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Improve Your Lean Management System With a Simple Chart

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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

Published in: Business
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Improve Your Lean Management System With a Simple Chart

  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?
  6. Three Key Questions 1. Are we achieving our target or goal? 2. Are we improving? 3. How do we improve?
  7. 1:15 PM
  8. "Bowling Chart” or “Bowler”
  9. Three Key Questions 1. Are we achieving our target or goal? 2. Are we improving? 3. How do we improve?
  10. 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?
  11. WWTD?
  12. 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)
  13. 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"
  14. "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)
  15. - 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
  16. "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
  17. "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?
  18. 3 Rules for Finding a Signal
  19. 3 Rules for Finding a Signal
  20. 3 Rules for Finding a Signal
  21. Three Key Questions 1. Are we achieving our target or goal? 2. Are we improving? 3. How do we improve?
  22. 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?
  23. 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
  24. • 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
  25. A PBC for the Fieldbook “Trend Chart”
  26. 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
  27. Unpredictable & Not Meeting Target STABILIZE THE SYSTEM! ROOT CAUSE? ROOT CAUSE?
  28. Predictable & Not Meeting Target IMPROVE THE SYSTEM!
  29. Predictable and Always Meets Target IMPROVE THE SYSTEM?
  30. Predictable and Sometimes Meets Target IMPROVE THE SYSTEM! DON'T OVERREACT!
  31. Shifting into the Green
  32. Looking for Signals in a Metric That Meets Target SIGNAL WHAT CHANGED?
  33. WWTD? Question: “Does Toyota use Six Sigma?” Answer: “No, but we teach everybody the seven basic Q.I. tools.”
  34. React Less Lead Better Improve More
  35. Questions? Mark Graban @MarkGraban • Email: • mark@markgraban.com • Web: • www.LeanBlog.org • www.MarkGraban.com Resources: MeasuresOfSuccessBook.com Slides: MarkGraban.com/LeanFrontiers

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