2. • Introduction – Simple Lean
• Classic Action Workout
• A New Approach…Simple Lean
• The Concept
• Facilitating a Simple Lean Event
• Logistics
• Sample Agenda
• Ground Rules
• Value and Waste
• Value Stream Mapping (VSM)
• What is a VSM?
• VSM
• Question To Ask…
• Step 1 – Identify VSM
• NPS Team Example
• Helpful Hints
• Step 2 through to Step 5
• Step 6 - After The Event
• Foundations of Project Success
Agenda
4. Classic Action Workout
4 - 6 weeks of prep
4 - 5 teams of 6 - 8 people
1 week AWO
109 page report-out
The math doesn’t get us there…
5. 4 Hours
A New Approach…Simple Lean
Highly focused session driving
simplification and customer alignment
Engage small workgroups (8 - 10
people) for 4 hours
• 30 minute training on value, waste
• 2 hour group exercise – identifying how the
group delivers value to the customer…and the
waste / complexity that gets in the way
• 45 minutes prioritizing actions to address
identified waste and complexity
• 45 minutes developing plan to complete top 3 -
5 actions within the next 30 days (Team owns)
Brainstorming Affinitize Identify
Waste
Prioritize
Connect
Customer
Values
Focused
6. Comparing Traditional
Lean with Simple Lean
Traditional Simple
Scope Wing-to-Wing Value
Stream
Focused area within
the Wing-to-Wing
Value Stream
Pre-work 4-6 weeks 3-6 hours
Timing of Event 3-5 consecutive days 4 hours
# Participants 3-4 teams w/6-8
people on each team
8-10 people
(1 team)
# Actions 20 – 30 1 – 3
Post Activities 6 months or more 1 – 30 days
7. The Concept
Leverage transactional lean methods…focus on customer
value, and using post-it notes to quickly capture issues
Employees identify and fix their own issues
Limit actions to 30 days or less…small, quick improvements
Parking lot for longer high-priority issues
Events facilitated by MBBs, BBs, LLs… others
8. It’s value if the customer is willing to pay for it
Solutions provided at the right place and time
So…activities that add no value are waste (muda)
Value
Unnecessary
waste
Necessary
waste
Rework
Missing information
Lack of / Poor
communication
Information that does not
(from the viewpoint of the
customer) add value to a
good or service
Reviewing the business rules
Quality checks
Building the metrics
Resources consumed by
inefficient or non-essential
activities
Designing the organizational tools
Transforming the information
Assembling the part
Creating the drawing
Value
9. Waiting
Excess Inventory
Transportation
Over Production
Excess Motion
Over Processing
Defects
Seven Types of Waste
IT examples
• Performance and Availability Issues
• Poor technical designs
• Unused HW, SW and / or licenses
• Multiple versions of the same
reports or objects
• Required fields not really needed
• Not enough Poka-yoke
• Buggy code
• Too many screens
• Manually moving data from one
system to another
• Poor integration design
• Utilizing non-standard integration
tools
• Over-solutioning (unused features)
• Duplicate functionality
• Table scans of complete databases
• More than one screen / system for
the same transaction
• Input fields not organized
• Credit application awaiting
approval
• Invoices waiting to be paid
• Missed customer due dates
• Data entry errors
• Duplicate entries
• Shipping hard copies that
requiring signatures
• Running a credit check for every
customer inquiry
• Looking / Searching for data
and info
• Printing material for personal
use
Transaction examples Product examples
• Expensive machine running at
30% capacity
• Material between operations and
process steps
• Buffer & safety stock inventory
• Poor quality or fit of materials
• Handwork…polishing, deburring
• Conveyance of any materials
and tooling
• Conveyance systems
• Sub-assemblies and components
between feeder and main line
• Operators bending, twisting,
turning and reaching
• Machines “cutting air”
• Robotic motion getting home
10. • It’s a 4 hour event
• Leverages basic lean methods…focus on
customer value, and post-it notes to quickly
capture issues
• Employees ID and fix their own issues
• Actions limited to 30 days or less…small, quick
improvements
• Parking lot for longer high-priority issues
Simple Lean…what makes it work?
11. Use of Simple Lean in Transactional
HR Offer Process
Scope: Recruiting
Actions:
• Add checklist / banner to form
• Plan / schedule recruiting process LEAN
Future Action:
• Schedule Lexus Nexus Lean Event
# of Participants: 17
VSM and Issue Identification
Issue Prioritization Improvement Plans
13. Logistics
• Reserve Conference Room (1 week prior to event)
• Invitation to employees that will participate in the event
• Confirmed responses from invite (Lock in participants)
• Supplies for the event:
Flip Charts
Markers
Yellow , Pink and Green Post-It notes
Video Overhead
Telephone (Virtual session)
WebEx connection (Virtual session)
Presentation material
14. Sample Agenda (include breaks as needed)
8:00 – 8:30 Training on value and waste
10:30 – 11:15 Prioritizing actions to
address identified waste and
complexity
11:15 – 12:00 Developing plan to complete
top 1-3 actions within the
next 30 days (Team owns)
8:30 – 10:30 Group exercise: identifying how
the group delivers value to the
customer…and the
waste / complexity that gets in
the way
15. No Laptops / Blackberries or any other type of fruit device
during group sessions
Be on-time
One conversation at a time
Everyone
Engaged
One Team
Respect
Creativity
Be open to ideas from everyone
Take some big swings
One person - one voice - no position or rank
The only dumb question is the one that’s not asked
No silent disagreements
Focus on the customer, not the function
No blaming / finger pointing
Ground Rules
16. Value and Waste
Training Material included in a
separate file
30 minutes
Value Stream Mapping (VSM)
17. TOTAL VALUE STREAM
YOUR PROCESS
CUSTOMER
RECEIVES
What is a VSM?
All of the actions, both value-added and
waste, currently required to deliver value to
the customer.
CUSTOMER
DEMAND
18. Purpose: VSM
Facilitator / Participants:
• Helps visualize the entire process
• Identifies how value flows to the customer
• Shows where flow stops and inventory builds
• Helps us understand and improve big business processes…NPI, ITO,
and OTR - MAKES WASTE VISIBLE
• Identify issues, problems and ideas as the value stream map is
constructed
Tool to Identify Opportunities for Improvement
Pre-R0
R0
Opportunity
R2
Approval
to Bid
R3
Approval
to Sign
Contract
Contract
Signed!
R1
Approval
for
Resources
19. Questions To Ask…
• Who is the customer (Internal or external?)
• What is the value (Product, service, transaction) that
your group delivers to the customer?
• How do you actually bring this value to the customer?
• Does the work always follow a defined pathway?
• Does it always happen this way?
• Does the work get stuck anywhere?
• How do people know what to do?
• What would the customer think if they worked here?
20. 60 minutes
Step 1 – Identify VSM
Facilitator:
• constructs VSM with participant
input
Participants (w/guidance):
• Participants identify issues,
waste, problems, ideas by
attaching pink sticky notes to
the wall (no discussion…just
write it on a sticky note!)
Process
Step 1
Process
Step 2
Process
Step 4
Process
Step 5
Process
Step 6
Process
Step 3
Start Stop
Level 1 Detail
Time / effort = 20%
Idea
Issue
Issue
Idea
Issue
Issue
Issue
Idea
Issue
Issue
IdeaIdea
Idea
Issue
Issue Issue
Time / effort = 80%
1 Hour
21. NPS (Net Promoter Score)
Team Example
Request
for New
Survey
Rational
meeting on
new survey
request
Create
Survey
Definition
Guide
Review
Guide
with
Business
Finalize
the
Design
Doc
Translate
Survey
Questions
(Language
IM Builds
the new
Survey
Schedule
Survey
Request
Quality HQ
Approval
Business
Approval
Survey
Created
Upload File
from
Business
Segment
No formal
process in
place
Reactive
as
opposed
to
Proactive
Scheduling
survey
request
with IM
Difficult to
understand
Segment
Responsib
ilities
Unclear
Surveys
are Set up
for new
segments
but not
existing
ones
Poke Yoke
Definition
Guide
Unable to
validate
languages
Rework –
Redundant
testing
Send
Survey to
Customer
Leverage
Existing
Survey
Designs
IM Impact
testing
Quality HQ
user
testing
Business
user
testing
EXTERNAL
CUSTOMER
INTERNAL
CUSTOMER
Product = New NPS Survey
Info
supplied is
not
complete
No
mandatory
conditions,
total manual
process
No
Instructions
on how to
fill out
Guide
No Training
Doc
Quality
Issues
related to
language
mistakes
Inconsistency
between
segment
questions
Centralized
shared
services for
Translations
Consolidate
Testing
requirements
eliminate
redundancy
Rework
Rework
22. Helpful Hints
• Don’t let participants argue about issues…just have
them write them down on pink sticky notes
• Don’t try to map re-work loops on a VSM…just
identify the rework as an issue
• Keep the VSM high level…the point is to help the
group expose issues
• In general, VSM steps represent chunks of work
separated by potential delays (Approvals, meetings,
handovers, waiting for info, etc.)
• Think in terms of Relevancy…not Pinpoint Accuracy
23. Supporting
Doc’s
driven by
Customer
Approvals
Customer
signs but
docs not
given to
biller
Step 2
Rationalize / affinitize pink sticky notes
Make them actionable
Delay in
Contract
handoff to
Biller
Driven by
Customer
Approvals
Delay
in
BOL
Delay in
getting
Signed
Certs
Entitlement
Calendar
vs.
Business
Days
Late
delivery of
signed
documentsVariation
order
signed but
Delay in
original
docs
Delay in
EX-WORKS
Delay in
Tradespher
invoice to
Biller
Baseload
not yet
achieved
Late
delivery of
signed
documents
Incorrect
Freight
Billing
Material
Shipped
Early or
Cancelled
Incorrect
Tax used
Waiting for
Invoice
Approval
Invoice doe
not meet
letter of
credit
Late
delivery of
product
Customer
negotiating
with
customer
Facilitator / Participants:
• Convert problems/issues into action statements
• “Responsibilities unclear” becomes “Clarify responsibilities”
• “Redundant inputs on form C” becomes “Eliminate redundant inputs on form C”
• “Lots of rework” becomes “Eliminate or reduce rework”
• Replace the “issue /problem” sticky with “action” sticky
• Don’t argue about issues…just convert to actions
60 minutes
24. Variation
order
signed but
Delay in
original
docs
Supporting
Doc’s
driven by
Customer
Approvals
Delay in
Contract
handoff to
Biller
Customer
signs but
docs not
given to
biller
Delay
in
BOL
Entitlement
Late
delivery of
signed
documents
Baseload
not yet
achieved
Late
delivery of
signed
documents
Incorrect
Freight
Billing
Material
Shipped
Early or
Cancelled
Invoice
does not
meet letter
of credit
Late
delivery of
product
Negotiating
with
customer
Delay in
EX-WORKS
Delay in
Tradespher
invoice to
Biller
Delay in
getting
Signed
Certs
Driven by
Customer
Approvals
Waiting for
Invoice
Approval
Incorrect
Tax used
Theme 1 Theme 2 Theme 3 Theme 4 Theme 5
Step 2 – Cont’d
Facilitator / Participants:
• Sort actions into common themes by asking:
• What actions are similar?
• Is this action connected to any of the others?
• Keep moving the Sticky’s around until consensus is reached
25. Variation
order
signed but
Delay in
original
docs
Customer
signs but
docs not
given to
biller
Step 2 – Cont’d
Delay
in
BOL
Entitlement
Late
delivery of
signed
documents
Baseload
not yet
achieved
Late
delivery of
signed
documents
Late
delivery of
product
Negotiating
with
customer
Delay in
EX-WORKS
Delay in
Tradespher
invoice to
Biller
Delay in
Contract
handoff to
Biller
Incorrect
Tax used
Theme 1 Theme 2 Theme 3 Theme 4 Theme 5
Facilitator / Participants:
• Eliminate redundant actions…”thin the herd”
• Combine similar actions into a single action
• Eliminate duplicates
• Regroup themes if needed
• Result should be a relative few actions organized by themes
ALL of Step 2 = 1 Hour
Very quick fast paced exercise!
26. Step 3
Transfer actions to impact vs. effort chart (Use flip chart)
45 minutes
Easy (30 days or less) Hard
Low
Impact
High
Impact
27. Step 4
Create action plan for top 1 - 3 High impact / low
effort actions (Use flip chart)
Action Owner Due Date
Action 1 Participant 1 April 16
Action 2 Participant 2 May 1
Action 3 Participant 3 May 6
• Achieve group consensus on top 1 - 3 actions
• A participant in the room must own the action, but can certainly complete it with the help of
others
• Due dates no more than 30 days out
• Also identify 1 - 2 critical actions beyond the scope of the event, if applicable
Critical actions needed – beyond scope of Simple Lean
Relocate test facility…
Simplify T&L system…
30 minutes
28. Step 5
Obtain manager approval / support on actions
Immediate yes or no at the end of the session
Action Owner Due Date
Action 1 Participant 1 April 16
Action 2 Participant 2 May 1
Action 3 Participant 3 May 6
T
R
R
15 minutes
29. Step 6 - After The Event
Record session
Capture 30 day actions, plus out-of-scope actions
Return to close-out 30 day actions when complete
30. Foundations of Project Success
Scope and Requirements
Schedule
Project Success
Quality
Cost
Integrity and Safety
