"Scoping Lean IT: asking the right questions" by Daniel T Jones
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"Scoping Lean IT: asking the right questions" by Daniel T Jones

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A presentation by Daniel T Jones from The Lean Enterprise Academy at the 1st European Lean IT Summit held in Paris, France in October 2011. ...

A presentation by Daniel T Jones from The Lean Enterprise Academy at the 1st European Lean IT Summit held in Paris, France in October 2011.
www.lean-it-summit.com

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  • 1. Copyright © Institut Lean France 2011 Scoping LeanIT:asking the right questions Daniel T Jones
  • 2. Scoping LeanIT:asking the right questions Daniel T Jones
  • 3. IntroductionWhy is this Lean IT Summit important? Time to move from value streams to value creation systems Time to integrate functions into lean managementWhat is the problem we are trying to solve? Not just to improve the efficiency of IT But to harness IT to enable value creationLean is the practice of using the scientific method to solve business problems in order to create value www.leanuk.org
  • 4. The Toyota Example Toyota created a unique synthesis of three improvement streams: -Process thinking – organising the flow of work Learning – by doing and reflecting Quality – using the scientific approachOut of this came many new tools and techniquesThe lean principles for designing value streams And a different way of managing and leading www.leanuk.org
  • 5. Toyota Management System Toyota Business System Product Concept TDS Design Sales, After sales and CRM TMSS Engineering Marketing Design TMS Production Concept Marketing Concept Production Production Design TPS TMS (Toyota Management System) TDS (Toyota Development System) Total TPS (Total Toyota Production System) Total TPS TMSS (Toyota Marketing & Sales System) © Takashi Tanaka QV-System
  • 6. Toyota Management Tools © Takashi Tanaka QV-System
  • 7. Oobeya Management Levels Visualization Hierarchy—3 levels onlyDecisions Executive Escalate two (Main) Board decision-readyTargets issues perMetrics meeting cyclePolicy Visualization of GEMBA (Work place) © Takashi Tanaka QV-System
  • 8. The Tasks of ManagementTo determine what is important How to focus everyone on the vital few?To deploy the right improvements How to close the performance gaps?To create stability, flow and synchronisation How to unblock obstacles to flow?To create the next generation of managers How to solve problems and collaborate?To prepare to meet future challenges How to do new things? www.leanuk.org
  • 9. Deciding what’s Important• Analyse the strategic objectives – to understand the significance of focusing on quality > time > cost• See the organisation as a collection of value streams – the deep causes of variation > overburden > waste• Translate objectives > performance gaps > physical targets > impact on sales, cash, cost and capex www.leanuk.org
  • 10. Focusing on the Vital FewReducing Hospital Acquired InfectionsSeeing emergency patients within 4 hoursSeeing elective patients within 18 weeksReducing length of stayReducing costs www.leanuk.org
  • 11. Streamlining Hospital Flows PATHOLOGY THERAPIES EMERGENCY MAU HOME DEPARTMENT MEDICAL HOME SAU WARDSNURSING D HOME I NURSING S HOME IMAGING C H SURGUCAL A OPERATING WARDS R ROOM G GP E REHAB OTHER UNIT WARDS CLINIC CLINIC CLINIC CLINIC PHARMACY SUPPLIES www.leanuk.org
  • 12. Selecting the right Problems• Agree which gaps and targets are most important• Dialogue down the organisation to translate gaps into actions – using catch-ball strategy deployment• Give project and value stream managers the end-to- end responsibility to gain agreement to act, to agree the resources and review progress to deliver results• Then to deselect the less important www.leanuk.org
  • 13. The Construction Story• Joined the Rethinking Construction Task Force• Our diagnosis - incomplete design - fragmented skills - rework everywhere - over budget, late and lots of snags• Joint design process, partnerships with constructors, synchronise make and assembly• Construction of Terminal 5 on time and on budget• Team went on to do St Pancras and the Olympic Venues – best prepared so far www.leanuk.org
  • 14. 97 weeks45 weeks Auto UKChina 314 Italy 2.4 weeks UK USA 5 3 2810 weeks USA SpainJapan 612 USA Germany 7.6 weeks Spain 15 14 Plants 9 countries 3 30 weeks 152 Steps 28 Spain 20-97 weeks Mexico USA 12 $600,000 Inventory cost 6 Brazil USA 11 30 weeks 6 13 weeks 15 weeks www.leanuk.org
  • 15. FARM The Grocery Value Stream WARE- FORECASTS HOUSE SHIP INGRE- DIENTS MANUF- MANUF RETAIL SUPER ACTURE NDC RDC STORE HIGH STREET WHOLE- PACK- CONV. AGING SALE STORE CASH & MATE- CARRY RIALS CATE- RING INFORMATION FLOWS MINE PHYSICAL FLOWS www.leanuk.org
  • 16. 6% SKUs = 30% SKUs = 50% Volume Batch Logic 1% Volume• Multi-product production means batching - long lead times - lots of stock long supply chains – slow to respond• Separate the few high volume SKUs make them every week or every day• Plus capacity to make the tail quickly• Let inventories rather than production take the strain – to cover variation in demand• Only schedule what varies fixed plans for what does not www.leanuk.org
  • 17. Just the Start• The web is shifting power to consumers – now informed, empowered and impatient• Consumers must now become an integral part of the supply stream• Households are mini-businesses – full of complex processes that need to be managed• What we do is to help them to create value in their lives and to manage their consumption• Consumers will in future manage their own data and share it with chosen providers www.leanuk.org
  • 18. Value Stream Lessons• Command and control systems are expensive and inflexible• Point optimisation leads to sub-optimal solutions• System driven variability and amplification is the biggest cause of waste• Scheduling everything the same way delays everything• Created demand reflects poorly understood demand and a poorly designed process• Bid low and make money on the changes costs more and causes lots of rework www.leanuk.org
  • 19. Transformation Design• Rolling out staff driven training programmes from HQ rarely delivers sustained results• Lean is not just a tool box for eliminating waste – but the capabilities to respond and solve problems that are learnt by doing• Lean is a line management responsibility• Begin proof of concept experiments quickly, evaluate and then share practices• Focus efforts only on what delivers results www.leanuk.org
  • 20. A3 Action Plan www.leanuk.org
  • 21. Oobeya: ”Big Project Room” Objective Expected Output Metrics Expected Output Weight Targ Good et •Project Background •Project Objective Cost 1 2 3 - 12 •Technical Spec Targ Good •Project Organization et Capital 1 2 3 - 12 Action Board Today Projectorfor Virtual DesignReview or meeting Decomposition Area Issue Board: Panel Issue Board Potential Real Finish Record 2-issues New per week Design concept R&D Engineering Drawing delay Main Board Production Line A Improve Supplier select Supplier select Supplier Marketing select © Takashi Tanaka QV-System
  • 22. Improving Management Effectiveness Focus on the vital few and deselect To free up unnecessary effort and cost Visual, frequent, stand up project reviews To keep on track and resolve issues fast Create stability and Gemba management To eliminate fire-fighting and emails Develop the next generation of managers By mentoring A3s and Gemba learning Prepare to meet future challenges Designing lean solutions for the web era www.leanuk.org
  • 23. Scoping LeanIT:asking the right questions Daniel T Jones
  • 24. Copyright © Institut Lean France 2011www.lean-it-summit.com