Lean introduction

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Lean introduction

  1. 1. Lean Introduction<br />
  2. 2. 2<br />Agenda<br />History of Lean<br />Lean Principles<br />Wastes and tools<br />Value Stream approach<br />Case – Lean in Mexico<br />Where to find more<br />
  3. 3. 3<br />Lean Six Sigma (00’s)<br />Just in Time (‘80s)<br />Lean Manufacturing (‘90s)<br />(Kanbans, Pull systems, Visual management)<br />(“Machine that changed the world”,“Lean Thinking”, Value Stream Mapping)<br />Total Quality Management (’80s)<br />BPR (‘90s)<br />Deming/Juran(‘50s)<br />Ohno(’60/‘70s)<br />(culture change/benchmarking,Baldridge/EFQM, ISO9000)<br />(SPC,QualityCircles, Kaizen)<br />(down-sizing, “to be“processes, process owners)<br />Motorola –Six Sigma (‘80s)<br />(Allied Signal)<br />(14 points,statisticalquality)<br />(ToyotaProductionSystem)<br />GE (‘80s – ‘90s)<br />Intensity of Change<br />Kotter etc. Transformation & Leadership<br />Six Sigma(applied method for growth and productivity)<br />Customer Partnering(GE Toolkit, QMI, Customer CAP<br />Change Acceleration Process – CAP (Change method and tools) <br />Process Improvement (NPI, Supply Chain, Suppliers) <br />Best Practices(benchmarking, across and outside of GE, ending NIH)<br />Work-out (Kaizen type, cross functional teams, boundarylessness, values)<br />StrategyNo 1 or No 2 in each business. Fix, close or sell<br />Lean & Six Sigma is based on over 50 years of improvement thinking and experience<br />
  4. 4. 4<br />Value Stream<br />Value<br />Flow<br />Perfection<br />Pull<br />Lean Principles<br />Map all of the steps… value added & non-value added… that bring a product or service to the customer<br />Define value from the customers perspective and express value in terms of a specific product or service<br />The complete elimination of waste so all activities create value for the customer by breakthrough and continuous improvement projects<br />The continuous flow of products, services and information from end to end through the process<br />Nothing is done by the upstream process until the downstream customer signals the need, actual demand pulls product/service through the value stream<br />
  5. 5. 5<br />Lean Basis of action<br />Constancy of Purpose – the leadership drive the change accondingly with the long term goals<br />Respect for People – every individual is a unique set of experiences and improvement ideas may come from anyone<br />Proactive Behavior – looking for improvement opportunities every day<br />Voice of the Customer – listen to the customer consistently ensure the focus on the right thing<br />System Thinking – understanding the whole value stream enables creating smooth flow of value<br />
  6. 6. 6<br />The goal of Lean is to flow more value to the customer for less resource by eliminating waste and reducing end-to-end time<br />Before Lean project <br />A service value stream: e.g. processing an application<br />Customer Requirement‘as fast as possible’‘no mistakes’<br />‘easy transaction’<br />lead time (LT)<br />day 1<br />day 30<br />After Lean project <br />Value demand better handled<br />Failure demand removed<br />processing an application<br />lead time (LT)<br />day 1<br />day 8<br />Where the gains come from<br />Small<br />Adds value to the customer<br />Small to medium<br />No value; needs to be done<br />Large<br />No value; no need to be done<br />The bottom line: better customer service costs less not more! <br />
  7. 7. 7<br />The 7 Wastes: The “Flu Virus” of the Office Environment<br />Tip: T I M W O O D<br />Additional toxic effects:<br /><ul><li>Physical fatigue
  8. 8. Emotional fatigue
  9. 9. Increased frustration
  10. 10. Increased stress
  11. 11. Placement of blame
  12. 12. Decreased self-worth
  13. 13. Indecisiveness</li></ul>In Lean terms, waste is anything that adds costs or time without adding value. The ultimate Lean target is the total elimination of waste<br />
  14. 14. 8<br />Lean Tools<br />A3 Thinking<br />Value Stream Mapping<br />Quality at Source<br />Standardised Work<br />5S: Sort; Set-in-order; Shine; Standardise; Sustain<br />Visual Control & Management<br />Cellular/Team Concepts<br />Levelling, Management Timeframe and Takt Time<br />
  15. 15. 9<br />Each Value Stream is launched with the following workshop program<br />Mobilisation<br />Assess Phase<br />Test Cell Phase<br />Impl.<br />1d<br />1d<br />4d<br />3d<br />2d<br />2w<br />4w<br />2w<br />2w<br />RO<br />RO<br />RO<br />RO<br />RO<br />Prepare Test Cell<br />Prepare Roll out<br />Run Test Cell<br />W0 – Kick off<br />Mobilisation<br />Workshop 2<br />Workshop 3<br />Workshop 4<br />Workshop 1<br />Analyze TC<br />RO<br />Report Out to Stakeholders<br />
  16. 16. 10<br />Roles and Responsibilities<br />Value Stream Sponsor, Lean Champion and Stakeholders<br />To drive the realisation of Lean by:<br /><ul><li>Identifying and mobilising value-streams and opportunities therein
  17. 17. Appointing suitable Value Stream Managers and mentoring them
  18. 18. Steering value streams through Assessment, Implementation and Ongoing Management to realise benefits
  19. 19. Attending the report out meetings
  20. 20. Championing Lean with colleagues – sharing learning's and education</li></ul>Value Stream Manager<br />To implement Lean in support of the broader business strategy by:<br /><ul><li>Leading the assessment of a core value stream in the business
  21. 21. Implementing short, sharp improvements in the value stream that bring lasting change
  22. 22. Being a role-model for Lean that embeds this way of managing continuous improvement</li></ul>Value Stream Team Member<br />To implement Lean in support of the broader business strategy by:<br /><ul><li>Participating in the assessment of a core value stream in the business
  23. 23. Co-running short, sharp improvements in the value stream that bring lasting change
  24. 24. Supporting the ethos of Lean amongst colleagues across the organisation</li></ul>Lean Coach<br /><ul><li>To develop the capability of the Value Stream Sponsor and Manager
  25. 25. To support the VSS and VSM to deliver the value stream effectively</li></li></ul><li>11<br />Open<br />Ticket<br />Review Ticket<br />& Assign<br />Test & Close<br />Ticket<br />Investigate &<br />Solution<br />Open<br />Ticket<br />Work on<br />solution<br />Test & Close<br />Ticket<br />Background<br /><ul><li>With more than 109 years in the market, XXX is one of the Mexico largest player in the insurance sector
  26. 26. 5 year contract (until Nov 2013)
  27. 27. Single contract covering both Strategic Outsourcing and Application Services
  28. 28. Application support for day to day operations (levels 1.5, 2, and 3)
  29. 29. Application Maintenance of 900 applications
  30. 30. Analysis and key concepts implemented
  31. 31. Group teams in Cells facilitating the communication among the team members
  32. 32. Adoption of visual display to make the targets and the actual performance clear
  33. 33. Work on a single ticket at a time instead of multi-tasking among several tickets
  34. 34. Clear prioritization of tickets
  35. 35. Conversion to an improved flow of operations
  36. 36. Standardized work
  37. 37. Current Conditions
  38. 38. Backlog was increasing 10% monthly
  39. 39. More then 1500 Tickets on Backlog
  40. 40. Customer pressure to reduce backlog
  41. 41. Client provided a daily list of “prioritized tickets”. It was one of the causes of backlog increase, as tickets not finished would be switched to "new prioritized ones“.
  42. 42. Low Team Morale 6.4 (scale 0-10) – August/2010
  43. 43. 22 People from Level 2 need extra 12 people from Level 3 in order to close the tickets impacting Level 3 and the Customer</li></ul>2010 – Tickets of L2 Support<br /><ul><li>Proposed Countermeasures
  44. 44. Tickets open – New tickets opened by Client. Demand of tickets open per day
  45. 45. Tickets resolved – tickets solved, but not closed every day
  46. 46. Tickets closed – tickets solved and closed every day
  47. 47. Tickets in backlog – all tickets that are not closed
  48. 48. Results
  49. 49. Backlog reduction and USD 340k Benefits on cost avoidance up to April/2011
  50. 50. Team Morale went higher from 6,4 (August/10) to 9 (February/11)</li></ul>35% backlog reduction<br />1606 tickets when Test Cell started<br />60% backlog reduction<br /><ul><li>Goals and Targets
  51. 51. Reduce Backlog from –10% to 5% monthly;
  52. 52. Improve Ticket Lead Time from 85 to 72 hours;
  53. 53. Savings of USD 650k within 15 months</li></li></ul><li>12<br />Other sources – Look for improvement opportunities and also...<br />http://www.lean.org.br/ - Lean Institute Brasil<br />http://www.lean.org/ - Lean Institute<br />Lean IT<br />Steve Bell<br />Michael Orzen<br />
  54. 54. 13<br />Contacts<br />e-mail: andre_andreazzi@yahoo.com.br<br />#Twitter – LeanAndreazzi<br />
  55. 55. Thank you<br />

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