Lean innovation - Basic principles of Lean

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We are living in the age of creativity. As much as 80% of managers admit that unlocking the creative potential in their organization is crucial to sustain economic growth. Unfortunately, only 25% believe that they are living up to their creative potential. The main reason for this discrepancy is the lack of an efficient innovation strategy.

Lean thinking, as developed by Toyota several decades ago, is a philosophy that contains a powerful set of tools that enable more efficient innovation, from ideation to validation. Lean releases wasted time and at the same time provides the necessary framework for left-brain scientists to become more creative.

This is a first presentation in a series that discuss the use of Lean thinking in R&D.

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  • Value-added:
    Transforming information
    Customer wants it
    First time right

    Non-value added but required:
    Regulation, customer, compliance

    Non-value added:
    Use resources but not necessary for customers
  • The deliberate quest to have your view of the world challenged.
  • Remove a vital part
    Multiply a vital part
    Steel-and-add
    Separate vital parts
    Introduce (in)dependency
  • Lean innovation - Basic principles of Lean

    1. 1. LEAN innovation Basic principles of Lean @Joeri Vercammen
    2. 2. Introduction Innovations in aeronautics! – J. Vaughan (Flickr)
    3. 3. “We are living in the age of creativity” (1) Agriculture age – Farmers (2) Industrial age – Factory workers (3) Information age – Knowledge workers (4) Conceptual age – Creators
    4. 4.          Consider unlocking creativity is crucial to economic sustainability.  http://www.adobe.com/aboutadobe/pressroom/pressreleases/201204/042312AdobeGlobalCreativityStudy.html
    5. 5.          Believe that they are living up to their own creative potential.  http://www.adobe.com/aboutadobe/pressroom/pressreleases/201204/042312AdobeGlobalCreativityStudy.html
    6. 6. Sunflower - MH Christen (Flickr)
    7. 7. Blue broken clock – A. Synaptic (Flickr)
    8. 8. Lean provides:  the tools to release wasted time  the insights of a structured process
    9. 9. Lean basics Modern Times – CNN
    10. 10. Ford Model T: Any colour you like, provided it is black.
    11. 11. 1950 – 1980 Toyota changes its production process: worker is process owner avoid waste, low cost, high productivity Toyota I
    12. 12. 1950 – 1980 Toyota changes its production process: worker is process owner avoid waste, low cost, high productivity 1980s More Japanese cars than American in the US Toyota II
    13. 13. 1950 – 1980 Toyota changes its production process: worker is process owner avoid waste, low cost, high productivity 1980s More Japanese cars than American in the US 1990s Womack & Jones “The machine that changed the world” Toyota III
    14. 14. Lean is ‘hot’  Lean entrepreneur  Lean startup  Lean branding  Lean UX  Lean analytics  Lean talking  Lean service design  Lean enterprise  Lean design
    15. 15. “Lean is a philosophy with as goal to increase productivity by systematic elimination of waste” It starts with the visualization of a process. In the broadest of sense, i.e. manufacturing, service, administration, etc
    16. 16. 1 Visualize the entire process “Sample prep” “Analysis” “Data handling” This is the value stream map
    17. 17. 2 Measure Turnaround time Process time Required time “Sample prep” “Analysis” “Data handling”
    18. 18. 2 Measure Turnaround time Process time Required time “Sample prep” “Analysis” “Data handling” How long does the entire step take? + what’s the first time right ratio?
    19. 19. Turnaround time Process time Required time How much time is spend on actions that create true value for the customer? 2 Measure “Sample prep” “Analysis” “Data handling”
    20. 20. 2 Measure Turnaround time Process time Required time “Sample prep” “Analysis” “Data handling” How much time is spend on actions that are necessary but not create true value for the customer, e.g. making reports, invoices, etc?
    21. 21. 2 Measure “Sample prep” “Analysis” “Data handling”
    22. 22. 3 Remove all waste “Sample prep” “Analysis” “Data handling”
    23. 23. 3 Remove all waste “Sample prep” “Analysis” “Data handling”
    24. 24. 3 Remove all waste 75% Typically, time reductions up to 75% can be achieved by applying Lean principles.
    25. 25. The 7 wastes (+1) Wasting time – Mr. Birnbaum (Flickr)
    26. 26. Remember Tim Woods?
    27. 27. Remember Tim Woods? Transport Inventory Motion Waiting Overproduction Overprocessing Defects Skills
    28. 28. WASTE #1 Too much transport (product, information)  Moving products to and from storage  Transport between workstations  Moving products and materials back and forth  Picking up signatures
    29. 29. WASTE #2 Too much inventory  Too much consumables, reagents, etc…  Multiple locations  Pending documents  Open projects  Unread emails  Unused/useless data in DB
    30. 30. Unnecessary motion of people  Not everything within range  Looking in materials/documents  Looking for materials/documents 5S WASTE #3
    31. 31. WASTE #4 Waiting…  For the previous process step  For equipment to be ready/available  For outpu/results (runtime)  For approval  For maintenance, (technical) assistance
    32. 32. WASTE #5 Overproduction  Too much reagents, standards, etc…  Too much samples  Too much data  Making reports that are never read  Making an extra copy (endless cc-ing)
    33. 33. WASTE #6 Overprocessing  Unnecessary re-analysis/calibrations  Doublechecks  Validation  Over-complicated procedures  Double documents
    34. 34. WASTE #7 Defects  Instrument failures  Retesting  Variation  Wrong data input  Missing information  No procedure
    35. 35. WASTE #8 Skills  Underutilizing skills of people  Lack of decent training  Not using people’s creativity
    36. 36. Some Lean tools Old tools – J.M. Rosell (Flickr)
    37. 37. Main sources of waste are:  Waiting  Overproduction & overprocessing leading to inventory  Motion
    38. 38. FLOW & PULL A simple way to address these wastes (similar to the assembly line in a car manufacturing plant)
    39. 39. FLOW & PULL A simple way to address these issues = make sure that a product never stops from the moment the production process is launched. (similar to the assembly line in a car manufacturing plant)
    40. 40. FLOW & PULL A simple way to address these issues = the subsequent process step signals when ready to accept new product. (similar to the assembly line in a car manufacturing plant)
    41. 41. [The tools] PDCA 5 Whys One-piece flow Kanban Takt time Line balancing 5S
    42. 42. Kaizen Continuous improvement. Kaizen is derived from two Japanese characters; kai, meaning ‘change’ and zen meaning ‘good’. It aims at continuously eliminating waste from the value stream. Therefore, it applies the so-called PDCA cycle.
    43. 43. Plan Do Check Act
    44. 44. Plan Do Check Act What’s going? What are the facts? What could be done?
    45. 45. Plan Do Check Act What’s going? What are the facts? What could be done? Put the plan into action. Measure the result.
    46. 46. Plan Do Check Act What’s going? What are the facts? What could be done? Put the plan into action. What happened? Measure the result. Was it what was expected? What should we do differently?
    47. 47. Plan Do Check Measure the new process Make sure change is permanent Act What’s going? What are the facts? What could be done? Put the plan into action. What happened? Measure the result. Was it what was expected? What should we do differently?
    48. 48. 5 Whys Question-asking technique to determine the root cause of a defect. Ask five subsequent questions in response to an observed defect. The answer to each question forms the basis of the next question. The last answer points to the process failure that needs to be addressed.
    49. 49. One-piece flow Approach to prepare each product individually rather than in batch. By working this way, turnaround times are reduced significantly and the impact of errors on the process is less significant because only ‘one piece’ is involved rather than a batch of pieces.
    50. 50. “Sample prep” “Analysis” “Data handling” Assume a process that consists of three steps. Each step takes one minute to complete. This is what happens in function of variable batch size.
    51. 51. “Sample prep” “Analysis” “Data handling” Batch size, # 1st sample, min All samples, min 10 21 30 5 11 20 2 5 14 1 3 12
    52. 52. “Sample prep” “Analysis” “Data handling” Batch size, # 1st sample, min All samples, min 10 21 30 5 11 20 2 5 14 1 3 12 ! Faster turnaround !
    53. 53. “Sample prep” “Analysis” “Data handling” Batch size, # 1st sample, min All samples, min 10 21 30 5 11 20 2 5 14 1 3 12 ! Faster troubleshooting !
    54. 54. Kanban System that matches inventory with actual demand. Kanban is a visual technique that applies cards to signal when new product is required. It is true pull, since the trigger to start production send to the previous step in the production cycle.
    55. 55. “Sample prep” “Analysis” “Data handling” 1 2 Kanban 1: Analysis ready, trigger sample prep Kanban 2: Data handling ready, trigger analysis
    56. 56. “Sample prep” “Analysis” “Data handling” t0: No production 1 2
    57. 57. “Sample prep” “Analysis” “Data handling” 2 1 t1: Kanban 2 triggers “Analysis” based on customer demand (= pull)
    58. 58. “Sample prep” “Analysis” “Data handling” 1 t2: Kanban 1 triggers “Sample prep” (= pull) 2
    59. 59. “Sample prep” “Analysis” “Data handling” 1 2 t3: Kanban 1 returns to “Analysis”
    60. 60. “Sample prep” “Analysis” “Data handling” 1 2 t4: Kanban 2 returns to “Data handling”, Kanban 1 triggers “Sample prep”
    61. 61. “Sample prep” “Analysis” “Data handling” 1 2 This process is continued until all “Data handling” is finished.
    62. 62. Takt time Production time needed to meet customer demand (= pull). If a customer needs 10 units per week for example, then the average time to build a single unit must be 4 hours (= takt time). Production must be (slightly) faster than takt time, so that it can meet customer demand without over or under performing. Available time Required units Takt =
    63. 63. “Sample prep” “Analysis” “Data handling” In the previous slides is was assumed that each process step takes the same amount of time. In reality this is rarely the case.
    64. 64. “Sample prep” “Analysis” “Data handling” More appropriate is, for example: Sample prep: 120 min Analysis: 60 min Data handling: 30 min
    65. 65. “Sample prep” “Analysis” “Data handling” 120 60 30 Or graphically,
    66. 66. “Sample prep” “Analysis” “Data handling” - Example 1 - Demand: 10 samples in 3 days (= 21 h) Takt = 2.1 h 120 60 30
    67. 67. “Sample prep” “Analysis” “Data handling” Takt 120 60 30 - Example 1 - Demand: 10 samples in 3 days (= 21 h) Takt = 2.1 h
    68. 68. “Sample prep” “Analysis” “Data handling” Takt Overperforming 120 60 30 - Example 1 - Demand: 10 samples in 3 days (= 21 h) Takt = 2.1 h
    69. 69. “Sample prep” “Analysis” “Data handling” Takt - Example 2 - Demand: 20 samples in 3 days (= 21 h) Takt = 1.1 h 120 60 30
    70. 70. “Sample prep” “Analysis” “Data handling” Overperforming Takt - Example 2 - Demand: 20 samples in 3 days (= 21 h) Takt = 1.1 h 120 60 30
    71. 71. “Sample prep” “Analysis” “Data handling” Takt - Example 2 - Demand: 20 samples in 3 days (= 21 h) Takt = 1.1 h 120 60 30 Underperforming
    72. 72. Line balancing Leveling the workload in a value stream. Lean balancing applies takt time calculations to remove bottlenecks and excess capacity from a process.
    73. 73. “Sample prep” “Analysis” “Data handling” Takt Let’s return to Example 2 Demand: 20 samples in 3 days (= 21 h) Takt = 1.1 h 120 60 30 Underperforming
    74. 74. “Sample prep” “Analysis” “Data handling” Sample prep is the bottleneck Takt 120 60 30 Underperforming
    75. 75. “Sample prep” “Analysis” “Data handling” Possibilities? Takt 120 60 30 Underperforming
    76. 76. “Sample prep” “Analysis” “Data handling” Possibilities? Map the value stream of the “Sample prep” process Remove waste Transfer workload to “Data handling” Increase capacity Takt 120 60 30 Underperforming
    77. 77. 5S A method to organize a clean & efficient workplace. It involves a sustained hierarchical organization of all the tools and products that are needed to get a job done.
    78. 78. Summary Thinking differently – M. Cardus (Flickr)
    79. 79. Lean provides a strategy to release time that is otherwise inevitably lost in inefficient procedures. It provides crucial insights into how things are done. It is the ideal starting point to provoke more effective innovation.
    80. 80. Contact j.vercammen@is-x.com

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