"Our approach to Kaizen" by J Prochazka and M Chmelar

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A presentation by Tieto consultants at the 1st European Lean IT Summit held in Paris in October 2011

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"Our approach to Kaizen" by J Prochazka and M Chmelar

  1. 1. Copyright © Institut Lean France 2011Our Approach to Kaizen Lean@Tieto Jaroslav Prochazka Martin Chmelar Tieto
  2. 2. Copyright © Institut Lean France 2011 • Net sales approximately EURTieto • 18 000 IT professionals in close to 30 countries • Customers on all continents 1.8 billion • Listed in NASDAQ OMX Helsinkitoday • One of the leading IT service companies in Northern Europe and global leader in selected segments and Stockholm • Founded in 1968Our Approach to Kaizen – Prochazka, Chmelar 2
  3. 3. Copyright © Institut Lean France 2011Who we are• Delivery Mentor Network Core of the network 8 Agile and Lean coaches• 11 years in IT (developers, architects, PMs)• Have been supporting transformations in different industries in last 5 years in Tieto• Representing Tieto at international IT conferencesOur Approach to Kaizen – Prochazka, Chmelar 3
  4. 4. Copyright © Institut Lean France 2011 Why Lean@Tieto?• Customer satisfaction• Financial results © Tieto 2010 Annual ReportOur Approach to Kaizen – Prochazka, Chmelar 4
  5. 5. Copyright © Institut Lean France 2011 Customers demand more We want to have better visibility of our orders We want you to help us to solve We expect you to help us our challenges to run our business (to have partnership)Our Approach to Kaizen – Prochazka, Chmelar 5
  6. 6. Copyright © Institut Lean France 2011 Tieto employees want to contribute more… I want to work in such an I wanted to propose environment where I feelmultiple improvements to my work brings value toour customer but I didn’t the customer know how … … but do not know how … Our Approach to Kaizen – Prochazka, Chmelar 6
  7. 7. Copyright © Institut Lean France 2011 Lean Transformation Lean@Tieto Short term thinking Long term thinking Solving symptoms Solving root causes Firefighting Balanced workload“Give a man a fish; you have fed him for today. Teach a man to fish; and you have fed him for a lifetime” [Chinese proverb] Our Approach to Kaizen – Prochazka, Chmelar 7
  8. 8. Copyright © Institut Lean France 2011 Lean@Tieto StrategyOur Approach to Kaizen – Prochazka, Chmelar 8
  9. 9. Copyright © Institut Lean France 2011 1 2 3 4 5 6 7 8 9 10 11 12 13 14 14 weeks framework to make a change LEAN@TIETO FRAMEWORKOur Approach to Kaizen – Prochazka, Chmelar 9
  10. 10. Copyright © Institut Lean France 2011 Lean@Tieto Transformation FrameworkA proven approach where key persons optimize (and learn to optimize)end-to-end value chain to deliver better value to customer. Typical long-term benefits: • Increased customer and employee satisfaction 14 weeks Lean Transformation • 15-30% improvement of Framework productivity • 15% EBIT increase Our Approach to Kaizen – Prochazka, Chmelar 10
  11. 11. Copyright © Institut Lean France 2011 Continuous improvement Independence • Improvement (A3) discussion and • Team self-improvement implementation • On demand consultancy • Internal coach education • Hands-on support Focus / Kick-off • Common understanding of situation, motivation • Top issues captured (Kaizen workshop)Introduction• Transformation goals• Lean Awareness / Game• Key terms and tools • Investment: 6 man-days extra time in 14 weeks for each core team member • Components: • Lean Awareness workshops • Kaizen workshop • Bi-weekly follow-ups • Additional tools and materials Our Approach to Kaizen – Prochazka, Chmelar 11
  12. 12. Copyright © Institut Lean France 2011 Team gets … Value Stream Map Mapped services (documented end-to-end process)Our Approach to Kaizen – Prochazka, Chmelar 12
  13. 13. Copyright © Institut Lean France 2011 Team gets … Documented (A5) and elaborated (A3) issuesOur Approach to Kaizen – Prochazka, Chmelar 13
  14. 14. Copyright © Institut Lean France 2011 A3/A5 conceptOur Approach to Kaizen – Prochazka, Chmelar 14
  15. 15. Copyright © Institut Lean France 2011 Intangible outcomes• Common understanding of problems, root causes, solutions• Clear focus along the whole value delivery chain• “Sharpening of axe” built into daily way of workingOur Approach to Kaizen – Prochazka, Chmelar 15
  16. 16. Copyright © Institut Lean France 2011 Ripple effect through internal coaches Local Lean Coaches Whole Tieto Transformed One case (14 weeks approach) Continuous Independent New Intro Kick-off team improvement coachesOur Approach to Kaizen – Prochazka, Chmelar 16
  17. 17. Copyright © Institut Lean France 2011 Lean@Tieto Framework INTRODUCTIONOur Approach to Kaizen – Prochazka, Chmelar 17
  18. 18. Copyright © Institut Lean France 2011 Introduction• Multiple entry points Teasers and teasing discussions Agile training course Lean awareness Mentoring• Goal Make people interested Make people care Make people to pull for more Our Approach to Kaizen – Prochazka, Chmelar 18
  19. 19. Copyright © Institut Lean France 2011 Lean Game/Awareness workshop• Playing with Lego• Key Lean principles in practice• Drum-Buffer-Rope concept • Key Lean principles • Practical experience with Lean toolsOur Approach to Kaizen – Prochazka, Chmelar 19
  20. 20. Copyright © Institut Lean France 2011 Lean@Tieto Framework FOCUS / KICK-OFFOur Approach to Kaizen – Prochazka, Chmelar 20
  21. 21. Copyright © Institut Lean France 2011 Kaizen workshop – Day 1 • Goal, Agenda, People, Expectations Intro • William Wallace speech Value • Value Stream MappingStreamMapping • Issue identification and prioritization across the whole value chainIssuesRoot • 5 whys or Current Reality Mapping (ToC CRT)causeSociali-Sociali • Social event (usually dinner) zing Our Approach to Kaizen – Prochazka, Chmelar 21
  22. 22. Copyright © Institut Lean France 2011 Common goal: Value for Customer ? Team X NEED ! ☺ C C Customer Do we all pull the same end of the same rope?Our Approach to Kaizen – Prochazka, Chmelar 22
  23. 23. Copyright © Institut Lean France 2011 How do we work nowadays? X ☺ C C Do we all have the same map?Our Approach to Kaizen – Prochazka, Chmelar 23
  24. 24. Copyright © Institut Lean France 2011 How do we really work nowadays? X ☺ C C Team is better than one expertOur Approach to Kaizen – Prochazka, Chmelar 24
  25. 25. Copyright © Institut Lean France 2011 Value Stream Map Intro ValueStreamMappingIssuesRootcauseSociali- zing Our Approach to Kaizen – Prochazka, Chmelar 25
  26. 26. Copyright © Institut Lean France 2011 I can’t believe a single feature delivery takes Intro so long… ValueStreamMapping Wow, this value stream is differentIssues than we thought it is These group worksRoot are great. I do notcause feel sleepy and I am much more involvedSociali- zing Our Approach to Kaizen – Prochazka, Chmelar 26
  27. 27. Copyright © Institut Lean France 2011 Problems & obstacles X ☺ C C ! ! ! Problem Different people see different problems. But what is the real bottleneck?Our Approach to Kaizen – Prochazka, Chmelar 27
  28. 28. Copyright © Institut Lean France 2011 Recurring issues• Stress, firefighting• Unsatisfied customers• Red numbers• Rework• Everything takes too longOur Approach to Kaizen – Prochazka, Chmelar 28
  29. 29. Copyright © Institut Lean France 2011 Root Causes X ☺ C C ! ! ! ! Root cause Cause ! Do not fight with symptoms only!Our Approach to Kaizen – Prochazka, Chmelar 29
  30. 30. Copyright © Institut Lean France 2011 5 WHYs• Delays in server implementation process Weak information sharing between shifts Insufficient information for task handover k Work Log (WL) not filled Not recognized impact of missing WL description (others cannot process it) • Not seen big picture and value for the customer • Missing end-to-end process description • Assumptions (“it’s obvious”)Our Approach to Kaizen – Prochazka, Chmelar 30
  31. 31. Copyright © Institut Lean France 2011 Evening dinner Intro Now I see that you are humans guys, not just roles:-) ValueStreamMappingIssuesRootcause I can see faces behind all these names…Sociali- zing Our Approach to Kaizen – Prochazka, Chmelar 31
  32. 32. Copyright © Institut Lean France 2011 Kaizen workshop – Day 2 Day 1 • Day 1 recapitulation recap.Problem • Solution brainstorming solving • Kaizen steps A3s Plan • Heroes group (including internal coaches)Groups • 14 weeks framework sessions planned • Wrap-up & feedbackWrap-up Our Approach to Kaizen – Prochazka, Chmelar 32
  33. 33. Copyright © Institut Lean France 2011 Solution ! OK ! ! ! Solution ! Remove root causes once and foreverOur Approach to Kaizen – Prochazka, Chmelar 33
  34. 34. Copyright © Institut Lean France 2011 Long Term Solution OK OK OK 2011 … Jul Sep Oct … Solutions “invented here” & solving “my problems”Our Approach to Kaizen – Prochazka, Chmelar 34
  35. 35. Copyright © Institut Lean France 2011 Short term next (Kaizen) steps 2011 ... Mon Tue Wed Thu Fri W#28 Mon Tue Wed Thu Fri W#29 Mon Tue Wed Thu Fri W#30 Mon Tue Wed Thu Fri Do not just plan, act now!Our Approach to Kaizen – Prochazka, Chmelar 35
  36. 36. Copyright © Institut Lean France 2011 Improvement formalization Day 1 recapProblem • A5 solving Issue description Plan • A3 Plan-Do-Check-Act cycle driven solutionGroupsWrap-up Our Approach to Kaizen – Prochazka, Chmelar 36
  37. 37. Copyright © Institut Lean France 2011 Kaizen Workshop outcomes: context & focus• Visual value stream map• Sustainable solutions & next steps Problem Root Solution Next step Responsible Deadline cause• Synchronized people over the whole value chain Everyone knows how we work together• People are motivated and committed to changes Because they know how it solves their problems And they invented the solution themselves Our Approach to Kaizen – Prochazka, Chmelar 37
  38. 38. Copyright © Institut Lean France 2011 Lean@Tieto Framework CONTINUOUS IMPROVEMENTOur Approach to Kaizen – Prochazka, Chmelar 38
  39. 39. Copyright © Institut Lean France 2011 Plan Implementation Act Check Do• Everyone can create a new A5/A3• Implementation driven by A3s’ owners Core Team• Regular follow-up and prioritization of Internal Lean A5s/A3s by Core Team coaches Weekly or bi-weekly Other team members• Alignment of actions ensured by Core TeamOur Approach to Kaizen – Prochazka, Chmelar 39
  40. 40. Copyright © Institut Lean France 2011Prioritization Low investment Possibilities Perform Low High customer customer value value Wait Challenge High investmentOur Approach to Kaizen – Prochazka, Chmelar 40
  41. 41. Copyright © Institut Lean France 2011 Lean@Tieto Framework INDEPENDENCEOur Approach to Kaizen – Prochazka, Chmelar 41
  42. 42. Copyright © Institut Lean France 2011 Independence• Continuous improvement in place Built into daily way of working• Internal Lean coaches keep the continuity and teach others Indepen- Continuous New Intro Kick-off dent improvement coaches teamOur Approach to Kaizen – Prochazka, Chmelar 42
  43. 43. Copyright © Institut Lean France 2011 Lean@Tieto in practice: Server implementation process A STORYOur Approach to Kaizen – Prochazka, Chmelar 43
  44. 44. Copyright © Institut Lean France 2011 Server implementation team• Process efficiency: 56% Come on, it is not so• Mean Lead time: 12 days long time to deliver server• Big variance in special orders We would like to improve the situation with delays and rework But for sure, there in Networking teams as well as is a room for problematic handovers between improvement, so shifts let’s start!Our Approach to Kaizen – Prochazka, Chmelar 44
  45. 45. Copyright © Institut Lean France 2011 So we started with Lean …Our Approach to Kaizen – Prochazka, Chmelar 45
  46. 46. Copyright © Institut Lean France 2011 … and identified issues (A5)Our Approach to Kaizen – Prochazka, Chmelar 46
  47. 47. Copyright © Institut Lean France 2011 Root causes and solutions (A3)Our Approach to Kaizen – Prochazka, Chmelar 47
  48. 48. Copyright © Institut Lean France 2011 Improvements implemented • Implementation period: 7 weeksOur Approach to Kaizen – Prochazka, Chmelar 48
  49. 49. Copyright © Institut Lean France 2011 Achievements• In 7 weeks team: Improved process efficiency by 12% Wow, we are Shortened Lead time by 20% great team ;) Financial impact 67000 EUR/monthly Let’s continue with other areas as well. I like this approach!Our Approach to Kaizen – Prochazka, Chmelar 49
  50. 50. Copyright © Institut Lean France 2011 Lean@Tieto RESULTSOur Approach to Kaizen – Prochazka, Chmelar 50
  51. 51. Copyright © Institut Lean France 2011 Long-term results• Service in telco sector: 70% incident decrease in 5 month• Another service in telco sector: 2M SEK new business: proposed improvements• Product development in energy sector: 20% EBIT improvement in one year• Conversion in banking and insurance sector: Shortened lead time by 60% in 4 monthOur Approach to Kaizen – Prochazka, Chmelar 51
  52. 52. Copyright © Institut Lean France 2011 Service level results A3s with its impactOur Approach to Kaizen – Prochazka, Chmelar 52
  53. 53. Copyright © Institut Lean France 2011 Service level results • 70% incident decrease in 5 months • Changed nature of incidentsOur Approach to Kaizen – Prochazka, Chmelar 53
  54. 54. Copyright © Institut Lean France 2011 How do people see it?• Lean Awareness workshops 21 sessions conducted in 2011 (avg. rating: 4.36/5)• Kaizen workshops 20 sessions conducted in 2010/11 (avg. rating: 4.2/5) Jarmo (Project owner): “Very useful workshop. Good method! I was originally a little bit skeptic about using 2 days of our heavily burdened professionals time to this. Now I am convinced that it was worth while! The meaning is to find productivity and quality increasing actions through finding bottlenecks, their root causes, making priorities and agreeing on actions.”Our Approach to Kaizen – Prochazka, Chmelar 54
  55. 55. Copyright © Institut Lean France 2011 Lean@Tieto CHALLENGESOur Approach to Kaizen – Prochazka, Chmelar 55
  56. 56. Copyright © Institut Lean France 2011 Typical challenges: corporate level• Disconnected (and/or sub-optimized) goals• People protecting their comfort zone (natural human behavior) “They have to start first...” “Someone else’s problem”Our Approach to Kaizen – Prochazka, Chmelar 56
  57. 57. Copyright © Institut Lean France 2011 Typical challenges: service/project level• Lacking leadership/ownership Even more visible in distributed environment• No time to improve “No time to sharpen the axe, we have to cut the trees…”Our Approach to Kaizen – Prochazka, Chmelar 57
  58. 58. Copyright © Institut Lean France 2011 Lean@Tieto CRITICAL SUCCESS FACTORSOur Approach to Kaizen – Prochazka, Chmelar 58
  59. 59. Copyright © Institut Lean France 2011 Lean@Tieto StrategyOur Approach to Kaizen – Prochazka, Chmelar 59
  60. 60. Copyright © Institut Lean France 2011 Bottom-up approach…• Team ownership Delivery teams own the change (drivers)• On-job learning Plan-Do-Check-Act life cycle in practiceOur Approach to Kaizen – Prochazka, Chmelar 60
  61. 61. Copyright © Institut Lean France 2011 …with top-down support…• Executive management as role models Managers are the first to adopt Lean thinking Direct involvement in Lean activities• Prioritization of Lean@Tieto as a long term investment Slow down to speed up• Focus on long-term results (prevent firefighting)• Solving systemic constraints (e.g. goal setting)Our Approach to Kaizen – Prochazka, Chmelar 61
  62. 62. Copyright © Institut Lean France 2011 …with coaching as the glue• Lean coaches as role models (navigators)• Internal coaches Local support of teams (especially in distributed environment)• Delivery Mentor Network For organizational learning (ripple effect)Our Approach to Kaizen – Prochazka, Chmelar 62
  63. 63. Copyright © Institut Lean France 2011 Selling the initiative• Packaged solution/service How many people, costs, time period, frequency of sessions• Printed takeaway marketing and selling material• Success stories to create pull VideosOur Approach to Kaizen – Prochazka, Chmelar 63
  64. 64. Copyright © Institut Lean France 2011www.lean-it-summit.com 64

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