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LEAN SEMINARS/1
Reduce Waste, Add More Value
To Your Customers
20th Jan, 2014, London

Andrea Darabos MSc., MBA
Business I...
Why Lean Seminars?
LEAN ADVANTAGE SEMINARS @

, in partnership with the team of

•

At LEAN ADVANTAGE Ltd., we work with l...
Agenda
• 15 mins
• 10 mins
• 15 mins
• 15 mins
• 10 mins
• 15 mins
• 5 mins
• 35 mins

Introductions
What is Lean?
How cus...
Introductions – Diversity Game
• About Me:
• What I do:
• My previous knowledge of lean:
• Why this seminar:
Sum up divers...
About Me - Andrea
• Hungarian, 30-40
• What I do: I coach, train, consult, public speak…

I help organisations to see them...
What is Lean?
• Lean originates from manufacturing in Toyota Japan, 1960s:
“To survive long term as a company by improving...
What is Lean?
1, A Philosophy?
Based on:
Roger Dyer, JEL
Business Process
Improvement Ltd.
Niklas Modig,
Ericsson executiv...
What is Lean?
1, A Philosophy?
Based on:
Roger Dyer, JEL
Business Process
Improvement Ltd.
Niklas Modig,
Ericsson executiv...
Lean is not alone in improving
value creation…
Theory of Constraints

SCRUM

Complexity thinking

Lean Agile Leadership
Ch...
Exercise 1, - Value Creation
Step 1: What Value (services, products) do you provide to your customers?
Pick one and note i...
How Customers think of Value
„A tale of two friends”

OUCH!

Copyright © of LEAN ADVANTAGE Ltd. www.leanadvantage.co.uk
An...
How Customers think of Value
TOTAL: 3 days

2 hrs

2 hrs

1,5 day
Examination

Diagnosis

1 hr

1 day
Surgery

1 hr
Pharma...
How Customers think of Value

TOTAL: 0,5 day
1 hr

1 hr

1 hr
Examination
and
Diagnosis

Surgery

10 mins
Medication

Tran...
Which Customer Would You Like to Be?
TOTAL: 3 days

2 hrs

2 hrs

1,5 day
Examination

Diagnosis

1 hr

1 day
Surgery

1 h...
(We) Customers Think End to End Experience
„I will never come back again!
They are wasting my time.”
„I love their product...
How (We) Organisations Provide Value
CEO

CXO

CXO

CXO

Sales

Marketing

Product/Service
Development

„I am in Sales!
En...
The 8 Lean Office Wastes
T
I
M
W
O
O
D
S

Motion

Waiting

Moving data,
Unfinished work,
materials or the customer Unread ...
Exercise 2, - Learn to See Waste
Where do the 8 Lean Office Wastes (TIM WOODS) exist
in Your Organisation?
Note down as ma...
How winning organisations optimize
for value?
Step 1: What Value (services, products) do we provide to our customers?
Step...
A Typical Enterprise Value Stream
Customer
Problem
or Need

Customer
Need to Order

Order to
Cash

Customer
Support

Custo...
Value is created by You, but defined
by the customer

Total lead time
Value-Adding time

Non Value-Adding time – BNVA wast...
Value Analysis
Value-Adding activity
• Essential for a good service or delivery of product
• Customer is usually willing t...
Exercise 3, - Value Creation
Step 1: DONE
Step 2: DONE
Step 3: Identify your value stream(s).
What are the steps we do to ...
Why Value Stream map?
• To see yourself with the eyes of your customer
• To understand what customers value

• To save cas...
How to Value Stream map?
• Do it collaboratively with all the necessary stakeholders involved
• Focus on the actual, curre...
Why Lean for Social Problems?
Governments, NGOs, Social Enterprises

Step 1: What Value (services, products) do they provi...
Lean’s (Social) Potential
Mission: „To end curable blindness”
Story of Aravind Eye Care System –
Inspired by lean, the fou...
Good Reads – Lean Value Creation

Copyright © of LEAN ADVANTAGE Ltd. www.leanadvantage.co.uk
Andrea Darabos Lean Practitio...
Save the Dates!
LEAN ADVANTAGE SEMINARS @

•

, in partnership with the team of

Monday, 20th January 6:00 p.m. – 8:00 p.m...
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Lean seminar - Reduce waste, add more value to your customers 20th-jan2014 London IMPACT Hub

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The topic is very relevant for any professional organisation starting their Lean Six Sigma journey. Seeing waste and looking at your processes from your customer's standpoint is fundamental to any Lean Six Sigma effort.

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Transcript of "Lean seminar - Reduce waste, add more value to your customers 20th-jan2014 London IMPACT Hub "

  1. 1. LEAN SEMINARS/1 Reduce Waste, Add More Value To Your Customers 20th Jan, 2014, London Andrea Darabos MSc., MBA Business Improvement Consultant, Coach Andrea@leanadvantage.co.uk Phone: +44 793 604 1196 LEAN ADVANTAGE Ltd. In Partnership with:
  2. 2. Why Lean Seminars? LEAN ADVANTAGE SEMINARS @ , in partnership with the team of • At LEAN ADVANTAGE Ltd., we work with large, global organizations • Our Mission is to improve the value creation in organisations, governments, in order to achieve better services and happy customers • Our Vision is to improve leadership in organisations, to have happier employees and more satisfying work • We would like to share our knowledge with small-medium enterprises and the social sector Copyright © of LEAN ADVANTAGE Ltd. www.leanadvantage.co.uk Andrea Darabos Lean Practitioner, Andrea@leanadvantage.co.uk , +44 07936 041196, Twitter @ADarabos
  3. 3. Agenda • 15 mins • 10 mins • 15 mins • 15 mins • 10 mins • 15 mins • 5 mins • 35 mins Introductions What is Lean? How customers think of value (and waste) Breakout session – how do the 8 wastes apply to me? How winning organisations optimize for value Breakout session – opportunities in my organisation? Why is lean thinking essential for a social enterprise? Q&A, feedback, networking Copyright © of LEAN ADVANTAGE Ltd. www.leanadvantage.co.uk Andrea Darabos Lean Practitioner, Andrea@leanadvantage.co.uk , +44 07936 041196, Twitter @ADarabos 3
  4. 4. Introductions – Diversity Game • About Me: • What I do: • My previous knowledge of lean: • Why this seminar: Sum up diversity points per table: +1 point if all of you are different in a given category Copyright © of LEAN ADVANTAGE Ltd. www.leanadvantage.co.uk Andrea Darabos Lean Practitioner, Andrea@leanadvantage.co.uk , +44 07936 041196, Twitter @ADarabos 4
  5. 5. About Me - Andrea • Hungarian, 30-40 • What I do: I coach, train, consult, public speak… I help organisations to see themselves through the eyes of their customers, ~ to build skills of continuous improvement, agility • My previous knowledge of lean: 7 years of lean, agile, project management On my lean journey… • Why this seminar: to show the power of lean agile, when applied to real-life problems Copyright © of LEAN ADVANTAGE Ltd. www.leanadvantage.co.uk Andrea Darabos Lean Practitioner, Andrea@leanadvantage.co.uk , +44 07936 041196, Twitter @ADarabos 5
  6. 6. What is Lean? • Lean originates from manufacturing in Toyota Japan, 1960s: “To survive long term as a company by improving and evolving how we make good products for the customer.” • Since then, Lean has been successfully applied in all major sectors around the world: • Government & Public sector, Military and Defense, Banking, Software Industry, Retail, Research, Service Sector, Startups Copyright © of LEAN ADVANTAGE Ltd. www.leanadvantage.co.uk Andrea Darabos Lean Practitioner, Andrea@leanadvantage.co.uk , +44 07936 041196, Twitter @ADarabos 6
  7. 7. What is Lean? 1, A Philosophy? Based on: Roger Dyer, JEL Business Process Improvement Ltd. Niklas Modig, Ericsson executive presentation 2, Improvement Methodology A set of Tools and Techniques that can be used to guide problem-solving and continuous improvement 3, A Toolbox? Lean is a philosophy, methodology and toolbox all in one. Copyright © of LEAN ADVANTAGE Ltd. www.leanadvantage.co.uk Andrea Darabos Lean Practitioner, Andrea@leanadvantage.co.uk , +44 07936 041196, Twitter @ADarabos 7
  8. 8. What is Lean? 1, A Philosophy? Based on: Roger Dyer, JEL Business Process Improvement Ltd. Niklas Modig, Ericsson executive presentation A Mindset and Belief that we need to continuously improve to maximize value for the customer by reducing waste and variation, forever 2, Improvement Methodology A set of Tools and Techniques that can be used to guide problem-solving and continuous improvement 3, A Toolbox? Lean is a philosophy, methodology and toolbox all in one. Copyright © of LEAN ADVANTAGE Ltd. www.leanadvantage.co.uk Andrea Darabos Lean Practitioner, Andrea@leanadvantage.co.uk , +44 07936 041196, Twitter @ADarabos 8
  9. 9. Lean is not alone in improving value creation… Theory of Constraints SCRUM Complexity thinking Lean Agile Leadership Change (project) management Agile Product Management Kaizen Lean Six Sigma KANBAN … Etc. Copyright © of LEAN ADVANTAGE Ltd. www.leanadvantage.co.uk Andrea Darabos Lean Practitioner, Andrea@leanadvantage.co.uk , +44 07936 041196, Twitter @ADarabos 10
  10. 10. Exercise 1, - Value Creation Step 1: What Value (services, products) do you provide to your customers? Pick one and note it down Step 2: Who are your customers for that service/product? Write down a list of your - External customers - Internal customers Copyright © of LEAN ADVANTAGE Ltd. www.leanadvantage.co.uk Andrea Darabos Lean Practitioner, Andrea@leanadvantage.co.uk , +44 07936 041196, Twitter @ADarabos 11
  11. 11. How Customers think of Value „A tale of two friends” OUCH! Copyright © of LEAN ADVANTAGE Ltd. www.leanadvantage.co.uk Andrea Darabos Lean Practitioner, Andrea@leanadvantage.co.uk , +44 07936 041196, Twitter @ADarabos 12
  12. 12. How Customers think of Value TOTAL: 3 days 2 hrs 2 hrs 1,5 day Examination Diagnosis 1 hr 1 day Surgery 1 hr Pharmacy Drive home Copyright © of LEAN ADVANTAGE Ltd. www.leanadvantage.co.uk Andrea Darabos Lean Practitioner, Andrea@leanadvantage.co.uk , +44 07936 041196, Twitter @ADarabos Start of Recovery 13
  13. 13. How Customers think of Value TOTAL: 0,5 day 1 hr 1 hr 1 hr Examination and Diagnosis Surgery 10 mins Medication Transport service Copyright © of LEAN ADVANTAGE Ltd. www.leanadvantage.co.uk Andrea Darabos Lean Practitioner, Andrea@leanadvantage.co.uk , +44 07936 041196, Twitter @ADarabos Start of Recovery 14
  14. 14. Which Customer Would You Like to Be? TOTAL: 3 days 2 hrs 2 hrs 1,5 day Examination Diagnosis 1 hr 1 day Surgery 1 hr Pharmacy Drive home Start of Recovery TOTAL: 0,5 day 1 hr 1 hr 1 hr Examination and Diagnosis Surgery 10 mins Medication Transport service Copyright © of LEAN ADVANTAGE Ltd. www.leanadvantage.co.uk Andrea Darabos Lean Practitioner, Andrea@leanadvantage.co.uk , +44 07936 041196, Twitter @ADarabos Start of Recovery 15
  15. 15. (We) Customers Think End to End Experience „I will never come back again! They are wasting my time.” „I love their product, but their service ***disappoints*** !” Photo credits: Shutterstock Copyright © of LEAN ADVANTAGE Ltd. www.leanadvantage.co.uk Andrea Darabos Lean Practitioner, Andrea@leanadvantage.co.uk , +44 07936 041196, Twitter @ADarabos 16
  16. 16. How (We) Organisations Provide Value CEO CXO CXO CXO Sales Marketing Product/Service Development „I am in Sales! Engineering should fix this” CXO Product/Service Delivery „The customer is your problem!” CXO Etc. Customer Support „I have never met a customer!” Copyright © of LEAN ADVANTAGE Ltd. www.leanadvantage.co.uk Andrea Darabos Lean Practitioner, Andrea@leanadvantage.co.uk , +44 07936 041196, Twitter @ADarabos 17
  17. 17. The 8 Lean Office Wastes T I M W O O D S Motion Waiting Moving data, Unfinished work, materials or the customer Unread emails Searching, handling, multitasking Authorization, decision-making Overprocessing Overproduction Defects Skills - unused More work than needed to satisfy the customer. Producing too much, too soon. Data entry, lost information, rework Not using the full potential of employees Transport Inventory Copyright © of LEAN ADVANTAGE Ltd. www.leanadvantage.co.uk Andrea Darabos Lean Practitioner, Andrea@leanadvantage.co.uk , +44 07936 041196, Twitter @ADarabos 18
  18. 18. Exercise 2, - Learn to See Waste Where do the 8 Lean Office Wastes (TIM WOODS) exist in Your Organisation? Note down as many examples as you can think of. Discuss with your table. Copyright © of LEAN ADVANTAGE Ltd. www.leanadvantage.co.uk Andrea Darabos Lean Practitioner, Andrea@leanadvantage.co.uk , +44 07936 041196, Twitter @ADarabos 19
  19. 19. How winning organisations optimize for value? Step 1: What Value (services, products) do we provide to our customers? Step 2: Who are our customers (internal, external) for this value? Step 3: What are the steps we do to create this service for our customers? Step 4: What waste and opportunities can we identify (based on customer feedback) in our service? Repeat. Copyright © of LEAN ADVANTAGE Ltd. www.leanadvantage.co.uk Andrea Darabos Lean Practitioner, Andrea@leanadvantage.co.uk , +44 07936 041196, Twitter @ADarabos 20
  20. 20. A Typical Enterprise Value Stream Customer Problem or Need Customer Need to Order Order to Cash Customer Support Customer Satisfaction and Loyalty E.g. Marketing, Product Development, Quote, Sales Order, etc. Value Stream: The collection of all actions/processes necessary to transform customer needs into products and services supported throughout their lifecycles. Copyright © of LEAN ADVANTAGE Ltd. www.leanadvantage.co.uk Andrea Darabos Lean Practitioner, Andrea@leanadvantage.co.uk , +44 07936 041196, Twitter @ADarabos 21
  21. 21. Value is created by You, but defined by the customer Total lead time Value-Adding time Non Value-Adding time – BNVA waste NVA waste Customers want: Maximal Value-Adding time as % of Total lead time (Flow efficiency). Copyright © of LEAN ADVANTAGE Ltd. www.leanadvantage.co.uk Andrea Darabos Lean Practitioner, Andrea@leanadvantage.co.uk , +44 07936 041196, Twitter @ADarabos 22
  22. 22. Value Analysis Value-Adding activity • Essential for a good service or delivery of product • Customer is usually willing to pay for this activity • Should be standardized, optimized Business Non Value-Adding activity • Is necessary for the business (financial, regulations) • Should be minimized if possible Non Value-Adding activity • Not necessary & not valued by the customer • Usually, one of the TIM WOODS • Should be eliminated Copyright © of LEAN ADVANTAGE Ltd. www.leanadvantage.co.uk Andrea Darabos Lean Practitioner, Andrea@leanadvantage.co.uk , +44 07936 041196, Twitter @ADarabos 23
  23. 23. Exercise 3, - Value Creation Step 1: DONE Step 2: DONE Step 3: Identify your value stream(s). What are the steps we do to create this service for our customers? Share your value stream with your table. Step 4: Any waste (TIM WOODS) that you can see in your value stream? Copyright © of LEAN ADVANTAGE Ltd. www.leanadvantage.co.uk Andrea Darabos Lean Practitioner, Andrea@leanadvantage.co.uk , +44 07936 041196, Twitter @ADarabos 24
  24. 24. Why Value Stream map? • To see yourself with the eyes of your customer • To understand what customers value • To save cash and customers’ time • To catalyze customer-focused improvement • To enable employees to see the future Copyright © of LEAN ADVANTAGE Ltd. www.leanadvantage.co.uk Andrea Darabos Lean Practitioner, Andrea@leanadvantage.co.uk , +44 07936 041196, Twitter @ADarabos 25
  25. 25. How to Value Stream map? • Do it collaboratively with all the necessary stakeholders involved • Focus on the actual, current state - Understand where you are before you decide where to go • Draw by hand, note down all the current steps involved - How information and materials flow - Gather actual data on lead times, queue times • Understand customer value as defined by them (VA) • Identify NVA waste, opportunities and start improving Copyright © of LEAN ADVANTAGE Ltd. www.leanadvantage.co.uk Andrea Darabos Lean Practitioner, Andrea@leanadvantage.co.uk , +44 07936 041196, Twitter @ADarabos 26
  26. 26. Why Lean for Social Problems? Governments, NGOs, Social Enterprises Step 1: What Value (services, products) do they provide to our customers? Solving social problems Step 2: Who are their customers? Citizens, people in need Step 3, 4: Lean is a mindset that constantly strives to maximize social impact for the benefit of all in need. Copyright © of LEAN ADVANTAGE Ltd. www.leanadvantage.co.uk Andrea Darabos Lean Practitioner, Andrea@leanadvantage.co.uk , +44 07936 041196, Twitter @ADarabos 27
  27. 27. Lean’s (Social) Potential Mission: „To end curable blindness” Story of Aravind Eye Care System – Inspired by lean, the founder Dr. G. Venkataswamy implemented standardization and continuous improvement to be able to serve the millions of people in need. Today, it is the most productive eyecare facility in the world. Short: http://youtu.be/3cjnNPua7Ag Long: http://youtu.be/Jr70IrWM-n8 (Lean in Aravind: min. 14:00) Copyright © of LEAN ADVANTAGE Ltd. www.leanadvantage.co.uk Andrea Darabos Lean Practitioner, Andrea@leanadvantage.co.uk , +44 07936 041196, Twitter @ADarabos 28
  28. 28. Good Reads – Lean Value Creation Copyright © of LEAN ADVANTAGE Ltd. www.leanadvantage.co.uk Andrea Darabos Lean Practitioner, Andrea@leanadvantage.co.uk , +44 07936 041196, Twitter @ADarabos 29
  29. 29. Save the Dates! LEAN ADVANTAGE SEMINARS @ • , in partnership with the team of Monday, 20th January 6:00 p.m. – 8:00 p.m. - TODAY Reduce Waste, Add More Value To Your Customers • Monday, 17th February 6:00 p.m. – 8:00 p.m. Get More Done in Your Business with KANBAN • Monday, 17th March 6:00 p.m. – 8:00 p.m. 5 Simple Steps to Improve Your Business and Life Thank You! Give us feedback and send your thoughts, questions. Copyright © of LEAN ADVANTAGE Ltd. www.leanadvantage.co.uk Andrea Darabos Lean Practitioner, Andrea@leanadvantage.co.uk , +44 07936 041196, Twitter @ADarabos
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