Lean Tools for The Rest of the Enterprise - ASQ Baltimore 0502

Lean Tools forThe Rest of the Enterprise

Presentation Materials Also Contributed by:

Tim Swanson, TSG Associates

Drew Locher, Change Management Associates

Beau Keyte, Branson Inc.

Mike Rothmeier410-935-1011

[email protected]

Today’s TopicsOverview of Lean Concepts applied in

offices, support areas and admin processesThe Lean Briefcase

“Basic Tools" - standard work, quality at the source, workplace organization, visual controls, people involvement, and batch reduction.

“Secondary Tools” - pull, flow, leveling and management timeframe or "pitch".

Actual applications in a variety of processes.Discuss successes at your facilities:

Aerospace, Automotive, Bio-Med, Chemicals, Communications, Electronics, Foods, Government, Healthcare, Info Services, Insurance, Logistics, Metals, Military, Realty, Research, Tool & Die, Transportation, Utilities

Lean Enterprise

LeanLean represents our represents our

abilityability to turn to turn

customer customer interestinterest into into

customer customer satisfactionsatisfaction..

Perfection

Value StreamValue

CUSTOMER

FlowPu

ll

The Lean Pentagon

Adapted from:Lean Thinking

by Jim Womack, 1996

What Are the Customer’sReal Requirements?

Who is the customer?

What do they really want, need or value?

Lead time, features, quality, service level, cost…

When do they want the product or service?

Where do they want the process output, product or service?

Why, Why, Why, Why, Why?

How often do they want the product or service?

Customer Perspectives

Lean Office Opportunities

Order to Cash Cycle

Purchasing

Designing Producing

Shipping

Accounting

Training Quoting

Order to Cash Cycle

Hiring

Implementing Lean…Redefining the work

of functions, departments and firms

so they can make an

increasingly positive contribution

to the value stream

The 8 Wastes—Not just in the factory any more

Common Causes of WasteChanging priorities

No decision rules

Poor visual control

Free-form processes

Lack of training

Miscommunication

Unclear objectives

Organization structure

Technology gaps

Excessive controls

Outdated tasks

No cross-training

Unbalanced tasking

Informal batching

Paradigm Shift…Time for a Change?

Becoming Lean is…

• Examining the Process

• Improving the Systems

• Identifying NVA (Non Value Adding) activities

• Selecting the right tools to eliminate NVA

• Protecting the new changes

• Doing it better, and better, and better—every day

Lean Briefcase

The Lean Briefcase– Standardized Work– Quality at the Source– Workplace Organization– Visual Controls & Management– People Involvement– Batch Reduction or Elimination– Pull Systems– Cellular/Team Concepts– Equipment Reliability– Leveling– Management Timeframe – Takt Image

– Teams

Actively engaged in planning & goal-setting

Cross-trained and multi-skilled employees

Can perform many tasks within a work area and

eventually work in a variety of areas

Team members rotate into highly skilled jobs

– Expanded responsibilities and authority

– Participate regularly in suggestion programs

People Involvement

Steps to get People Involved

– Eliminate the need to obtain specific approvals by providing guidelines that assure quality outputs

– Increased spending authority levels– Hourly associates involved in interviewing

process– Establish training charts with mentors– 360o performance evaluations– Others?

Don’t “Publish” a Linear Schedulefor the team membersActivity 1/29 2/5 2/12 2/19 2/26 3/5 3/12 3/19

1. Explanation of deductions

Resp: all departments status: complete

2. Type definitions & edit them

Resp: mary status: complete

3. Printing, proofing, & small order

Resp: outside printer status: @ printer

4. Develop q&a brochure

Resp: team status:

5. Make changes to book

Resp: team status:

6. Send book out to everyone

Resp: team status:

7. Follow-up interview

Resp: team status:

…Develop a Compressed Schedule with the Team Members

G

DeliveryB

2 wksD

2 wks

C

3 wks

F

2 wks

E

2 wks

A

3 wks

Float

Consistent time interval – weekly for this example

The TECHNICOLOR® Suggestion Form

“QUICK AND EASY IMPROVEMENTS”

Condition BEFORE: Condition AFTER:

The EFFECT:

Employee NAME: DATE:

Train for Every Skill,Plan for Every Process

Consistent business processes, independent of which individual is performing task• Quote• Order• Drawing• Invoice• Bill of Lading

Standardized Work

Conquering Data Mountain

Data

Information

Knowledge

Standardizing Data Inputs

Standardizing Visitor Processes

Standardizing Project Reviews

ConceptDesignExecution PlanningExecutionReview• Acceptance of Deliverables• Assessment of Project Management• Evaluation of the Original Concept

Standard Project Review Process

• Acceptance of Deliverables– Did we deliver what we said we would?

• Assessment of Project Management– How well did we manage the project?

• Evaluation of Original Concept– Was this a good idea after all?

– People must be certain that the product or information they are passing to the

next work area is of acceptable quality.

– People must be given the means to perform inspection at the source before they pass it along

Quality at the Source

Troubleshooting Guides

When you really need for a process to be

followed…

Two Options to Prevent Mistakes

Demanding Vigilance –Exhort workers to “Be more careful”; Discipline worker for mistakes (negative feedback)

Mistake Proofing –Eliminate the chance of making an error (Poka-yoke)

Mistake ProofingA method of developing tools,

techniques and processes which prevent or detect an error before it turns into a defect.

–Simple signals that provide an immediate understanding of a situation or condition.

Visual Controls for the Office

Visual Conference

Rooms

When is this meeting over?

Visual Office Devices

Visual Project Management• Team Project Tools

• Stoplight Status Devices

• “Live” status updates

• Done/Doing/Do/CI Walls

• Project Problems List

• Common Status Room

• Global Grass-catcher List

• Others?

Description

Start Date

Finish Date

Team Member

Why Visual vs. Computer

• Everyone can see anytime

• Always available

• Simplicity is a requisite

• Always updated by the team

• Not reliant on system accuracy

• No delays from batching updates

Event Name: Location: Date(s) & Time(s): Facilitators: Deann Elfering & Joan Edvenson Process Owner(s):?????????????? Scope: ????????????? Goals & Objectives:

1. ????????? 2. ?????????

Agenda:

♦ Vision of the day ♦ Lean Training ♦ Finalize scope and goals ♦ Map the process at a high level ♦ Interview at high level to get process details ♦ Map the process including the details ♦ Review the mapped process ♦ Determine if steps are value added or non-value added ♦ Map the future state ♦ Assign the action items to team members ♦ Determine the timeframe for follow- up meetings ♦ Review & Close! Team Members: ♦ ♦ ♦ ♦ ♦ ♦ ♦ ♦ ♦ ♦ ♦ ♦ ♦ ♦ ♦

Schedule: 8:30AM –Coffee/Juice and introductions 8:40AM – Opening Remarks

Lunch will be provided ?????. Snacks and beverages will be served all day, each day.

Please dress comfortably!

Communicating Lean Events

Lean Event: Contracts 06/10/03

Consultant Services Time (hrs) $/unit

# of units Savings Totals

# of units

Monthly

Monthly Savings

Monthly Totals Annual Savings

Double HandlingDuplicate contracts 0.033 $14.43 7 $3.33 140 $66.67 $800.00Contacting new recruit for information 75% 0.4 $14.43 45 $259.74 900 $5,194.80 $62,337.60Rekeying kit order for ATP 0.033 $14.43 7 $3.33 150 $71.43 $857.14Vertex 0.017 $14.43 3 $0.74 75 $18.40 $220.78Retry payment issue contracts 0.05 $14.43 7 $5.05 150 $108.23 $1,298.70

$0.00 $0.00 $0.00$0.00 $0.00 $0.00$0.00 $272.19 $0.00 $5,459.52 $0.00

Error Prevention$0.00 $0.00$0.00 $0.00 $0.00 $0.00

Error Reduction$0.00 $0.00$0.00 $0.00 $0.00 $0.00 $0.00

Steps EliminatedSort through faxed paperwork/staple/stamp date 0.25 $14.43 4 $14.43 20 $72.15 $865.80Verify information on contract & in Summit-NSF 0.017 $14.43 150 $36.80 3000 $735.93 $8,831.16Processing adendums 0.5 $14.43 3 $21.65 60 $432.90 $5,194.80Key contract in Summit 0.05 $14.43 150 $108.23 3000 $2,164.50 $25,974.00Enter kit in SAP 0.025 $14.43 150 $54.11 3000 $1,082.25 $12,987.00Tax rate issues 0.017 $14.43 1 $0.25 50 $12.27 $147.19Payment issues 0.05 $14.43 15 $10.82 300 $216.45 $2,597.40Key in support guide order 0.025 $14.43 15 $5.41 300 $108.23 $1,298.70Processing Candian contracts 0.5 $14.43 2 $14.43 40 $288.60 $3,463.20Filing contract 0.09 $14.43 150 $194.81 3000 $3,896.10 $46,753.20

$0.00 $0.00 $0.00$0.00 $460.92 $0.00 $9,009.37 $0.00

Steps Added$0.00 $0.00 $0.00$0.00 $0.00 $0.00$0.00 $0.00 $0.00 $0.00 $0.00

Total Savings: $733.12 Monthly: $14,468.89 Annual:

Benefit Results

Action Items Worksheet

Lean Event: Consultant Services Contracts Process Owner: Arlie Nydeen Lean Event Dates: June 10 -11, 2003

Task / Action Item Responsible

Person(s) Due Date Date

Complete Action Taken :Detailed Information

1.

Review contract form • Online • Easy to use • Capture all necessary information • Automated (online) • Training • Investigate check boxes (SP/CAN/?) • Canadian Issues • Money Order information fields

Jennifer August 2004

Brainstorming meeting held on Thursday, July 17. Follow-up meeting scheduled for Tuesday, August 5. At follow-up meeting, changes to improve the Consultant Agreement were discussed and approved. The contract will change next August, along with other Showcase changes. The contract will no longer be Legal size, it will c hange to 8 ½ x 11 with no carbon copies. The Spanish section will be reworded so the Consultants better understand it. The revised contract will capture all the necessary information and will be easier to use. Jen did a PDR to have the PDF file that is onl ine for the contract changed to HTML so that the Consultants can fill out the information and then print it off.

2.

Do we need a separate fax machine for contracts?

• CSR’s have to sort out orders, etc… When they are received

• Separate bin

Teresa N/A Complete

In June I requested a study by IS on ability/feasibility of adding a second Right fax printer. This action item is no longer needed due to digitizing.

1. Sort - sort through everything and eliminate what we can from the workplace. “When in doubt, sort it out!”

2. Set-in-Order - whatever should be kept should be visible and self-explanatory so everyone understands

3. Shine - everything that remains. Cleaning processes are established for equipment & work spaces

4. Standardize - Set standards for the first 3 S’s

5. Sustain - encouraging discipline, sticking to the rules and making new rules into new habits

5S Techniques

Clutter in the Office

Clutter in the Back Office

What Time Is It???

Office Organizing Solutions

One Piece Flow

• Requires prioritizing!!!!!!• REPEAT AFTER ME—PRIORITIZING• ONE MORE TIME— P R I O R I T I Z E• Eliminate Multi-taskingØ Multi-tasking is the biggest killer of lead time (30%+)

1.Start a task, 2.Finish that task, 3.Move on to the next task

Q1 Q2 Q3 Q4

Traditional Project Approach

4 Simultaneous Projects• None of them get finished on-time• No benefits of completion• Negative “nothing ever gets done” attitude

Traditional Batch & Queue Approach!

Q1 Q2 Q3 Q4

Lean Project Approach (Reduced Batch Sizes)

4 Effective & Efficient Projects• Each project finished on time & in time• Receive all benefits of completion• Positive “Things get Done” approach

Lean “One Piece Flow” Approach!

Project Benefit Payback Period

Where Must We Batch?

• Activities that cannot be performed in one-piece

– UPS pick-up, mail delivery once per day

• Activities that are not practical to do in one-piece

– Payroll processing, Payables checks

• Activities dependent on daily “meetings”

– Morning planning meeting

– Beware of customer time requirements!

Office Leveling Examples

Annual price book changes staggered by quarter

Month-end close activities at weekly intervals

Assessing project team performance daily

Cut-off times for new orders each day

Management check-in every 2 hours

Pre-planned intervals for infrequent tasks

How “Level” is this Process?

Deadline

Cost Phases

Throughput Phases

Effort

Timeline

Applying Takt Time

GOAL: ALWAYS Produce to DemandGOAL: ALWAYS Produce to Demand

Takt =Takt =2700 sec90 slides

= 30 sec / slide

Takt Time =Takt Time = Work Time AvailableWork Time Available

Number of UnitsNumber of Units

Timeslots for Every 2 Hours

LEGEND8am Noon10am 2pm

– Push SystemResources are provided to the consumer

based on forecasts, schedules or “when we get to it.”

– Pull SystemA method of controlling the flow of

resources (people, information) based on pre-established rules, consumption, and the actual status of the system at any time.

Pull Versus Push

Office Pull Examples

FIFO lanes

Print-on-demand

Supermarkets

Resource Pools

Overcoming “Parkinson’s Law”and “The Student Syndrome”

Traditionally Planned Project

Buffer

Step 1 – Globalize Safety Buffers

Buffer

Step 2 – Right Size Safety Buffers

Project Time Reduction

Lean Equipment in the OfficeRight-sized equipmentPreviously “expensive” equipmentReliability of office equipmentAvailability of equipment

Potential issues:• Limited software licenses (# of users)• Excessive system downtime• Machine startup / re-startup processes

• Slow system response time• Automatic Update and Archive cycles• Office Equipment changeover time• Uniquely identified for quick service

The physical linking of people and support technology into the most efficient combinationto maximize value-added content while minimizing waste.

Cellular Teams in the Office

OrderEntry

TechSupport

Scheduling

Invoicing

Office Cells: Highly Transactional Processes

Quote or Proposal developmentMortgage processingClaim processingProduct DesignOrder EntryMonth-end closingPayroll processingHot Seat Roles

Original Office Process-15 Stages

START

END

Cellular Office Process-8 Stages

ENDSTART

WIIFM: What’s the Impact?

If you:• Miss one product launch• Launch an inferior product• Deliver a great product—

3 months late• Always follow the competition

to market -

Do These Sound Familiar?1. My teammates are disorganized2. We don’t have enough time to do the job3. We never improve the process4. We don’t trust our teammates5. I can’t focus on one thing at a time6. There aren’t enough resources7. The teams don’t understand the objective8. We can’t get all the approvals in time9. We repeat the same mistakes over & over

“You can’t do something better

unless you do it differently”

Change…

Lessons Learned in the Office

Be prepared to show the WIIFM

Use Lean to build value, not for “Waste Hunts”

Challenge existing roles and responsibilities

Address current reasons for batching habits

Verify the results to reinforce new behaviors

“It’s my cubicle, why do I need to organize

it differently?”

Lessons Learned in the Office

“Whether you think you can, or think you can’t

—You’re Right in Either Case”

Concentrate on non-standardized processes

Never underestimate the advantages of

Shorter timeframes

Judge yourself Harshly

Keep things Simple

Mike Rothmeier Mike Rothmeier Experienced consultant, coach,

trainer, engineer and project manager

Consulting background includes:ì Lean Toolbox Deployment

ì Business System Improvement

ì Product Engineering

ì Facilities Layout, Relocation & Design

ì Project and Program Management

Assignments include Engineering, Production, Facilities, Customer Service, Product Design and R&D

Thanks Very Much!

Mike Rothmeier

410-935-1011

Email: [email protected]