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Waste is Optional Conference
This document contains information about lean principles from Stephen Parry of Lloyd Parry. It discusses measuring work, seeing work visually, structuring work to eliminate errors, and developing the workforce. The document emphasizes measuring end-to-end performance, creating feedback loops to continuously improve quality, defining what good work looks like through operating rules, and developing staff competence through a learning environment.
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Waste is Optional Conference
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- 3. All Trade‐Marks and ©Copyright 2015 Owned by Lloyd Parry. All Rights Reserved. Designing the business to eliminate waste and errors and gain long term profitability 1. How you see the work. 2. How you measure the work. 3.How you structure the work. 4. How you develop the workforce.
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- 13. All Trade‐Marks and ©Copyright 2015 Owned by Lloyd Parry. All Rights Reserved. The following principlesmust be at the heart of every service and operational leader’s day-to-day business: 1. Create value for customers while optimising the end‐to‐end delivery process. 2. Opportunities to create new value must be identified continuously. 3. Remove the internal causes of bad customer experiences, organisational rework, excessive WIP and the causes of inconsistent flow. 4. Eliminate the cause of externally generated waste (Processing waste created by other companies) The Operational Leader’s CORE Value Compass Don’t automate waste, you only get cheaper, neater faster waste.
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- 16. Seeing the work Functional units Independent solutions designed to meet functional targets and goals. End‐to‐end service delivery It’s not unusual to have thirty or more solutions lining up for attention. F1 F2 F4F3Fn S1 S2 S4S3 Sn Traditional approach: Feasible parts creating an infeasible whole.
- 17. Seeing the work Improved end‐to‐end service delivery? F1 F2 F4F3Fn S1 S2 S4S3 Sn Functional units Traditional approach: Feasible parts creating an infeasible whole. Independent solutions designed to meet functional targets and goals. It’s not unusual to have thirty or more solutions lining up for attention. We need to move from Vertical Management to Horizontal Management
- 18. F1 F2 F4F3Fn Functional units Horizontal Management Some Lean Activities Improved end‐to‐end service delivery? WIP WIP WIP WIP WIP Rework List Rework List Rework ListRework List Rework List Improve Flow Feedback To improve quality Reduce WIP Governance Measure: • End‐to‐to end performance • Rework • WIP • Ci A3 Seeing the work
- 19. Rework List Rework List Rework List Rework List Rework List WIP WIP WIP WIP WIP F1F2 F4F3 Fn Functional units Governance Measure: • End‐to‐to end performance • Rework • WIP • Ci A3 Improve Flow Act on Feedback To improve quality Reduce WIP End‐to‐end service deliveryImproved end‐to‐end service delivery? Seeing the work Horizontal Management Some Lean Activities
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- 23. All Trade‐Marks and ©Copyright 2015 Owned by Lloyd Parry. All Rights Reserved. Error, Error, Error • An error is indicated if it meets one or more of the following criteria: •customer expectations and satisfaction not met or could potentially not meet their expectations if error is allowed to propagate • if I have to redo someone else’s work • any errors that interrupt the flow of work severely and increase variation (links back to control charts) • all errors that increase costs Structuring The work
- 24. All Trade‐Marks and ©Copyright 2015 Owned by Lloyd Parry. All Rights Reserved. Operational Error andImprovement Control Error Detection, Correction and Prevention Failsafe the processFailsafe the process Detect and contain errorsDetect and contain errors Alert others to the errors Alert others to the errors Design Errors outDesign Errors out Publish and display operating rulesPublish and display operating rules Define operating rules/policies Define operating rules/policies The main principles are: • Make work visible. • Measure the end‐to‐end response time by each product. • Have a common understanding of the errors you wish to eradicate. • Define what good work looks like. • Create feedback loops that operate real time. • Eliminate root conditions which cause errors to persist • Create agreed end‐to‐end operating rules/policy. • Level production schedules to move towards continuous flow. • Continually improve and develop your staff. Structuring The work Adapted from Hoshin Kanri for the Lean Enterprise By Tom Jackson
- 25. All Trade‐Marks and ©Copyright 2015 Owned by Lloyd Parry. All Rights Reserved. € € € €€ € €€€ € € € € € €€ € € € € € € € € € € € € € € € € €€ € € € € € € € € € € € All Staff End‐to‐end business process ‐ FLOW All Staff End‐to‐end business process ‐ FLOW Error types Impacting FLOW: • Rework • Cost of Delay • Unclean work • Non‐standard • Batched Mid Managers – Improve Capability Mid Managers – Improve Capability Error types Impacting CAPABILITY • No Work load Levelling • Exceeding capability • Planning batches • Prioritising • No end‐to‐end Reporting • Silo fixing • Skills and Resource € = Errors Error Detection Error Correction Error Prevention Customer OutcomesCustomer Outcomes €€€ € € € € € VP – New types or forms of business capability, structure, meeting strategic objectives VP – New types or forms of business capability, structure, meeting strategic objectives € €€ Error types Impacting Business, Structure, Strategy • Business Development • Organisational Development • Inter Business Unit Errors • Lean Leadership at all levels. Structuring The work
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- 27. Questions and statements to Blame and Command You raised theproblem so you should fix it. Look! If I were you I would do this. So what are you going to commit to? In my opinion… Why did you do that? Don't involve other departments. Leave that to me I will go and find out for you. I would advise you to…. Have you escalated this? Why can’t you tell me? My experience tells me…. What does your experience tell you? What is your gut feeling? Who’s fault is it? You had better get that sorted. A3 THINKING DOES NOT BLAME OR COMMAND PEOPLE Developing The workforce
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- 29. Questions for grasping the situation and exploring the current conditions Remember to ask why five times or more. Who is alreadyinvolved? What other departments are involved? What have you done so far? How will you approach the investigation? What support do you think you need? How do you think you can gain support? What are all the benefits of solving this? Why are we talking about this? What is the purpose? Why is it a problem? When did this problem occur? How long has this been going on? What did you observe? What did you make it mean? What else could it mean? What assumptions are you making? What evidence do you have? What evidence do you need? How can you find out? What outcomes are you seeking? Where would you need to go? Whom would you need to talk to? How is it affecting you? How is it affecting the customer? Who else is this affecting? How does this make you feel? Developing The workforce
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- 32. All Trade‐Marks and ©Copyright 2015 Owned by Lloyd Parry. All Rights Reserved. What does Lean‐Service mean for the organisation, leaders, managers and staff? • Organisation. – Consider the measurement and governance systems –CI is not separate its in all work real time. – it is the work. – New operational performance measures – Work Design implications • Leaders – Might be assigned to end‐to‐end accountabilities for particular value creating activities. – Encourage fail‐safe experimentation – Encourage more questioning from managers and staff – Create a blame‐free culture – Have patience
- 33. All Trade‐Marks and ©Copyright 2015 Owned by Lloyd Parry. All Rights Reserved. What does Lean‐Service mean for the organisation, leaders, managers and staff? • Managers – Operational review processes –Visual Management – A3 thinking coaching – Performance review re‐focus – Promote a blame free culture. – Planning time for improvement – Encourage staff to question • Staff – A3 thinking problem solving – Question, seek evidence – Learn a number of general Lean improvement methods and role specific Lean methods – Learn more about other functions and how they operate. – Learn to trust management.
- 34. All Trade‐Marks and ©Copyright 2015 Owned by Lloyd Parry. All Rights Reserved. Statement Before %After % Understanding our services allows me to take effective action. 42 100 Understanding the customer improves my commitment. 14 83 Understanding customers helps me make better decisions. 15 95 It is my job to share information with my peers and managers. 0 63 I help my organisation understand what customers value. 0 82 My manager supports my decision when I have customer data. 0 49 The management team is committed to improving the quality of work 17 50 Statement Before % After % I am involved in decision making. 28 45 I make decisions with the customer in mind. 14 67 My data improves the quality of decision making. 0 83 I can improve processes and methods to serve the customer. 15 65 I use customer data to help managers make better decisions. 17 63 I am confident making decisions with customer data. 13 66 I understand how the whole organisation works for customers. 16 68 Cambridge University Survey: Telco before and after highlights
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- 36. All Trade‐Marks and ©Copyright 2015 Owned by Lloyd Parry. All Rights Reserved. Useful References Adaptive Enterprise by Stephan Haeckel The Human Side of Enterprise by Douglas McGregor Lean Solutions by James P. Womack and Daniel T. Jones Systems Thinking: Managing Chaos and Complexity: A Platform for Designing Business Architectureby Jamshid Gharajedaghi Toyota Production System by Taiichi Ohno I want you to cheat by John Seddon Understanding Variation: The Key to Managing Chaos (2nd Edition) by Donald J. Wheeler Service Quality by Benjamin Schneider and Susan S. White Managing to Learn by John Shook Hoshin Kanri for the Lean Enterprise By Tom Jackson Sense and Respond: The Journey to Customer Purpose by Stephen Parry, Susan Barlow, and Mike Faulkner www.lloydparry.com www.lloydparry.com/newsletter Photo of Pathway http://www.rusticpathways.com/
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- 38. All Trade‐Marks and ©Copyright 2015 Owned by Lloyd Parry. All Rights Reserved. Lloyd Parry Lean Service Transformation Consultancy Lloyd Parry useLean Service principles to support their clients in the design, transformation and management of organisations. We also provide executive and change leadership education and route‐map designs. We have developed Climetrics® a unique organisational diagnostic used to identify how your management activities, measurement systems, structures, and delivery capabilities can be combined to create a lean‐service climate that leads to high‐performance and long‐term profitability. Lloyd Parry have delivered transformation programs to large scale global organisations in many sectors including; Telecommunications, IT Services, Financial Services, Logistics, Outsourcing and Local Government. As a result of adopting our approach to Lean‐Service, a number of companies have won national industry awards for Best Service Strategy, Best People Development Program and awards for Innovation and Creativity. Best Customer Service Strategy ‐ National Business Awards the Judges declared “they created an entire cultural change around the needs of its customers and could as a result demonstrate business growth, innovation and success.”
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