Lean@Tieto TIPS - European Lean IT Summit 2012

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Tieto Integrated Paper Solution (TIPS) is a leading manufacturing execution system for paper mills used by many customers in the industry. This story is about the lesons learnt from more than one year of Lean transformation, e.g how we broke the organizational silos, created capacity for change, enabled managers to become coaches, engaged the teams and managed to change behavior of 250 people in three different countries.
More Lean IT presentations and videos on www.lean-it-summit.com

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Lean@Tieto TIPS - European Lean IT Summit 2012

  1. 1. Copyright © Institut Lean France 2012 22 & 23 November, 2012 Paris, France Lean@TIPS Lean transformation of largedistributed product development
  2. 2. Copyright © Institut Lean France 2012 Speakers Martin Chmelař, Matěj Kastner, Lean&Agile Coach TIPS PLAN Team LeaderLean@TIPS – Matěj Kastner & Martin Chmelař 2
  3. 3. Copyright © Institut Lean France 2012 Tieto The leading IT service company in Northern Europe providing IT and product engineering services More than 18,000 employees in close to 30 countriesLean@TIPS – Matěj Kastner & Martin Chmelař 3
  4. 4. Copyright © Institut Lean France 2012 Lean transformation@TietoAn individual case Driven by Mentor  Pair work with Internal Coach Driven by Internal Coach Independent New coaches TeamCompany wide (Year 2015) Top-down support Doubled speed Doubled efficiency Half of effort Bottom-up DMN realization Lean@TIPS – Matěj Kastner & Martin Chmelař 4
  5. 5. Copyright © Institut Lean France 2012 Tieto Integrated Paper Solution TIPS The leading manufacturing execution system for paper mills • A comprehensive sales, logistics and production management solution for the pulp, paper, board and tissue industries • Management of the whole order-to-cash value chainLean@TIPS – Matěj Kastner & Martin Chmelař 5
  6. 6. Copyright © Institut Lean France 2012 22 & 23 November, 2012 Paris, France TIPS Product Development CHALLENGESLean@TIPS – Matěj Kastner & Martin Chmelař 6
  7. 7. Copyright © Institut Lean France 2012 Geographical setup 250 people in more Finland than 3 countries 50 Germany 100 100 Czech RepublicLean@TIPS – Matěj Kastner & Martin Chmelař 7
  8. 8. Copyright © Institut Lean France 2012 Matrix organization Profit Utilization Disconnected goals Head countLean@TIPS – Matěj Kastner & Martin Chmelař 8
  9. 9. Copyright © Institut Lean France 2012 Process organization X Heavy overload XCustomers Service 1 X Core Product Y Development Z Lean@TIPS – Matěj Kastner & Martin Chmelař 9
  10. 10. Copyright © Institut Lean France 2012 Value for customer??? FIN GER CZ Value delivery chain Flow CustomerLean@TIPS – Matěj Kastner & Martin Chmelař 10
  11. 11. Copyright © Institut Lean France 2012 Disaster Customers Defects Profit EmployeesLean@TIPS – Matěj Kastner & Martin Chmelař 11
  12. 12. Copyright © Institut Lean France 2012 22 & 23 November, 2012 Paris, France STOP! We need to change something SOLUTIONLean@TIPS – Matěj Kastner & Martin Chmelař 12
  13. 13. Copyright © Institut Lean France 2012 Don’t control – improve! TIPS product development Complex • Learn Mill execution system – TIPS and adapt Lean@Manufacturing “Simple” Paper mill • Stabilize and controlLean@TIPS – Matěj Kastner & Martin Chmelař 13
  14. 14. Copyright © Institut Lean France 2012 Continuous improvement Lean@Tieto/TIPS TIPS product development Mill execution system – TIPS Lean@Manufacturing Paper millLean@TIPS – Matěj Kastner & Martin Chmelař 14
  15. 15. Copyright © Institut Lean France 2012 Ask for help with implementation! Coaching & Mentoring Lean@Tieto framework Lean@TIPS continuous improvement TIPS product developmentLean@TIPS – Matěj Kastner & Martin Chmelař 15
  16. 16. Copyright © Institut Lean France 2012 22 & 23 November, 2012 Paris, France From the trenches LESSONS LEARNTLean@TIPS – Matěj Kastner & Martin Chmelař 16
  17. 17. Copyright © Institut Lean France 2012 Pull people out of their boxes Kaizen workshop • Synchronize • Focus • Go! ! ! C C !Lean Awareness Workshops !• Cross countries, units and functions ! !• Lean tools – practical experience ! ! Lean@TIPS – Matěj Kastner & Martin Chmelař
  18. 18. Copyright © Institut Lean France 2012 Break the silos Truly global organization Communication with international teams FIN GER 6% CZ (76% mgmt.) ROI for time investmentCarsten HenkeDirector, TIPS 200% Shared targets & Balancing KPIs (2011->2012) Lean@TIPS – Matěj Kastner & Martin Chmelař 18
  19. 19. Copyright © Institut Lean France 2012 Solve problems together ?Lean@TIPS – Matěj Kastner & Martin Chmelař 19
  20. 20. Copyright © Institut Lean France 2012 Solve problems together ? ?!Lean@TIPS – Matěj Kastner & Martin Chmelař 20
  21. 21. Copyright © Institut Lean France 2012 Solve problems together @#&! ? ?! ?!?Lean@TIPS – Matěj Kastner & Martin Chmelař 21
  22. 22. Copyright © Institut Lean France 2012 Solve problems together @#&! ? ?! ?!? C C ?Lean@TIPS – Matěj Kastner & Martin Chmelař 22
  23. 23. Copyright © Institut Lean France 2012 Question value of every activity Propagation of code changes limited to 3 versions (from original 5-8) Example Code change ~150 k€/year savedLean@TIPS – Matěj Kastner & Martin Chmelař 23
  24. 24. Copyright © Institut Lean France 2012 Slow down to speed up CapacityCustomers X Available Core Product Improvement Development Overrun X Service 1 X P U L L Y 1. Establish pull concept 2. Prioritize Z 3. Dedicate capacity for improvementLean@TIPS – Matěj Kastner & Martin Chmelař 24
  25. 25. Copyright © Institut Lean France 2012 Make it sustainable1. Regular self-reflection: “How much do you think we do this?” (1-5) Behavior AVG DEV Data We create enough improvement ideas/A3s 4,1 0,38 5 4 4 4 4 4 4 A3s are prioritized by estimated benefit (and complexity) 3,0 0,82 3 4 3 4 2 3 2 We resolve A3s fast enough 1,7 0,76 2 3 2 1 1 1 2 Every A3 has set "good enough goal" (acceptable level) 2,0 1,41 2 2 1 5 2 1 1 There are regular follow-ups on A3s in progress 2,1 0,69 3 3 2 2 1 2 2 Every A3 in progress has an agreed future next step 2,9 0,90 2 4 4 3 3 2 22. Well, it seems we don’t resolve A3s fast enough due to vague goals… 1. Learning3. Let’s define more concrete A3s’ goals 2. Focus 3. ImprovementLean@TIPS – Matěj Kastner & Martin Chmelař 25
  26. 26. Copyright © Institut Lean France 2012 Grow internal Lean coaches E E E E I I IExternal coaches/mentors:• Experience  tools, solutions, shortcuts ? ?• Focus on what is important  speed E ! E I• Spreading information  breaking silos I• Step back  let internal coaches drive ILean@TIPS – Matěj Kastner & Martin Chmelař 26
  27. 27. Copyright © Institut Lean France 2012 22 & 23 November, 2012 Paris, France RESULTSLean@TIPS – Matěj Kastner & Martin Chmelař 27
  28. 28. Copyright © Institut Lean France 2012 Results Profit Satisfaction 2x Employees * Average monthly profit in 2012 compared to 2011 Customers5040 Start302010 0-10 Lean@TIPS – Matěj Kastner & Martin Chmelař 28
  29. 29. Copyright © Institut Lean France 2012 Results 135 125 115 Start 105 95 85 Lead time 75 65 (from order to closure) 55 45 35 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 2011 201212001000 800 600 400 200 Defects Start 0 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 2011 2012 Lean@TIPS – Matěj Kastner & Martin Chmelař 29
  30. 30. Copyright © Institut Lean France 2012 Feedback Lean@Tieto significantly contributed by: x • Cross-functional, cross-country Lean workshops providing brand new perspective on improvements, pulling people out of their boxes. x • Sharing experience and providing on-job coaching. Carsten Henke Director, TIPSLean@TIPS – Matěj Kastner & Martin Chmelař 30
  31. 31. Copyright © Institut Lean France 2012 Key take-aways• Break the silos  Bring people together – pull them out of their boxes  Align targets – shift them upwards• Slow down to speed up  Reduce incoming work – create space for improvement  Question value of everything you do• Make it sustainable  Grow up internal Lean coaches  Establish regular self-reflectionLean@TIPS – Matěj Kastner & Martin Chmelař 31
  32. 32. Copyright © Institut Lean France 2012 Future work? Do Limit improvements WIP Plan Check Help internal coaches grow Act Stabilize and standardize improvementsLean@TIPS – Matěj Kastner & Martin Chmelař 32
  33. 33. Copyright © Institut Lean France 2012 22 & 23 November, 2012 Paris, France Thank you  QUESTIONSLean@TIPS – Matěj Kastner & Martin Chmelař 33
  34. 34. Copyright © Institut Lean France 2012 22 & 23 November, 2012 Paris, FranceMore Lean IT presentations and videos on www.lean-it-summit.com

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