving — root cause, right problem, right resources Leading from gemba; applying 3Gen Asking open-ended, probing questions
- ACTIVITY: The standard pig The elimination of waste is the goal of lean, and three broad types of waste are defined : muda, muri and mura; it should be noted that for many lean implementations this list shrinks to the first waste type only with corresponding benefits decrease. To illustrate the state of this thinking Shigeo Shingo observed that only the last turn of a bolt tightens it—the rest is just movement. Mura or waste due to variation Muri or waste due to overburdening or stressing the people, equipment or system Muda also known as the “seven forms of waste” Transportation: Is there unnecessary (non-value-added) movement of parts, materials, or information between processes? Waiting: Are people or parts, systems or facilities idle — waiting for a work cycle to be completed? Overproduction: Are you producing sooner, faster, or in greater quantities than the customer is demanding? Defects: Does the process result in anything that the customer would deem unacceptable? Inventory: Do you have any raw materials, work-in-progress (WIP), or finished goods that are not having value added to them? Movement: How much do you move materials, people, equipment, and goods within a processing step? Extra Processing: How much extra work is performed beyond the standard required by the customer?
- http://www.youtube.com/watch?v=TXmLjbTBcdU What do they believe? Who do they trust? What are they afraid of and who do they love? What are they seeking? Who are their friends? What do they talk about?
- http://www.youtube.com/watch?v=TXmLjbTBcdU What do they believe? Who do they trust? What are they afraid of and who do they love? What are they seeking? Who are their friends? What do they talk about?