Introduction to Lean Transformation
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Created Presentation for Chief Transformation Officer at Department of Economic Security.
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Introduction to Lean Transformation
- 2. A B O U T M E
- 3. 2016
- 4. What is Lean? “LEAN is…A systematic approach to identifying and eliminating non-value added activities through continuous improvement, flowing the product at the pull of the customer in pursuit of perfection A methodology of eliminating waste. — The MEP Lean Network
- 5. What is Waste? “Anything other than the minimum amount of equipment, materials, parts, space, and worker’s time which are absolutely essential to add value to the product.” Waste is…. Shoichiro Toyoda President, Toyota
- 6. T I M O O D Transport In-Boxes Motion Waiting Over-Production Over- Processing Defects W Types of Waste
- 7. Defining Value The Customer The Customer The Customer Since only the customer defines value, it is critical to figure out the real customer. Ask: Who Cares?? Who Decides What Has Value?
- 8. Value-Add vs. Non Value-Add Non-Value Added But Necessary • Consumeresources,don’tdirectlycontributeto theproductorservice • AreCURRENTLYrequired(thisincludes legislation,audit,andrisk/safetyrequirements) Non-Value Added Activities • Consumeresources,butdon’tdirectlycontributeto theproductorservice • Couldbeeliminatedwithoutdeteriorationin product/servicefunctionality Value Added Activities • Arewhatthecustomerwants • Transformmaterials/informationintoproductsor services • Aredonerightthefirsttime 85% 10-15% 3-5%
- 9. Case Study: Unemployment Insurance
- 10. Case Study: DCFE’s Agile Approach Time Quality Improvement
- 11. Lean is Agile; Agile is Lean Agile is a framework that implements Lean concepts. Lean Term or Process Agile Term or Process Bottleneck/Roadblock Impediment Continuous Improvement Sprint Cycle Daily Stand-up Daily Scrum Kaizen Retrospective Goals Kanban Board Kanban Board Kick-Off Sprint Planning Meeting Nemawashi Backlog Grooming Weekly Huddle Sprint Review & Sprint Planning Meetings
- 12. 1 To create a simple visual image of how value is created and how value flows in our processes 2 To make waste in the process visible Includes all 8 types of waste 3 To quantify and make visible the components of process and lead time 4 To create a future state that represents dramatic/ transformational improvements to the value stream over an 8- month period 5 To generate a prioritized, scheduled list of specific, actionable Kaizens that will facilitate the transformation to the future state Case Study: DDD Support Coordination Objectives of Value Stream Mapping
- 13. Current State Value Stream Map Current State 305 Days Cycle Time 20 hours Touch Time .4% Rolled Thru-Put Yield (RTY) 23 Process Steps 225 Documents
- 14. 225 Documents TBD 56%Rolled Thru-Put Yield (RTY) 1000% 6 hoursTouch Time 70% 141 Days Cycle Time 54% 10 Process Steps 57% Future State Improvement Future State Value Stream Map
- 15. Wespend28% of our timeon email… …approximately 13 hours/week For every interruption, we need a minimum of 15 seconds to r e f o c u s Most workers take 25 minutes to get back on task Even brief interruptions of 2.8seconds, workers show 50% more errors Studies Show… Lean for Email
- 16. To devote each day to email High Priority To-Do’s Boomerang’s Tip: Do not spend more than ½ -1 hour a day sorting and categorizing email Block Your Time
- 17. Schedule Day First 01 Tame your E-mail Habits 02 Multitask Wisely 03 Target to be Early 04 Just Say No 05 Top 5 Time Management Tips
- 18. VICKI MAYO CHIEF TRANSFORMATION OFFICER DEPARTMENT OF ECONOMIC SECURITY
Editor's Notes
- A systematic approach to identifying and eliminating non-value added activities through continuous improvement, flowing the product at the pull of the customer in pursuit of perfection
- Emphasize the word “minimum” Lean has been referred to as a common sense organization of effort and people wonder why they haven’t always done things that way
- Instructor: In your As-Is Permit process, how will you figure out what is non-value add? Write down how you are going to do that when you and your team Plan for Round 2 Example: A building inspection from ADEQ that has pictures and detailed descriptions about what the building is for. Customer doesn’t need that – they know what their building looks like, and what it is for – they just need to know why it isn’t in compliance and what to do to comply. It is a waste for the inspector to take pics and write detailed descriptions.
- Instructor: A process is made up of many activities. Each activity falls into one of three buckets. We understand the three by starting from the customer’s perspective: What is valuable to the customer. Activities or process steps are ONLY in the Valuable bucket if: The customer wants them, they transform or change the product, and are done right the first time. Everything else is Non-Value add – which can be further split into two categories: Non-Value add but Necessary (in the short term) Non Value Add Ask what percent of a process is typically: Value add. 3- 5% Business value-add 10-15% Non-value add 85% Your challenge will be to find Non Value Add process steps and activities in the Dot Permit process so that you can take the Non-value add OUT of the process. (Ask the class to think about, and write down ideas about what could be VA, NVA, NV but Necessary in the dot game – Pause quietly while they do this. Don’t create discussion at this point about the dot game. )
- The following slides describe two Lean implementations in the Division of Child and Family Engagement (formerly known as the Division of Child Care Administration and the Arizona Early Intervention Program.) The first story describes how the AZCCATS (systems) team adopted a traditional Agile/Kanban approach to software development. The second story describes how the DCFE State Plan implementation team organized its efforts following the same Agile approach: Agile isn’t just for software engineers anymore!
- Continuous Improvement (Plan, Do, Check, Act- PDCA Cycle) Sprint Cycle: Sprint Planning, Sprint Execution, Sprint Review, Sprint Retrospective
- 1: To create a simple visual image of how value is created and how value flows in our processes 2: To make waste in the process visible. Includes all 8 types of waste. 3: To quantify and make visible the components of process and lead time 4: To create a future state that represents dramatic/ transformational improvements to the value stream over an 8-month period 5: To generate a prioritized, scheduled list of specific, actionable Kaizens that will facilitate the transformation to the future state
- Current State 305 Days Cycle Time 20 hours Touch Time .4% Rolled Thru-Put Yield (RTY) 23 Process Steps 225 Documents
- Future State/Improvement -141 Days Cycle Time/54% 6 hours touch time/70% 56% Rolled Thru-Put Yield/1000% 10 Process Steps/57% 225 Documents/TBD
- Studies Show: We spend 28% of our time on email … approximately 13 hours a week. For every interruption, we need a minimum of 15 seconds to refocus Even brief interruptions of 2.8 seconds, workers show 50% more errors Most workers take 25 minutes to get back on task
- Schedule Day First Set priorities & block time. Keep clock visible for accountability. Schedule down & transition time Tame your Email Habits By using the hints In this presentation Multitask Wiseley Remember what interruptions do to efficiency and accuracy Target to be Early If not, you’re late Just say no Don’t over-book yourself or you won’t be able to give anything your “best”