Enterprise LEAN

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Enterprise LEAN

• Improving organizational performance in Minnesota
  state government

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What is LEAN?

• LEAN is a time-tested set of methods and tools
  that help identify and reduce defects and waste
  within processes while improving productivity,
  employee morale, and customer service.
• LEAN engages the people who work in the process,
  in the effort to improve the process.
• It is designed to bring measureable, sustainable
  improvement to your business processes.

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Lean? Six Sigma? TQM?

• All come from common origins of statistical
  process control (SPC) begun in 1920s
• All focus on continuous process improvement
  engaging those that work in the process to
  identify and implement improvements
• Lean has a stronger focus on efficiency and
  reducing cost/time, and a stronger bias for action

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The goal of Enterprise LEAN is .

• to have active, sustainable process improvement
  efforts in all 24 cabinet-level state agencies by
  the end of 2010.
• Currently, 8 agencies have instituted a formal CI
  effort 16 have conducted Lean kaizen events 17
  have staff trained as kaizen facilitators 22
  have had staff attend one-day Lean 101 training.
• For the latest on projects, participants and
  results, visit and bookmark the Enterprise LEAN
  website at www.Lean.state.mn.us.

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Why focus on process?

• Nearly every tangible output service or
  product, is created as the result of a process or
  series of processes (system).
• Its been shown that over 85 of the opportunity
  to improve those outputs lie within the process
  itself.

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Mapping the process
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Building a Successful Lean Transformation
Strategy
Leadership
Sustainment
Lean Transformation
Kaizen
Training
Planning
7 Wastes
5S
Standard Work
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Fundamentals of Lean

• The Seven Wastes

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Value vs. Non-Value

• Are we adding value, or just doing stuff?

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In the LEAN world, if it is not value-added, it
is considered waste -even if it is essential.

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Value added vs. non-value added

• Its an activity that consumes resources without
  directly creating value for the customer
• It is an activity that is unpredictable in
  creating value
• Its an activity that requires more time, effort,
  or resource than it has to.

• It is an action that a customer/taxpayer would be
  willing to pay for
• It transforms a product or service
• It is done correctly the first time

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Value added vs. non-value added
Typically, less than 1 of a time that we own a
product or service is spent adding value.
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The seven wastes 1

• Defects (poor quality)
• Transportation
• Waiting
• Overproduction
• Inventory/Storage
• Motion
• Extra processing
• Underutilized creativity

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Can you see the wastes?
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Defects

• Any element of a product or service that does
  not meet a key customer requirement.

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Defects usually create

• Re-work
• Re-inspection
• Re-design
• More cost,
• And unhappy customers

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Transportation

• The unnecessary movement of information or
  materials between processes.

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Follow the bouncing paperwork
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Waiting

• People, parts, systems, or facilities waiting
  for a work cycle upstream to be completed.

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Factoid

• About 95 of the time that is required to
  produce a product or service is because of
  waiting.

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1
Request
Delivery
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1
Request
Delivery
We eliminate the waste so we use our resources to
do the work that our customer pays us for.
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Overproduction

• Producing products or services faster or in
  greater quantity your customers are using them
  requires
• more movement
• more storage
• more capital tied up in inventory
• more resources to track inventory

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Office examples of overproduction

• We need 54 copies, but we make 60, just in case.
• We print 5000 brochures because the price per
  piece is cheaper, we inventory, store and finally
  recycle 2/3 of them.
• We print and distribute forms that frequently
  change.

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Inventory/Storage

• Storing more materials than you need in the
  near-term, creating and storing multiple copies
  of the same documents in multiple locations.

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Motion

• Any movement of peoples bodies that does not
  add value to product or service

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Before
End
2
4
3
1
Start
6
5
Mail
File
File
1
4
7
File
Review
2
5
Issuer
Mail
3
6
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After
Issuance Work Area
2
2
1
3
3/4
Mail
1
Issuers/depositors
2
Quality
3
Helptracking
4
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Extra processing

• Multiple inspections (no quality at the source
  QC vs QA)
• Multiple signatures/authorizations
• Different ways to produce the same product (no
  standardized work)
• Batching work

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Underutilized creativity

• People who work in the process, know the process
  best (both the strengths and weaknesses).
• Do they have the tools, training, and permission
  to systematically improve their process?

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Fundamentals of Lean

• 5 S

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What Is 5S?

• Methodology for creating a clean, safe, orderly,
  high performance work environment

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The 5 Ss

• Sort
• Set In Order
• Shine
• Standardize
• Sustain

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1S - Sort
1S

• Catch Phrase
• When in doubt, move it out.

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Example - Sort
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Set In Order
2S

• Catch Phrase
• A place for everything, and everything in its
  place.

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Set In Order - What is It?
2S

• Organizing, arranging, and storing material,
  equipment, and information that is currently
  being used.
• Identifying a specific place for everything.
• Arranging physical and electronic information so
  that the most commonly used information is
  quickest to access
• Establishing procedures that will allow items to
  be easily found, handled, replenished, and
  returned to their original location quickly.

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Set In Order Why?
2S

• To immediately recognize items that are out of
  place, recognize excess inventory, and identify
  the need to order more of a particular item
• To reduce wasted time spent locating materials
  and information
• To improve your level of customer service

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Set in Order Rule of Thumb
2S

• Arrange needed items so that they are easy to use
  and label them so that anyone can find them and
  put them away.
• YOU should be able to find ANYTHING in your
  office in 30 seconds or less.
• ANYONE should be able to find ANYTHING in YOUR
  office in 60 seconds or less.
• Eliminates many kinds of WASTE in our daily
  activities

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Is this an efficient work place?
2S
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Shine
3S

• Catch Phrase
• The best cleaning is to not need cleaning.

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Shine Why?
3S

• To boost morale
• To improve the health and safety of employees
• To develop a sense of ownership in the equipment
  and facility
• To identify and eliminate root causes of
  cleanliness issues

If a workspace is getting dirty faster than it
can be cleaned, the root cause of the problem
has not been identified.
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Standardize
4S

• Catch Phrase
• See and recognize what needs to be done.

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Standardize What Is It?
4S

• A method in which Sort, Set in Order, and
  Shine are maintained and made habitual
• It is important to achieve buy-in and consistency
  from team members as well as institute the 5S
  process into a regular work routine, making it
  systematic

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Sustain
5S

• Catch Phrase
• The less self-discipline you need, the better.

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Sustain What Is It?
5S

• Effective, ongoing application of knowledge,
  skills, and abilities gained from the 5S process
  in order to improve organizational wide
  effectiveness
• Sustaining also involves motivating and
  maintaining an ongoing commitment to the 5S
  process and obtaining discipline in employees
  assigned roles and responsibilities
• Sustain is often the most difficult part of the
  5S process

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Fundamentals of Lean

• Standard Work

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Standard work is a foundation of Lean and
continuous improvement. To reduce output
variation, and improve the performance of any
process, clear definitions of how tasks should be
done, and the amount of time provided in the
process must be established and maintained.
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What is Standard Work?

• A simple, written description of the safest,
  highest quality, and most efficient way known to
  perform a particular task.
• The only acceptable way to do a task.
• Expected to be continually improved

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What is Standard Work?

• Includes the amount of time allotted for the task
  to be acted on.
• Focuses on the employee, not the equipment or
  materials
• Reduces variation, increases consistency

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Kaizen - bringing the tools together

• Kaizen
• Kai Change
• Zen Good
• Kaizen Change for the better
• A facilitated, concentrated improvement event,
  involving those that work in the process.
• The focus is on employee-driven improvements

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Making change is easy..

• making improvement is hard
• 
  Ferdinand Porsche

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Review Swim Lane Maps
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Swim Lane Mapping MetricsDHS kaizen
Don
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Whats your role in continuous process
improvement?

• Help your people understand what it is
• Be a role model personally challenge the status
  quo
• Make improvement your priority we have time to
  fix problems but not to prevent them?
• Support those that suggest improvements
• Recognize and reward

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Why LEAN wont work in my unit

• We dont have time for this
• Our people wont like it
• We tried something like this 10 years ago and it
  didnt work
• State policy and statute wont allow it

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You can think you can achieve something, or you
can think you cant. Henry Ford

• And you will be right

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Questions?