Lean introduction

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  • 1. Lean Introduction
  • 2. 2
    Agenda
    History of Lean
    Lean Principles
    Wastes and tools
    Value Stream approach
    Case – Lean in Mexico
    Where to find more
  • 3. 3
    Lean Six Sigma (00’s)
    Just in Time (‘80s)
    Lean Manufacturing (‘90s)
    (Kanbans, Pull systems, Visual management)
    (“Machine that changed the world”,“Lean Thinking”, Value Stream Mapping)
    Total Quality Management (’80s)
    BPR (‘90s)
    Deming/Juran(‘50s)
    Ohno(’60/‘70s)
    (culture change/benchmarking,Baldridge/EFQM, ISO9000)
    (SPC,QualityCircles, Kaizen)
    (down-sizing, “to be“processes, process owners)
    Motorola –Six Sigma (‘80s)
    (Allied Signal)
    (14 points,statisticalquality)
    (ToyotaProductionSystem)
    GE (‘80s – ‘90s)
    Intensity of Change
    Kotter etc. Transformation & Leadership
    Six Sigma(applied method for growth and productivity)
    Customer Partnering(GE Toolkit, QMI, Customer CAP
    Change Acceleration Process – CAP (Change method and tools)
    Process Improvement (NPI, Supply Chain, Suppliers)
    Best Practices(benchmarking, across and outside of GE, ending NIH)
    Work-out (Kaizen type, cross functional teams, boundarylessness, values)
    StrategyNo 1 or No 2 in each business. Fix, close or sell
    Lean & Six Sigma is based on over 50 years of improvement thinking and experience
  • 4. 4
    Value Stream
    Value
    Flow
    Perfection
    Pull
    Lean Principles
    Map all of the steps… value added & non-value added… that bring a product or service to the customer
    Define value from the customers perspective and express value in terms of a specific product or service
    The complete elimination of waste so all activities create value for the customer by breakthrough and continuous improvement projects
    The continuous flow of products, services and information from end to end through the process
    Nothing is done by the upstream process until the downstream customer signals the need, actual demand pulls product/service through the value stream
  • 5. 5
    Lean Basis of action
    Constancy of Purpose – the leadership drive the change accondingly with the long term goals
    Respect for People – every individual is a unique set of experiences and improvement ideas may come from anyone
    Proactive Behavior – looking for improvement opportunities every day
    Voice of the Customer – listen to the customer consistently ensure the focus on the right thing
    System Thinking – understanding the whole value stream enables creating smooth flow of value
  • 6. 6
    The goal of Lean is to flow more value to the customer for less resource by eliminating waste and reducing end-to-end time
    Before Lean project
    A service value stream: e.g. processing an application
    Customer Requirement‘as fast as possible’‘no mistakes’
    ‘easy transaction’
    lead time (LT)
    day 1
    day 30
    After Lean project
    Value demand better handled
    Failure demand removed
    processing an application
    lead time (LT)
    day 1
    day 8
    Where the gains come from
    Small
    Adds value to the customer
    Small to medium
    No value; needs to be done
    Large
    No value; no need to be done
    The bottom line: better customer service costs less not more!
  • 7. 7
    The 7 Wastes: The “Flu Virus” of the Office Environment
    Tip: T I M W O O D
    Additional toxic effects:
    • Physical fatigue
    • 8. Emotional fatigue
    • 9. Increased frustration
    • 10. Increased stress
    • 11. Placement of blame
    • 12. Decreased self-worth
    • 13. Indecisiveness
    In Lean terms, waste is anything that adds costs or time without adding value. The ultimate Lean target is the total elimination of waste
  • 14. 8
    Lean Tools
    A3 Thinking
    Value Stream Mapping
    Quality at Source
    Standardised Work
    5S: Sort; Set-in-order; Shine; Standardise; Sustain
    Visual Control & Management
    Cellular/Team Concepts
    Levelling, Management Timeframe and Takt Time
  • 15. 9
    Each Value Stream is launched with the following workshop program
    Mobilisation
    Assess Phase
    Test Cell Phase
    Impl.
    1d
    1d
    4d
    3d
    2d
    2w
    4w
    2w
    2w
    RO
    RO
    RO
    RO
    RO
    Prepare Test Cell
    Prepare Roll out
    Run Test Cell
    W0 – Kick off
    Mobilisation
    Workshop 2
    Workshop 3
    Workshop 4
    Workshop 1
    Analyze TC
    RO
    Report Out to Stakeholders
  • 16. 10
    Roles and Responsibilities
    Value Stream Sponsor, Lean Champion and Stakeholders
    To drive the realisation of Lean by:
    • Identifying and mobilising value-streams and opportunities therein
    • 17. Appointing suitable Value Stream Managers and mentoring them
    • 18. Steering value streams through Assessment, Implementation and Ongoing Management to realise benefits
    • 19. Attending the report out meetings
    • 20. Championing Lean with colleagues – sharing learning's and education
    Value Stream Manager
    To implement Lean in support of the broader business strategy by:
    • Leading the assessment of a core value stream in the business
    • 21. Implementing short, sharp improvements in the value stream that bring lasting change
    • 22. Being a role-model for Lean that embeds this way of managing continuous improvement
    Value Stream Team Member
    To implement Lean in support of the broader business strategy by:
    • Participating in the assessment of a core value stream in the business
    • 23. Co-running short, sharp improvements in the value stream that bring lasting change
    • 24. Supporting the ethos of Lean amongst colleagues across the organisation
    Lean Coach
    • To develop the capability of the Value Stream Sponsor and Manager
    • 25. To support the VSS and VSM to deliver the value stream effectively
  • 11
    Open
    Ticket
    Review Ticket
    & Assign
    Test & Close
    Ticket
    Investigate &
    Solution
    Open
    Ticket
    Work on
    solution
    Test & Close
    Ticket
    Background
    • With more than 109 years in the market, XXX is one of the Mexico largest player in the insurance sector
    • 26. 5 year contract (until Nov 2013)
    • 27. Single contract covering both Strategic Outsourcing and Application Services
    • 28. Application support for day to day operations (levels 1.5, 2, and 3)
    • 29. Application Maintenance of 900 applications
    • 30. Analysis and key concepts implemented
    • 31. Group teams in Cells facilitating the communication among the team members
    • 32. Adoption of visual display to make the targets and the actual performance clear
    • 33. Work on a single ticket at a time instead of multi-tasking among several tickets
    • 34. Clear prioritization of tickets
    • 35. Conversion to an improved flow of operations
    • 36. Standardized work
    • 37. Current Conditions
    • 38. Backlog was increasing 10% monthly
    • 39. More then 1500 Tickets on Backlog
    • 40. Customer pressure to reduce backlog
    • 41. Client provided a daily list of “prioritized tickets”. It was one of the causes of backlog increase, as tickets not finished would be switched to "new prioritized ones“.
    • 42. Low Team Morale 6.4 (scale 0-10) – August/2010
    • 43. 22 People from Level 2 need extra 12 people from Level 3 in order to close the tickets impacting Level 3 and the Customer
    2010 – Tickets of L2 Support
    • Proposed Countermeasures
    • 44. Tickets open – New tickets opened by Client. Demand of tickets open per day
    • 45. Tickets resolved – tickets solved, but not closed every day
    • 46. Tickets closed – tickets solved and closed every day
    • 47. Tickets in backlog – all tickets that are not closed
    • 48. Results
    • 49. Backlog reduction and USD 340k Benefits on cost avoidance up to April/2011
    • 50. Team Morale went higher from 6,4 (August/10) to 9 (February/11)
    35% backlog reduction
    1606 tickets when Test Cell started
    60% backlog reduction
    • Goals and Targets
    • 51. Reduce Backlog from –10% to 5% monthly;
    • 52. Improve Ticket Lead Time from 85 to 72 hours;
    • 53. Savings of USD 650k within 15 months
  • 12
    Other sources – Look for improvement opportunities and also...
    http://www.lean.org.br/ - Lean Institute Brasil
    http://www.lean.org/ - Lean Institute
    Lean IT
    Steve Bell
    Michael Orzen
  • 54. 13
    Contacts
    e-mail: andre_andreazzi@yahoo.com.br
    #Twitter – LeanAndreazzi
  • 55. Thank you