Lean for Municipalities: Yellow Belt Program Participant Workbook Leading Edge Group, 60 St. Clair Avenue East, Suite 805 Toronto, ON M4T 1N5 www.leadingedgegroup.com Participant Workbook Table of Contents Session 1- Introduction Using the Zoom Platform Program Overview Learning Objectives Part 1 Introduction to Lean What is Lean? Why Apply Lean? Goals of Lean Why We Need Lean in Municipalities Lean Principles and Waste The Five Lean Principles Understanding Waste Initiating a Lean Activity Lean and PDCA The A3 Process Defining the Problem Types of Lean Activities Personal Project Challenge Toolkits Session 2 - Objectives and Agenda Understanding the Current State Data Collection Overview Gemba Process Walking (Waste Walking) Case Study: Waste Identification Mapping the Process Introducing Process Mapping Selecting a Process to Map Creating the Process Map Building Your Current State Swimlane Map Current State Analysis An Introduction to Value Stream Mapping Value Stream Mapping Overview How to Read a Value Steam Map Draw a Current State Map Analyze the Current State Draw a Future State Map Implement Solutions Personal Project Challenge Toolkits Session 3 - Objectives and Agenda Introducing Kaizen What is Kaizen? Impact of Kaizen Kaizen Rules Kaizen Events Problem Solving in Lean Conducting Root Cause Analysis Cause and Effect (Fishbone Diagram) Page 4 8 11 13 15 15 20 24 28 33 33 43 60 60 69 74 86 88 90 92 94 94 100 107 114 114 119 124 130 135 145 145 151 158 163 166 170 173 174 175 177 177 183 188 192 199 199 206 2 Five Whys The Pareto Principle Practice Implementing Improvements Prioritizing Improvements Implementation Planning Next Steps Personal Project Challenge Toolkits Session 4 - Objectives and Agenda 5S Overview What is 5S? Sort Set in Order and Shine Standardize and Sustain Conducting a 5S Activity Initiating 5S Closing a 5S Event Supporting Tools & Techniques: Spaghetti Diagrams, Point of Use Storage, Layout Improvement Lean Tools for Sustainment Standard Work Examples Visual Management Mistake Proofing Lean Improvement Planning Review Lean Concepts Lean Project Lifecycle Certification Exam Next Steps Personal Project Challenge Toolkits Leading Edge Group Contact Details Participant Workbook 212 216 219 223 223 230 237 238 239 240 242 242 250 255 261 267 267 274 280 286 288 295 298 312 319 319 322 326 334 334 335 337 3 Participant Workbook Session 1 > Introductions 4 Leading Edge Group – Established 1995 We provide training and management consulting in continuous quality improvement and have a strong track record of over 20 Lean transformations in the last 5 years. OUR LOCATIONS CANADA IRELAND AUSTRALIA OUR CLIENT SECTORS: Government And Municipalities | Healthcare | Public Health | Community-based Health And Social Services | Family Health Teams | Food | Retail | Construction | Manufacturing | Supply Chain | Engineering | Pharmacy | Distribution | Financial Services | Contact Centres | Life Sciences | Pharmaceuticals For more details visit www.leadingedgegroup.com 5 5 4 Participant Workbook Leading Edge Group TRAINING CONSULTING TECHNOLOGY • Leadership, management and staff • Improvement projects • Cloud-based continuous improvement management solution – CItric Cube • Certification • Vision, strategy, roadmap • Tools and techniques • End-to-end transformation • Lean Start 6 6 • On-site coaching • Belt training to Master Black Belt level • Leadership training for senior managers • Training on a variety of specific Lean Sigma tools and soft skills Continuous Improvement Support Summary • Diagnostics using our Continuous Improvement Maturity Reference Model • Quarterly deployment ‘Health Checks’ on the sustainability of your Lean program • Extended value stream mapping events • Establishment of an appropriate governance model/framework • Point consulting solutions where required • Strategic planning and deployment – Hoshin Kanri coaching and implementation support • Cloud-based portal for managing continuous improvement activities and resources – Citric Cube 7 7 5 Participant Workbook Sample Municipal Clients Leading Edge Group helps Canadian municipalities to achieve operational excellence and increased quality of services through tailored training programs and consulting support, delivered by Lean for Municipality experts. 8 8 Value and Impact With the appropriate skills and knowledge, organizations globally have realized significant benefits from Leading Edge Group’s support: Substantial cost savings/avoidance Helping organizations do more with limited resources Improved ways of working Streamlined operations to minimize inefficiencies in working processes Better value and higher quality products and services Provokes a positive community response Positive staff morale Empowered employees are making positive changes to their working processes Resolving problems Bringing challenges to the surface and addressing them in a team environment 9 9 6 Participant Workbook Dwight Bryan Lean Black Belt practitioner with 20 plus years experience CLIENTS/ PARTNERS INCLUDE: Relevant Experience • Lean expertise is complemented by experience drawn from working across finance; sales; learning and development; and supply chain management. • Has led/coached 120+ improvement projects across multiple processes, achieving $10 million+ in value. • Has utilized Lean process improvement skills to enhance complex, crossfunctional processes that impact quality and customer satisfaction. • Previously held lead roles in the deployment of Lean transformations at Cardinal Health and Novo Nordisk. Education • MBA, Finance. • BSc, Mathematics and Computer Science. 10 10 7 Participant Workbook > Using the Zoom Platform 11 Using The Zoom Platform Audio Options Using audio in a Zoom meeting requires you to have access to either a microphone. Please be aware that the trainer can control participant audio during the session. Please check the icons in the menu bar and the Participants panel to determine your current audio setting. To unmute yourself and begin talking, click the Unmute button (microphone) in the bottom-left corner of the meeting window. 12 12 8 Participant Workbook Using The Zoom Platform (continued) Video Options Click the Start Video button in the menu bar at the bottom of the window to begin your video stream. Click the Stop Video button to stop sharing your video stream. When your video is activated, The Enter/Exit Full Screen options are available in the upper right of the screen. 13 13 Using The Zoom Platform (continued) Submitting a question 1. Click the Chat icon in the control bar at the bottom of your screen. 2. The chat window will appear on the right if you are not in full screen. If you are in full screen, it will appear in a window that you can move around your screen. 3. Type your question and press Enter to send it to the group. 4. The moderator will select the questions that will be answered during the session. Any questions that are not answered during the session will be reviewed offline. All answers will be circulated to the group via email following the session. 14 14 9 Participant Workbook Using The Zoom Platform (continued) Downloading materials 1. Click the Chat icon in the control bar at the bottom of your screen. 2. The chat window will appear on the right if you are not in full screen. If you are in full screen, it will appear in a window that you can move around your screen. 3. The materials are at the start of the chat window. 4. Click the download button underneath the document to download to your computer. 15 15 Using The Zoom Platform (continued) Polling Throughout the training, the instructor will be using the polling feature in Zoom. To participate, a pop-up window will appear on your screen. Information on the poll will be provided and participants are to choose their response by clicking on one of the options. Let’s explore this feature together! 16 16 10 Participant Workbook > Program Overview 21 • Designed for professionals as a steppingstone on a journey to creating a Lean enterprise • Gain an understanding of what Lean is • Gain an understanding of what it means to you • Gauge where you are on a Lean journey Program Objective • Gain a qualification in Lean – first step in your Lean education career path • Learn the basics of Lean so that you can lead a small process improvement within their business unit and be an effective Lean activity team member 23 23 11 Participant Workbook • Participants will use relevant case studies and team exercised to reinforce and apply their learnings Hands on Learning • After overview of relevant concepts, teams will reflect and formulate recommendations and opportunities for Lean improvements in their own process areas 24 24 Certification Exam • Online • One hour • Open book Program Assessment • 40 questions • Multiple choice - mix of single and multianswer • Results communicated by email, certificate posted • Pass = 50% 25 25 12 Participant Workbook > Agenda and Objectives 27 • Introduction to Lean TODAY’S AGENDA • Lean Principles and Waste • Initiating a Lean Activity 28 28 13 Participant Workbook After This Session You Will Be Able to… • Define Lean • Outline why organizations apply Lean • Understand the goals of implementing Lean Learning Objectives • Define and distinguish between the five Lean principles. • Define what waste is. • Identify the eight types of waste and provide correct examples for each from the healthcare sector. • Identify the components of the PDCA cycle and the correct activities undertaken at each stage • Define A3 and outline how it works with the PDCA cycle • Develop a problem statement for a specific challenge 29 29 Participant Icon Guide The below icons are featured throughout the program and indicate the following: Identifies a toolkit that includes templates and resources that can be utilized during your project Identifies the three main Lean tools. Minimum of one will be used in your project Identifies the supporting tools that will be used in conjunction with the main Lean tools in your project Identifies a group work exercise 30 30 14 Participant Workbook > LESSON 1: Introduction to Lean 31 > TOPIC 1: What is Lean? 32 15 Participant Workbook What is Lean? A continuous improvement initiative Reduces waste Helps improve overall performance Makes processes better and more efficient 33 33 16 Participant Workbook Lean and Continuous Improvement Rooted in Purpose, Process and respect for People, Lean is a continuous improvement approach to…. Identify and eliminate waste Empower people through problem-solving and coaching Create and maximize value Minimize the use of resources 35 35 17 Participant Workbook What is Lean? LEAN IS NOT… LEAN IS… about eliminating jobs an enterprise excellence strategy forcing people to work harder focusing on value from the customer’s perspective speeding up the work only focused on manufacturing operations only common sense improving quality of work life the continuous pursuit of the perfect process through waste elimination respect for people 37 37 18 Participant Workbook Lean IS about WHY Building a culture of continuous improvement Encouraging teamwork and creative problem solving among team members Engaging team members by respecting their ideas and efforts Empowering teams and bringing leadership to the front line 38 38 19 Participant Workbook TOPIC 2: Why Apply Lean? 39 20 Participant Workbook Why Lean? Creates more value with fewer resources Changes the focus from optimizing individual processes to optimizing the flow Reduces waste and creates processes that need less human effort, less space, less capital, and less time Helps deliver services at far less cost and with fewer problems Meets customer needs with higher quality, lower cost, and faster delivery 40 40 21 Participant Workbook Benefits of Applying Lean Streamlines processes and improves flow Identifies and reduces different types of wastes and overall costs Improves overall efficiency, quality, and customer satisfaction Helps build a continuous improvement culture in the organization 41 41 22 Participant Workbook Positive Impact of Lean Lean is having a positive impact in communities EMPLOYEE ENGAGEMENT SCORES DECREASED COMMUNITY AND STAFF SAFETY COMMUNITY SATISFACTION INCREASED TURNAROUND TIME FOR CRITICAL SERVICES APPLICATION AND REGISTRATION TIMES FOR KEY PROGRAMS RATE OF ERRORS AND REWORKING SOLUTIONS WAITING TIME FOR ESSENTIAL SERVICES 43 43 23 Participant Workbook TOPIC 3: Goals of Lean 44 24 Participant Workbook Activities Breakdown for Employees Waste Work that does not add value to the product NON VALUEADDED (NVA) VALUEADDED (VA) Value creation Activities that directly add value to the product EMPLOYEE ACTIVITIES NECESSARY NON VALUE-ADDED (NNVA) Lean is about improving by reducing the wasteful (NVA) activities and optimizing the necessary (NNVA) activities and creating more time for value creation (VA) activities Necessary supporting activities Non value adding, but unavoidable activities 45 45 25 Participant Workbook Reducing the Non Value-added Increases Efficiency The objective is to increase the share of value-adding activities by eliminating waste and reducing NNVA NVA NNVA EMPLOYEE ACTIVITIES VA 46 46 26 Participant Workbook Continually strive for Better Create a learning environment – “Just try it” “To improve is to change; so to be perfect is have changed often” Winston Churchill Lean and Continuous Improvement is learning how to find success 47 27 Participant Workbook TOPIC 4: Why We Need Lean in Municipalities 49 28 Participant Workbook Why We Need to Incorporate Lean Systems Customer View: • Positive and informative experience • Improve access to services • Demonstrate value for money from their services Internal Team View: • Set and deliver on clear long term goals whilst dealing with day to day management • Create and lead teams who think differently and problem solve • Increase motivation to provide best possible service • Employees that feel satisfied they have achieved the best possible service with every customer interaction 50 50 29 Participant Workbook Municipal Services: Where We Are Now…. High variability between each customer’s needs creating pressure for customized services while maintaining equity for the community Long wait times for information and turn around of requests High costs of services with more budget pressures Other Issues …. Complaints and incidents Changing regulations and expectations Politics and electoral pressures Lots of reports and record keeping 51 30 Participant Workbook Municipal Service Process All work is a process…..this is true of municipal services too! Information Customer/ Community request Investigation Decision Work Order Executed Service Resolution Information 52 31 Participant Workbook In reality the process looks something like this… 311 (HELPLINE) QUEUE OR LINEUP CUSTOMER SERVICE REP. TICKET PARKS & ROADS OPEN TICKET WAITING TRANSPORTATION WAITING CHECK SCHEDULES CREW SUPERVISOR WRITE REPORT & UPDATE TICKET SIGNATURES & APPROVALS WAITING REWORK WORK ORDER REWORK IN BASKET WAITING LOG WORK COMPLETE EXECUTE REPAIR MISTAKES REWORK SEND OUT CREW TO EVALUATE CALL CUSTOMER FOR ADDITIONAL INFORMATION TRANSPORTATION SUPERVISOR INSPECTION CHECKING REPAIR CONFIRMED COMPLETE REWORK 53 32 Participant Workbook > LESSON 2: Lean Principles and Waste 58 > TOPIC 1: The Five Lean Principles 59 33 Participant Workbook Principles of Lean 5 Work to Perfection 1 Specify Value 2 Identify the Value Stream 4 Implement Pull 3 Establish Flow 60 60 34 Participant Workbook Specify value in the customer’s terms • Value creation is a transformation process Lean Principle 1: SPECIFY VALUE • It involves an activity that the customer wants, and will pay for willingly • The customer alone defines the value of the product or service • Value-adding activities transform the product or service closer to what the customer wants • Value applies to both internal and external customers 62 62 35 Participant Workbook Value – From a Customer's Point of View How does the customer view the process? What does the customer look at to measure their experience? CUSTOMER’S VIEW OF A PROCESS TOWN’S VIEW OF A PROCESS Enter Facility Waits in Line Approach Reception When Available Rec. Program Registration Process Search for bus schedule Walk to Bus Stop Wait for Next Bus to Arrive Transit Boarding Process Find broken heater Fill Out Service Request Wait for response Facilities Maintenance Process 63 36 Participant Workbook The value stream is the end-to-end collection of processes that creates value for the customer Lean Principle 2: IDENTIFY THE VALUE STREAM A value stream typically incorporates only those steps or activities that add value as defined by the customer. The value stream can include: • People – knowledge and skills • Tools and technologies • Physical facilities – where the value stream resides • Information/communication channels • Policies and procedures 64 64 37 Participant Workbook Make value flow • Linking of all activities into the most efficient combinations Lean Principle 3: ESTABLISH FLOW • Maximizing value-added content while minimizing waste • Eliminating stagnation of work in between processes • Removing any obstacles that may prevent continuous flow • Disregarding the divisions that exist based on job roles, departments, and responsibilities 65 65 38 Participant Workbook Barriers to Flow Waiting for approvals/ signatures Information right the first time Batching Staff inaccessibility Excessive multi-tasking Shared resources Heavy travel Vacancies Interruptions 66 39 Participant Workbook Pull refers to the actual customer demand that drives the value stream Lean Principle 4: IMPLEMENT PULL • Nothing is produced by the upstream supplier/operation until the downstream customer signals a need • Quantity demanded by customers are the quantity produced - no more than is requested • Pull is based on customer demand rather than forecasts 69 69 40 Participant Workbook Concept and Principle Information flow Pull Pull “A new bin has been added to our daily work order. We will empty this bin today when we complete our daily route” 3. CREW “We’ve received a signal that the rubbish bin is ¾ full. I will add this bin to the crew’s daily work order” 2. PARKS ADMIN “The rubbish bin is ¾ full” 1. GARBAGE MONITOR Production process and material flow 71 71 41 Participant Workbook Continually strive for perfection • Perfection is an ongoing activity that is aimed at achieving better results Lean Principle 5: WORK TO PERFECTION • Perfection is an ideal, because everything can be improved • It’s about getting better each day Principles in seeking perfection are: • Maintain the status quo is unacceptable • Put aside preconceived ideas • Find root causes to problems • Focus on the process, not the people • Accept that the employees are the experts • Allow yourself the right to fail 72 72 42 Participant Workbook TOPIC 2: Understanding Waste 74 43 Participant Workbook What is Waste? Work that does not add value to the service or product for the customer • It blends in and camouflages as “busy” work • It collects around cross-functional handoffs • It loves to hang out at meetings and approval processes • It preys on our fears of “what if” and “just in case” • It erodes our potential to be our best • It naturally grows if we don’t actively protect ourselves against it 75 75 44 Participant Workbook It is the customer alone who defines the value of product or service. Go ask them! What is Value? In order for an activity to be considered valueadding it must meet the following three criteria: The customer must care about and be willing to pay for it The activity must be carried out correctly in the first instance The activity must somehow change the product or service in a positive way 76 45 Participant Workbook Common Myths Fixing mistakes adds value Checking work and approvals add value Value is defined by the organization and the people who perform the work Work that does not add value to the service or product for the customer Can be due to: • Variation • Inflexibility • Waste (i.e. DOWNTIME) Can be necessary and unavoidable activities that do not fit the value-add definition 77 46 Participant Workbook Examples of Activities Lean is about improving by cutting out wasteful activities, reducing non value-added activities and creating more time for value-added activities. VALUE ADD (VA) NON VALUE ADD (NVA) Work that customers require you to perform e.g. processing payment Customers do not want it and we don’t want to be doing it e.g., searching for equipment, files, fixing production errors NECESSARY NON VALUE ADD (NNVA) Customers may not want to participate in activity, but it must be done in today’s conditions to best meet their needs e.g., completing paperwork to comply with regulatory requirements 78 78 47 Participant Workbook Goal of Lean is to Remove the Non Value-Add Increases productivity, efficiency, and effectiveness. FROM THIS… TO THIS... NVA VA NVA ACTIVITIES NNVA ACTIVITIES VA NNVA The objective is to increase the share of value-adding activities by reducing NVA and NNVA 79 79 48 Participant Workbook Non Value-added Activity Muri Mura Muda (inflexibility) (variation) (waste) Waste caused by unnecessary or unreasonable overburdening of people, equipment or systems Waste caused by variation in quality, cost or delivery Activity that consumes resources without creating value for the customer 80 49 Participant Workbook Examples of the 8 Wastes Defects Demand Maintenance Requests (broken Splash Pad, Electrical failure, pothole, tree removal). Overproduction Requesting studies and other information for development applications that are required under the Planning Act Waiting Waiting to get on an agenda to progress an initiative to LT or Council Non-utilized staff creativity Sending a Supervisor to inspect garbage on the median Transportation Transporting equipment, people and supplies to a site for work (e.g. Facilities Maintenance, Forestry, Parks Operations) Inventory Collecting committee of adjustments comments once a week. Motion Searching for files in SharePoint, Shared Drive or other shared drives Excessive processing Reference checks for Parks Summer Students 82 82 50 Participant Workbook Examples • IT Help desk calls (problem should not have occurred in the first place) • Obsolete forms and records Defects Also known as correction, rework, rejects, etc. Resources and time wasted to find and fix errors because the process fails to meet expectations Does not meet the criteria of done right the first time • Missing information for invoice payments, purchase card statements, requests for service (e.g. requests for road signage missing dimensions) • Incorrect information received by planners for development applications that require resubmissions • Incorrect data entry in systems requiring reversal (purchase order drawdowns, work order information) • Demand maintenance requests (broken splash dad, electrical failure, pothole, tree removal) 83 51 Participant Workbook Examples • Excessive information on corporate reports • FYI e-mails to many staff • Emptying garbage in facilities more than what’s required Overproduction • Multiple parking forms required for one permit Producing more than the customer requires Causes other wastes like inventory, manpower, and conveyance to deal with excess product and consumption • Multiple staff in a truck to perform inspections • Dashboards and reports prepared by staff that nobody reads • Work performed too early (e.g. weekly payroll timesheets when payroll is performed bi-weekly) • Requesting studies and other information for development applications that are required under the Planning Act 84 52 Participant Workbook Examples • Waiting for a system to come back up • Waiting for pre-authorized tax payment enrolment • Waiting for paper files to reach destination via interoffice mail Waiting Waiting in all forms is waste Idle time created when material, information, people, or equipment is not ready resulting in time when no value is added to the product/service • Waiting for e-mail responses • Wait time between Hand-offs for recruitment, development application review, roadway inspections and work orders • Waiting for parking tickets to be available in the system • Waiting to get on an agenda to progress an initiative to LT or Council 85 53 Participant Workbook Examples • Poor or neglected user training and user documentation on existing/new processes • People watching equipment work Non-utilized Talent Failure to properly use the staff resources that are available i.e. not using people's mental, creative, physical skills, and abilities Using the wrong level of staff for certain tasks • Not taking staff input into account for improvement opportunities • Management level staff completing clerical duties (e.g. data entry for hiring, payroll) 86 54 Participant Workbook Examples • Picking up supplies from retailers • Sending out staff to inspect a site when not required • Transporting files or information from one person to another Transport Movement of product, materials, resources between operations The more you move, the more opportunity for damage or injury • Transporting equipment, people and supplies to a site for work (e.g. facilities maintenance, forestry, parks operations) 87 55 Participant Workbook Examples • Projects that haven’t started yet despite approved funding • Excessive materials and supplies (e.g. fertilizer, grass seed, sports paint) Inventory Inventory located in many locations is non value-added even though it may be needed Ties up financial resources Risk of damage, expiry, spoilage, quality issues Takes up floor space and resources to manage and track • Invoices waiting to be paid • E-Mails waiting to be responded to • Development application requests that are being waited to work on • Excessive records and files that are not required for use • Collecting committee of adjustments comments once a week 88 56 Participant Workbook Examples • Searching for tools or supplies in a shop or yard • Reports that are frequently used not having a shortcut • Excessive walking to photocopier and printer Motion Any movement of people's bodies that does not add value to the process - e.g. walking, bending, twisting, and reaching Includes any adjustments or alignments made before the product or service can be transformed • Equipment or supplies not at the point of use • Going through central files to search for correct documents • Searching for files in SharePoint or other shared drives 89 57 Participant Workbook Examples • Creating unused reports • Repeated manual entry of data • Redundant reviews/approvals Excessive Processing Activities that add no value to the customer care. Causes of excessive processing: Unnecessary paperwork requirements Unclear work instructions Redundant approvals / inspections Overprocessing to accommodate perceived customer needs • Use of outdated standard forms/templates • Preventative maintenance on assets beyond what is required (e.g. cutting grass daily, weekly inspections of HVAC systems) • Entering login information when already entered (e.g. log in to Windows with username and password, but separate logins for other systems) • Duplicate entries between Excel and other applications (e.g. SAP) 90 58 Participant Workbook DOWNTIME Waste Template 94 94 59 Participant Workbook > LESSON 3: Initiating a Lean Activity 97 > TOPIC 1: Lean and PDCA 98 60 Participant Workbook The PDCA Problem Solving Framework Iterative, team-based process of investigation, planning, recording, and feedback that facilitates knowledge sharing and collaboration. Define what you expect to do and what you expect will happen PLAN Standardize and stabilize what works or begin PDCA again if the desired results were not achieved ACT DO Test the hypothesis on a small scale or carry out the actions for implementation CHECK Compare the actual outcome with the expected outcome 99 61 Participant Workbook Why is Problem Solving Important? INCREASES REDUCES ESTABLISHES Morale and Motivation Band-aids Team Alignment Accountability Obstacles Customer Focus Foundation for continuous improvement 100 62 Participant Workbook Lean Improvements From Talk to Action The step-by-step PDCA process starts with a team of partners focused on the customer experience • Customer-focused view of the service or product delivery • Team based problem solving and innovation based on facts (data and observations) A LEAN C • Small incremental improvements through measured experiments • Low to no-cost ideas • Pursue perfection by eliminating problems and seizing opportunities P A C A C D P LEAN D P LEAN D 101 63 Participant Workbook PLAN Define what you expect to do and what you expect will happen DEFINE THE PROBLEM • Identify the problem • Create a problem statement PDCA: Plan • Define metrics and goals • Identify stakeholders and develop communication channels MEASURE AND ANALYZE THE PROBLEM • Divide system into individual processes • Brainstorm possible solutions • Collect and validate data for real root cause • Hypothesize a solution 102 64 Participant Workbook DO Test the hypothesis on a small scale or carry out the actions for implementation DEVELOP SOLUTIONS • Establish criteria PDCA: Do • Design experiments • Obtain approval and support from stakeholders IMPLEMENT SOLUTIONS • Pilot solutions • Implement solutions 103 65 Participant Workbook CHECK Compare the actual outcome with the expected outcome EVALUATE RESULTS • Obtain/analyze information for solution PDCA: Check • Is the result directly caused by the countermeasure? REACH DESIRED GOAL • If yes, go to next step • If no, review the hypothesis and the original problem statement 104 66 Participant Workbook PDCA: Check PROCESS ACCEPTABLE RESULTS UNACCEPTABLE RESULTS According to Plan Go to the next step: Act Go back to Plan Deviation from Plan Because it was not in plan: Go to Act Determine deviation causes in results and process: Go back to Plan 105 67 Participant Workbook ACT Standardize and stabilize what works or begin PDCA again if the desired results were not achieved IMPLEMENT SOLUTIONS PDCA: Act • Identify systematic changes and training needs • Plan to monitor solution • Use Continuous Improvement • Look for additional improvement opportunities • Go back to the start? 106 68 Participant Workbook TOPIC 2: The A3 Process 107 69 Participant Workbook A3 Management Process Developing the capacity of “learning to learn”, the A3 becomes much more than a way to document your project Solves problems in a collaborative manner based upon info gathered at the Gemba Creates dialogue around what is the right thing to do rather than debate about who owns what Builds a foundational structure for sharing a way of thinking about problems, solution development and innovation 108 70 Participant Workbook A3 Process Steps PLAN Clarify the Problem Analyze the Current State DO Develop and Select Solutions Design the Future State CHECK ACT Analyze the Root Cause Evaluate Results Standardize, Celebrate, and Follow up 109 71 Participant Workbook A3 Report Simply an 11 x 17 inch piece of paper outlined into structured sections Standardizes and simplifies writing reports Should include necessary highlevel information about the project Follows the PDCA process 110 72 Participant Workbook A3 Report 111 73 Participant Workbook TOPIC 3: Defining the Problem 112 74 Participant Workbook Getting Started Before you dive into your Lean improvement activity, critical steps should be taken to ensure success: 1. Meet with the Project Champion to understand the problem/opportunity 2. Identify the customer/client and their needs 3. Initiate a Project Charter or A3 BEWARE OF SCOPE CREEP! 113 75 Participant Workbook DEFINING THE PROBLEM Why Define? If I had an hour to save the world, I would spend 59 minutes defining the problem and one minute finding solutions. Business Adage 114 76 Participant Workbook A good problem definition will contain the following 5 Ws and 2 Hs: 1. Who is it impacting? 1 Understand the Problem 2. Where is the problem? 3. Why is it a problem? 4. When did the problem start? 5. What are the consequences of not fixing the problem? 6. How big is the problem? (What is the extent of it) 7. How do you know it really exists? Those in Gemba will not only tell you what is wrong; they will tell you the best way to embed a solution. Returning to the old ways under pressure is usually a decision of management. 115 77 Participant Workbook The Good and the Bad…. A POOR problem statement: “Citizens are complaining that their bills are not accurate” A BETTER problem statement: “An average of 130 calls are received each week through the citizen service centre. Callers are waiting an average of 6 minutes in the queue (three times our target of two minutes). These calls are averaging 3.5 minutes long (30 seconds more than our target). 50% of the calls are about banking pre-authorized payments, 30% are about address and account changes.” 116 78 Participant Workbook 1. Understand the Problem A good problem statement template During (a period of time), the (process) was (description of the problem: measure, increase, or decrease from goal, standard or target). The process is expected to take (process goal, target or baseline) to deliver (process outcome). If this process continues as is, it will result in (consequence of not address the problem). Impacting (impact on customers, stakeholders, performance etc.). Example In 2018, the Charity Gaming department received over 2000 applications for charity licenses. This is an increase from the previous year where only 1000 application were processes. The average time to process an application is 5 days and it is now over 12 days. As a result of this increase, the process for submission for eligibility, review of application and reporting resulted in an increase in delays to as much as four week causing penalties and a rise in compliance issues. 117 79 Participant Workbook Voice of the Customer – How to… 1 2 Identify the Customer and their Needs Identify the NEED of the Customer Speak in the customer’s voice 2 Determine DRIVERS (Xs) that are necessary to achieve the NEED Quality, Cost, and Delivery 3 Define what is critical to each DRIVER (CTx) Faster response for inquiries 4 Define what specifications the customer requires 1 day TAT 119 80 Participant Workbook Who is the Customer? Depending on the project, the customer could be: VISITORS TAXPAYERS CITIZENS AND RESIDENTS STAFF MANAGERS COUNCIL EXECUTIVES DEVELOPERS 120 81 Participant Workbook 3. Initiate the Project Charter (A3) Most A3s will require the following for Sponsor approval to proceed 1. Background 2. Problem statement 4 6 5 3. Objective 7 1 4. Team members 2 5. Sponsor/Champion 6. Target dates or timeline 3 7. In scope/out of scope 121 82 Participant Workbook Best Practices Identify team members Clear on scope Have timeline Alignment with process owner and sponsor Lean Yellow Belt improvement activities are usually achieved within 4 months 122 83 Participant Workbook Improvement Objective S M SIMPLE SPECIFIC • Clear definition? • Easy to understand? MEASURABLE • Are elements measurable? • Are goals achieved? EXAMPLE: Improve the customer turnaround time (TAT) for the call centre by 25% by December 31st, 2014 A ACHIEVABLE ACTIONABLE • How? Is it a Kaizen or 5S? • With who? Are team members and stakeholders clear? R RELEVANT • Is there a link to the organization's goals and targets? T TIMING • What is the expected timing to complete this goal? 123 84 Participant Workbook A3 Report Example DO CURRENT CONDITIONS: Residents who want to apply for a dog license face a long and arduous license process. There is a two-month backlog of data entry for the license forms with incomplete information and errors. We receive complaints from shelters about the lack of timely access to the list of newly licensed dogs to enter into their system. This is impeding their animal shelter programs. FUTURE STATE: • Centre layout improved to reduce wait and travel time for customers • Data entry role and responsibility assigned to one clerk • License application forms easier to fill in • Online license option available. CHECK BACKGROUND: The number of dog owners purchasing a license has been is decreasing each year since 2016. The current process is inefficient, and lack of timely data entry means staff cannot efficiently access information when needed. Scope: • In-scope: new licenses • Out of scope: renewal licenses IMPACT: • Improve customer experience • Weekly updated information for shelters which will assist them with their emergency services • Online application will provide convenient option for customers and increase the number of licenses purchased ACT PLAN Project Participants Include: • Representative from by-law department • By-law supervisor • Accounts payable representative FOLLOW UP: • Project team to meet and review progress in 30-, 60- and 90-day follow-up meetings • Program manager to meet with data entry clerk to ensure data entry is occurring as appropriate • Further opportunities to increase the number of licenses being purchased have been identified and there is an advertising campaign taking place over the next three months to increase uptake and revenue QUANITIFIABLE IMPROVEMENT OBJECTIVES: To improve license application process for customers, data entry time into the licensing system will be decreased 50% by December 2020. ROOT CAUSE ANALYSIS: • Layout of the centre services is creating long wait times and unnecessary travel for the customers • Lack of accountability for data entry • License application form design is resulting in data entry errors • No online option to purchase a license 124 85 Participant Workbook TOPIC 4: Types of Lean Activities 125 86 Participant Workbook Types of Lean Activities Three main tools are used to deliver upon the five Lean principles. Value Value Stream Flow Pull Pursue Perfect PRIMARY IMPROVEMENT TECHNIQUES Process and Value Stream Mapping Kaizen 5S Supporting tools included in this program: Data collection, Gemba/waste walking, root cause analysis, mistake proofing, spaghetti diagrams, layout improvements, POUS, standard work and visual management 126 87 Participant Workbook Personal Project Challenge 138 88 Participant Workbook What did you take away from today that will help you identify waste and opportunities for Lean improvements? Practice your new Lean skills in your current work environment. Consider your Lean Opportunities • Create your own problem statement Leverage the techniques, templates and available toolkits from this program. 139 139 89 Participant Workbook > Toolkits 140 • A3 Template • Problem Statements 5Ws and 2Hs Template Templates and Toolkits • Problem Statement Fill-in-the-Blank Template • DOWNTIME Waste Template 141 141 90 Participant Workbook Contact Us Leading Edge Group Suite 805, 60 St Clair Avenue East, Toronto, ON, M4T 1N5 Canada t: (416) 637 5074 f: (647) 748 3722 FOLLOW US @LEGLean facebook.com/LeadingEdgeGroupLe an linkedin.com/company/leading-edgegroup_2 e: info@leadingedgegroup.com leadingedgegroup.com youtube.com/user/LeadingEdgeGrou p1 https://www.leadingedgegroup.com/ about-us/blogs/ 145 91 Participant Workbook Session 2 > Agenda and Objectives 6 • Understanding the Current State SESSION 2 AGENDA • Mapping the Process • Introducing Value Stream Mapping 7 7 92 Participant Workbook After This Session You Will Be Able to… • Identify the steps for data collection • Define Gemba and waste walking • Identify potential opportunities for waste reduction in a healthcare setting Learning Objectives • Define what process mapping and value stream mapping are and identify examples of when each is used • Identify the symbols in a process flow chart and define what each stands for • Identify the key steps involved in creating a process map • Describe the different process metrics and calculate them for a particular process • Conduct a high-level current state analysis • Identify the symbols in a value stream map and define what each stands for 8 8 93 Participant Workbook > LESSON 1: Understanding the Current State 11 > TOPIC 1: Data Collection Overview 12 94 Participant Workbook Data Collection Why do we need to collect data? • Captures a baseline so you can measure improvement • Helps to identify opportunities within the current state How much data is enough? A sample size that represents the average customer experience and illustrates the wastes and variances throughout. • Reflects what is really occurring in the process when data is collected Where is the data collected? Current State Future State Improved State 90% NVA 100 day lead time 45% NVA 50 day lead time 45% NVA 50 day lead time (actual “before”) (target “after”) (actual “after”) • Interviews • Surveys • Historical data • Benchmarking • Observations • Gemba walk 13 95 Participant Workbook What is Gemba/Waste Walking? Gemba is the “actual place” or the place where real action occurs. The Gemba is where value is created. It's also known as a process walk or waste walk. The Five Golden Rules of Gemba 1 Go to Gemba and observe 2 Validate the capacity of the process 3 Measure process cycle times 4 Solve problems down to the root cause 5 Standardize process steps where possible 14 96 Participant Workbook Where is Gemba? 15 97 Participant Workbook How well are we serving our customers? How well are our workers? DELIVERY TIME • The total time it takes from customer request at the beginning of the process to customer satisfied at the end of the process. • The number and length of the starts and stops of the request along the process. QUALITY CAPACITY • How accurate and complete is the final product? • How much effort does it take to complete one request? • How much “rework” is done along the way? • How much worker time and talent is being spent on non value-add activities? • What are the common complaints? (customer and employees) • What activities are the customers willing to pay for? • How much waiting time is occurring for both workers and customers? 16 98 Participant Workbook Data Collection Plan Method Includes an operational definition with the following information: 1. Identify the data of interest 2. Identify the how to measure data 3. Align on definitions 4. Agree to frequency and length of collection period(s) Example: No. Desired Metric to Collect Operational Definition Defined? Measurement, Instrument, or Technique Duration of Collection Frequency of Collection Additional Data to Collect 1 DOWNTIME wastes Yes Process Walk 1 day 1 time Historical files to complement walk Rework The amount of staff time spent on correcting or duplicating a procedures/task Process walk – process step cycle times and staff effort times 1 day 1 time Historical files to complement walk 2 17 99 Participant Workbook TOPIC 2: Gemba Process Walking (Waste Walking) 18 100 Participant Workbook Uncover the Hidden Process GO SEE ASK WHY SHOW RESPECT 19 19 101 Participant Workbook Conducting a Waste Walk Allow several team members to conduct independent waste walks in the Gemba Go to the Gemba and observe the process Identify the types of waste that you see as the process is in full swing Observe the impact of various wastes on the customer Regroup and share your findings 20 102 Participant Workbook Look for clues to determine the following: CUSTOMER SATISFACTION • How do we serve our customers? • Do we know who our customer is? • What are they prepared to pay for? What are we looking for? QUALITY • Where is there rework, returns, and complaints? • What is the rate of accurate and complete? • What are the common complaints? (customer and employees) • Can the operators working the process tell the difference between a good output and a bad one? • Do they have a way to stop bad outputs moving along in the process? • Who do they call for help when they have a doubt? 21 103 Participant Workbook Desired Lean outcome in Gemba • Make waste visible, this will make everyone aware of it and look to eliminate it • Build quality into the process to eliminate checking and reworking • Level processes so there is no over resourcing to cope with the peak use of process • Beware of “What’s in it for me?” Coach and train against negative attitudes 22 104 Participant Workbook Gemba process walking begins with a plan: 1. Facilitator (Lean Belt candidate) 2. Walking team of five to seven participants available for two to four hours Facilitating a Gemba Process Walk 3. Notification and communication to Gemba workers of the intended scope and availability for demonstrations and questions for one to two hours 4. Templates, paper, markers, timers, pedometers, etc. 5. Meeting room for kickoff, role assignments, and process data mapping When conducting a process walk you will want to ensure the following: • Walk the process from the customer’s perspective. • Consider your process scope: start and end of the process. • Consider making notes of the time it takes for each process step activity • Consider making notes of who completes the work/activity in each process step 23 105 Participant Workbook Waste Walk Template Waste Walk Template.xls 24 106 Participant Workbook TOPIC 3: CASE STUDY Waste Identification and Reduction 25 107 Participant Workbook Home Town City Pet License Process Waste Identification in a Municipality BACKGROUN D KEY GOALS FINDINGS FINAL OUTCOMES 26 108 Participant Workbook Background Waste Walking is part of the daily operations and management practices Sustain service improvements and create room within the budget to add more relevant services to the community A Waste Walk review occurs once a week in every department Visual board with process performance metrics, targets, and actual results for the week 27 109 Participant Workbook Key Goals This method promotes an environment for: Fast, effective communication Validate the Provide format Identifying opportunities and aproblem seekingProvide an initial problems pointed to continue to opportunity to out by team socialize the gather staff ideas Increasing the frequencyredesign of proactive leadership members effort about issues Enhancing team building through problem solving Observe the process and record activities of interest from a waste reduction and process improvement perspective Recognition and celebrating successes 28 110 Participant Workbook Long customer waits to receive their pet tags Pet Licensing Team High number of calls from animal shelters Backlog of license applications requiring entry into the system High level of effort to consolidate monthly report for distribution to animal shelters and city “pounds” 29 111 Participant Workbook Final Outcomes Work Activity Waste Type VA /NVA/NNVA A customer needing to ask directions at the front desk as to where to go to get a dog 1 license Waiting NVA Customer travelling between the 3rd and 5th floor to request the dog license at the by-law counter and pay at Accounts Receivable Transportation NVA Inventory NVA Transportation NVA Inventory NVA 2 3 License forms being batched at by-law department for data entry on Fridays 4 License forms arriving ad hoc (sometimes monthly) from satellite offices 5 Backlog of license applications requiring entry into the system 6 In legible handwriting on forms requiring staff to call the customer in order to clarify information on the license application Defect NVA 7 Calls from shelters looking for the address and owner contact information for lost licensed dogs Defect NVA Extra processing NNVA 8 Consolidating monthly report for distribution to shelters and pounds 31 112 Participant Workbook • Note the impact of the various wastes on the customers at the animal shelters, and the city staff Next Steps • Prioritize and create the action plan to reduce and remove these wastes • Meet regularly to review and discuss the progress on their action plans • Continue to look for other wastes and more opportunities for improvements 32 113 Participant Workbook > LESSON 2: Mapping the Process 34 > TOPIC 1: Introducing Process Mapping 35 114 Participant Workbook What is Process Mapping? A process map is a tool that visually describes the flow of work. It is a series of symbols and lines that depict the flow of activities in a process. Process maps: • provide insight into a process, help teams brainstorm ideas for process improvement, increase communication and provide process documentation. • pictorially describe the steps that comprise any operation. • identify repetition, rework, delays, and approvals. 36 115 Participant Workbook Use process mapping when: • you want to identify opportunities for process improvement When to use Process Mapping • you want to ensure that communication within the cross-functional process is appropriate and effective • you want to improve handoffs, prioritization, approvals, and turnaround time between adjacent processes and procedures • you want to standardize a process and the methods to how the work is conducted in a reliable, repeatable experience 37 116 Participant Workbook Process Mapping Benefits Enables an organization to understand its current process Creates a platform for continuous improvement Provides a guide for workers to complete their tasks consistently and effectively Standardizes process expectations among all stakeholders and crossfunctional teams 38 117 Participant Workbook Best Practices in Process Mapping Constantly review, improve, and update process documentation Understand the worker’s ACTUAL experience Understand how the process works from the customer’s perspective Measure the process health as it ACTUALLY is Ensure roles and responsibilitie s are clear for all stakeholders 39 118 Participant Workbook TOPIC 2: Selecting a Process to Map 40 119 Participant Workbook Determine Process Scope Administrative Service Example A. Identify the process you want to value stream map B. Determine the START and STOP of your process scope. C. Identify the FIRST and LAST steps of your process scope. D. Identify the SECOND, THIRD, and FOURTH macro steps of your process scope. A Pet License Application Process B Need for License Identified Request License Pay License Fee C Receive Tag Pet Registered in System D 41 120 Participant Workbook Capturing the Customer Experience The Customer point of view can be understood using an empathy map. 30 min transaction Drivers: i.e. time, cost, quality of product or service Confirmation same day I want it quickly Customer wants I want my application approved Minimal fee $35 I want it to be a fair cost My tax dollars used responsibly Clear confirmation done right the first time Treated fairly Clear instructions Factors: i.e. requirements or specifications of product or service 42 121 Participant Workbook Just Try It: Determine Process Scope Administrative Example A. Identify the process you want to value stream map B. Determine the START and STOP of your process scope. C. Identify the FIRST and LAST steps of your process scope. D. Identify the SECOND, THIRD, and FOURTH macro steps of your process scope. A. Process title B C 2 3 1 4 5 D 43 122 Participant Workbook Just Try it: Capturing the Customer Experience The Customer point of view can be understood using an empathy map. Drivers: i.e. time, cost, quality of product or service Customer wants I want it quickly Applicant I want a ….. I want it to be a fair cost I want it done right the first time Factors: i.e. requirements or specifications of product or service 44 123 Participant Workbook TOPIC 3: Creating the Process Map 45 124 Participant Workbook Observing the Process A process map depicts the sequence of events and decisions made in order to deliver a product or service. Process Map START DECISION STEP 1 YES STEP 4B STEP 2 NO STEP 4A • A process map should always be conducted with the users of the process • Process is captured using post-its on a large piece of paper on a wall • Captures all activities – operations, decisions, movements, storage, inspection STOP • Shows relationships, delays and handoffs STEP 3 • Mark value add and non value-add 46 125 Participant Workbook Process Map Icons KEEP IT SIMPLE! Each element in a process map is represented by a specific symbol. DECISION • Different shapes have different meanings • Primarily, you will use three symbols in mapping process flow charts PROCESS SUB-PROCESS 47 126 Participant Workbook Macro and Micro Process Maps MACRO FLOW Common items to look for on a process map are: • Rework loops or multiple decision points MICRO FLOW Micro flow contains all of the detailed process steps which can be rolled up into a macro process step • Areas with a high concentration of pain points or wastes • Any areas where handoffs take place 48 127 Participant Workbook Creating a Process Map Pre-Application Meetings - MACRO Flow Example • It is important to understand where the value stream starts and ends • You never want to confuse multiple value streams as it becomes more difficult to see the flow 1. Pre-screening 2. Scheduling and Circulation 3. Department Review 4. Meeting 5. Review QA 49 128 Participant Workbook Creating a Process Map Pre-screening - MICRO Flow Example 1. Pre-screening 2. Scheduling and Circulation 3. Department Review 4. Meeting 5. Review QA It is important to understand where the handoffs, decisions, and approvals are within the micro flow. Review Drawing Submitted Waiver? No Yes Drawings Complete? Return to Applicant for Corrections Yes No Prepare and Upload Memo End Send Fee Payment Task to Applicant Applicant Pays Fees Create Applicant Applicant Submits Drawings 50 129 Participant Workbook TOPIC 4: Building Your Current State Swim Lane Map 51 130 Participant Workbook Swimlane Diagrams A visual element used in process maps, that visually distinguishes responsibilities for subprocesses of a business process. Department ADepartment BDepartment CDepartment D • The swimlane diagram differs from other flowcharts in that processes and decisions are grouped visually by placing them in lanes • Parallel lines divide the chart into lanes, with one lane for each person, group or subprocess • Lanes are labelled to show how the chart is organized 52 131 Participant Workbook Creating a Swimlane Diagram Two Approaches 1 2 IN PERSON BOTH APPROACHES: The way to create a swimlane map by hand is using post-its and a large sheet of paper. This allows for multiple stakeholders to be involved and to modify the swimlanes as understanding grows around the process. This all concludes with crossfunctional alignment of the final document. • ensure that key stakeholders are present and actively participate in the mapping VIRTUALLY The way to create a swimlane map virtually is for each person to populate their own swimlane in a shared document. Then the document is reviewed together with key stakeholders actively participating in the alignment of the final document. • identify pain points and wastes at each step • identify key process metrics such as task time, WIP, and elapsed time Don’t look for solutions at this stage just understand the current state. Capture any ideas related to solutions on a separate flip chart to be reviewed later 53 132 Participant Workbook How to Swimlane Process Map Five Key Steps 1. Determine start of timeline and key date/time markers for the team to follow • Set the scale for hours, days, months, etc. 2. Determine the number and titles of the swimlanes • One per person or function per swimlane • The customer is assigned one swimlane for themselves 3. Follow the timeline when cross-functionally sequencing the activities and events 4. Each team member enters their own information into their own swimlane on the shared document • Remember to number the steps within each swimlane. • Remember to use version control rules with the team when saving and sharing the document 5. Team edits and aligning of activities are completed in a live session with a scribe • Each team member presents their information to the team following the timeline from start to finish. 54 133 Participant Workbook Swimlane Template Swimlane template with key activity icons 55 55 134 Participant Workbook TOPIC 5: Current State Analysis 63 135 Participant Workbook Necessary Process Metrics Calculate the total time it takes from the start of the Lead Time value stream to the end point of the value stream The actual timed duration that it takes to complete the Cycle Time process step from beginning to end Calculate the total time in the process for steps that Value-Added Time satisfy the three criteria for value-adding activities Calculate the total time for steps that don’t satisfy the Non Value-Added Time three criteria for activities to be considered valueadding Opportunity Time The potential non value-added the that can be eliminated from a value stream process 64 64 136 Participant Workbook Calculating Lead Time Total process lead time is the total length of time from “request” to “receive”. 1. Request License 2. Pay License Fee 3. Receive Tag 4. Register in the System Cycle Time The actual timed duration that it takes to complete the process step from beginning to end. Includes the value-added and non value-added activities and tasks. 65 137 Participant Workbook Finding Opportunity Time Any time that classifies as non value-add time is known as opportunity time. • This is the time that can potentially be removed from the process! % NON VALUEADDED TIME = % VALUEADDED TIME = Total time spent on non value-added activities Total Process Lead Time Total time spent on value-added activities Total Process Lead Time VALUE ADD CRITERIA • Right the first time • Transformative activity • Something the customer considers good value for money 66 138 Participant Workbook Process Health Metrics Key Information and Process Data Current State Assessment Swimlane Diagrams Actual Process Lead Time Direct Customer Facing “External View” Current SLA target % Accurate and Complete outputs to the customer Demand Rate : # request per year % Accurate and Complete inputs to the workers Work in Process “Internal View” # stops and starts within the process # handoffs within the process % time spent on NVA: DOWNTIME The cross-functional team collaborates to align on the current state assessment process measures Other key process data can include: Process step cycle times, DOWNTIME wastes, Customer waiting time, Staff effort time, etc. 67 139 Participant Workbook Administrative Case Study: Application and Approval Process Understanding the Scope Problem Statement: Over the last three (3) months, the Application Approval process had an increase in requests up to 90 applications to be processed each day. Staff have been working diligently to keep-up and deal with the growing backlog. The admin staff are frustrated with the situation. Supervisors are working hard to maintain compliance and processes applications as quickly and accurately as possible to keep up with demand. Current procedures involve reviews for accuracy while there is increasing pressure to complete files quickly. Applicants who were recently surveyed indicated a 60% satisfaction rating on their overall experience. If this continuous, the applications will be coming in faster then they are being transferred out which will result in a large backlog of unprocessed files; further applicant dissatisfaction and low participation rates. This trend has a high potential to negatively impact the opportunity for further funding. Macro Process Flow: 1. Application Intake & File Set-up 2. Admin Review 3. Payment 4. Admin Final Documentation 5. Customer Notification 68 140 Participant Workbook 1. Current State Waste Analysis a) Review each activity in the swimlane diagram. Identify each as - VA, NVA (or NNVA). b) Identify the prominent DOWNTIME wastes. Determine if the activity fits the three value-add criteria 1. 2. 3. Right the first time Transformative activity Something the customer considers good value for money If the activity does not fit all three value-add criteria then it has opportunity to remove wastes. What type of DOWNTIME wastes to you see? 70 141 Participant Workbook 2. Calculate the current state process data Case Study– Current State Analysis Use swim lane map elapsed timeline and activity cycle times for your math. Key Information and Process Data 1. Application Intake & file Set-up 2. Admin Review 3. Payment 4. Admin Final Documentation 5. Customer Notification Actual Process Lead Time “External View” of Macro Process Current State Summary 176 minutes Prominent DOWNTIME wastes for customers Waiting Motion, Waiting Waiting Transportation, Motion, Waiting Transportation, Waiting Waiting, Motion, Transportation Waiting Time (NVA) 22 min 8 min 42 min 29 min 21 min 122 minutes Macro Cycle Times (Value-Adding) 4 min 7 min 13 min 24 min 6 min 54 minutes # hand-offs within the process “Internal View” of micro process % of Staff time spent on NVA process activities Prominent DOWNTIME wastes for staff Enter the metrics for each of the Macro step(s). 71 142 Participant Workbook 3. Current State Assessment Template Key Information and Process Data 1. Application Intake & file Set-up 2. Admin Review 3. Payment 4. Admin Final Documentation 5. Customer Notification Actual Process Lead Time “External View” of Macro Process Current State Summary 176 minutes Prominent DOWNTIME wastes for customers Waiting Motion, Waiting Waiting Transportation, Motion, Waiting Transportatio n, Waiting Waiting, Motion, Transportation Waiting Time (NVA) 22 min 8 min 42 min 29 min 21 min 122 minutes Macro Cycle Times (Value-Adding) 4 min 7 min 13 min 24 min 6 min 54 minutes # hand-offs within the process “Internal View” of micro process % of Staff time spent on NVA process activities Prominent DOWNTIME wastes for staff This is the process data for one customer. Multiply this experience by the annual demand and you will understand the total pressure on the system. 72 143 Participant Workbook Class Review: Current State Assessment Case Study– Share your Current State Analysis metrics Key Information and Process Data 1. Application Intake & file Set-up 2. Admin Review 3. Payment 4. Admin Final Documentation 5. Customer Notification Actual Process Lead Time “External View” of Macro Process Current State Summary 176 minutes Prominent DOWNTIME wastes for customers Waiting Motion, Waiting Waiting Transportation, Motion, Waiting Transportati on, Waiting Waiting, Motion, Transportation Waiting Time (NVA) 22 min 8 min 42 min 29 min 21 min 122 minutes Macro Cycle Times (Value-Adding) 4 min 7 min 13 min 24 min 6 min 54 minutes # hand-offs within the process “Internal View” of micro process % of Staff time spent on NVA process activities Prominent DOWNTIME wastes for staff 73 144 Participant Workbook > LESSON 3: Introducing Value Stream Mapping 75 > TOPIC 1: Value Stream Mapping Overview 76 145 Participant Workbook What is Value Stream Mapping (VSM)? Visual planning tool to introduce Lean to your process. • Provides the blueprint for enabling a Lean transformation • Follows a product or service from beginning to end • Links the material and information flows • Highlights waste and opportunities FUTURE STATE VSM CURRENT STATE VSM Manager Line Manager Director Health Services Request for Info Verbal Pre‐Employment Info External Mail Return of InfoRequisition Verbal Internal Mail WIP = Requisition Receipt WIP = 1 Clerk Verify Requisition WIP = Process Requisition WIP = 1 Personnel Officer 1 Technician 1 Personnel Officer Employee File ?? Pre‐Employment Info Pre‐Employment Info email email Request for Info Email Medical/Pre Employment WIP = 1 Clerk 1 Technician Prepare File WIP = Health Services Department Employee Info Logibec System Requisition Internal Mail Employee Info Logibec System Creation in Logibec Request for Info Email WIP = 1 Personnel Officer 1 Technician 1 Clerk 1 Technician Manager Line Manager Employees Return of Info Email Requisition Internal Mail Requisition Receipt WIP = 1 Clerk Verify Requisition WIP = WIP = Prepare File 1 Clerk 1 Technician NVA (mi n) = 1440 mins NVA (min) = 1440 mins NVA (max ) = 20160 mins NVA (max ) = 10080 mins NVA (min) = 60 mins Batch Size = NVA (max) = 4320 mins NVA (max ) = 1440 mins NVA (max ) = 20160 mins NVA (max ) = 10080 mins Batch Size = Batch Size = Batch Size = NVA (max) = 10080 mins Error Rate = Batch Size = Batch Size = Batch Size = Batch Size = VA = 28 mins Error Rate = VA = 56 mins NVA (min) = 1440 mins Error Rate = NVA (min) = 1440 mins Error Rate = Error Rate = VA = 19 mins Medical/Pre Employment NVA (min) = 60 mins NVA (max ) = 1440 mins Batch Size = VA = 20 mins VA = 0.25 mins 1 Clerk 1 Technician VA = 28 mins NVA (min) = 60 mins NVA (max) = 4320 mins Error Rate = NVA (mi n) = 60 mins NVA = 1440 mins WIP = VA = 20 mins NVA (min) = 60 mins Batch Size = VA = 19 mins VA (min) = 76 mins Process Requisition 1 Personnel Officer 1 Technician 1 Personnel Officer NVA = 1440 mins VA = 0.25 mins VA (max) = 196 mins Pre‐Employment Info email Batch Size = Error Rate = Error Rate = VA = 56 mins Error Rate= Error Rate = Error Rate = 7200 Total min NVA (Macro) 0 1440 1440 .25 1440 1440 to 4320 79 to 4339 80 to 1460 1440 1468 to 20188 18720 Total max NVA (Macro) 1440 to 10080 1496 to 10136 136 to 10156 4699 .25 Total min VA (Macro) 0 1440 1440 .25 1440 1440 to 4320 79 to 4339 80 to 1460 1440 1468 to 20188 1440 to 10080 1496 to 10136 7200 Total min NVA (Macro) 18720 Total max NVA (Macro) 136 to 10156 4699.25 Total min VA (Macro) 47719 .25 Total max VA (Macro) 47719 .25 Total max VA (Macro) Requisition Receipt Requisition Receipt Verify Requisition Process Requisition Medical/Pre Employment Prepare File Verify Requisition Process Requisition 1 Personnel Officer 1 Personnel Officer 1 Technician Stamp requisition when received Verify signature and info Copy to recruitment for non‐unionized positions Send email or phone employee and prepare forms for Health Service Log at reception log book Contact department for any missing or incorrect info, place req on hold Open new position in job register Enter information on new staff excel list Ensure all documents have been received Return requisition for required information Post unionized position Meet with employee at medical Employee comes to sign in or met at orientation Creation in Logibec 1 Clerk 1 Clerk 1 Personnel Officer 1 Personnel Officer 1 Technician 1 Clerk 1 Technician 1 Clerk 1 Technician 1 Personnel Officer 1 Technician Stamp requisition when received Verify signature and info Copy to recruitment for non‐unionized positions Send email or phone employee and prepare forms for Health Service Email Department head to send employee to HR Enter information into Logibec Log at reception log book Contact department for any missing or incorrect info, place req on hold Open new position in job register Enter information on new staff excel list Ensure all documents have been received Complete calculation of salary Return requisition for required information Post unionized position Meet with employee at medical Employee comes to sign in or met at orientation Expresso Enter detail onto tracking list Get approval from Health Services Seek budget approval in necessary Confirm start date request from Department head Medical/Pre Employment 1 Clerk 1 Technician Prepare File 1 Clerk 1 Technician Email Department head to send employee to HR Separate papers and distribute file to file Obtain signature from B. Kravitz 77 146 Participant Workbook The Silo Effect Minimized • Tasks are assigned vertically within each department • Work processes flow across from one department to the next • Lean maximizes value by managing the cross-flow of tasks and process TASKS TASKS PROCESS DEPT DEPT TASKS DEPT TASKS DEPT 78 78 147 Participant Workbook Team-Wide Perspective A VSM workshop involves getting the people who understand the process best together (those who work with it everyday) • The team uses flipchart, sticky notes, markers etc. to map out the micro process as a team • Current state micro process detail is “rolled up” into the macro process with all relevant detail associated • The team analyzes the current state VSM for opportunities and then converts this to a future state with an implementation plan 79 148 Participant Workbook How is VSM Different to Process Mapping? VSM is a superset of process mapping. It provides rich icons that allow for the capture of information that will make it easier to understand where improvement opportunities exist It provides a way of capturing customers resources, and information flows It quantifies the key information used to prioritize what improvement actions should be initiated VSM deals with identifying valueadding activities and waste in the process 80 149 Participant Workbook VSM Overview The following steps are taken after the value stream scope has been determined. 1 2 3 4 81 150 Participant Workbook TOPIC 2: How to Read a Value Steam Map 82 151 Participant Workbook What Does a VSM Look Like? Supplier Customer 1 Info Recipient Customer 2 Info Recipient Opportunity Opportunity Opportunity What? How? WIP = x What? How? Macro Step 1 WIP = x X Position What? How? What? How? Macro Step 2 WIP = x Macro Step 3 WIP = x X Position X Position Macro Step 4 What? How? Macro Step 5 WIP = x X Position X Position Micro VA = x mins Micro VA = x mins Micro VA = x mins Micro NVA = x mins Micro VA = x mins Micro NVA = x mins Micro VA = x mins Micro NVA = x mins Micro NNVA = x mins Micro NVA = x mins Micro NNVA = x mins Micro NVA = x mins Micro NNVA = x mins Micro NNVA = x mins Micro NNVA = x mins Opportunity Opportunity Between macro wait time Between macro wait time Between macro wait time Macro Step 1 cycle time Macro Step 2 cycle time Between macro wait time Macro Step 3 cycle time Opportunity Macro Step 4 cycle time A) Total between macro wait time Between macro wait time Macro Step 5 cycle time C=A+B B) Total macro cycle time C) Total Lead Time 83 83 152 Participant Workbook What Does a VSM Look Like? The middle of the diagram contains the process data specifics and the flow of materials between each macro step of the overall process scope: WIP = x Macro Step 1 X Position WIP = x Macro Step 2 X Position WIP = x Macro Step 3 X Position WIP = x Macro Step 4 X Position WIP = x Macro Step 5 X Position Micro VA = x mins Micro VA = x mins Micro VA = x mins Micro VA = x mins Micro VA = x mins Micro NVA = x mins Micro NVA = x mins Micro NVA = x mins Micro NVA = x mins Micro NVA = x mins Micro NNVA = x mins Micro NNVA = x mins Micro NNVA = x mins Micro NNVA = x mins Micro NNVA = x mins The icons commonly used to illustrate the data specifics are as follows: 84 153 Participant Workbook What Does a VSM Look Like? The top of the diagram contains the process data regarding information and material flow in and out of the macro process scope: Supplier Customer 1 Info Recipient What? How? WIP = x Macro Step 1 What? How? WIP = x Customer 2 Info Recipient What? How? What? How? Macro Step 2 WIP = x Macro Step 3 WIP = x Macro Step 4 WIP = x What? How? Macro Step 5 The icons commonly used to illustrate the data specifics are as follows: 85 154 Participant Workbook What Does a VSM Look Like? The bottom of the diagram summarized the macro process metrics and helps illustrate the opportunities. Opportunity Opportunity Between macro wait time Between macro wait time Between macro wait time Macro Step 1 cycle time Macro Step 2 cycle time Opportunity Between macro wait time Macro Step 3 cycle time A) Total between macro wait time Between macro wait time Macro Step 4 cycle time Macro Step 5 cycle time C=A+B B) Total macro cycle time C) Total Lead Time The icons commonly used to illustrate the data specifics are as follows: A) Total between macro wait time Opportunity B) Total macro cycle time C) Total Lead Time 86 155 Participant Workbook Some Value Stream Map Icons 87 156 Participant Workbook What Does a VSM Look Like? Supplier Customer 1 Info Recipient What? How? WIP = x Macro Step 1 What? How? WIP = x X Position Customer 2 Info Recipient What? How? What? How? Macro Step 2 WIP = x Macro Step 3 WIP = x X Position X Position Macro Step 4 WIP = x What? How? Macro Step 5 X Position X Position Micro VA = x mins Micro VA = x mins Micro VA = x mins Micro VA = x mins Micro VA = x mins Micro NVA = x mins Micro NVA = x mins Micro NVA = x mins Micro NVA = x mins Micro NVA = x mins Micro NNVA = x mins Micro NNVA = x mins Micro NNVA = x mins Micro NNVA = x mins Micro NNVA = x mins Between macro wait time Between macro wait time Between macro wait time Macro Step 1 cycle time Macro Step 2 cycle time Between macro wait time Macro Step 3 cycle time Macro Step 4 cycle time A) Total between macro wait time Between macro wait time Macro Step 5 cycle time C=A+B B) Total macro cycle time C) Total Lead Time 88 88 157 Participant Workbook 1 TOPIC 3: Draw a Current State Map 90 158 Participant Workbook 1. Drawing a Current State Map SWIMLANE MAP with MICRO PROCESS FLOWS 1 • Incorporates a physical walk through to identify the main process steps • Gathers all relevant process information • Lists the wastes seen in each step • Documents customer and any supplier information • Measures queues, backlogs or inventory • Establishes information flow (manual and electronic) 91 159 Participant Workbook 1. Drawing a Current State Map Key Information and Process Data MACRO and MICRO Process Metrics 1. Application Intake & file Set-up 1 2. Admin Review 3. Payment 4. Admin Final Documentation 5. Customer Notification Actual Process Lead Time “External View” of Macro Process Current State Summary 176 minutes Transportation, Motion, Waiting Transportati on, Waiting Waiting, Motion, Transportatio n 42 min 29 min 21 min 122 minutes 13 min 24 min 6 min 54 minutes Motion, Waiting Waiting 22 min 8 min 4 min 7 min Prominent DOWNTIME wastes for customers Waiting Waiting Time (NVA) Macro Cycle Times (Value-Adding) # hand-offs within the process “Internal View” of micro process % of Staff time spent on NVA process activities Prominent DOWNTIME wastes for staff VALUE STEAM MAP with MACRO FLOW and MICRO DATA 92 160 Participant Workbook Current State Value Stream Map 1 Current State Value Stream Map (VSM) Application Approval Process 1 day Request Rate = every 16 mins 90 Applications Applicant Applicant Applicant File Applicant File $ Accounts Receivable System Letter for Pick-up or Mail Submit by email and mail Requisition Page to Lab Tech 12 Applications Waiting Application intake & File Set-up Admin Review % NVA = 8 mins Batch Size = 1 22 mins % NVA = 4 mins 42 mins % NVA = 42 mins 7 mins Admin Final Documentation % NVA = Customer Notification of Acceptance 1 Admin Cycle Time – 6 mins Cycle Time – 24 mins 29 mins 21 mins % NVA = Batch Size = 1 Batch Size = 5 29 mins 13 mins 5 Applications 1Supervisor 3x Admin Batch Size = 1 Batch Size = 1 8 mins 12 Applications Cycle Time – 13 mins Cycle Time – 7 mins Cycle Time – 4 mins Payment 1 AR specialist 3x Admin 1 Clerk 22 mins 10 Applications NVA = 122 mins Opportunity Time 21 mins 24 mins 6 mins VA = 54 mins Lead Time = 176 mins 93 93 161 Participant Workbook Necessary Process Metrics Case Study Calculations Lead Time Calculate the total time it takes from the start of the value stream to the end point of the value stream 176 minutes Cycle Time The actual timed duration that it takes to complete the process step from beginning to end 4+ 7+13+24+ 6 minutes Value-Added Time Calculate the total time in the process for steps that satisfy the three criteria for value-adding activities 54 minutes Non Value-Added Time Opportunity Time Calculate the total time for steps that don’t satisfy the three criteria for activities to be considered valueadding The potential non value-added the that can be eliminated from a value stream process 122 minutes 122 minutes 94 94 162 Participant Workbook 2 TOPIC 4: Analyze the Current State 96 163 Participant Workbook 2. Analyzing the Current State 2 The current state is analyzed and process health is determined VSM Analysis Checklist Total lead time % NVA of Total Lead Time High % NVA within the micro flow The time a customer spends at or between each MACRO step is analyzed Excessive WIP or wait time in between process steps Redundant or inadequate information flows 8 wastes discovered in the process Excessive quality issues at any point in the process Excessive hand-overs at any point in the process Any queues, backlogs, inventory, and all wastes (visible and invisible) are identified Multi-departmental teams play an important role and may provide valuable information 97 97 164 Participant Workbook Analyzing the Current State Value Improvement Hypothesis Right First Time Just in Time Select one improvement within your group to share with the class in the Improvement Hypothesis Table. Issue or Opportunity Impact on Stakeholder(s) Improvement Hypothesis Describe the process issue or opportunity for improvement Describe how the improvement will benefit the stakeholder(s) What measurement of improvement would you expect? Example: Customer notification of acceptance can be reduced to less than 6 minutes. What happens if the customer is not there to answer the phone? Example: We could automate acceptance notifications and deal with exceptions 1:1. The accepted customer would be notified quicker. Staff time is focussed on the exceptions. Example: This idea could shorten the Notification time by 5minutes per accepted customer. 99 165 Participant Workbook 3 TOPIC 5: Draw a Future State Map 100 166 Participant Workbook Future State Value Stream Maps 3 Shows an improved (not yet ideal) process, that provides: A near-term target to which the organization can aspire A framework for eliminating waste and creating flow A way in which the process can meet customer demand, and be responsive to their changing needs 101 167 Participant Workbook 3 What is the resulting opportunity time? Can you quantify the potential savings in dollars? Will this allow you to meet your goal? 3. Drawing a Future State Map 1. Build a new VSM reflecting the proposed future state 2. Recalculate the VA, NVA, and NNVA times expected after implementation of the future state vision 3. Identify opportunities using Kaizen bursts 4. Analyze the difference between the current state map and future state map 102 168 Participant Workbook Future State Value Stream Map (VSM) Application Approval Process 3 1 day Request Rate = every 16 mins 90 Applications Applicant Applicant Applicant File Applicant File $ Accounts Receivable System Letter for Pick-up or Mail Submit by email and mail Requisition Page to Lab Tech 12 Applications Waiting Application intake & File Set-up Admin Review 8 mins % NVA = Batch Size = 1 22 mins 42 mins % NVA = 4 mins 29 mins Cycle Time – 6 mins % NVA = 21 mins 21 mins 24 mins Opportunity Opportunity Opportunity Time (NVA) Future State 6 mins NVA = 122 mins Opportunity Time VA = 54 mins Lead Time = 176 mins Improvement Comparison Current State % NVA = Batch Size = 1 Batch Size = 5 13 mins Customer Notification of Acceptance 1 Admin 29 mins Opportunity Opportunity Opportunity Applications Cycle Time – 24 mins % NVA = 42 mins 7 mins 5 Admin Final Documentation 1Supervisor 3x Admin Batch Size = 1 Batch Size = 1 8 mins 12 Applications Cycle Time – 13 mins Cycle Time – 7 mins Cycle Time – 4 mins Payment 1 AR specialist 3x Admin 1 Clerk 22 mins 10 Applications Improvement 122 mins Value Add (VA) 54 mins Lead Time 176 mins 104 104 169 Participant Workbook 4 TOPIC 6: Implement Solutions 105 170 Participant Workbook 4. Implement Solutions 4 The team can then recommend potential Lean solutions. VSM symbols are used where relevant to indicate a Lean tool as part of the solution. RIGHT FIRST TIME JUST IN TIME FLOW VISUAL MANAGEMENT STANDARD WORK PULL 106 171 Participant Workbook Looking Ahead At our next training session we will explore: Value Value Stream Flow Pull Pursue Perfect Supporting Tools included in this program: PRIMARY IMPROVEMENT TECHNIQUES Process and Value Stream Mapping Kaizen 5S Data Collection Gemba/Waste Walking Root Cause Analysis Mistake Proofing Spaghetti Diagrams Layout improvements, POUS Standard Work Visual Management 111 111 172 Participant Workbook > Personal Project Challenge 113 What did you take away from today that will help you identify waste and opportunities for Lean improvements? Practice your new Lean skills in your current work environment. Consider your Lean Opportunities • Conduct a Gemba waste walk or process walk • Create a current state map • Identify opportunities for improvement Leverage the techniques, templates and available toolkits from this program. 114 114 173 Participant Workbook > Toolkits 115 • A3 Template • Problem Statements 5Ws and 2Hs Template Templates and Toolkits • Problem Statement Fill-in-the-Blank Template • DOWNTIME Waste Template • Waste Walk Template • VSM/Process Mapping Toolkit • Improvement Hypothesis Template 116 116 174 Participant Workbook Session 3 > Agenda and Objectives 7 Looking Ahead At our next training session, we will explore: Value Value Stream Flow Pursue Perfect Pull Supporting Tools included in this program: MAIN IMPROVEMENT TECHNIQUES Process and Value Stream Mapping Kaizen 5S Data Collection Gemba/Waste Walking Root Cause Analysis Mistake Proofing Spaghetti Diagrams Layout improvements, POUS Standard Work Visual Management 8 8 175 Participant Workbook • Introducing Kaizen SESSION 3 AGENDA • Problem Solving in Lean • Implementing Improvements 9 9 After This Session You Will Be Able to… • Define Kaizen • Identify the different types of Kaizen event • Identify the characteristics and components of Kaizen events Learning Objectives • Identify the benefits of using Lean tools and problem-solving processes • Conduct root cause analysis • Create cause and effect diagrams for a specific problem • Conduct a Five Why exercise to establish the root cause of a specific problem • Identify the Lean improvement concepts and tools used to implement and sustain improvements • Use root cause identification and PICK charts to prioritize improvement opportunities • Identify the factors than ensure a successful implementation plan • Create a high-level improvement plan 10 10 176 Participant Workbook > LESSON 1: Introducing Kaizen 20 > TOPIC 1: What is Kaizen? 21 177 Participant Workbook Kaizen Kaizen is defined as “good change” or “change for the better” or “continuous improvement.” It is a team based, root cause, problem-solving technique/activity that leverages the PDCA framework. Kaizen is: • a vehicle that allows rapid change to occur over a short period of time • preplanned/facilitated workshops that focus exclusively on the improvement effort • aimed at implementing short-duration improvement projects in a work area Also referred to as: Continuous Improvement Process Excellence Plan-Do-Check-Act An effort to find a better way The last day of a Kaizen is typically the first day that the area is operating under the new changes. 22 178 Participant Workbook X about cutting corners Kaizen is not: X compromising service, quality, or safety to cut costs X a one-time flurry of ideas X just a plan X one person 23 179 Participant Workbook Three Types of Kaizen Medium Opportunities Large Opportunities Occurs most often Occurs sometimes Few occurrences Timeframe: one to thirty days Timeframe: two to four months Timeframe: six to twelve months Quick Kaizen or Just Do It (JDI) improvements Rapid Improvement Events Small Opportunities Value Stream Project 24 180 Participant Workbook Kaizen in Municipal Organizations Implemented as Kaizen events or blitzes ranging from a couple of days at a time, spread over several weeks Used to carry out necessary changes in specific areas of the process Carefully planned, well-structured team-based activities focused on solving problems Customer-driven and aimed at providing a service of the highest quality in the least amount of time 25 181 Participant Workbook WHAT IS KAIZEN? When to use Kaizen: • employee pain points to solve • customer complaints • new market opportunities • when you have a short timeline to make an impactful improvement 26 182 Participant Workbook TOPIC 2: Impact of Kaizen 27 183 Participant Workbook Kaizen Benefits Improving valueadded steps in a process, while ensuring highest quality and timely delivery Allowing improvements or modifications to be made to areas in the organization without major losses in productivity Eliminating any costs that accrue from waste in the process 28 184 Participant Workbook Kaizen's Impact on Performance • Kaizen creates measurable results: customer lead times, accuracy, quality, etc. • Employee pain points are resolved relieving negative customer impact. Improving Permit Application Form Key Information and Process Data Before Kaizen After Kaizen Customer Lead Time 22 days 11 days % Accurate and Complete Inputs 20% 90% 29 185 Participant Workbook Kaizen's Impact on People Adoption of Kaizen Hard Benefits Soft Benefits About 48% of staff participated Benefits to customers, patients, community partners, and staff Customer satisfaction 80% of all departments participated Bottomline Staff engagement, safety and morale EXAMPLE: 30 186 Participant Workbook Kaizen and Employee Involvement Eliminates pain points implementing own ideas All employees should be motivated to change for themselves Action Vision – Employees support process flow that provides the customer with the right item at the right times, and in the right quantity All people have skills, and when they understand the "why", most are willing to contribute Kaizen should start at the top, but everybody should understand how their work makes the business better Take no action and nothing will happen! 31 187 Participant Workbook TOPIC 3: Kaizen Rules 32 188 Participant Workbook Ten Kaizen Rules 1 Discard conventional fixed ideas - Be creative 2 Think “how” to do it not why it can’t be done - Encourage positive thinking 3 We do not have bad people just bad processes - The process needs to be simple enough that anyone can follow it 4 Do not seek perfection to test out possible solutions - Quick and crude is better than slow and elegant 5 Correct mistakes immediately - Defects inhibit flow, so ensure that containment and interim actions are initiated, even if full solution can not be achieved at the time 33 189 Participant Workbook Ten Kaizen Rules 6 Do not spend money for Kaizen - All this proves is that you have a lot of money 7 Question everything - Encourage these questions amongst the team; provide a safe environment to do so 8 Seek the wisdom of ten people rather than the knowledge of one - Ensure consensus when possible 9 Wisdom will surface when faced with hardship – Let team synergy occur and respond to the challenge at hand 10 Ideas are infinite, execution is the key - Balance the thinking process with the doing process 34 190 Participant Workbook Kaizen Guidelines Continuous improvement Use your new knowledge to identify your new Kaizen opportunities Build Kaizen into your team Give people the opportunity to find a better way of working for themselves Develop your own Kaizen plan and schedule Practice Kaizen for yourself and create your own Kaizen plan Where to start? Select a problem close to you that is restricting flow of product or service Who are your Kaizen partners? Your colleagues, successors, and yourself should see and reflect on your Kaizen experience 35 191 Participant Workbook TOPIC 4: Kaizen Events 36 192 Participant Workbook The PDCA Process Define problem Analyze root cause Develop solution PLAN Sustain improvements ACT DO Apply solution CHEC K Compare the actual outcome with the expected outcome 37 193 Participant Workbook A Kaizen Event is a Team Event It involves everyone, everywhere in the organization, and considers everything as a potential candidate for improvement Team members embrace Kaizen as a philosophy–and find opportunities to apply Kaizen at home, on the jobeverywhere! 38 194 Participant Workbook Three Components of a Kaizen Event 1 2 3 Kaizen starts with taking a look at the actual place of work Get your teams out of the conference room and into the Gemba Kaizen requires a bias for action Ensure there is a compelling reason to make the change for the good Benefits must be apparent Show results, not “to do” action items 39 195 Participant Workbook Six to ten members is typical Use people who work with the process every day Kaizen Team Structure Get a good mix of levels; it is very powerful for the staff to see management involved in problem-solving techniques with them Others with specialized knowledge are helpful One member can be an impartial outsider with little knowledge about the process Don’t be afraid to include a couple of “resistance to change” staff in the team, as this can be an opportunity to transform them into Lean agents! 40 196 Participant Workbook Kaizen Event Team Roles Champion/Sponsor Process Owner Facilitator The initiator of the project, has control of resources, budget etc. The person accountable for the quality and performance of the process being examined A Black or Green Belt trained and certified individual who can work with the team Subject Matter Expert (SME) Those who work directly with the process Stakeholders Interested parties around, in, or influenced by the process who need to know about the changes 41 197 Participant Workbook Your have already started to build your Kaizen Toolkit. The previous lessons on Initiating a Lean Activity introduced you to: Problem Statement Kaizen Toolkit • Problem Statement Template.docx • Problem Statement 5Ws and 2Hs.docx A3 Template • A3 Template.xlsx Gemba Walk/Process Walk/Waste Walk • Leading Edge Group Waste Walk Template.xlsx • Downtime waste template 42 42 198 Participant Workbook > LESSON 2: Problem Solving in Lean 44 > TOPIC 1: Conducting Root Cause Analysis 45 199 Participant Workbook Symptoms/Problem/Causes Relationship: Tree Concept SYMPTOMS: Result or outcome of the problem (Obvious) Sweating THE PROBLEM: Gap from goal or standard Fever CAUSES: Underlying roots – A system below the surface, bringing about the problem (Not obvious) Virus 46 200 Participant Workbook Identifying the Problem or Opportunity Root cause analysis sees every problem as an opportunity to improve. These answers can be fused together to form an effective problem/opportunity statement • Who is it impacting? • Where is the problem? • Why is it a problem? • When did the problem start? • What are the consequences of not fixing the • How big is the problem? (What is the extent of it?) • How do you know it really exists? Example: An average of 130 calls are received each week through the customer service centre. Callers are waiting an average of 6 minutes in the queue (3 times our target of 2 minutes). These calls are averaging 3.5 minutes long problem? (30 seconds more than our target). 50% of the calls are about banking preauthorized payments, 30% are about address and account changes. 47 201 Participant Workbook Root Cause Analysis Process List possible causes Organize/group causes Prioritize the list 48 202 Participant Workbook Step 1: Listing Possible Causes Possible Causes • Wrong Address Gather information relative to problem Example: Citizens are complaining that their bills are not accurate Collect data Use root cause • Meter readings analysis tools: • Bank Account changes and •Cause Pre-authorized signThe 5 Whys Effect up procedures Analysis Diagrams • Limited specialized resources • Length & complexity of service orders 49 203 Participant Workbook Step 2: Organizing and Grouping Possible Causes Putting potential causes in logical groups. Billing Recalculations Cause Cause Cause Cause Cause Cause Cause Cause Cause Cause Cause Cause Cause Cause Cause Cause Cause Cause Banking Information on Account Address Changes 50 204 Participant Workbook Step 3: Prioritizing the List of Causes Prioritizing the list into a "vital few" root causes. Backlog of billing recalculations Cause Cause Cause Cause Cause Cause Cause Cause Cause Cause Cause Cause Cause Cause Cause Cause Cause Cause Cause Cause Cause Handwritten banking information Address changes are batched 51 205 Participant Workbook TOPIC 2: Cause and Effect (Fishbone) Diagram 52 206 Participant Workbook C&E/Fishbone Diagram The cause and effect, or fishbone, diagram helps reveal the root causes to problems A C&E diagram gives a clear understanding of a problem by getting ideas from a group of people Once causes are determined, answers are easy 53 207 Participant Workbook Cause and Effect/Fishbone INPUTS OUTPUT (Environment) 54 208 Participant Workbook The 6 Ms Explained MATERIALS METHOD MAN Any supply that might be required in the process Systems of work, paperwork, routines Staff skills, training, abilities, attributes, working routines and practices MOTHER NATURE MACHINE MEASUREMENT Physical conditions of work environment. Internal or external process? Equipment, technology, and systems Statistics and information 55 209 Participant Workbook Guidelines for creating C&E diagrams Performance of organization Organizationa l culture • Try not to go beyond the area of control of the group. High employee turnover • If ideas are slow in coming, use the major cause categories as catalysts. • Use as few words as possible. • Ensure agreement on the problem statement. Job characteristics Personal reasons 56 210 Participant Workbook Cause and Effect Example Maintenance Department Materials Man Method Toolboxes are a total mess No criteria for classifying requests Supplies are not stored near machines Never at full staff numbers Communication issues Team moral very low Fire fighting issues everyday No team meetings Supplies on backorder Maintenance too slow to respond to issues No preventative maintenance program for equipment Weather extremes Constant building failures Only few trained on specific equipment Old building No tracking of equipment downtime No KPIs HVAC system far from maintenance office Mother Nature Machine Measurement 57 211 Participant Workbook TOPIC 3: Five Whys 58 212 Participant Workbook The Five Whys Methodology This is a root cause analysis tool. Five Whys is based around asking five times why a problem exists, why a failure has occurred, or in order to reach a conclusion about the actual root cause. It helps determine the relationship between all of these potential causes. • Asking “Why?” usually reveals a root cause for the problem by the time you get to the fifth why • This is a matter of “getting the question right” • Elegant and simple, this process can solve most problems by peeling away the layers that can lead to a root cause • Once there, countermeasures against root cause can be delivered Why? It should typically be used when problems involve a human influence or interaction. 59 213 Participant Workbook Five Whys Process Ask “why" five times to get to the Root Cause. When undertaking a Five Whys analysis, the Lean team should aim to follow these steps: Write down the specific problem and describe it clearly Ask why the problem occurs and write the proposed answer under the problem statement If the answer proposed does not outline the root cause of the problem, ask why again and write that answer down Re-examine steps until the team is in agreement that the problem's root cause has been identified 60 214 Participant Workbook The Washington Monument was Disintegrating Why is the monument disintegrating? Use of harsh chemicals Why do they need harsh chemicals? To clean pigeon poop Why so many pigeons? They eat spiders, and there are a lot of spiders at the monument Why so many spiders? They eat gnats, and there are lots of gnats at the monument Why so many gnats? They are attracted to the light at dusk SOLUTION: TURN ON THE LIGHTS AT A LATER TIME 61 215 Participant Workbook TOPIC 4: The Pareto Principle 62 216 Participant Workbook The Pareto Principle The Pareto Principle of Time vs Result The Pareto principle is a concept that can help boil down the Xs from the “trivial many” to the “vital few” The principle follows the assumption that by examining 20% of the causes, 80% of the problem can be eliminated 20% of results THE “TRIVIAL MANY” 80% of time expended 80% of results THE “VITAL FEW” 20% of time expended 63 63 217 Participant Workbook Pareto Analysis Pareto Chart of Late Arrivals by Reported Cause 64 64 218 Participant Workbook TOPIC 5: Practice 66 219 Participant Workbook Fishbone Template (Environment) 71 220 Participant Workbook 5 Why Template Clearly state the problem: Yes/No Why did this occur? Is this the root cause ? If no, why did this occur? Is this the root cause ? If no, why did this occur? Is this the root cause ? If no, why did this occur? Is this the root cause ? If no, why did this occur? Is this the root cause ? Yes/No Yes/No Yes/No Yes/No Root Cause: (Ensure that this is within your control) Possible Solutions 72 72 221 Participant Workbook Root Cause Report Out Template Process Issue (problem statement or central issue) Customer/Stakeholder Impact Root Cause 73 222 Participant Workbook > LESSON 3: Implementing Improvements 75 > TOPIC 1: Prioritizing Improvements 76 223 Participant Workbook The PDCA Problem Solving Process Iterative, team-based process of investigation, planning, recording, and feedback that facilitates knowledge sharing and collaboration. Standardize and stabilize what works or begin PDCA again if the desired results were not achieved Define what you expect to do and what you expect will happen PLAN ACT DO Test the hypothesis on a small scale or carry out the actions for implementation CHEC K Compare the actual outcome with the expected outcome 77 224 Participant Workbook Root Cause Identification The best solutions address the root cause! Five Whys Technique Process Issue Fishbone Diagram Customer/ Stakeholder Impact Root Cause Application form is not intuitive Applications are 20% Rework for staff with repeated calls and enough for applicant. Initial accurate and complete resubmissions for applicant. Overall screening at intake misses at intake delayed process lead time. some information. RCA techniques: Five Whys Fishbone 78 225 Participant Workbook Prioritizing and Selecting Improvements Effort vs payoff matrix/PICK chart EASY BIG SMALL payoff payoff Implement: “Just do it” Possible: “Consider it” Challenge: “Plan for it” Ignore: “Resource Waster” to implement HARD to implement 79 226 Participant Workbook Opportunity Analysis and Prioritized Solutions Process Issue Customer/ Stakeholder Impact Applications are 20% accurate and complete at intake. Rework for staff with repeated calls and resubmissions for applicant. Overall delayed process lead time. Root Cause Application form is not intuitive enough for applicant. Initial screening at intake misses some information. Prioritized Solutions “Just do it” “Consider it” Revise application form. Provide applicant examples. Provide intake with checklist. Intake reviews application with applicant at submission. “Plan for it” Supervisor on call to review application with applicant at submission. “Ignore it” Email applicants to resubmit as soon as defective application is received. Brainstorming ideas are catalogued for Sponsor and Team Review 80 227 Participant Workbook PICK Chart Template 83 228 Participant Workbook Root Cause Solutions Report Out Template Process Issue Customer/Stakeholder Impact Root Cause Prioritized Solutions 84 229 Participant Workbook TOPIC 2: Implementation Planning 85 230 Participant Workbook Implementation Planning Continuous improvement requires consistent, routine observation and innovation. Measures of Success Schedule Process Lead Time % Accurate and Complete Inputs Category 3 Category 1 Cycle Time vs Demand Rate 0 Part 3 2 Part 2 Schedule 4 Part 1 6 Feedback Improvement 5S audit score Voice of Customer Voice of Employee Measures of Success Monitor and Measure Cycle Frequent Check-ins and Feedback Loops Remember PDCA is about tracking and learning Monitor and make adjustments throughout the implementation. Correct any mishaps immediately! 86 231 Participant Workbook Process Health Indicators How well are we serving our customer? How well are our workers? Delivery Time Quality Capacity • The total time it takes from customer request at the beginning of the process to customer satisfied at the end of the process. • How accurate and complete is the final product? • How much effort does it take to complete one request? • How much rework is done along the way? • How much worker time and talent is being spent on non value-add activities? • The number (and length) of the starts and stops of the request along the process. • What are common complaints from the customer and employees? • What activities are the customer willing to pay for? • The waiting time occurring for both workers and customers. 87 232 Participant Workbook How do you know it is better? • Aim for better • Know the customer’s definition of perfect Establishing Improvement Targets • Be prepared to measure along the way Current State Future State Improved State (actual “before”) (target “after”) (actual “after”) 20% Accurate and Complete 100-day lead time 90% Accurate and Complete 70-day lead time 70% Accurate and Complete 50-day lead time 88 233 Participant Workbook Sequencing and Implementing Improvements Lean action planning includes clear accountability and schedule. • Look for quick wins that build momentum for early adoption • Leverage existing forums and technology • Look for many small improvements to create a large impact Prioritized Solution Revise application form Who Jack When Measure of Success Target July 5th Provide applicant examples Diane July Provide intake with checklist Stephanie June 30th 10th Frequency of Check-in Weekly 90% % accurate accurate and complete and applications complete Monthly Biweekly 89 234 Participant Workbook Tips and Techniques When designing future state and preparing for implementation remember: The future state needs to be better, not perfect. The future state needs to be designed with the customer value proposition as the focus. Establish agreed roles and responsibilities with the process owner. Ensure the working team is set up for success with tools, templates, instructions, training, communication, etc. Ensure the working team knows who to contact for clarifications, questions, or suggestions. Establish a formal monitoring and measuring system with scheduled check-ins and established measures of success prior to the implementation start. Mishaps will happen, prepare for them by asking “what could go wrong?” When they do happen fix them immediately – this is the learning, the art of Kaizen. 90 235 Participant Workbook Lean Action Planning Template Prioritized Solution Who When Measure of Success Target Frequency of Check-in 92 236 Participant Workbook > Next Steps 93 Looking Ahead At our next training session, we will explore: Value Value Stream Flow Pursue Perfect Pull Supporting Tools included in this program: MAIN IMPROVEMENT TECHNIQUES Process and Value Stream Mapping Kaizen 5S Data Collection Gemba/Waste Walking Root Cause Analysis Mistake Proofing Spaghetti Diagrams Layout improvements, POUS Standard Work Visual Management 94 94 237 Participant Workbook > Personal Project Challenge 95 What did you take away from today that will help you identify waste and opportunities for Lean improvements? Practice your new Lean skills in your current work environment. Consider your Lean Opportunities • Select a small problem that you want to solve. • Practice root cause analysis (Fishbone and Five Whys) • Plan the implementation of your solutions to the root cause(s). Leverage the techniques, templates and available toolkits from this program. 96 96 238 Participant Workbook > Toolkits 97 Your complete Kaizen Toolkit includes the following Templates: Problem Statement • Problem Statement Template.docx • Problem Statement 5Ws and 2Hs.docx A3 Template • A3 Template.xlsx Kaizen Toolkit & Templates Gemba Walk/Process Walk/Waste Walk • Leading Edge Group Waste Walk Template.xlsx • Downtime waste template Root Cause Analysis • Fishbone Cause and Effect Diagram Template.xlsx • Five Whys Template.xlsx • Root Cause Report Out .docx Prioritizing Solutions • PICK Chart Template.xlsx • Root Cause Solutions Report Out.docx Improvement Planning • Lean Action Planning Template.docx 98 98 239 Participant Workbook Session 4 > Agenda and Objectives 7 Looking Ahead At our next training session, we will explore: Value Value Stream Flow Pursue Perfect Pull Supporting Tools included in this program: MAIN IMPROVEMENT TECHNIQUES Process and Value Stream Mapping Kaizen 5S Data Collection Gemba/Waste Walking Root Cause Analysis Mistake Proofing Spaghetti Diagrams Layout improvements, POUS Standard Work Visual Management 8 8 240 Participant Workbook Session 4 • 5S Overview • Conducting a 5S Activity • Lean Tools for Sustainment TODAYS AGENDA • Lean Improvement Planning • Certification Exam Review 9 9 After This Session You Will Be Able to… • Define 5S and when it is applied • Explain the benefits associated with 6S • Identify and order the stages of 5S Learning Objectives • Establish a plan for a basic 5S initiative • Identify Point of Use Storage (POUS) • Identify spaghetti diagrams • Identify appropriate layout improvements for a work area or process • Create standard work for a process • Implement visual management techniques in a process • Apply basic mistake proofing to a process • Understand the steps involved in improvement planning 10 10 241 Participant Workbook > LESSON 1: 5S Overview 16 > TOPIC 1: What is 5S? 17 242 Participant Workbook Value and Value Stream Value and value-added activities are defined ONLY by the customer. The quality, delivery (time), and cost of the service need to meet the customer expectations. The focus on removing waste throughout a value stream is to ensure that the valueadded activities are secured with assurance of meeting both customer and worker satisfaction and engagement. Improves Reduces Establishes Customer Satisfaction Delivery Time Reliable Service Productivity, Efficiency, and Effectiveness Worker Injuries Flow Cost Quality Worker Morale and Motivation 18 243 Participant Workbook 5S 5S provides a number of techniques and activities aimed at removing waste from the workplace by means of improved workplace organization, visual communication, and overall cleanliness. 1 2 SORT SET IN ORDER 5S is aimed at eliminating waste associated with transportation, motion, searching, and waiting that creates variation and uncontrolled processes. 5 SUSTAIN 4 3 STANDARDIZE SHINE 19 244 Participant Workbook Benefits of 5S IMPROVES REDUCES • Delivery times • Lead times • Quality • Productivity • Waste in materials, space, and time • Safety • Inventory and storage costs • Visual control • Changeover time • Equipment downtime 20 245 Participant Workbook A Sixth “S” • Safety should be considered a sixth S in the system. It should be a part of all 5S stages, particularly Standardize and Sustain. • Instructions and documentation relating to safety procedures should be made as clear and logical as possible so that they can be easily read and interpreted by all employees. Safety • Safety instructions and procedures should be posted in prominent positions within the area that they relate to. • Instructions on machine and equipment operation should be located so that employees can easily read them. • All documentation relating to safety procedures should be stored in as accessible a location as possible and the location should be made known to all relevant individuals. 21 246 Participant Workbook Example: Office Work Station BEFORE AFTER 22 247 Participant Workbook Example: Network Filing Storage FROM • 6,000+ files for department of 10 staff • 43 mins on average searching for information location • Staff often generated new material as couldn’t find original files TO • Standardized filing and naming system • Total active files < 600 • Regular audit and review • Average daily spend searching 12 mins 23 248 Participant Workbook Example: Warehouse BEFORE AFTER Lead Time = 24 mins on average to locate and stock materials for a routine repair Lead Time = 4 mins on average to locate and stock materials for a routine repair (reduction of 20.5 mins) Opportunity Time = 19 mins of that time was deemed non valueadded (NVA) time to the customer Opportunity Time = 1 min of that time was deemed non value-added (NVA) time to the customer (reduction of 18 mins) Overall 83% improvement in Lead Time and 95% improvement in Opportunity Time 24 249 Participant Workbook TOPIC 2: Sort 25 250 Participant Workbook 1. Sort Conduct a massive sort on all items in the work space An effective way to do this is to clear out the workspace of all items, and sort the items into organized piles. EXCESS/ DUPLICATE S Return to supply chain USED DAILY Need to return to the workspace USED LESS THAN DAILY Need to return close to the workspace EXPIRED Red tag and dispose properly NEVER USED/ OBSOLETE Red tag and dispose properly 26 251 Participant Workbook Red Tagging Red tagging is a process that helps force the purging of unnecessary items. • Set up a red tag area during sort to identify the items that are no longer needed • “Red Tag” the items to be removed from the work area • Dispose the assets accordingly and dispose (auction, donate, throw out, give away etc.) 27 252 Participant Workbook 5S Demonstration Before 5S 28 253 Participant Workbook 5S Demonstration Sort 29 254 Participant Workbook TOPIC 3: Set in Order and Shine 30 255 Participant Workbook • Take the pile of items used every day and place these back into the clean workspace • Take the pile of items used less than daily and place them close to the workspace (i.e. closet/storage close by) 2. Set in Order • Find permanent locations for infrequently used items and agree to this placement as a team • Ensure no duplicates or unused items are returned to the workspace • Consider ergonomic placement of items and also consider your left-handed counterparts. 31 256 Participant Workbook 5S Demonstration Set in Order 32 257 Participant Workbook 3. Shine To help visualize flow, it is imperative that the work area be maintained at a certain level of cleanness; the environment is clutter free with machines that are working and safe. Shine refers to a complete clean up of the area: Wipe down all equipment, furniture, working surfaces Empty and wipe all insides of drawers/cabinets Change filters/light bulbs Remove unnecessary posters/stickers Dust work area Clean floors Fill holes in walls Fresh coat of paint, if necessary 33 258 Participant Workbook 5S Demonstration Shined 34 259 Participant Workbook Are 3 Ss enough? Benefit to the business 100 9 08 0 7 0 6 0 5 0 4 0 3 0 2 0 1 0 0 Sort Set in Order Shine Standard Sustain 35 260 Participant Workbook TOPIC 4: Standardize and Sustain 36 261 Participant Workbook The team should agree on the standardization approach to 5S • Establish a labeling protocol: font/colour/size 4. Standardize • Use colour coding • Label items in cabinets, drawers • Use placeholders or shadow outlines to indicate the permanent place for critical items 37 262 Participant Workbook 5S Demonstration Standardize 38 263 Participant Workbook 5S Demonstration Can you find the two missing numbers in the original environment? 39 264 Participant Workbook 5S Demonstration Can you find the two missing numbers in the standardized environment? 40 265 Participant Workbook Develop methods to keep the team on track • Ensure the team is actively engaged in maintenance of the 5S standard – post a schedule of weekly actions required 5. Sustain • Conduct a weekly audit to measure adherence to the standard • Post results and make it visible to all how the team is progressing • Determine when the team needs to “call to action” 41 266 Participant Workbook > LESSON 2: Conducting a 5S Activity 44 > TOPIC 1: Initiating 5S 45 267 Participant Workbook • Select the 5S team; ideally, all employees in the area • Communicate the date and expectations for the staff in the affected area well in advance of the event Preparation for a 5S Event • Communicate with stakeholders about the upcoming activities occurring in any adjacent work area • Consider some high-level education for stakeholders (i.e. what is 5S?) • Train the selected team on 5S • Take “before” pictures of all areas • Ensure supplies required are available: • All-purpose cleaner, window cleaner, garbage bags, labels, red tags, dumpster, etc. 46 268 Participant Workbook Starting from: Current state Group Exercise and Tour to prepare: • customer value • front-line value • data collection plan • spaghetti diagram • 5S audit Data Collection Date: Date: Item Before 5S After 5S Inventory position Time to locate/retrieve items Distance travelled to locate/retrieve items 5S audit score 47 269 Participant Workbook 5S Audits Set in Order Sort 5S Level 5 Perfection - no unnecessary items or clutter 4 Practically no unnecessary items or clutter 3 Little clutter, few unnecessary items remaining 2 Initial sort conducted, many unnecessary items remaining 1 Unnecessary items stored, excessive clutters 5 Perfection - all tools/fixtures/equipment/bins labelled at POUS* 4 Practically all tools/fixtures/equipment/bins labelled at POUS* 3 2 Perfection - all areas are clean based on detailed inspection 4 Practically all areas are clean and organized 3 Practically all visible/accessible surfaces appear clean 2 Most easily visible/accessible surfaces appear clean 1 Equipment/tables/storage/floors dirty 5 Perfection - daily checks and audits fed into a CIP 4 3 2 Area checked on a daily basis, and weekly audits conducted 1 5 No cleaning schedule in place 4 3 2 All audit feedback on CIP, all metrics posted 1 No program in place Shine 5 Standardize Most items/bins/scrap labelled, most tools/fixtures/equipment organized Some items/bins/scrap labelled, some tools/fixtures/equipment organized No items/bins/scrap labelled, tools/fixtures/equipment difficult to access Sustain 1 Rating √ Wk1 Wk2 Wk3 Wk4 Wk5 Criteria Area checked daily activity documented System in place for checking and cleaning daily Perfection - CIP extremely effective, all metrics posted CIP current & effective - most metrics posted Continuous Improvement Plan (CIP) created Total Safety N/a No Trip Hazard or missing Guards, LOTO exists Fix or Report 48 270 Participant Workbook 5S Audits 5S Radar Graph 20‐Nov‐20 Target Goal Sort Sustain Standardize 5 4.5 4 3.5 3 2.5 2 1.5 1 0.5 0 Set in Order Shine 49 271 Participant Workbook Typical 5S Agenda Time Topic Day 1 Activities 7:30 – 7:45 Kick-off • Introductions, session objectives, and agenda • Establish participant rules of engagement • Align on scheduled “huddles” to review progress Day 1 Sort 7:45 – 8:15 5S Training • Introducing Lean and 5S • DOWNTIME review • Explaining and practicing the 5S steps Day 2 Set in Order 8:15-8:30 5S Toolkit • Toolkit introduction Day 3 Shine 8:30 – 9:30 1. Sort • Set clear roles and responsibilities • Reg Tag “Obsolete” • Separate “Daily” use from “Less frequent” use Day 4 Standardize 9:30 – 10:00 Huddle • Review and align • Questions, concerns, ideas? Day 5 Sustain 10:00 – 11:00 1. Sort • Reg Tag “Obsolete” • Separate “Daily” use from “Less frequent” use 11:00 – 12:00 Huddle and Lunch • Review and align • Questions, concerns, ideas? 12:00 – 2:00 1. Sort • Reg Tag review; alignment of “obsolete” with the group 2:00 – 3:00 Dispose • Dispose of all aligned obsolete items 50 272 Participant Workbook Typical 5S Rules of Engagement Discard conventional fixed ideas Be creative Think “how” to do it not why it can’t be done Encourage positive thinking We do not have bad people just bad processes The process needs to be simple enough that anyone can follow it Do not seek perfection to test out possible solutions Quick and crude is better than slow and elegant; interim actions are initiated even if full solution can not be reached at the time Question everything Provide a safe environment to do so Seek the wisdom of ten people rather than the knowledge of one Ensure consensus when possible Ideas are infinite, execution is the key Balance the “thinking” process with the “doing” process 51 273 Participant Workbook TOPIC 2: Closing a 5S Event 52 274 Participant Workbook Closing a 5S Event Review the “before” and “after” impact Use pictures and 5S audit graph Establish the expectations and actions moving forward Weekly audit and improvement huddle Recognize everyone’s participation and celebrate the achievement 53 275 Participant Workbook After 5S: Reviewing the Achievements Group Exercise and Tour to prepare: • customer value • front-line value • data collection plan • spaghetti diagram • 5S audit Data Collection Date: Date: Item Before 5S After 5S Inventory position Time to locate/retrieve items Distance travelled to locate/retrieve items 5S audit score 54 276 Participant Workbook Facilitate the group to establish the sustainment plan: • Frequency of 5S audits and problem-solving huddles Sustainment Plan • 5S roles and responsibilities • The roommate agreement – At what point is there a call to action? Facilitate for team consensus with regular “huddles” 55 277 Participant Workbook Weekly 5S Audit Review Last week November 20, 2020 This week November 28, 2020 56 278 Participant Workbook Sample of 5S Audit Questions from the Shared Drive Audit Template Step 1 SORT Sort out necessary and unnecessary items. The items deemed unnecessary and not being used should be removed from the area. 1. Is the drive clear of unnecessary files, links, or documents? 2. Is the area clear of documents that are not essential, personal, duplicate and/or out of date documents? Very Poor 1 Details: 1 Details: Poor Good Very Good Excellent 2 3 4 5 2 3 4 5 Step 2 SET LIMITS AND LOCATIONS Very Poor A place for everything and everything in it’s place so it should be easy to find 3. Are necessary files and documents are identified, locations defined, & stored in correct place? 1 Details: 2 3 4 5 1 2 3 4 5 4. 5. Are naming conventions consistent (standardized) for all files and documentation? Is each file tree is limited to a maximum of 10 at each level; all files visible without scrolling through screens? Poor Very Poor Good Poor Very Good Good Very Good Step 3 SHINE Eliminate distractions and make it easy to see when something is out of place. 6. Is the font style and size the same for all file and document labels? 7. Are poor quality files and documents are clearly identified and stored separately from the main files? Step 4 STANDARDISE Maintain the first three Ss and have an awareness of improving neatness. 8. Is there evidence of the understanding of the importance of 5S principles? 9. Can the area management explain why 5S is important? 10. Can all the employees explain the importance of 5S? 1 Details: 1 Details: Excellent 2 3 4 5 2 3 4 5 Very Poor 1 Details: 1 Details: 1 Excellent Poor Good Very Good For each statement, circle the score that best represents the occurrence of the observations taken. 1. No evidence shown 2. Some evidence in areas 3. Good evidence in areas, 4. Extensive evidence in areas 5. Found everywhere, no exceptions (100%) Excellent 2 3 4 5 2 3 4 5 2 3 4 5 57 279 Participant Workbook TOPIC 3: Supporting Tools &Techniques: SPAGHETTI DIAGRAMS POINT OF USE STORAGE LAYOUT IMPROVEMENTS 58 280 Participant Workbook Spaghetti Diagram Quick and effective tool to see the waste of motion and transportation. 1. Sketch out the layout 2. Draw in the steps taken to complete required tasks 3. Step back and look at the drawing Is there room for improvement through a better layout? BENEFITS: • Reduces the wastes • Facilitates flexibility and balances workloads • Reduces inventory 59 281 Participant Workbook Point of Use Storage (POUS) POUS is when materials are stored close to the point of use in the work area. BENEFITS: • Physical inventory tracking can be simplified • Overall, less handling of materials is necessary Identify any high use material for POUS • Less movement • Suppliers need to deliver frequent, on-time, small shipments 60 282 Participant Workbook Layout Improvement The main principles associated with layout improvement are as follows: Modify the location of tools, inventory, equipment, supplies, and documentation, so that they align with the order of steps or tasks in a process 3 1 5 Ensure that the final activity in a process is located as close as possible to the first activity in that process Arrange activities, tasks, and processes in sequential order 2 2 6 4 1 3 4 5 6 61 283 Participant Workbook Example – Layout Improvement using Spaghetti Diagrams and POUS 62 62 284 Participant Workbook Continually Strive for Better “To improve is to change; so to be perfect is have changed often” Winston Churchill Continuous Improvement 64 285 Participant Workbook LESSON 3: Lean Tools for Sustainment 68 286 Participant Workbook Standard Work A Lean operational environment is • disciplined Visual Management • predictable and steady paced Mistake Proofing • visual and clutter free • adaptable and calm • data driven decisions • inclusive • innovative 69 287 Participant Workbook TOPIC 1: Standard Work 70 288 Participant Workbook Standard Work – Lean Definition Standard work is where repetitive tasks are completed consistently according to a defined set of specific instructions. • The standard is matched to the demand of the process “request rate” • The optimal approach to completing the tasks are used (i.e. all NVA removed where possible) • Minimum work in process, material, or inventory needed Improves Reduces Establishes Safety Variation Consistent Quality Productivity Waste (Defects and Rework) Visualization of Normal vs. Abnormal Morale and Motivation Cost Stable Delivery Times FOUNDATION FOR CONTINUOUS IMPROVEMENT! 71 289 Participant Workbook Standard Work Common Myths Standard operating procedures Work instructions/manual Job description Task list Only in production environments What is True Defines specific instructions for consistent completion of repetitive tasks Matches the pace and volume of outputs to the demand of the process “request rate” Defines the optimal approach to completing the tasks without waste (i.e. all NVA removed) Often incorporates visual management techniques A recipe for consistent quality and delivery of value 72 290 Participant Workbook Standard Work vs Standards and Work Instructions STANDARD WORK STANDARDS WORK INSTRUCTIONS Defines what to do, when to do it, and who does it Defines specific requirements Defines how to do it • Utilizes best practices • All NVA has been removed • Steps are outlined and aligned with demand rate • Everyone completes the work the same way each time • Provides documentation for process • Laws, regulations, quality standards, specs, tech standards, contracts, etc. • Creates uniform practices across all employees (tools, methods, etc.) • Provides general documentation for process in the form of Standard Operating Procedures (SOPs) 73 291 Participant Workbook Standard Work – 3 Key Elements Work Sequence • Work is paced to customer demand • All cycle times adhere to demand • Synchronizes work cross functionally to meet customer demand Demand Rate • Repeatable sequence of tasks • Define everything that needs to be done • Take out variability or disorder • Minimum in-process material needed for smooth flow • Maintain one-piece flow • No people waiting for automatic cycle time to end Standard Work in Process (WIP) 74 292 Participant Workbook When is Standard Work Appropriate? • Highly repetitive activities • High volume of outputs • Many incumbents completing similar work • Errors. Defects, variation, or safety concerns • High demand rate prone to backlogs 75 293 Participant Workbook Steps to creating standard work 1.Observe the process to identify wastes and the “one best way”. Approach to Creating Standard Work 2.Establish a sequence of tasks that would best enable flow. 3.Determine how to establish Right First Time. 4.Calculate the demand rate. 5.Determine the appropriate cycle times for each task in order to meet Demand. 6.Determine the optimal batch size for flow of Work in Process (WIP) to meet cycle times. 7.Determine the operational cues for best efficiency, effectiveness, and productivity. 8.Write out the improved procedure and publish as standard work. 76 294 Participant Workbook Examples 77 295 Participant Workbook Samples of Standard Work Demand Rate Work Sequence Standard Work in Process (WIP) 78 78 296 Participant Workbook Standard Work is the Foundation for CI A simple standard work process drives CI by establishing standards, then tasking teams to continuously improve upon them and share their learnings. Determine Standards • Identify baseline agile practices used by teams or recommended • Capture current practices as “Standard Work” on wall or wiki A3 Planning • Hold “quality circles” comprised of team members and managers • Review suggestions for improvements in the forms of A3s • Team members iterate on suggested A3s • Vote on A3 suggestions to implement Standard Work Experimentation • Teams experiment with selected A3(s) • Teams document outcomes of experimentation Adjust Standard Work • “Quality circles” reconvene to review results of A3 experiments • Adopt or reject process based on results: adoption results in updates to Standard Work 79 297 Participant Workbook TOPIC 2: Visual Management 80 298 Participant Workbook • Use of visual principles and tools in the work environment and within daily work activities Visual Management • Builds awareness and communication • Shortens the learning curve for new employees • Builds a standardized environment • Ability to spot errors 81 81 299 Participant Workbook Makes normal from abnormal conditions visible as they arise • Signs and labels: unit clerk desk, supplies, equipment, patient Examples of Visual Workplace • Open work areas: teams, department, organization • Problem solving: VSM, A3, spaghetti diagram • Project management: goals, outcomes, action plan, values • Instructions: use of equipment, procedures • Safety: taped floors 82 82 300 Participant Workbook Visual Management Use of visual principles and tools in daily work activities to enable flow and standardize quality. Improves Reduces Establishes Safety Variation Consistent Quality Productivity Waste (Defects and Rework) Visualization of Normal vs. Abnormal Confidence Learning Curves Standardized Environment 83 301 Participant Workbook Visual Management Techniques Makes abnormal standout from normal. Stabilizes and standardizes the one best way to deliver optimal service. • Signs and labels • Instructions and safety • Diagrams and graphs • Visual management boards 84 302 Participant Workbook Kanban Defined A Kanban is a signal which indicates that an activity needs to occur in order to maintain flow in the process • Typically the signal is linked to a scheduling system that tells you what to produce, when to produce it and how much to produce • Kanban calculations use the customer demand as a variable to ensure the signal is set correctly QUICKER DONE FAST FEEDBACK LOWER WIP SMALLER QUEUES 85 303 Participant Workbook Just in Time and Flow Aims to deliver what the customer wants, when they want it, with desired quality, and minimum lead time. We enable flow by: • positioning machines, information, supplies, tools, and equipment in order of the processes • working on smaller batches of work with more frequent handoffs • using signals to “pull” work forward rather than pushing work through the process Improves Reduces Establishes Flexibility Within Operations Inventory Levels Improved Cost of Service or Return on Investment Output (More Deliveries) Cycle Times Flexibility for Customer Demand Exposure of Problems and Bottlenecks Waste Stable Delivery Times 86 304 Participant Workbook Charts, signs, and other visual artifacts must be visible at a glance Visual Management Checklist Should use as few words as possible preferably pictures Should be available close to point of operation Should communicate plan and actual performance Should drive to solve problems in a blameless environment Use metrics that are accurate and trustworthy 87 305 Participant Workbook Lean Leaders create vehicles to: Daily Visual Management • make your work visually obvious • easily identify errors and work on solutions • allow anyone to walk into the workplace and understand the current situation 88 306 Participant Workbook Prioritization of Work Example of visual principles and tools used within daily work activities. A Work In Process kanban system uses cards to pull the work forward as the customer demands it. 89 307 Participant Workbook Awareness of Backlogs and Queues Example of visual principles and tools used within daily work activities. 90 308 Participant Workbook Trigger of New Requests Example of visual principles and tools used within daily work activities. 91 309 Participant Workbook Escalate Issues for Resolution Example of visual principles and tools used within daily work activities. This inventory management system is set up so that replenishment occurs when the Kanban tag is returned to the storekeeper. The time required to deliver, usage rates and a buffer are part of the calculation to ensure stock is replaced before it runs out. Note the use of Kanban tags and the orderly presentation of supplies. 92 310 Participant Workbook Reinforces Standard Expectations Example of visual principles and tools used within daily work activities. 93 311 Participant Workbook TOPIC 3: Mistake Proofing 94 312 Participant Workbook Right First Time Right First Time (RFT) is focused on mistake proofing a process in order to ensure that only quality products or parts are allowed through to the next step. This helps eliminate any waste incurred from rework. Implementing RFT enables organizations to achieve 100% quality and robustness in: equipment, technology, data, materials, deliverables, and employee engagement. Improves Reduces Establishes Rework Consistent Quality Productivity, Efficiency, and Effectiveness Waste Quality at Every Step Morale and Motivation Cost Accountability Safety 95 313 Participant Workbook Mistake Proofing and Poka Yoke Any mechanism in a Lean process that helps a worker avoid (yokeru) mistakes (poka). • Its purpose is to eliminate product defects by preventing, correcting, or drawing attention to human errors. • Typically these are when you put physical restrictions in place that prevent the error from occurring. Improves Reduces Establishes Safety Variation Consistent Quality Productivity Waste (Defects and Rework) Visualization of Normal vs. Abnormal Confidence Learning Curves Standardized Environment • It can be an aid to reinforce standard work. • If the poka-yoke is robust, there will be NO WORKAROUND. 96 314 Participant Workbook Poka Yoke Methods Poka Yoke sensing devices can be divided into three categories. Physical contact devices Energy sensing devices E.g. Guide pins that do not allow parts to be mounted in the wrong position, thus signaling the operator there is an issue. E.g. A sensor counts the number of times that the part or process is completed and releases when it reaches the correct amount. Warning sensors E.g. Uses sensors and photoelectric devices to determine if a motion or a step in a process has occurred or is safe. 97 315 Participant Workbook Mistake Proofing Examples “Every mistake is an opportunity” 98 316 Participant Workbook When mistake proofing is required: Mistake Proofing Strategies New process Revised or improved process Significant number of negative incidents reported The best mistake proof is when there is no workaround! Decrease Frequency Decrease Severity Increase Detection 99 317 Participant Workbook The following are the guidelines associated with attaining Poka Yoke: • Brainstorm possible problems and mistakes Approach for Implementing Mistake Proofing and Poka Yoke • Prioritize ways to avoid, detect, and decrease defects • Prioritize, select a best approach, and implement • Plan quick wins; get them done first Consider using a PICK chart to prioritize and select solutions. Work with sponsors to get longer-term solutions in place. 100 318 Participant Workbook > LESSON 4: Lean Improvement Planning 113 > TOPIC 1: Review Lean Concepts 114 319 Participant Workbook Types of Lean Activities Three main tools are used to deliver upon the five Lean principles. Value Value Stream Flow Pull Pursue Perfect PRIMARY IMPROVEMENT TECHNIQUES Process and Value Stream Mapping Kaizen 5S Supporting tools included in this program: Data collection, Gemba/waste walking, root cause analysis, mistake proofing, spaghetti diagrams, layout improvements, POUS, standard work and visual management 115 320 Participant Workbook Identifying Opportunities for Lean Concepts Template Lean Concept Improvement to Process (Describe the improvement you would want to make) Impact on Customer Impact on Workers (Describe the benefit to the (Describe the benefit to the workers) customer) Just in Time Right First Time Visual Management Standard Work 117 321 Participant Workbook TOPIC 2: Lean Project Lifecycle 118 322 Participant Workbook A3 Process Steps PLAN Clarify the Problem Analyze the Current State DO Develop and Select Solutions Design the Future State CHECK ACT Analyze the Root Cause Evaluate Results Standardize, Celebrate, and Follow up 119 323 Participant Workbook Lean Project Lifecycle PDCA Phases and Checkpoints Milestone 1: Define and Scope Opportunity Milestone 2: Current State Analysis 1 Project proposal approved (A3 problem statement, scope, team members) 2 Plan Planning is Key Milestone 3: Future State Design and Pilot Plan 3 Do Focus on Flawless Execution Milestone 4: Pilot Implementation and Verify Results Milestone 5: Sustainment and Closure 4 Check 5 Act Sustain & Stabilize at Closure Final project closure summary/ report (A3) 120 324 Participant Workbook Milestone Activities and Tools Milestone 1: Define and Scope Opportunity Milestone Timeline Key Activities Define problem, scope and opportunities. Identify your team participants. Milestone 2: Current State Analysis Milestone 3: Future State Design and Pilot Plan Basic data collection to measure and understand the current state. Design the future state based on prioritized and approved solutions. Implement actions and conduct routine “Check and Adjust” meetings. Hold the Lean Kaizen or 5S event to break down and analyze problem. Create the action plan with assigned accountability for deliverables by date. Verify pilot/test to compare with original baseline and calculate the improvement benefits. Plan and schedule your “Check and Adjust” meetings. YB Toolbox • • 5W2H Charter or A3 • • • • • • • • Deliverables Signed approved team charter/ A3 Data Collection Template Root Cause Analysis Template PICK Chart Prioritized Solutions Template A3 - Plan Process/VSM Toolkit Kaizen Toolkit 5S Toolkit • • Implementation Planning Template A3 - Do Milestone 4: Pilot Implementation and Verify Results Milestone 5: Sustainment and Closure Document your sustainment plan. Complete and submit Lean initiative summary. Sign-off with sponsor and present to steering. Conduct your Track and Learn with the team. • A3 – Check • • • • • Documented high level ”current” process map Documented high level “improved” process map Root cause with approved solutions Approved action plan Approved validation of pilot solutions, benefits, and learnings. Standard Work Visual Management Team Huddles (to review ongoing adjustments). A3 closure report Steering Presentation Outline. (PowerPoint template) Sponsor and steering approved Lean project closure document. 121 121 325 Participant Workbook Certification Exam 122 326 Participant Workbook Looking Ahead We have now covered all the required Yellow Belt materials: Value Value Stream Flow Pull Pursue Perfect Supporting Tools included in this program: PRIMARY IMPROVEMENT TECHNIQUES Process and Value Stream Mapping Kaizen 5S Data Collection Gemba/Waste Walking Root Cause Analysis Mistake Proofing Spaghetti Diagrams Layout improvements, POUS Standard Work Visual Management 123 123 327 Participant Workbook Exam Format • Online, located in participant’s LMS portal • One hour • Open book • 40 questions • Multiple choice - mix of single and multi-answer Program Assessment • Proctored/Supervised • Results communicated by email, certificate posted • Passing grade = 50% Must be completed by midnight Thursday May 26th 2022 124 328 Participant Workbook Supervisor/Proctor Form Every student who takes an examination needs to be supervised by a proctor. A supervisor/proctor is someone in an official capacity who can verify: a) the identity of the student, and b) that the requirements of the exam are met • The proctor should be a supervisor or other work colleague, and they should be present for the duration of your exam. Please note that a family member, spouse/partner is not permitted to act as the supervisory/proctor. • The third‐party proctor must sign the supervisory form after you complete the exam. • The proctor form is located in the exam course on the LMS. • Once you have taken your exam, please complete this form upload it to the LMS. Note for those working from home: • Given the exceptional circumstance that we’re in we have made amendments to the supervisory proctor process. To enable those working from home to continue and complete their certification programs, family members are now permitted to act as proctors for online exams. • If you are unable to organize a proctor, please contact LEG’s Education Lead (cdneducationlead@leadingedgegroup.com) for next steps 125 125 329 Participant Workbook How to Study Read over the entire participant workbook Focus on comprehension related to how, when/why and where to use the tools Know where to find specific topics in your participant workbook Review the practice exam 126 126 330 Participant Workbook Key Topics Areas to Study: Lean Thinking • Definitions and application of five principles, value, non value, waste, value stream mapping, Gemba Problem Solving • Five Whys, Fishbone, PDCA Value Stream Mapping • Purpose, approach, and benefits of value stream mapping • Symbols and definitions for cycle-time, lead-time, waiting time, value-add time, non value-add time, opportunity time, kaizen, data boxes, push and pull Lean Tools for Improvements • Definitions, benefits and application of visual management, standard work, kaizen, 5S, spaghetti diagram 127 331 Participant Workbook Exam Tips Exam anxiety typically goes away within the first 5 minutes Do something that will reduce your stress (positive thoughts, writing your name, drawing a picture, sing a song in your head, think about your partner/child/pet…) Read through the exam and look for questions you can answer Bring up your confidence, anxiety will dissipate Read each question completely before looking at the answers Answer the question- is it one of your selections? If you can’t answer the question- move on to the next, but note the question number so you know to go back to it Acknowledge key words in the question to ensure you understand the directions Is it looking for 1 choice or many? Is it looking for the opposite of what you think (i.e. which of the following are NOT) Break large questions into components if necessary Look to disregard out distractors (answers that are obviously wrong) No penalty for guessing- improve your odds! Don’t second judge yourself when/if you review your answers DON’T CHANGE YOUR ANSWERS!! 128 332 Participant Workbook Exam Scheduling 1. Complete practice exam online 2. Please arrange to have approved supervision of your exam attempt (more details on the Supervisory Proctor form). Download the Supervisory Proctor form which is available in the final exam course. 3. Please have your supervisor sign the Supervisory Proctor form and scan and submit it online after taking your exam. 4. We recommend that you write the exam between the hours of 9:00am-4:30pm EST on Monday to Friday, so that the Education Lead (cdneducationlead@leadingedgegroup.com) is available in case any technical support is required. Must be completed by midnight Thursday May 26th 2022 129 129 333 Participant Workbook > Next Steps > Personal Project Challenge 135 136 334 Participant Workbook What did you take away from today that will help you identify waste and opportunities for Lean improvements? Practice your new Lean skills in your current work environment. Consider your Lean Opportunities • Conduct a small 5S improvement • Consider the use of key improvement and sustaining techniques such as: • Standard Work • Visual Management • Mistake Proofing Leverage the techniques, templates and available toolkits from this program. 137 137 > Toolkits 138 335 Participant Workbook 5S Toolkit • 5S Audit Sheets: • 5S Office Audit Sheet.doc • 5S Personal Desk Audit Sheet.xlsm • 5S Shared Drive Audit Sheet.doc • 5S Audit Sheet Warehouse.pptx • Red Tag Log Templates and Toolkits • Red Tag Template Standard Work Templates • Standard Work Template Process Flow Chart.xls • Standard Work Template Job Instruction Visual Aid.docx • Standard Work Template Material Flow Chart. xlsx 139 139 336 Participant Workbook FOLLOW US Contact Us Leading Edge Group Suite 805, 60 St Clair Avenue East, Toronto, ON, M4T 1N5 @LEGLean facebook.com/LeadingEdgeGroupLean linkedin.com/company/leading-edge-group_2 Canada youtube.com/user/LeadingEdgeGroup1 t: (416) 637 5074 f: (647) 748 3722 https://www.leadingedgegroup.com/aboutus/blogs/ e: info@leadingedgegroup.com leadingedgegroup.com 142 337
