April 2014 lean it


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Lean IT presentation given by M. Peter Scontrino to Seattle SIM on April 16th, 2014

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  • Don’t worry about selection yet. This exercise is just to get the juices flowing.Give each person 3 3X5 cards, collect them, and read them out loud.
  • We can have everyone do this, or do a fishbowl.
  • Recall the story of TayYoshitani saying, “There will be no layoffs because of Lean.”
  • We used to batch our invoices and envelopes in the printer and then link invoices and envelopes, stamp them, and mail them out.One month we were off by one and put most of the invoices in the incorrect envelopes. A classic case of human error by people who are highly motivated to do a good job.We decided to mistake proof the process. We run only one invoice and envelope, put the invoice in the envelope, seal it, stamp it, and mail it. There is no chance of mismatching invoices and envelopes.This exercise shoes that single piece flow can be faster and can reduce the waste of mistakes piling up. It also allows downstream people to get involved sooner—they don’t have to wait.
  • Nano – Personal: data entry of “0012345.” Get rid of or automate the two zeros.Micro – Team: meetings start 5 minutes lateMacro – Organizational: Wrote report that wasn’t needed
  • April 2014 lean it

    1. 1. LEAN & IT: CONCEPTS TO CONSIDER M. Peter Scontrino, Ph.D. Industrial-Organizational Psychologist 1
    2. 2. Agenda  Customers and Suppliers  Lean Defined  Role of Leadership  Ten Forms of Waste  Value Added  Results 2
    3. 3.  Ensures better customer service  Reduces process complexity  Enhances process speed  Produces quality products and services  Helps employees to become more engaged  Improves staff morale Lean is “common sense uncommonly applied ” Why Use Lean? 3
    4. 4. Origins: Lean W. Edwards Demming, Ph.D.  70% of U.S. manufacturing firms report using Lean  Rapidly expanding use of Lean in government and service sectors  Locally: Boeing, State of Washington, Children’s Hospital,, Port of Seattle, Weyerhaeuser, Nordstrom, King County, City of Redmond, Federal Government, University of Washington, Virginia Mason, Group Health, and many more Who Is Using Lean? 4
    5. 5. Lean Requirements Lean includes any systematic process that focuses on satisfying customers’ expectations, eliminating waste, and improving product/process quality. Process refers to a repeatable series of steps that: Takes input from a supplier (anyone you receive a hand-off from). Adds value. Creates output for your customer (anyone to whom you provide a hand-off). 5
    6. 6. 6  Lean:  Lean is a set of principles and tools that help people “learn to see” and eliminate waste  Lean organizations:  Enables organizations to work more effectively and efficiently by identifying and eliminating waste in their processes  Methods include:  Specific tools such as Pareto & Cause and Effect  Value stream mapping and Kaizen events  Identification of waste and ways to improve What Is Lean? 6
    7. 7. Apply Lean concepts to your organization: What processes would you like to streamline or improve in your department? In your organization? Exercise One 7
    8. 8. Customers and Suppliers Supplier: An individual or entity that provides an input to a process  Inputs can include resources or information Customer: The recipient of a product or service you produce  The customer defines value in your services  Every process, no matter how large or small, has a customer Remember, Lean processes take inputs from suppliers, adds value, then creates outputs for your customers 8
    9. 9. Homework Exercise: Customers and Suppliers Identify your own customers and suppliers Ask the following: I. What do you need from me? II. What do you do with what I give you? III. Where are the gaps? Explore: product, relationship, delivery, and expense 9
    10. 10. Lean Approach Some organizations approach Lean as if it were a collection of tools that can be easily applied to improve the organization.... In fact, Lean begins with the senior leadership team and permeates through everything we do. It is also continuous – meaning that this process is not a program with an end date... It is a journey. 10
    11. 11. Lean: Necessary Components Patrick Townsend: Seven Components of Effective Continuous Process Improvement Top management education & commitment Leadership involved at all levels Goal of 90% - 100% employee involvement over time Communication Training Measurement Recognition, gratitude, and celebration 11
    12. 12. Lean: Assumptions  There is waste in the processes that we use.  Employees come to work every day wanting to do a good job. Employees work hard. Lean is not about motivating employees.  There is room for improvement in the way we do our work.  Lean focuses on both what we do and how we do what we do.  The focus is on processes/systems and not on people. 12
    13. 13. Virginia Mason Video http://www.bing.com/videos/search?q=virginia+ mason+video+on+lean&FORM=VIRE2#view=de tail&mid=84FAF4D5705B00AF846E84FAF4D57 05B00AF846E 13
    14. 14. Measurement: Points to Consider The difference between lead time and process time Who is the customer and what does the customer want? The difference between stakeholders in the organization and the customer for a particular activity Metrics form the baseline for improvement Leaders need to have the expertise to manage Lean Time Customers Differenc es Metrics Expertise 14
    15. 15. Lean Definition Lean is the identification, elimination, and reduction of waste or non-value added activity within a process as perceived by the customer 15
    16. 16. “House of Lean” Methods 1 Point of Use Storage Customer Satisfaction Just-in-Time/Kanban Mistake-Proofing Metrics Visual Controls POUS1 Employee Engagement Quality at Source Batch Reduction Waste Standard Work 5S Flow/Layout Value Stream Mapping Kaizen Events 16
    17. 17. Try this exercise back at work Batch processing versus one piece flow Flip the coin exercise. 1. Four people pass coins. 2. One person will time the operation. 3. Start with a batch of 20 coins. 4. With the opposite hand, the first person flips over 20 coins and passes to the next person. That person flips all 20 coins and passes them to the next person and so on. Record the final time and number of mistakes.  On the next round, use a batch of 10 coins. Next round, use a batch of 5 coins. Final round, try single piece flow – one coin at a time. Compare the results.  After reviewing the results, perform a group brainstorming session and devise a faster way to process the coins! 17
    18. 18. Waste Definition Waste is… Any action, process or product that adds cost, without adding value as perceived by the customer. 18
    19. 19. 19 The 10 Wastes in IT (and other service) Organizations
    20. 20. Typical Wastes Targeted by Lean Wastes Examples Lack of standardized processes Each person has his her own way of approaching a problem Each person has his or her own way of completing a task 20
    21. 21. Typical Wastes Targeted by Lean Wastes Examples Defects Not understanding user/customer requirements and expectations, thus delivering ineffective solutions Application bugs and design flaws or unstable software/hardware/devices making it difficult for staff to get value added work done Unauthorized changes to software and systems Inadequately tested changes to software and systems Helpdesk knowledgebase information incorrect, incomplete, or obsolete causing harm and lost productivity Free text fields instead of drop down/check boxes that allow user error and bad data 21
    22. 22. Typical Wastes Targeted by Lean Wastes Examples Over provisioning Help desk troubleshooting that addresses symptoms but not root causes Producing and distributing reports that are not used Unused functionality in software Workflow routings that are not necessary Ineffective and repetitive meetings 22
    23. 23. Typical Wastes Targeted by Lean Wastes Examples Delays Searching for information Delays from excessive reviews and approval steps Slow application response Delays between coding and testing Reports that take a long time to run Long helpdesk hold and call back times 23
    24. 24. Typical Wastes Targeted by Lean Wastes Examples Non value added processing Processing of sales invoices Ordering of training material Storing of material Having staff meetings to discuss a product or service Printing and assembling work books for training classes Re-entering data Extra copies 24
    25. 25. Typical Wastes Targeted by Lean Wastes Examples Transportation Sending attachments rather than links Excessive e-mail attachments Onsite visits instead of using remote technology to resolve issues Poor user interfaces 25
    26. 26. Typical Wastes Targeted by Lean Wastes Examples Excess inventory Excess information on local and shared drives Work waiting to be reviewed/approved/forwarded Software purchased but not deployed Backlog accumulating in software development Unused/unnecessary software licenses Excessive inventory of printer cartridges and consumables Excessive parts inventory Extra copies 26
    27. 27. Typical Wastes Targeted by Lean Wastes Examples Excess motion People looking for parts, tools, supplies People looking for files, paperwork People going to a meeting, not prepared People going to a room down the hall to retrieve printouts from their computer People walking to another room or building to process documents Central filing Walking to and from fax machines 27
    28. 28. Typical Wastes Targeted by Lean Wastes Examples Unused employee knowledge and creativity No empowerment Limited employee authority and responsibility for basic tasks Not asking for ideas Not capturing and sharing ideas Not making knowledge easy to locate and apply Unnecessary process/data or system complexity 28
    29. 29. Typical Wastes Targeted by Lean Wastes Examples Waste of staff time Waiting for instruction Waiting for materials/data/information Unnecessary meetings Meeting not starting on time Unnecessary travel System downtime System response time Approvals from others 29
    30. 30. Value-Added – The antithesis of waste Lean focuses on value-added activities… Any activity (task) falls into one of three categories: Value Added Non Value Added Non Value Added Required 30
    31. 31. Value Added and Non-Value Added Value Added (VA)  The customer must recognize the task as important.  The product or service must physically change or transform.  The task is done right the first time. Non-Value Added (NVA)  Waste. A process step that adds no value to the product or service.  Does the customer want to pay for this? Non-Value Added Required (NVA-R)  A process step that adds no value to the product but is currently required to produce the product or service. A required law, regulation, rule etc. Internal or external. 31
    32. 32. Best management practices and value added It is important to note that many good management practices, like effective coaching, leading effective meetings, preparing accurate budgets, strategic planning, might be perceived as being in the non value added box from the definition on the previous page. We prefer to refer to these best management practices as value added management practices. The customer (person requesting a permit) is not interested how good a job you do of strategic 32
    33. 33. Personal Team or Department Organization MacroMicroNano Homework: Create your own chart of non-value-added activities you have experienced. 33
    34. 34. Is Lean another “flavor of the month”?  The short answer is, “No.” Why Lean is different:  Focuses on rapid, immediate, real-time change  Delivers fast results to build momentum  Emphasizes doing over planning  Keeps all eyes on what matters thru metrics/visual systems  Builds continuous improvement culture by empowering workforce to own the process and its effectiveness What Makes Lean Different? 34
    35. 35. Examples of Results Process Results 35
    36. 36. Lean represents significant change. “There is no change without loss. There is no loss without pain.” Something to Remember 36
    37. 37.  Steven C Bell & Michael A Orzen. Lean IT: Enabling and Sustaining Your Lean Transformation.  Ken Miller. We Don’t Make Widgets.  Charles Kenney. Transforming Health Care (at Virginia Mason).  Karen Martin & Mike Osterling. The Kaizen Event Planner.  Joyce Miller, Tania Bogatova, & Bruce Carnohan. Improving Performance in Service Organizations. How To Implement a Lean Transformation. Selected References 37
    38. 38. Learn More To learn more about Lean and other practices that can increase the effectiveness and morale of organizations, teams, and individuals, follow our applied research blog at: www.scontrino-powell.com/blog About Us Scontrino-Powell 38
    39. 39. Wrap-Up 39