2. Objectives
By the end of the course, you would be able
to:
⢠Understand the principles and key concepts of Lean
⢠Identify value and waste
⢠Gain an overview of key Lean principles and tools, and
their applications
⢠Apply 5S principles to improve workplace organization
and efficiency
⢠Apply a simple problem solving process
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4. What Lean IS NOT
⢠Laying off employees by the bus load
⢠Offshoring or outsourcing
⢠Delivering less or working harder
⢠Being mean to people
⢠Automation or implementing an IT system
⢠Narrow focus on unit cost management
⢠Another âextracurricular activitiesâ
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5. Lean Office Framework
(a.k.a. Toyota Production System)
1 Stability
Goals:
highest quality,
lowest cost, shortest lead times
2 Standardization
3 Just-In-Time
3 Just-In-Time
⢠Continuous flow
4 Jidoka
Jidoka
Involvement
5
⢠Separate man &
⢠Takt time
machine work
⢠Pull system
5 Involvement
4
⢠Abnormality
Identification
⢠Flexible workforce
⢠Poka yoke
2
Heijunka
Standardized Work
Kaizen
1 Stability
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6. What does Lean in a office/service
environment look like? (1/2)
Application
Common Issues
Typical Solutions
Banks
⢠Mergers and
acquisitions
⢠Loans application
⢠Differences in
⢠Process integration and
business practices
⢠Loans approval
process
streamlining
⢠Fast track processing
for low-risk loans
IT
⢠Outsourced
managed services
⢠Complicated tasks
⢠Unbalanced capacity
⢠Manpower utilization
⢠Segmenting complexity
⢠Pooling resources for
Telco
⢠Procurement
⢠Call centre
operations
⢠Cost-based and capex ⢠Inventory management
management
⢠Network sharing
⢠Customer service
⢠Channels efficiency
economies of scale
⢠Flexible manpower
systems
Source: Operational Excellence Consulting Research
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7. Benefits of Lean Office
⢠Improved customer satisfaction (internal and
external)
⢠Improved quality of products/services
⢠Improved productivity
⢠Reduced paperwork
⢠Reduced staff stress (e.g. searching for
information)
⢠Engaged employees
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8. Methods to Increase Productivity
More Staff
Quantitative
Approach
More Machines
Work Longer
How to Increase
Productivity?
Work Harder
Qualitative
Approach
Eliminate Waste
& Simplify
Focus of
Lean
Letâs work smarter!
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15
9. Waste take up a significant amount of
time and costs which can be eliminated
Manufacturing Sector
Services Sector
Value
Adding
15%
Non-Value Adding
85%
Value
Adding
25%
Non-Value Adding
75%
Waste are the hidden costs and time
which the customer is not paying for
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10. 20 minutes of waste a dayâŚ
⢠Find a way to remove
20 minutes of waste
from your daily work
routine
⢠This will add up to 2
weeks over a one year
period
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19
11. Types of Waste
Over-Production
⢠Creating reports that no one needs or
making extra copies
⢠Exceeding customer needs (âgoldplatingâ)
⢠Exceeding scope of agreement
⢠Purchasing items before they are
needed (e.g. items on sale)
⢠Providing more information than the
customer needs
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12. Types of Waste
Waiting
⢠Waiting to be served
⢠Waiting for
instructions, approvals, information or
decisions
⢠Seeking clarifications (due to unclear
communications)
⢠Equipment/System downtime
⢠Waiting between assignments or
projects
⢠Out-of-stock
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13. Types of Waste
Unnecessary
Motion
⢠Reaching, bending or unnecessary
motion due to poor ergonomics and
office layout
⢠Unnecessary walking to utility room
⢠Searching for information in internet,
intranet or shared folders
⢠Searching for tools, files and supplies
⢠Lack of or sub-optimal SOP
⢠Handling paperwork
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14. Types of Waste
Defects
⢠Data entry errors, mistakes or rework
⢠Missing information, missed
specifications, or lost records
⢠Poor process controls
⢠Managing subcontractors to correct
mistakes
⢠Incorrect schedules and information
⢠Inadequate trials before full
implementation
⢠Lost or damaged goods
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15. Examples of Value-Added Activities
⢠Entering orders
⢠Translating materials
⢠Creating codes
⢠Preparing drawings or artwork
⢠Assembling goods
⢠Shipping to customers
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16. âWe must always
keep in mind that
the greatest waste
is the waste we
donât see.â
- Shigeo Shingo,
a Japanese industrial engineer and
expert on the Toyota Production
System
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17. Lean Principles
1. Specify value from the customerâs perspective
2. Identify the value stream for each service
family
3. Make the service flow
4. Deliver when the customer pulls from your
operations (just in time delivery)
5. Manage towards perfection
Source: Lean Thinking by James P. Womack and Daniel T. Jones
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18. Lean Methods & Tools
⢠Many Lean techniques and tools are available
⢠Adopters are free to choose which techniques
and/or tools can be used to help them improve
efficiency and create additional value
⢠We will look at some Lean techniques and tools
in the following slides that are applicable to
office and lab environments
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35
19. Go to âGembaâ, observe, recognize
Waste and take steps to eliminate it
⢠âGembaâ means the place where the real actions take
place
⢠It usually refers to the place where employees have
direct contact with customers
⢠âGembaâ is where the value-adding activities to satisfy
the customer are taken place
⢠One place that is not âGembaâ is a managerâs desk
When was the last time you made your
âGembaâ walk?
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20. What is 5S?
5S IsâŚ
⢠Daily organization,
maintenance and
cleaning of an area
⢠Cornerstone for visual
management
⢠The building blocks for
developing a Lean
culture
⢠Setting up an area in the
most efficient manner
possible
5S Is NotâŚ
⢠A thorough spring
cleaning
⢠A way of getting ready
for an upcoming tour
⢠A way to keep
employees busy during
slow periods
⢠Organizing and cleaning
everything that currently
resides in a work area
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21. Meaning of 5S
Principles
General Description
1S
Sort
Remove what is not needed and keep
what is needed
2S
Set in Order
Arrange essential items in order for
easy access
3S
Shine
Keep things clean and tidy; no trash or
dirt in the workplace
4S
Standardize
Establish standards and guidelines to
maintain an organized workplace
5S
Sustain
Make 5S a habit and teach others to
adhere to established standards
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22. 1S : Sort
⢠Principle
ď§ Stratification management
⢠Meaning
ď§ Separate the necessary
from the unnecessary
ď§ Get rid of what you do not
need
âWhen in doubt,
move it out!â
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23. Attach Red Tags
⢠Fill in everything
except disposition
G42
⢠Perform tagging swiftly
Hydraulic Motor
3
Not in Use
06/13/2007
⢠Place tags on all items
in question
⢠Move âtagged itemsâ
to a holding area
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24. 2S : Set In Order
⢠Principle
ď§ Functional storage
ď§ Search elimination
⢠Meaning
ď§ Find a permanent place for all
needed items
ď§ Arrange needed items in order for
easy access
âA place for everything, with
everything in its place.â
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25. 2S : Set In Order â Practice Tips
⢠Painting / color coding floors
⢠Zoning and placement marks
⢠Removal of old and obsolete information on
notice boards, intranet and shared drive
⢠Archiving of electronic files
⢠Creating cabinets for storing cleaning supplies
and materials used occasionally
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26. 2S : Set In Order - Examples
Marker pens sorted by color
5S on desk top drawer
Cabinet filing with labels
Files are color-coded and
neatly arranged on desk
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A diagonal stripe was taped
on to the spines of a set of
binders. At a glance, anyone
can tell if any file is missing.
51
27. Which is cleaner â Your keyboard or
the toilet seat?
A 2004 study by Dr. Charles
Gerba of the Univeristy of
Arizona found keyboards have
on average 3,295 germs per
square inch versus a toilet
seat which has 49 germs per
square
inch. Gerba say, âDesks are
really bacteria cafeterias.â
Clean your keyboard. Researchers recommend that you should
give your keyboard a good âspring cleaningâ by dusting off
crumbs and cleaning with an appropriate disinfectant.
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28. 4S: Practice Tips
⢠Make best practice common practice
⢠Create templates for all forms
⢠Systematically review and update SOPs and job
instruction sheets
⢠Set in place the rules and policies that support
the first three steps, e.g. designated areas,
proper marking of areas, a log of what goes
where, etc.
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29. 5S : Sustain
⢠Principle
ď§ Habit formation
ď§ Disciplined workplace
⢠Meaning
ď§ Make 5S a habit
ď§ Conduct regular âgembaâ walks
ď§ Schedule for 5S audits
ď§ Communicate
âMaintain the gain, forget the
blame.â
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30. 5S your computer hard/shared drive
5S Principle
Description
Sort
⢠Check all your files and software, and get rid of any that
are unnecessary
Set In Order
⢠Organize your files and optimize the use of file folders
⢠Keep in mind how often you need them and how much
time you need to store them
⢠Create specific shortcut icons for the most used files or
programs
Shine
⢠Eliminate any files under deleted items, sent items and
the recycle bin
Standardize
⢠Establish procedures for maintaining your computer 5S
system
Sustain
⢠Include hard drives in 5S audits
⢠Focus on how people maintain files and program
organization, and the time they spend ding so
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32. 3 Types of Visual Office
Visual
Display
⢠Label to make it perfectly clear
where things belong and what the
procedures are
Visual
Metrics
⢠Quantify the path to targets for
success
⢠Graphs and Pareto charts
Visual
Controls
⢠Create an error-proofed
environment to promote easy
adherence to standards
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33. Visual Control Objective
⢠The objective is to implement an effective Visual Control
system that provides the necessary level of control to
achieve and sustain service improvements while
maintaining high productivity and quality.
Cycle Time Reduction
Product Profitability
Process Costs
On Time
100%
Rework
WIP Backlog
Internal Quality
Revenue
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Late Delivery
65
34. Daily Standup Meetings
Agenda
⢠Yesterdayâs issues
⢠Lessons learned
⢠Manpower status
⢠Update from top management
⢠5S & Kaizen activities
⢠Todayâs target & actions
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35. Why Office Layout?
⢠Ensures most efficient layout for employees and work
flow
⢠Reduce or eliminate excess travel and motion wastes
⢠Allows for workforce flexibility via sharing of work when
necessary
⢠Provides foundation for small lot work flow
⢠Can be U-shaped or L-shaped, depending on area
⢠Facilitates communication and reinforces team work
⢠Increases organizational process knowledge, versus
individual process knowledge
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69
36. Value Stream Defined
⢠Value Stream - All of the activities, required to
fulfill a customer request from order to delivery.
Value Stream
Process 1
Customer
Request
Process 3
Process 3
Customer
Receipt
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37. Value stream mapping provides an overview
of the end-to-end administrative process
Information flow
Supplier/
Customer
Management
Control
Customer
Work & Information Flow
⢠Creates an end-to-end view of the system
⢠Demonstrates interaction between material/work and information flow
⢠Provides a common visual language for understanding a complex system
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38. Current State Value Stream Map
Purchasing â Non-repetitive purchases less than $5,000
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39. Future State Value Stream Map
Purchasing â Non-repetitive purchases less than $5,000
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40. Standard Work supports a culture of
continuous improvement
Control Points
Materials &
Information
Machines
(equipment)
Methods
People
Measurements
Feed in materials
& information
Ship to customers
Customer
request
Thatâs not what
they ordered!
Sloppy work =
defective, off-standard
products
Different
product
Standard
Elements for Building Quality into products
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42. Heijunka
⢠Leveling the type and
frequency of service delivery
over a fixed period of time
⢠This enables the service
provider to efficiently meet
customer demands while
avoiding batching and
results in minimum
inventories, capital costs,
manpower, and delivery lead
time through the whole value
stream
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Mura and Muri can be
improved by balancing
the work load
83
43. Heijunka â Lean Levers Can Be Applied to
Reduce Waste
1
2
3
4
5
6
7
Segmenting complexity
Form separate channels for complicated tasks so that simple
ones are not held up
Redistribute activities
Align activities with appropriate skill set and group
Pool resources
Utilize existing skills and resources to reach economies of
scale
Flexible manpower systems
Balance processing capacity with the ongoing demand by
moving people to where the work activity is
Reduce incoming work
Eliminate tasks from a person by reducing the actual work
activity arising
Reduce NVA work
Eliminate work that does not directly add value to the end
customer
Standardize operations
Establish best practices to execute a task
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44. Philip Crosby: Law of 10
1
Minimal defects due to preventionbased activities
10
Defects found within the company
and corrected internally
100
Customer finds defects and makes
complaints
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87
45. Quality at Source
⢠Quality means meeting requirements
ď§ Needs
ď§ Expectations
⢠Every staff is an inspector, not the next person
in the process or the customer
⢠We can use tools such as poka yoke (mistakeproofing) and visual control to prevent errors
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89
46. Poka-Yoke (Mistake Proofing)
⢠Poka-yoke is a Japanese
term that means "mistakeproofing"
⢠Poka-yoke refers to
techniques that make it
impossible to make mistakes
⢠Poka-yoke helps people and
processes work right the first
time
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91
47. Poka Yoke â Dual Focus
People and systems do make mistakes.
A portion of mistakes turn into defects.
Prevention
Poka-Yoke that focuses here
works on mistake prevention or
making mistakes impossible.
Process
Mistakes
Defects
Detection
Poka-Yoke that focuses here
works on mistake
detection, or making sure
mistakes do not turn into
defects.
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48. What is Kaizen?
⢠The Japanese word âKaizenâ (ćš ĺ) means
change (KAI) to become good (ZEN).
Kai
Zen
ćš ĺ
Change
Good
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49. 10 Rules of Kaizen 1
1. Discard conventional rigid thinking about
service delivery.
2. Think of how to do it, not why it cannot be
done.
3. Do not make excuses. Start by questioning
current practices.
4. Do not seek perfection. Do it right away if for
only 50% of target.
5. Correct mistakes at once.
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50. Kaizen Event
⢠Rapid, focused application of Lean to reduce waste to
improve cost, quality, delivery, speed, flexibility and
responsiveness to customer needs
⢠3-5 day dedicated event
⢠Clear objective and scope
⢠Continuous small
improvements
⢠Changes are
implemented quickly
Source: "The Idea Generatorâ by Norman Bodek
⢠Everyone gets involved
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51. Lean Kaizen Storyboard
To: ___________________
By: ___________________
Date: __________________
THEME: Concise statement of what this Kaizen is about.
BACKGROUND:
⢠Note any contextual or background information necessary to
fully understand the issue.
⢠Indicate how this problem affects the companyâs goals or is
related to its values.
TARGET CONDITION:
⢠Insert a diagram that illustrates how the proposed process will
work, with labels.
⢠Note or list the countermeasure(s) that will address the root
cause(s) identified.
⢠Predict the expected improvement in the measure of interest
(specifically and quantitatively)
CURRENT CONDITION:
⢠Insert a diagram that illustrates how the current process
works.
⢠Label the diagram so that anyone knowledgeable about the
process can understand.
⢠Note the major problems
⢠Include quantified measures of the extent of the problem â
graphical representations are best!
IMPLEMENTATION PLAN:
⢠List the actions which must be done in order to realize the
Target Condition, along with the individual responsible for the
action and a due date.
⢠Add other items, such as cost, that are relevant to the
implementation.
ROOT CAUSE ANALYSIS:
⢠List the main problem(s)
⢠Ask appropriate âwhy?â questions until you reach the root
cause. A rule-of-thumb: you havenât reached the root cause
until youâve asked âwhy?â at least 5 times!
⢠List the answers to each why question
Action
Responsibility
Action 1
D. Smith
Action 2
N. Jones
Action 3
M. Jordan
Etc.
COST: no expenditures required
Deadline
Oct. 1
Nov. 5
Nov. 28
FOLLOW-UP:
Plan
ďˇ
ďˇ
Note the plan to measure the
effectiveness of the proposed
change.
Indicate when it will be
measured, and by whom.
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Actual
ďˇ
ďˇ
ďˇ
Leave blank initially
After follow-up, record
the results of
implementation
Record the date of actual
follow-up
101
52. PDCA Problem Solving
⢠A systematic approach
to process
improvement
Act
⢠Provides the
framework for a team
to carry out
improvement
Plan
Check
Do
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53. Pareto Chart
⢠Purpose
ď§ To show relative importance of a set of measurements
ď§ Also called the â80/20â rule
⢠When to use
ď§ To differentiate the âvital fewâ from the âtrivial manyâ
ď§ After improving a process, to show relative change in
a measured item
ď§ Sorting a set of measurements to emphasize their
relative sizes
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54. Example: Pareto Chart
Pareto Chart
Pizza Defects
35
120%
30
Occurences
25
80%
20
60%
15
40%
10
20%
5
-
Wrong Toppings ColdPizza Late
Pizza
Wrong Crust
Tastes Forgot Breadsticks No Change in Box
Bad
Driver Had Smashed Wrong Price
Driver Rude All other
Quantity
29
25
22
13
10
7
4
3
2
1
25%
46%
64%
75%
84%
90%
93%
96%
97%
98%
100%
% of Total
25%
21%
19%
11%
8%
6%
3%
3%
2%
1%
0%
2
Cum %
Cumulative Percent
100%
2%
Time Period:
January-02
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107
55. Cause & Effect Diagram
(a.k.a. Ishikawa Diagram, Fish-bone Diagram)
⢠Purpose
ď§ To identify and structure the causes of a given effect
⢠When to use
ď§ When investigating a problem, to identify and select
key problem causes to address
ď§ When effect of a problem is known, but possible
causes are unclear
ď§ To find other causal relationships, such as potential
risks or causes of desired effects
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109
56. Example: Cause and effect diagram used in solving
the problem of âLate Payment of Invoicesâ
Internal Mail
System
Computer
System
Cost-Reduction Program
Older System
One Pick-Up Daily
Excess
Demand
Downtime
Manual Sort
Process
New
Excess
Maintenance
Demand Contractor
Access Limitations
Workspace
Equipment
Lost/Misplaced Mail
Turnover
Low Priority
Inexperienced Staff
Hiring
Freeze Turnover
Access Limitations
Paycuts
Productivity
Deadlines
Morale
Overtime
Reduced
Staff
Low Priority
Audit Recommendation
for Tighter Control
Centralized
Payment
Authorization
Maximize
Cash
Branch Offices
Forward Payments Weekly
Payment
Delays
Increased
Workload
Reorganization
of Purchase Org.
Missing Documentation
Resigned
No Limit Manager
Missing
Purchase Orders
Finance
Policy
Manual Crowded
Files
Space
Late
Payment
of
Invoices
Documentation
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Legend
Validated
root causes
111
57. What Are âKaizen Eyesâ?
⢠Kaizen is continual improvement for the better.
⢠"Kaizen Eyes" see opportunities to improve.
These eyes are a skill that can be developed
through technique and practice.
⢠The following slides are ways (techniques) to be
practiced. They will help to widen the ability to
recognize opportunity that may not be in full
view.
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113
58. Ways to Develop âKaizen Eyesâ 2
21. Record annoyances
31. Build something
22. Look from different frame (i.e.
quality, safety, materials)
32. Specify value through the eye of
the customer
23. Follow the flow
33. Start to Kaizen something
24. Do an experiment
34. Join an improvement team
25. Swim up the process
35. Create a poka-yoke
26. Test a theory
36. Brainstorm possibilities
27. Ask a child
37. Study other Kaizens
28. Look for patterns
38. Collect examples of improvements
from all parts of life
29. Understand the financials
30. Imagine what the activity would
look like with different staffing
39. Practice at home
40. Teach to a child
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115
60. Role of Lean Deployment Leader
⢠Responsible for the deployment of Lean within his/her region,
division or business unit
⢠Works with leaders of region/division/business unit to determine
their goals and objectives and ensure that they are aligned with the
executives
⢠Facilitates the identification and prioritization of projects
⢠Develops a communication plan for the region/division/business unit
⢠Reports the deployment status to the steering committee
⢠Selects the project champions
⢠Remove barriers for the team
⢠Share best practices
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119
61. Role of Process Owner
⢠Takes ownership of the project when it is complete
⢠Is responsible for maintaining the project gains
⢠Removes barrier for Lean project teams
⢠Support the project team, e.g. make resources available
⢠Maintain the countermeasures and ensure that they are
active and compliant
⢠Participate in Lean project reviews
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121
62. Role of Lean Team Leader
⢠Is responsible for leading, executing, and completing
Lean projects
⢠Teaches team members the Lean methodology and tools
⢠Assists in identifying project opportunities and refining
project details and scope
⢠Reports progress to the project champions and process
owners
⢠Transfers knowledge to other Lean Team Leaders and
the organization
⢠Mentors Lean Team Members
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123
63. Critical Success Factors
⢠Management commitment
⢠Alignment to vision and mission
⢠Availability of resources
⢠Address âwhat is in it for meâ
⢠Success measures and KPIs
⢠Management review
⢠Rewards and recognition
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125
64. âWhether you
think you
can, or you
think you
canât, youâre
right.â
- Henry Ford
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