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Lean Thinking Quality Management <ul><li>By  </li></ul><ul><ul><li>Baljit Singh Modi </li></ul></ul><ul><ul><li>Manager QS...
<ul><li>Here is Edward Bear coming down stairs now, bump, bump, on the back of his head, behind Cathy. It is, as far as he...
Two Views of an Organization THE WAY WE ARE ORGANISED THE WAY AN ORGANISATION SHOULD WORK SUPPLIERS CUSTOMERS
The Manager’s New Job <ul><li>People work IN the System The Manager’s new job is to work ON the System and improve it – co...
Fundamentals of Lean Management System <ul><li>Thinking in terms of systems </li></ul><ul><li>Understanding the variabilit...
Lean Thinking origin <ul><li>Define value from the perspective of the end customer </li></ul><ul><li>Provide what customer...
What is a Process? Inputs PROCESS Outputs CUSTOMERS Collect   Data Analyze   Data Improve Insight Plan Do Check Act How do...
The Lean Approach <ul><li>Hidden Costs </li></ul><ul><li>Examples: </li></ul><ul><li>Wastes </li></ul><ul><li>Morale </li>...
The Three Voices VOICE OF  THE CUSTOMER VOICE OF  THE PROCESS VOICE OF  THE PEOPLE LEADERSHIP
<ul><li>THE VOICE OF  </li></ul><ul><li>THE  </li></ul><ul><li>CUSTOMER </li></ul><ul><li>Improvement Statements </li></ul...
IMPROVEMENT STATEMENT  <ul><li>A statement that gives purpose and structure to process improvement </li></ul>VOICE OF THE ...
Improvement Statement Examples <ul><li>SUPPORT </li></ul><ul><li>PRODUCTION </li></ul><ul><li>SERVICE </li></ul><ul><li>AD...
OPERATIONAL DEFINITIONS <ul><li>Express the Quality indicator in terms you can do business with. </li></ul><ul><li>Are dev...
THE SEVEN QUESTIONS <ul><li>Who are my customers? </li></ul><ul><li>What do they want? </li></ul><ul><li>What is my produc...
The Eighth question <ul><li>What do my customers  DO  with my product or service </li></ul><ul><li>-and, can I HELP the cu...
<ul><li>THE VOICE OF THE PEOPLE </li></ul><ul><ul><ul><li>Process Maps </li></ul></ul></ul><ul><ul><ul><li>SIPOC </li></ul...
PROCESS MAPS - FLOWCHARTS <ul><li>Are powerful tools that enable people to understand the processes they are involved with...
Practical Guidelines for Flowcharting Involve people who do the work. Make sure everyone in the team participates. Keep it...
The Customer-Supplier Chain S I P O C Measures Measures Process Map Suppliers Inputs Process Outputs Customers Requirement...
Value Assessment or Stream Mapping Steps that are considered  essential  to produce and deliver the product or service to ...
The 7+1 Wastes (TIM WOOD) <ul><li>T ransportation </li></ul><ul><ul><ul><ul><li>Unnecessary movement of materials, product...
<ul><li>THE VOICE OF THE PROCESS </li></ul><ul><li>Data Collection approaches </li></ul><ul><li>Cause & Effect </li></ul><...
Three Approaches – Data Collection <ul><li>Jump in with both feet </li></ul><ul><ul><li>No data, gut feel </li></ul></ul><...
Why do we need to measure? <ul><li>To understand current performance </li></ul><ul><li>As a basis for taking action to sol...
Cause & Effect Root Cause Analysis <ul><li>Practical guidelines for Brainstorming </li></ul><ul><li>5 mins thinking time –...
Example : Cause & Effect Problem: Eg project does not deliver on budget Possible  causes Possible  causes People Processes...
The Five Whys <ul><li>Why? </li></ul><ul><ul><li>Why? </li></ul></ul><ul><ul><ul><li>Why? </li></ul></ul></ul><ul><ul><ul>...
<ul><li>PLANNING IMPROVEMENT </li></ul><ul><li>Design, Select, and Test Solutions </li></ul><ul><li>Cause Solution Diagram...
Improve  <ul><li>Three simple steps </li></ul><ul><li>From the Insight gained from process analysis – design possible alte...
Selecting Solutions:  Eliminate Low Payoff Solutions Low High Low High Benefit Eliminate all  Low Effort/Low Payoff   and ...
Concept Selection (Pugh) Matrix + - = + Timeliness Accuracy Customer Requirements  Concept 1 Concept 2 PLANNING IMPROVEMEN...
Aligning the Voice of the Process and the Voice of the Customer TIME SERIES OR SEQUENCE The Voice of the Customer The Voic...
<ul><li>Standardization </li></ul><ul><li>Monitoring </li></ul><ul><li>Problem Prevention </li></ul><ul><ul><ul><li>Poka –...
Standardization  <ul><li>Involves formally agreeing and implementing the best known ways of carrying out each process. </l...
The Purpose of Standardisation A D S C A P C A S C D D Improvement  Maintenance  Maintenance  There can be no improvement ...
What are recommendations for formalization  and documentation? <ul><li>Process maps </li></ul><ul><li>Measures, with opera...
Failure Mode Effect Analysis <ul><li>FMEA is a systematic process approach for identifying potential design and process fa...
The FMEA Process IDENTIFY FUNCTIONS  IDENTIFY FAILURE MODES IDENTIFY EFFECTS OF  THE FAILURE MODES DETERMINE SEVERITY IDEN...
POKA YOKE <ul><li>What could go wrong? </li></ul><ul><li>What check could we put in  place that would either prevent it ha...
Continuous Improvement -desirability Vs acceptability Acceptable  Acceptable  Acceptable  Not acceptable Most desirable Le...
RESULTS IMPROVED LEADERSHIP ENHANCED  CUSTOMER  SATISFACTION VOICE OF  THE CUSTOMER VOICE OF  THE PROCESS VOICE OF  THE PE...
<ul><li>Here is Edward Bear coming down stairs now, bump, bump, on the back of his head, behind Cathy. It is, as far as he...
Many Thanks………..
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Lean Thinking Baljit

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Lean Thinking Baljit

  1. 1. Lean Thinking Quality Management <ul><li>By </li></ul><ul><ul><li>Baljit Singh Modi </li></ul></ul><ul><ul><li>Manager QSE </li></ul></ul><ul><ul><li>WS Atkins </li></ul></ul><ul><ul><li>Sharjah </li></ul></ul>
  2. 2. <ul><li>Here is Edward Bear coming down stairs now, bump, bump, on the back of his head, behind Cathy. It is, as far as he knows, the only way of coming downstairs but sometimes he feels that there is really another way, if only he could stop bumping for a moment and think of it </li></ul>
  3. 3. Two Views of an Organization THE WAY WE ARE ORGANISED THE WAY AN ORGANISATION SHOULD WORK SUPPLIERS CUSTOMERS
  4. 4. The Manager’s New Job <ul><li>People work IN the System The Manager’s new job is to work ON the System and improve it – continuously – with their help </li></ul><ul><li>Myron Tribus </li></ul>
  5. 5. Fundamentals of Lean Management System <ul><li>Thinking in terms of systems </li></ul><ul><li>Understanding the variability of work </li></ul><ul><li>Understanding how we learn </li></ul><ul><li>Understanding people and behavior </li></ul><ul><li>Understanding the interdependence and interaction between the above </li></ul><ul><li>Giving vision, meaning, direction and focus </li></ul>
  6. 6. Lean Thinking origin <ul><li>Define value from the perspective of the end customer </li></ul><ul><li>Provide what customers want, when they want it </li></ul><ul><li>Work on the processes that lead to results – rather than the results themselves </li></ul><ul><li>Identify the entire value Stream and eliminate waste </li></ul><ul><li>Make the remaining value steps flow </li></ul><ul><li>Pursue perfection </li></ul>
  7. 7. What is a Process? Inputs PROCESS Outputs CUSTOMERS Collect Data Analyze Data Improve Insight Plan Do Check Act How do we Improve a Process?
  8. 8. The Lean Approach <ul><li>Hidden Costs </li></ul><ul><li>Examples: </li></ul><ul><li>Wastes </li></ul><ul><li>Morale </li></ul><ul><li>Reputation </li></ul><ul><li>Goodwill </li></ul><ul><li>Visible </li></ul><ul><li>Costs </li></ul><ul><li>Examples: </li></ul><ul><li>Staffing </li></ul><ul><li>Transport </li></ul><ul><li>Training </li></ul><ul><li>IT renewals </li></ul><ul><li>etc </li></ul><ul><li>Hidden Costs </li></ul><ul><li>Morale </li></ul><ul><li>Reputation </li></ul><ul><li>Goodwill </li></ul><ul><li>Visible </li></ul><ul><li>Costs </li></ul><ul><li>Wastes </li></ul>Hidden Costs Visible Costs More Cost saving (long term)
  9. 9. The Three Voices VOICE OF THE CUSTOMER VOICE OF THE PROCESS VOICE OF THE PEOPLE LEADERSHIP
  10. 10. <ul><li>THE VOICE OF </li></ul><ul><li>THE </li></ul><ul><li>CUSTOMER </li></ul><ul><li>Improvement Statements </li></ul><ul><li>Operational Definitions </li></ul>
  11. 11. IMPROVEMENT STATEMENT <ul><li>A statement that gives purpose and structure to process improvement </li></ul>VOICE OF THE CUSTOMER <ul><li>An indicator of change and direction </li></ul><ul><li>An indicator of quality </li></ul><ul><li>A process </li></ul>Three parts of an Improvement System:
  12. 12. Improvement Statement Examples <ul><li>SUPPORT </li></ul><ul><li>PRODUCTION </li></ul><ul><li>SERVICE </li></ul><ul><li>ADMINISTRATION </li></ul><ul><li>To reduce the waiting time for the vehicle to be serviced by the authorized dealer </li></ul><ul><li>To reduce the variation in in Fat content (1.5 – 3%) in the Milk produced </li></ul><ul><li>To shorten the time for hotel guests to check out </li></ul><ul><li>To reduce the customer wait/hold time during telephone transfers </li></ul>VOICE OF THE CUSTOMER
  13. 13. OPERATIONAL DEFINITIONS <ul><li>Express the Quality indicator in terms you can do business with. </li></ul><ul><li>Are developed by customer and supplier together </li></ul><ul><li>What do the following MEAN? </li></ul><ul><li>“ on-time” </li></ul><ul><li>“ accurate” </li></ul><ul><li>“ safe” </li></ul><ul><li>“ clean” </li></ul>VOICE OF THE CUSTOMER
  14. 14. THE SEVEN QUESTIONS <ul><li>Who are my customers? </li></ul><ul><li>What do they want? </li></ul><ul><li>What is my product or service? </li></ul><ul><li>What are my customers’ measures/expectations? </li></ul><ul><li>Is my product meeting my customers’ expectations? </li></ul><ul><li>What is my process for providing the product? </li></ul><ul><li>What action is required for improvement? </li></ul>VOICE OF THE CUSTOMER
  15. 15. The Eighth question <ul><li>What do my customers DO with my product or service </li></ul><ul><li>-and, can I HELP the customers to do that better? </li></ul>VOICE OF THE CUSTOMER <ul><li>Reacting to customers approaching you </li></ul><ul><li>Proactively asking customers </li></ul><ul><li>Gemba visits </li></ul>Gathering their voice:
  16. 16. <ul><li>THE VOICE OF THE PEOPLE </li></ul><ul><ul><ul><li>Process Maps </li></ul></ul></ul><ul><ul><ul><li>SIPOC </li></ul></ul></ul><ul><ul><ul><li>Value and the 7+1 Wastes </li></ul></ul></ul>
  17. 17. PROCESS MAPS - FLOWCHARTS <ul><li>Are powerful tools that enable people to understand the processes they are involved with </li></ul><ul><li>Are the pictures that represent the steps in a process, and how work or information flows through the process from beginning to end. </li></ul><ul><li>Can be working documents used for analyzing a process </li></ul><ul><li>Can be planning tools to help design a new process. </li></ul>VOICE OF THE PEOPLE
  18. 18. Practical Guidelines for Flowcharting Involve people who do the work. Make sure everyone in the team participates. Keep it simple – use shadow boxes.. Treat as working document – subject to constant change and improvement. Generate lots of objective questions. Discuss with others affected by the process (Customers and Suppliers). VOICE OF THE PEOPLE
  19. 19. The Customer-Supplier Chain S I P O C Measures Measures Process Map Suppliers Inputs Process Outputs Customers Requirements Requirements VOICE OF THE PEOPLE
  20. 20. Value Assessment or Stream Mapping Steps that are considered essential to produce and deliver the product or service to meet the Customers needs and requirements. The Customers are willing to pay for these steps. Steps that are not essential to the Value Flow – but which enable it to operate Steps that are considered non-essential to produce and deliver the product or service to meet the Customer’s needs and requirements. The Customers are not willing to pay for these steps. VOICE OF THE PEOPLE VALUE ADDED WORK NON-VALUE ADDED WORK VALUE ENABLING WORK
  21. 21. The 7+1 Wastes (TIM WOOD) <ul><li>T ransportation </li></ul><ul><ul><ul><ul><li>Unnecessary movement of materials, products or information </li></ul></ul></ul></ul><ul><li>I nventory </li></ul><ul><ul><ul><ul><li>Any work in process that’s in excess of what is required to produce for the customer </li></ul></ul></ul></ul><ul><li>M otion </li></ul><ul><ul><ul><ul><li>Needless movement of people </li></ul></ul></ul></ul><ul><li>W aiting time </li></ul><ul><ul><ul><ul><li>Any delay between when one process step ends and the next begins </li></ul></ul></ul></ul><ul><li>O ver-processing </li></ul><ul><ul><ul><ul><li>Trying to add more value to a service than your customers will pay for </li></ul></ul></ul></ul><ul><li>O verproduction </li></ul><ul><ul><ul><ul><li>Production of service outputs beyond what is required for immediate use </li></ul></ul></ul></ul><ul><li>D efect </li></ul><ul><ul><ul><ul><li>Any aspect of the service that does not conform to customer needs </li></ul></ul></ul></ul><ul><li>PLUS </li></ul><ul><li>Unused employee creativity </li></ul><ul><ul><ul><li>Losing time, ideas, improvements, learning </li></ul></ul></ul>VOICE OF THE PEOPLE
  22. 22. <ul><li>THE VOICE OF THE PROCESS </li></ul><ul><li>Data Collection approaches </li></ul><ul><li>Cause & Effect </li></ul><ul><li>Root Cause Analysis – 5 Why’s </li></ul><ul><li>Check Sheets & Tally Charts </li></ul><ul><li>Time series data – Run Charts </li></ul><ul><li>Variation </li></ul><ul><li>Stratification – Pareto Charts </li></ul><ul><li>Histograms & Scatter diagrams </li></ul>
  23. 23. Three Approaches – Data Collection <ul><li>Jump in with both feet </li></ul><ul><ul><li>No data, gut feel </li></ul></ul><ul><ul><li>Take an Uncontrolled Risk </li></ul></ul><ul><ul><li>If lucky, steal market place – if unlucky, immediate bankruptcy </li></ul></ul><ul><ul><li>Illusion of learning (wing it, seat of pants) </li></ul></ul><ul><li>Analysis Paralysis </li></ul><ul><ul><li>Take loads of data – don’t use it effectively </li></ul></ul><ul><ul><li>No controlled risks </li></ul></ul><ul><ul><li>No growth, no learning </li></ul></ul><ul><li>PDSA </li></ul><ul><ul><li>A “learning” approach </li></ul></ul>VOICE OF THE PROCESS
  24. 24. Why do we need to measure? <ul><li>To understand current performance </li></ul><ul><li>As a basis for taking action to solve problems </li></ul><ul><li>To know when not to take action (new one this!) </li></ul><ul><li>To be able to predict the future and decide whether this is the future we want </li></ul><ul><li>To drive and evaluate improvement efforts </li></ul>VOICE OF THE PROCESS
  25. 25. Cause & Effect Root Cause Analysis <ul><li>Practical guidelines for Brainstorming </li></ul><ul><li>5 mins thinking time – each person writes down his/her ideas. </li></ul><ul><li>Each person at a time gives one idea from the list </li></ul><ul><li>Ideas are written on flip chart (choose a scribe). </li></ul><ul><li>No idea too obvious or stupid </li></ul><ul><li>No criticism </li></ul><ul><li>Ideas should not be enlarged upon. </li></ul><ul><li>Leader leads the group. </li></ul><ul><li>Process is repeated until ideas dry up. </li></ul><ul><li>THEN: </li></ul><ul><li>DISCUSS IDEAS/EXPLAIN THEM </li></ul><ul><li>ELIMINATE UNLIKELY ONES </li></ul><ul><li>IDENTIFY THOSE WITH HIGH POSSIBILITIES </li></ul>CONVERGENT DIVERGENT VOICE OF THE PROCESS
  26. 26. Example : Cause & Effect Problem: Eg project does not deliver on budget Possible causes Possible causes People Processes Finance Resources Inexperienced Poor communications Late invoicing Cash flow not monitored Change not managed Inefficient Computer network problems VOICE OF THE PROCESS
  27. 27. The Five Whys <ul><li>Why? </li></ul><ul><ul><li>Why? </li></ul></ul><ul><ul><ul><li>Why? </li></ul></ul></ul><ul><ul><ul><ul><li>Why? </li></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Why? </li></ul></ul></ul></ul></ul>VOICE OF THE PROCESS
  28. 28. <ul><li>PLANNING IMPROVEMENT </li></ul><ul><li>Design, Select, and Test Solutions </li></ul><ul><li>Cause Solution Diagrams </li></ul><ul><li>Concept Solution (Pugh) Matrix </li></ul><ul><li>Measurement of Improvement - Process Behaviour Chart </li></ul>
  29. 29. Improve <ul><li>Three simple steps </li></ul><ul><li>From the Insight gained from process analysis – design possible alternative solutions </li></ul><ul><li>Select best solution </li></ul><ul><li>Test the solution </li></ul>PLANNING IMPROVEMENT
  30. 30. Selecting Solutions: Eliminate Low Payoff Solutions Low High Low High Benefit Eliminate all Low Effort/Low Payoff and High Effort/Low Payoff solutions From further Consideration Effort A payoff Matrix looks at the Relationship of Benefit And effort to reduce the number of Solutions to address PLANNING IMPROVEMENT
  31. 31. Concept Selection (Pugh) Matrix + - = + Timeliness Accuracy Customer Requirements Concept 1 Concept 2 PLANNING IMPROVEMENT <ul><li>Possible designs identified compared to customer requirements </li></ul><ul><li>Better(+), Same(=), or worse(-) than the datum </li></ul>
  32. 32. Aligning the Voice of the Process and the Voice of the Customer TIME SERIES OR SEQUENCE The Voice of the Customer The Voice of the Process What was, what is And what will be BAD GOOD PLANNING IMPROVEMENT
  33. 33. <ul><li>Standardization </li></ul><ul><li>Monitoring </li></ul><ul><li>Problem Prevention </li></ul><ul><ul><ul><li>Poka – Yoke </li></ul></ul></ul><ul><ul><ul><li>FMEA </li></ul></ul></ul>Holding the Gains
  34. 34. Standardization <ul><li>Involves formally agreeing and implementing the best known ways of carrying out each process. </li></ul><ul><li>If a process is operated consistently in the best currently known way, the outputs at each stage will remain predictable. </li></ul><ul><li>Customers will be able to rely on the outputs. </li></ul>HOLDING GAINS
  35. 35. The Purpose of Standardisation A D S C A P C A S C D D Improvement Maintenance Maintenance There can be no improvement where are there are no standards HOLDING GAINS A P C D Improvement
  36. 36. What are recommendations for formalization and documentation? <ul><li>Process maps </li></ul><ul><li>Measures, with operational definitions </li></ul><ul><li>Charts indicating the state of the process </li></ul><ul><li>Descriptions and diagrams of how the process operates </li></ul><ul><li>Monitoring and review schedule </li></ul>HOLDING GAINS
  37. 37. Failure Mode Effect Analysis <ul><li>FMEA is a systematic process approach for identifying potential design and process failures before they occur, with the intent to eliminate them or minimize the risk associated with them </li></ul>HOLDING GAINS
  38. 38. The FMEA Process IDENTIFY FUNCTIONS IDENTIFY FAILURE MODES IDENTIFY EFFECTS OF THE FAILURE MODES DETERMINE SEVERITY IDENTIFY POSSIBLE CAUSES DETERMINE LIKELIHOOD CALCULATE CRITICALITY IDENTIFY DESIGN OR PROCESS CONTOLS DETERMINE DETECTABILITY FINAL RISK ASSESSMENT ACTION TO REDUCE RISK HOLDING GAINS
  39. 39. POKA YOKE <ul><li>What could go wrong? </li></ul><ul><li>What check could we put in place that would either prevent it happening or reduce the chances of it happening? </li></ul>HOLDING GAINS
  40. 40. Continuous Improvement -desirability Vs acceptability Acceptable Acceptable Acceptable Not acceptable Most desirable Less desirable Even less desirable HOLDING GAINS
  41. 41. RESULTS IMPROVED LEADERSHIP ENHANCED CUSTOMER SATISFACTION VOICE OF THE CUSTOMER VOICE OF THE PROCESS VOICE OF THE PEOPLE
  42. 42. <ul><li>Here is Edward Bear coming down stairs now, bump, bump, on the back of his head, behind Cathy. It is, as far as he knows, the only way of coming downstairs but sometimes he feels that there is really another way, if only he could stop bumping for a moment and think of it </li></ul>IMPROVEMENT !!
  43. 43. Many Thanks………..

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