Many organizations have discovered the benefits of Lean management system practices, ranging from Strategy Deployment in the boardroom (and on down the organization) and Lean Daily Management practices at the front lines (and on up). In our zeal to reduce waste in the actual work, how often are we introducing additional waste through our management practices? Too often, in the varied experience of our webinar presenter, Mark Graban. Reacting to every up and down in a metric or demanding a root cause explanation for every below average data point (or any data point that doesn’t hit a target) might be consuming time that would be better spent actually improving the system that generates your results. In this webinar, you’ll learn practical tips and methods for being more effective in your Lean improvement efforts, including: • Why two data points are not a trend (except for the few cases when they are) • Why Run Charts or, better yet, “Process Behavior Charts” are far more helpful than red/green color-coded tables of numbers, a.k.a. “Bowling Charts” • How to create a Process Behavior Chart for a metric • How to use a Process Behavior Chart over time to separate “signal” from “noise,” which shows you when to react and look for a root cause for that last data point – and when to step back and improve more systematically Mark will share lessons from his new book, Measures of Success: React Less, Lead Better, Improve More. Less

1. Improve Your Lean Management
System With a Simple Chart
Mark Graban
@MarkGraban
www.MarkGraban.com
www.LeanBlog.org
Measures of Success: React Less, Lead Better, Improve More
Resources: MeasuresOfSuccessBook.com
Slides: MarkGraban.com/LeanFrontiers

2. Methods
• Value Stream Mapping
• Kaizen Boards
• Daily Huddles
• A3 Problem Solving
• Strategy Deployment
• Performance Measures
Mindsets
• Customer Focus
• Respect for People
• Create a system in which people
can be successful
• Engage everybody
• Scientific, systematic problem
solving and improvement
A Lean Management System

3. •One goal is reducing waste
• This includes “management waste”
• Wasted motion
• Overprocessing
A Lean Management System

4. “What gets
measured,
gets managed.”

5. How do
we manage?

7. Three Key Questions
1. Are we
achieving
our target or
goal?
2. Are we
improving?
3. How do we
improve?

9. 1:15 PM

10. "Bowling Chart” or “Bowler”

11. Three Key Questions
1. Are we
achieving
our target or
goal?
2. Are we
improving?
3. How do we
improve?

12. Additional Questions
• Which of these
numbers (if any)
suggests that the
system has
changed
significantly?
• Which of these
merit reaction,
investigation, or
explanation?
• How do we
prioritize?

13. WWTD?

14. There isVariation in Every Metric
• The question is "how much variation is routine?”
• Personal examples:
• Body weight
• Time to drive to work
• Resting heart rate
60
65
70
75
80
1-Jul
3-Jul
5-Jul
7-Jul
9-Jul
11-Jul
13-Jul
15-Jul
17-Jul
19-Jul
21-Jul
23-Jul
25-Jul
27-Jul
29-Jul
31-Jul
2-Aug
4-Aug
6-Aug
8-Aug10-Aug12-Aug14-Aug16-Aug
Run Chart (Mark's Resting Heart Rate)
180
181
182
183
184
185
186
187
188
5/27/16
5/29/16
5/31/16
6/2/16
6/4/16
6/6/16
6/8/16
6/10/16
6/12/16
6/14/16
6/16/16
6/18/16
6/20/16
6/22/16
6/24/16
6/26/16
6/28/16
6/30/16
7/2/16
7/4/16
Run Chart (Weight)

15. Signals vs. Noise
“While every data set contains noise,
some data sets may contain signals.
Therefore, before you can detect a signal
within any given data set,
you must first filter out the noise."
"Process Behavior
Charts"

16. "Process Behavior Chart” – Measures of Success
-
5
10
15
20
25
30
29-Jul 30-Jul 31-Jul 1-Aug 2-Aug 3-Aug 4-Aug 5-Aug 6-Aug 7-Aug 8-Aug 9-Aug 10-Aug 11-Aug 12-Aug 13-Aug 14-Aug 15-Aug 16-Aug 17-Aug 18-Aug 19-Aug 20-Aug 21-Aug 22-Aug 23-Aug 24-Aug
Run Chart (Daily Book Sales)

17. -
5
10
15
20
25
30
29-Jul 30-Jul 31-Jul 1-Aug 2-Aug 3-Aug 4-Aug 5-Aug 6-Aug 7-Aug 8-Aug 9-Aug 10-Aug 11-Aug 12-Aug 13-Aug 14-Aug 15-Aug 16-Aug 17-Aug 18-Aug 19-Aug 20-Aug 21-Aug 22-Aug 23-Aug 24-Aug
X Chart (Daily Book Sales)
"Process Behavior Chart” – Measures of Success
AVERAGE

18. "Process Behavior Chart” – Measures of Success
AVERAGE
-
5
10
15
20
25
30
29-Jul 30-Jul 31-Jul 1-Aug 2-Aug 3-Aug 4-Aug 5-Aug 6-Aug 7-Aug 8-Aug 9-Aug 10-Aug 11-Aug 12-Aug 13-Aug 14-Aug 15-Aug 16-Aug 17-Aug 18-Aug 19-Aug 20-Aug 21-Aug 22-Aug 23-Aug 24-Aug
X Chart (Daily Book Sales)
UPPER NATURAL PROCESS LIMIT
LOWER NATURAL PROCESS LIMIT
NOISE
PREDICTABLE METRIC

19. "Process Behavior Chart” – Measures of Success
AVERAGE
-
5
10
15
20
25
30
29-Jul 30-Jul 31-Jul 1-Aug 2-Aug 3-Aug 4-Aug 5-Aug 6-Aug 7-Aug 8-Aug 9-Aug 10-Aug 11-Aug 12-Aug 13-Aug 14-Aug 15-Aug 16-Aug 17-Aug 18-Aug 19-Aug 20-Aug 21-Aug 22-Aug 23-Aug 24-Aug
X Chart (Daily Book Sales)
UPPER NATURAL PROCESS LIMIT
LOWER NATURAL PROCESS LIMIT
SIGNAL
WHAT CHANGED?

20. 3 Rules for Finding a Signal

21. 3 Rules for Finding a Signal

22. 3 Rules for Finding a Signal

23. Three Key Questions
1. Are we
achieving
our target or
goal?
2. Are we
improving?
3. How do we
improve?

24. Bowling Chart as Run Charts
0%
10%
20%
30%
40%
50%
60%
70%
80%
Jan Feb Mar Apr May Jun Jul Aug Sep
Run Chart (Team Engagement)
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
Jan Feb Mar Apr May Jun Jul Aug Sep
Run Chart (Recommend)
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
Jan Feb Mar Apr May Jun Jul Aug Sep
Rating
0.0
0.2
0.4
0.6
0.8
1.0
1.2
Jan Feb Mar Apr May Jun Jul Aug Sep
Run Chart (Falls w/ Sev Injury)
0.0
0.5
1.0
1.5
2.0
2.5
Jan Feb Mar Apr May Jun Jul Aug Sep
Run Chart (CLABSI)
0.0
0.2
0.4
0.6
0.8
1.0
1.2
Jan Feb Mar Apr May Jun Jul Aug Sep
Run Chart (CAUTI)
WHEN DO WE REACT?

25. Bowling Chart as PBCs
0
0.2
0.4
0.6
0.8
1
1.2
1.4
1.6
1.8
Jan Feb Mar Apr May Jun Jul Aug Sep
X Chart (Falls w/ Sev Injury)
0.0
0.5
1.0
1.5
2.0
2.5
3.0
Jan Feb Mar Apr May Jun Jul Aug Sep
X Chart (CLABSI)
0.0
0.2
0.4
0.6
0.8
1.0
1.2
Jan Feb Mar Apr May Jun Jul Aug Sep
X Chart (CAUTI)
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Jan Feb Mar Apr May Jun Jul Aug Sep
X Chart (Team Engagement)
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Jan Feb Mar Apr May Jun Jul Aug Sep
X Chart (Recommend)
50%
55%
60%
65%
70%
75%
80%
85%
Jan Feb Mar Apr May Jun Jul Aug Sep
X Chart (Rating)
SIGNAL
SIGNAL
NOISE

26. • Question 1: Are we achieving our target or goal?
a. Are we doing so occasionally?
b. Are we doing so consistently?
• Question 2: Are we improving?
a. Can we predict future performance?
• Question 3: How do we improve?
a. When do we react?
b. When do we step back and improve the system?
c. How will know if we’ve improved?
Three Key Questions

27. A PBC for the Fieldbook “Trend Chart”

28. Bowling Chart as PBCs with Red/Green
0.0
0.2
0.4
0.6
0.8
1.0
1.2
1.4
1.6
1.8
Jan Feb Mar Apr May Jun Jul Aug Sep
X Chart (Falls w/ Sev Injury)
0.0
0.5
1.0
1.5
2.0
2.5
3.0
Jan Feb Mar Apr May Jun Jul Aug Sep
X Chart (CLABSI)
0.0
0.2
0.4
0.6
0.8
1.0
1.2
Jan Feb Mar Apr May Jun Jul Aug Sep
X Chart (CAUTI)
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Jan Feb Mar Apr May Jun Jul Aug Sep
X Chart (Team Engagement)
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Jan Feb Mar Apr May Jun Jul Aug Sep
X Chart (Recommend)
50%
55%
60%
65%
70%
75%
80%
85%
Jan Feb Mar Apr May Jun Jul Aug Sep
X Chart (Rating)
SIGNAL
SIGNAL
NOISE

29. Unpredictable & Not Meeting Target
STABILIZE THE SYSTEM!
ROOT CAUSE?
ROOT CAUSE?

30. Predictable & Not Meeting Target
IMPROVE THE SYSTEM!

31. Predictable and Always Meets Target
IMPROVE THE SYSTEM?

32. Predictable and Sometimes Meets Target
IMPROVE THE SYSTEM!
DON'T OVERREACT!

33. Shifting into the Green

34. Looking for Signals in a Metric That Meets Target
SIGNAL
WHAT
CHANGED?

35. WWTD?
Question:
“Does Toyota use Six Sigma?”
Answer:
“No, but we teach everybody the seven
basic Q.I. tools.”

36. React Less
Lead Better
Improve More

37. Questions?
Mark Graban
@MarkGraban
• Email:
• mark@markgraban.com
• Web:
• www.LeanBlog.org
• www.MarkGraban.com
Resources: MeasuresOfSuccessBook.com
Slides: MarkGraban.com/LeanFrontiers