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Leon Spackman Lovelace Health Plan Lean Six Sigma MBB, PMP [email protected] 505-401-8850
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Lean Six Sigma MBB, PMP [email protected] 505 … · Lean Six Sigma MBB, PMP . [email protected] 505-401-8850 . Agenda 3 ... industry, and from the production floor

Jul 19, 2020

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Page 1: Lean Six Sigma MBB, PMP Leon.spackman@lovelace.com 505 … · Lean Six Sigma MBB, PMP . Leon.spackman@lovelace.com 505-401-8850 . Agenda 3 ... industry, and from the production floor

Leon Spackman Lovelace Health Plan

Lean Six Sigma MBB, PMP [email protected]

505-401-8850

Page 2: Lean Six Sigma MBB, PMP Leon.spackman@lovelace.com 505 … · Lean Six Sigma MBB, PMP . Leon.spackman@lovelace.com 505-401-8850 . Agenda 3 ... industry, and from the production floor
Page 3: Lean Six Sigma MBB, PMP Leon.spackman@lovelace.com 505 … · Lean Six Sigma MBB, PMP . Leon.spackman@lovelace.com 505-401-8850 . Agenda 3 ... industry, and from the production floor

Agenda

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• Introduction to Lean principles of waste • Process mapping • Level and Balanced Workload • Break • Lean tool –5S • Standard Work Schedule • Hedgehog concept—Strategy and Direction • Goal Setting for the New Year • Summary and questions

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History

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• Henry Ford created the moving assembly line and was “process” driven.

• During WWII, Ford was challenged by the US government to build one B-24 bomber per hour.

• In order to do that, they had to design a production flow and create standard processes.

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History

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• Japanese automobile manufacturing learned from the work of Henry Ford and W. Edwards Deming.

• Toyota further refined Japanese automobile manufacturing to develop and refine the Toyota Production System - the precursor to Lean manufacturing.

• Lean has evolved from manufacturing to the service industry, and from the production floor to the administrative office.

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Success at LHP Pharmacy

Cut duplicate efforts Decreased response time to providers Savings est. to be $14,000/month

Appeals & Grievance Electronic solution reduced workload, streamlined process Tripled workload without adding additional resources Savings est. to be $20,000/month

Underwriting Reduced cycle time by 5 days Still implementing changes Savings still being determined

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Waste

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• Look early and often for waste

• Anything that does not add value to the product/service

• In many cases, we unknowingly built waste into the process…it looks normal • Need to know how and where to look

• Must look at our work through a

process lens

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Identifying Waste

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Identifying Waste

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Waste looks like – Clutter

– People waiting

– Overflowing in-boxes – both email and the one on the desk

Waste feels chaotic – “Hurry up and wait”

– Frustrating

– “Fire drills”

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Types of Waste

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Overproduction: Producing too much; producing too soon; batch processing

Transportation: Any nonessential transport or handling

Inventory: Work waiting to be processes, bottlenecks

Waiting: Idle time: waiting on approvals, waiting for other workers Extra Processing:

Added inspections, approvals, reviews, audits

Defects: Any rework; errors

Motion: Any motion that does not add value; chasing signatures, looking for someone

Intellect: Failure to fully utilize the time and talents of people; lack of training; not capitalizing on ideas & creativity

Page 11: Lean Six Sigma MBB, PMP Leon.spackman@lovelace.com 505 … · Lean Six Sigma MBB, PMP . Leon.spackman@lovelace.com 505-401-8850 . Agenda 3 ... industry, and from the production floor

___ Meat

___ Dough

___ Ketchup

___ Electricity to run ovens

___ Electricity to run outdoor lights left on accidentally

___ Person paid to inspect take-out orders

___ Cost of hamburgers not sold

___ Distribution Center

___ Cost of radio, TV, web ads

___ Cost of delivery truck signs

___ Cost of store manager

___ Cost of cleaning

___ Cost of menus

___ Employee training

___ Profit

What would you be willing to pay for when ordering a hamburger?

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Value Stream

The flow of materials, activities, events and information through a process to

deliver a product or service to a customer.

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Process Mapping

Before we can manage processes, we must define them Mapping provides a clear, visual way to examine and

document the processes Helps identify redundancies, waste, and weaknesses

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Process Symbols Decision

Embedded Process or Link

Boundary

Task

Connector

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Putting It All Together

Yes

No

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Change Management

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Process Mapping Tips • Keep it simple but include all necessary

detail • Start every task with an action verb • Every decision should lead to ‘yes’ and

‘no’ outputs • Use only the simplest standard

flowcharting symbols • Walk the line

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Your Turn! Map the process of getting ready for

work

• Input = sleepy, bed head

• Output = work ready professional walking through office door

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Level & Balanced Production Design daily workload based on customer demand Minimize non-value-added steps and optimize

resources Standardize the work Utilize multi-skilled employees

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Video

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5S – What is it?

Organizes the workplace Establish orderly flow and eliminate waste

Good foundation to allow employees to contribute to Lean initiatives.

5 steps = each “S” has its own process to complete

It is simple in concept, easy to do, and gets everyone involved

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5S – What is it?

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Set-In-Order

Sort

Shine

Sort

Standardize

Sustain

Name:

Date:

Location of Item:

Reason for Red Tagging:

Straighten

Page 23: Lean Six Sigma MBB, PMP Leon.spackman@lovelace.com 505 … · Lean Six Sigma MBB, PMP . Leon.spackman@lovelace.com 505-401-8850 . Agenda 3 ... industry, and from the production floor

Systematic process for improvement

Obtains buy-in on the importance of standards

Elimination of waste

Smoother work flow

Reduction in employee stress

5S – Why is it important?

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Placing a team of workers in control of their own workplace.

Helping a team and company focus on the causes of waste and its subsequent elimination

Establishing standards for basic housekeeping and orderliness

Demonstrating to customers and co-workers that a clean office environment is a foundation for good workflow

Improving employee morale by ensuring the office area is safe, clean, and something to be proud of.

This is accomplished by…

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Page 25: Lean Six Sigma MBB, PMP Leon.spackman@lovelace.com 505 … · Lean Six Sigma MBB, PMP . Leon.spackman@lovelace.com 505-401-8850 . Agenda 3 ... industry, and from the production floor

5S – How is it used?

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Sort “when in doubt, move it out” Weeding out of items Creating guidelines for item removal Get involvement from management

1. Sort

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Straighten “a place for everything with everything in its place”

Establishes locations Visual controls with labeling Create current and future state area maps

2. Straighten

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Shine “to be Lean you must be clean” Basic “Spring” cleaning Creating standards to keep it clean

3. Shine

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Standards “standardize to improve” Guidelines and checklists Make standards visual

4. Standardize

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Sustain “sustain for success” Training Audits

5. Sustain

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Page 31: Lean Six Sigma MBB, PMP Leon.spackman@lovelace.com 505 … · Lean Six Sigma MBB, PMP . Leon.spackman@lovelace.com 505-401-8850 . Agenda 3 ... industry, and from the production floor

5S - Summary

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SORT STRAIGHTEN SHINE STANDARDIZE SUSTAIN

Criteria for disposalof not-needed itemshave beenestablished.

Decide and organizewhere to keepnecessary items

Clean work area. Established workgroups to developand documentstandardized workmethods.

Area inspections arerandom andcompleted by workgroups and/or shopfloor leaders.

Tag and identify not-needed items.

Decide and organizehow to keepnecessary items.

Develop cleaningassignments andchecklist.

Work methodsestablished for S’sone through three.

5S level isestablished andposted in the area.

l

Establish a safe andsecure holding areafor not-neededitems.

Make it easy. Inspection duringcleaning.

Documented andstandardizedcontrols for S’s onethrough three.

Work area 5S ismaintained.

Evaluate andremove unneces-sary items from thesite.

Make it obvious. Cleaning is aneveryday part of thejob.

Developstandardized workprocedures for allwork areas.

Internal inspectionprocess is standard.

Identify problemareas and documentprevention actions.

Identify problemareas and documentprevention actions.

Identify problemareas and documentprevention actions.

Share best practiceswith internal andexternal workgroups.

Root cause problemsolving process inplace.

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Standard Work Measure and perform to standards Conducted in a standard manner

o Specific o Documented

Work to improve the standards, continuously

o Measureable o Repeatable

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Types of Standards Specification Descriptions Quality Methods Tools Communication Terminology

Subject Rules / Policies Business

management Regulatory Compliance

Technical Materials Components Products Services

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Standard Work: Guidelines 1. Adjust to human ease and effectiveness, not

machine efficiency. 2. Standardize all repetitive work. 3. Keep the equipment and systems in

excellent/updated working condition 4. Make visible and accessible 5. Revise regularly

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Hedgehog Concept

Hedgehog vs Fox—Jim Collins Identify your focus and stick with it Build your business and strategy around the

concept Don’t try to do everything—Focus, Focus, Focus

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Source: Good to Great by Jim Collins

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Hedgehog Concept

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What You are Deeply Passionate About

What you can be the Best in the World at

What Drives your Economic Engine

Sweet Spot

Source: Good to Great by Jim Collins

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Hedgehog Concept Examples

Walgreens: “The best most convenient drugstores, with high profit per customer visit.” Walgreens beat the market by over 15 times from

1975 to 2000 • Wells Fargo: “Run a bank like a business with a

focus on the western US.” • Wells Fargo beat the market by 3.99 times from

1983 to 1998

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Source: Good to Great by Jim Collins

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Goal Setting Remember your hedgehog concept Write down your goal Determine steps needed to

accomplish goal Write your goal every day Visualize yourself achieving the goal Disciplined activity Focus, Focus, Focus

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Continuous Improvement Mindset

Find and remove waste

Remove defects, reduce variation, and improve quality

Delight customers

Make value chain more effective

Better apply ourselves, working smarter

Make a difference and make it better

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