LEAN SEMINARS/1 Reduce Waste, Add More Value To Your Customers 20 th Jan, 2014, London Andrea Darabos MSc., MBA Business Improvement Consultant, Coach Andrea@ leanadvantage.co.uk Phone: +44 793 604 1196 LEAN ADVANTAGE Ltd. In Partnership with:
LEAN SEMINARS/1
Reduce Waste, Add More ValueTo Your Customers
20th Jan, 2014, London
Andrea Darabos MSc., MBABusiness Improvement Consultant, Coach
Phone: +44 793 604 1196
LEAN ADVANTAGE Ltd.
In Partnership with:
• At LEAN ADVANTAGE Ltd., we work with large, global organizations
• Our Mission is to improve the value creation in organisations, governments, in order to achieve better services and happy customers
• Our Vision is to improve leadership in organisations, to havehappier employees and more satisfying work
• We would like to share our knowledge with small-medium enterprisesand the social sector
LEAN ADVANTAGE SEMINARS @ , in partnership with the team of
Why Lean Seminars?
Copyright © of LEAN ADVANTAGE Ltd. www.leanadvantage.co.ukAndrea Darabos Lean Practitioner, [email protected] , +44 07936 041196, Twitter @ADarabos
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Agenda
• 15 mins Introductions
• 10 mins What is Lean?
• 15 mins How customers think of value (and waste)
• 15 mins Breakout session – how do the 8 wastes apply to me?
• 10 mins How winning organisations optimize for value
• 15 mins Breakout session – opportunities in my organisation?
• 5 mins Why is lean thinking essential for a social enterprise?
• 35 mins Q&A, feedback, networking
Copyright © of LEAN ADVANTAGE Ltd. www.leanadvantage.co.ukAndrea Darabos Lean Practitioner, [email protected] , +44 07936 041196, Twitter @ADarabos
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Introductions – Diversity Game
• About Me:
• What I do:
• My previous knowledge of lean:
• Why this seminar:
Sum up diversity points per table: +1 point if all of you are different in a given category
Copyright © of LEAN ADVANTAGE Ltd. www.leanadvantage.co.ukAndrea Darabos Lean Practitioner, [email protected] , +44 07936 041196, Twitter @ADarabos
Copyright © of LEAN ADVANTAGE Ltd. www.leanadvantage.co.ukAndrea Darabos Lean Practitioner, [email protected] , +44 07936 041196, Twitter @ADarabos 5
About Me - Andrea
• Hungarian, 30-40
• What I do: I coach, train, consult, public speak…
I help organisations to see themselvesthrough the eyes of their customers,~ to build skills of continuous improvement, agility
• My previous knowledge of lean:7 years of lean, agile, project managementOn my lean journey…
• Why this seminar: to show the powerof lean agile, when applied to real-life problems
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What is Lean?
• Lean originates from manufacturing in Toyota Japan, 1960s:
“To survive long term as a company by improving and evolving how we make good products for the customer.”
• Since then, Lean has been successfully applied in all major sectorsaround the world:• Government & Public sector, Military and Defense, Banking,
Software Industry, Retail, Research, Service Sector, Startups
Copyright © of LEAN ADVANTAGE Ltd. www.leanadvantage.co.ukAndrea Darabos Lean Practitioner, [email protected] , +44 07936 041196, Twitter @ADarabos
1, A Philosophy? What is Lean?
3, A Toolbox?
A set of Tools and
Techniques
that can be used to guide
problem-solving and
continuous improvement
2, Improvement
Methodology
Lean is a philosophy, methodology and toolbox all in one.
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Based on: Roger Dyer, JEL Business ProcessImprovement Ltd.Niklas Modig, Ericsson executivepresentation
Copyright © of LEAN ADVANTAGE Ltd. www.leanadvantage.co.ukAndrea Darabos Lean Practitioner, [email protected] , +44 07936 041196, Twitter @ADarabos
1, A Philosophy? What is Lean?
3, A Toolbox?
A Mindset and Belief that
we need to continuously improve
to maximize value for the customer
by reducing waste and variation, forever
A set of Tools and Techniques
that can be used to guide
problem-solving and
continuous improvement
2, Improvement
Methodology
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Based on: Roger Dyer, JEL Business ProcessImprovement Ltd.Niklas Modig, Ericsson executivepresentation
Copyright © of LEAN ADVANTAGE Ltd. www.leanadvantage.co.ukAndrea Darabos Lean Practitioner, [email protected] , +44 07936 041196, Twitter @ADarabos
Lean is a philosophy, methodology and toolbox all in one.
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Lean is not alone in improvingvalue creation…
Complexity thinking
Lean Six Sigma
KANBAN
Lean Agile LeadershipSCRUM
Change (project) management
Theory of Constraints Kaizen
Agile Product Management
… Etc.
Copyright © of LEAN ADVANTAGE Ltd. www.leanadvantage.co.ukAndrea Darabos Lean Practitioner, [email protected] , +44 07936 041196, Twitter @ADarabos
Exercise 1, - Value Creation
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Step 1: What Value (services, products) do you provide to your customers?
Pick one and note it down
Step 2: Who are your customers for that service/product?
Write down a list of your
- External customers
- Internal customers
Copyright © of LEAN ADVANTAGE Ltd. www.leanadvantage.co.ukAndrea Darabos Lean Practitioner, [email protected] , +44 07936 041196, Twitter @ADarabos
How Customers think of Value
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„A tale of two friends”
OUCH!
Copyright © of LEAN ADVANTAGE Ltd. www.leanadvantage.co.ukAndrea Darabos Lean Practitioner, [email protected] , +44 07936 041196, Twitter @ADarabos
How Customers think of Value
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Examination Diagnosis
Surgery PharmacyStart of
RecoveryDrive home
1,5 day 2 hrs 2 hrs
1 day 1 hr 1 hr
TOTAL: 3 days
Copyright © of LEAN ADVANTAGE Ltd. www.leanadvantage.co.ukAndrea Darabos Lean Practitioner, [email protected] , +44 07936 041196, Twitter @ADarabos
How Customers think of Value
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SurgeryExamination
and Diagnosis
Start of Recovery
Transportservice
Medication
1 hr 1 hr 1 hr 10 mins
TOTAL: 0,5 day
Copyright © of LEAN ADVANTAGE Ltd. www.leanadvantage.co.ukAndrea Darabos Lean Practitioner, [email protected] , +44 07936 041196, Twitter @ADarabos
Which Customer Would You Like to Be?
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SurgeryExamination
and Diagnosis
Examination Diagnosis
Surgery
Start of Recovery
PharmacyStart of
Recovery
Transportservice
Medication
Drive home
1,5 day 2 hrs 2 hrs
1 day 1 hr 1 hr
1 hr 1 hr 1 hr 10 mins
TOTAL: 3 days
TOTAL: 0,5 day
Copyright © of LEAN ADVANTAGE Ltd. www.leanadvantage.co.ukAndrea Darabos Lean Practitioner, [email protected] , +44 07936 041196, Twitter @ADarabos
(We) Customers Think End to End Experience
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„I will never come back again!
They are wasting my time.”
„I love their product, but
their service ***disappoints*** !”
Photo credits: Shutterstock
Copyright © of LEAN ADVANTAGE Ltd. www.leanadvantage.co.ukAndrea Darabos Lean Practitioner, [email protected] , +44 07936 041196, Twitter @ADarabos
How (We) Organisations Provide Value
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Etc.
„I am in Sales!
Engineering should fix this”
„The customer is
your problem!”
„I have never
met a customer!”
CXO
Sales MarketingCustomerSupport
Product/ServiceDevelopment
Product/ServiceDelivery
CEO
CXO CXO CXO CXO
Copyright © of LEAN ADVANTAGE Ltd. www.leanadvantage.co.ukAndrea Darabos Lean Practitioner, [email protected] , +44 07936 041196, Twitter @ADarabos
The 8 Lean Office Wastes
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TIM
WOODS
Copyright © of LEAN ADVANTAGE Ltd. www.leanadvantage.co.ukAndrea Darabos Lean Practitioner, [email protected] , +44 07936 041196, Twitter @ADarabos
Transport Inventory Motion Waiting
Overprocessing Overproduction Defects Skills - unused
Moving data,materials or the customer
Unfinished work,Unread emails
Searching, handling,multitasking
Authorization,decision-making
Not using the fullpotential of employees
Data entry, lostinformation, rework
Producing too much,too soon.
More work than neededto satisfy the customer.
Exercise 2, - Learn to See Waste
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Where do the 8 Lean Office Wastes (TIM WOODS) exist
in Your Organisation?
Note down as many examples as you can think of.
Discuss with your table.
Copyright © of LEAN ADVANTAGE Ltd. www.leanadvantage.co.ukAndrea Darabos Lean Practitioner, [email protected] , +44 07936 041196, Twitter @ADarabos
How winning organisations optimizefor value?
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Step 1: What Value (services, products) do we provide to our customers?
Step 2: Who are our customers (internal, external) for this value?
Step 3: What are the steps we do to create this service for our customers?
Step 4: What waste and opportunities can we identify
(based on customer feedback) in our service?
Repeat.
Copyright © of LEAN ADVANTAGE Ltd. www.leanadvantage.co.ukAndrea Darabos Lean Practitioner, [email protected] , +44 07936 041196, Twitter @ADarabos
Customer Support
Order to Cash
A Typical Enterprise Value Stream
Customer Need to Order
Value Stream: The collection of all actions/processes necessary to transform customer needs into products and services supported throughout their lifecycles.
Customer Satisfaction and Loyalty
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Customer Problemor Need
Copyright © of LEAN ADVANTAGE Ltd. www.leanadvantage.co.ukAndrea Darabos Lean Practitioner, [email protected] , +44 07936 041196, Twitter @ADarabos
E.g. Marketing, Product Development,Quote, Sales Order, etc.
Customers want: Maximal Value-Adding time as % of Total lead time (Flow efficiency).
Total lead time
Value is created by You, but defined
by the customer
Value-Adding time Non Value-Adding time – BNVA wasteNVA waste
22Copyright © of LEAN ADVANTAGE Ltd. www.leanadvantage.co.ukAndrea Darabos Lean Practitioner, [email protected] , +44 07936 041196, Twitter @ADarabos
Value Analysis
Value-Adding activity• Essential for a good service or delivery of product• Customer is usually willing to pay for this activity• Should be standardized, optimized
Business Non Value-Adding activity• Is necessary for the business (financial, regulations)• Should be minimized if possible
Non Value-Adding activity• Not necessary & not valued by the customer• Usually, one of the TIM WOODS• Should be eliminated
23Copyright © of LEAN ADVANTAGE Ltd. www.leanadvantage.co.ukAndrea Darabos Lean Practitioner, [email protected] , +44 07936 041196, Twitter @ADarabos
Exercise 3, - Value Creation
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Step 1: DONE
Step 2: DONE
Step 3: Identify your value stream(s).
What are the steps we do to create this service for our customers?
Share your value stream with your table.
Step 4: Any waste (TIM WOODS) that you can see in your value stream?
Copyright © of LEAN ADVANTAGE Ltd. www.leanadvantage.co.ukAndrea Darabos Lean Practitioner, [email protected] , +44 07936 041196, Twitter @ADarabos
Why Value Stream map?
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• To see yourself with the eyes of your customer
• To understand what customers value
• To save cash and customers’ time
• To catalyze customer-focused improvement
• To enable employees to see the future
Copyright © of LEAN ADVANTAGE Ltd. www.leanadvantage.co.ukAndrea Darabos Lean Practitioner, [email protected] , +44 07936 041196, Twitter @ADarabos
How to Value Stream map?
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• Do it collaboratively with all the necessary stakeholders involved• Focus on the actual, current state
- Understand where you are before you decide where to go• Draw by hand, note down all the current steps involved
- How information and materials flow- Gather actual data on lead times, queue times
• Understand customer value as defined by them (VA)• Identify NVA waste, opportunities and start improving
Copyright © of LEAN ADVANTAGE Ltd. www.leanadvantage.co.ukAndrea Darabos Lean Practitioner, [email protected] , +44 07936 041196, Twitter @ADarabos
Why Lean for Social Problems?
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Governments, NGOs, Social Enterprises
Copyright © of LEAN ADVANTAGE Ltd. www.leanadvantage.co.ukAndrea Darabos Lean Practitioner, [email protected] , +44 07936 041196, Twitter @ADarabos
Step 1: What Value (services, products) do they provide to our customers?
Solving social problems
Step 2: Who are their customers?
Citizens, people in need
Step 3, 4: Lean is a mindset that constantly strives to maximize
social impact for the benefit of all in need.
Lean’s (Social) Potential
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Mission: „To end curable blindness”
Story of Aravind Eye Care System –
Inspired by lean, the founder Dr. G. Venkataswamyimplemented standardization and continuous improvementto be able to serve the millions of people in need. Today, it is the most productive eyecare facility in the world.
Short: http://youtu.be/3cjnNPua7AgLong: http://youtu.be/Jr70IrWM-n8 (Lean in Aravind: min. 14:00)
Copyright © of LEAN ADVANTAGE Ltd. www.leanadvantage.co.ukAndrea Darabos Lean Practitioner, [email protected] , +44 07936 041196, Twitter @ADarabos
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Good Reads – Lean Value Creation
Copyright © of LEAN ADVANTAGE Ltd. www.leanadvantage.co.ukAndrea Darabos Lean Practitioner, [email protected] , +44 07936 041196, Twitter @ADarabos
• Monday, 20th January 6:00 p.m. – 8:00 p.m. - TODAYReduce Waste, Add More Value To Your Customers
• Monday, 17th February 6:00 p.m. – 8:00 p.m.Get More Done in Your Business with KANBAN
• Monday, 17th March 6:00 p.m. – 8:00 p.m.5 Simple Steps to Improve Your Business and Life
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LEAN ADVANTAGE SEMINARS @ , in partnership with the team of
Thank You! Give us feedback and send your thoughts, questions.Copyright © of LEAN ADVANTAGE Ltd. www.leanadvantage.co.ukAndrea Darabos Lean Practitioner, [email protected] , +44 07936 041196, Twitter @ADarabos