Lean thinking

Lean Thinking

Travis Eck / Senior Business Process [email protected]

Lean Thinking

•Fundamental Objective: To create the most value while consuming the fewest resources.

•Define value from the customer’s perspective.

•Identify which process steps create value and which are only waste (muda).

•Work to eliminate the root causes of the waste and allow for one-piece, continuous flow.

Lean = Eliminating Waste

Non-Value-Added

• Defects

• Overproduction

• Waiting

• Confusion

• Inventory

• Motion

• Excess Processing

• Not Utilizing Employees’ knowledge, skills and abilities to make change

Typically 95% of all lead time is non-value-added.

Value-Added

Waste

•Overproduction•Inventory•Waiting•Excess Processing•Defects•Excess Motion•Confusion•Underutilized People

Types of Waste:

Value Stream Mapping

• Follow a “product” or “service” from beginning to end, and draw a visual representation of every process in the material & information flow.

• Then, draw (using icons) a “future state” map of how value should flow.

Value Stream = ALL steps, both value-added and non value-added, required to complete a product and/or a service from beginning to end.

Value Stream ManagersEach Value Stream needs a Value

Stream Manager

• For product and/or service ownership beyond functions

• Assign responsibility for the future state mapping and implementing lean value streams to line managers with the capability to make change happen across functional and departmental boundaries.

• Value Stream Managers should make their progress reports to the top manager on site.

Process 1 Process 2 Process 3

“Customer”

The ValueStream Manager

Kaizen

Don’t start without one!

Using the Value Stream Mapping Tool

Understanding how things currently operate. The foundation for the future state.

Service “Family”

plan and implementation

Designing a lean flow.

current state drawing

future state drawing

Determine the practical limits of your mapping activity.

The goal of mapping!

Moving to a Future State

Lean Thinking for Future State

• What Steps Truly Add Value? • Which are Waste?• What “service level” does the customer

need?– Desired response or turnaround time– Expected quality level of the output

Lean Thinking for Future State

System impact of controls and administrative

guidelines:– What are the rules and assumptions that underlie the

structure and performance of the current process?

– Are the current rules and assumptions still valid?

– Are the current controls still appropriate?– What is the “cost” of the current rules and controls?

What are the benefits – real or perceived?

– Are there better ways to provide the desired control?

Lean Thinking for Future State

Applicability of technology-based solutions

– How can entire processes or steps be eliminated?– How can the time required for a process or step be

reduced?– How can the dependency on knowledge and skill

be reduced?– Can bar-coding, internet, automation, etc. help

speed the process?

Future State QuestionsCan Technology Help?

1. What does the customer really need?2. How often will we check our performance to customer

needs?3. Which steps create value and which are waste--what

can we eliminate? What administrative controls do we have in our way?

4. How can we flow work with fewer interruptions?5. How will work be prioritized?6. Is there an opportunity to balance the work load or

different activities? 7. What process improvements will be necessary?

• Who wants the output of the process?• What do they want?• When/how often is it required? At what quality

level?

1.What Does the Customer Really Need?

2. How Often Will We Check Performance?

• At what frequency will the system be reviewed to verify it is satisfying customer needs at the desired time or service level?

• How will we measure it?

3. What Steps Create Value and Which are Waste?

Challenge every step – ask the following:– What is really needed by the customer?– Why are the current steps performed?– What can be done differently or not at all?– Is the order of steps creating waste? Where

should decisions be made?– What assumptions underlie the current process?– Are existing controls and administrative

guidelines appropriate?– What knowledge and skills are truly required to

perform the step(s)?

Batch & Queue Processing

Flow Processing

IN IN

4. Where Can We Flow Work with Few Interruptions?

5. How Will Work be Prioritized?

How can existing “subject-matter-expert knowledge” be brought out in the open for everyone’s use and understanding?

Examples:• Enhanced decision-making tools

• Checklist• Flow Chart

• Visual Controls• Making status visual for everyone at

the same time• Work Standardization

6. How Will We Balance the Work Load?

• Does the “mix” (e.g. order type) impact the value stream or particular steps in any way?– Example: Transfer Patient vs. ED Admit

vs. OR Admit• Does the “volume” (e.g. demand variation)

impact the system in any way?– Example: Middle of the day vs. Middle of

the night

7. What Process Improvements are Necessary?

• Identify all process improvements that will be necessary to implement the future state

SystemUptime

PaperworkRedesign

ChangeAuthority Levels

New Technology

Future State QuestionsCan Technology Help?

1. What does the customer really need?2. How often will we check our performance to

customer needs?3. Which steps create value and which are

waste--what can we eliminate? What administrative controls do we have in our way?

4. How can we flow work with fewer interruptions?

5. How will work be prioritized?6. Is there an opportunity to balance the work

load or different activities? 7. What process improvements will be necessary?

Dedicated workflow coordinator

Redesign tracking method

Tools moved closer to needed area

Remove step

Wrap Up….

Value Stream Selection based on Business Objectives

Select Measures

Data Gathering and Mapping

Current State Analysis, Future State Design

Prioritize Improvements

IMPLEMENT!!!