The document discusses the six levels of lean including lean thinking, lean in, lean startup, Toyota Production System, Agile/DevOps, and Six Sigma. It provides an overview of each level, such as the five principles of lean thinking, the role of a lean champion for lean in, and how the Toyota Production System uses continuous improvement. The levels are presented as a model to connect different lean concepts from basic principles to process analysis using statistics.

1. Navigating Change:
Six Levels of Lean

2. Rob Healy
• 15 years developing, documenting,
testing and managing software
• Lean Six Sigma Certified
• MBA, H. Dip Mgmt. B. Mech. Eng.
• CSM, CPO
• Founder member of the Agile Lean
Ireland Society
• Helped organised the first Fr Ted Festival
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3. The Dangers of Complacency
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4. Taiichi Ohno
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No one has more
trouble than the person
who claims to have no
trouble

5. 100 Years of Modern Lean
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• 1911: Scientific Management – Fredrick Winslow Taylor.
• 1911: Time & Motion studies – Frank & Lillian Gilbreth
• 1915: Mass production – Henry Ford
• 1936: Kaizen – Kiichiro Toyoda
• 1936: Statistical Quality Control: W. Edwards Deming, Walter Shewhart
• 1980: Just-in-time delivery – Taiichi Ohno
• 1990: Toyota Production System – Daniel Roos, Daniel Jones, James Womack
• 1995: Six sigma – Jack Welsh (Bill Smith 1985)
• 2001: Agile Manifesto – Beck, Beedle et. al
• 2009: DevOps – Patrick Dubois
• 2011: Lean Startup – Eric Ries

6. What Lean is NOT
Lean is not
• a way to drive layoffs
• about pressuring people to hit metrics
• a group of “best practices”
• just for front line staff
• experts shouting advice
• magic
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7. Lean Thinking
Lean In
Lean Startup
TPS
Agile /
DevOps
6σ
6 Levels of Lean
A model to connect lean concepts
• Lean Thinking: Basic Principles
• Lean In: Need for leadership
• Lean Startup: Rapid experimentation
• Toyota Production System: Continuous
improvement of established processes
• Agile / DevOps: Building inter- and intra-
team competencies
• Six Sigma: Process analysis including
mathematics and statistics
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8. Lean Thinking
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9. 5 Principles of Lean Thinking
1. Specify value from the standpoint of the end
customer.
2. Identify all the steps in the value stream,
eliminating whenever possible those steps
that do not create value.
3. Make the value-creating steps occur in tight
sequence so the product will flow smoothly
toward the customer.
4. As flow is introduced, let customers pull value
from the next upstream activity.
5. As value is specified, value streams are
identified, wasted steps are removed, and flow
and pull are introduced, begin the process
again.
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10. 8 Wastes – TIM WOODS
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Transport Inventory Motion Waiting
Over-production Over-processing Defects Unused Skills

11. Parsons Steam Turbine
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• 1884 Charles Parsons (from Birr, Co. Offally)
designs a steam turbine to improve on
wastes from the earlier Laval turbine
• 1894 develops Turbina the worlds first steam
turbine ship.
• 1897 at Queen Victoria’s Diamond Jubilee
Fleet Review:
• Turbina: 35 knots.
• Next fastest ship: 27 knots.
• Parson turbines go on to power ships until
1964.

12. Lean-In
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13. Lean Champion
• An operations or business specialist.
• Has studied and / or gained practical
experience in the facets of lean.
• Has technical ability to describe
processes and wastes.
• Has the political ability to enact change
and mentor and inspire others.
• Has the tenacity to see a change
program through.
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14. Growing in difficult situations using Lean & Kanban
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43%
36%
21%
BEFORE EXPERIMENT
Too early Late On Time
0% 6%
94%
AFTER EXPERIMENT
Too early Late On time
21% on time 94% on time

15. Lean Startup
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16. Lean Startup Method
• Build, Measure, Learn cycle
• Rapid feedback loops to
continuously improve products
using customer feedback
• Each iteration is a Minimum Viable
Product and is treated as an
experiment to gather data as an
input to the next experiment.
• At the end of each iteration is a
Pivot or Persevere meeting to
decide what needs to change and
what needs to remain.
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Problem
(1)
Top 3
problems
Solution
(4)
Top 3
features
Uniq. Val.
Prop. (3)
Why you
are
different
and worth
buying
Unfair
Adv. (9)
Can’t be
easily
copied or
bought
Cust.
Segments
(2)
Target
Customers
Key
Metrics
(8)
Key
activities
to be
measured
Channels
(5)
Path to
customers
Cost Structure (7)
All costs
Revenue Streams (6)
Revenue / Model / Margin /
Lifetime Value

17. Lean Canvas: #ALI2017
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ALI was “born” here

18. Toyota Production System
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19. 14 Principles of Toyota
Long Term Philosophy
1. Base your management decisions on a long term philosophy, even at the expense of
short-term financial goals
The Right Process Will Produce the Right Results
2. Create continuous process flow to bring problems to the surface
3. Use "Pull" system to avoid overproduction
4. Level out the workload (heijunka). (Work like a tortoise, not the hare)
5. Build a culture of stopping to fix problems, to get quality right at the first time
6. Standardized tasks are the foundation for continuous improvements and employee
empowerment
7. Use Visual Control so no problems are hidden
8. Use only reliable, thoroughly tested technology that serves your people and process
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20. 14 Principles of Toyota
Add value to your organisation by Developing your people and partners
9. Grow leaders who thoroughly understand the work, live the philosophy and teach it to
others.
10. Develop exceptional people and teams who follow your company's philosophy
11. Respect your extended network of partners and suppliers by challenging them and
helping them improve
Continuously Solving Root Problems Drives Organisational learnings
12. Go and see for yourself to thoroughly understand the situation (Genchi Genbutsu)
13. Make decision slowly by consensus, thoroughly considering all options; implement
decisions rapidly
14. Become a learning organisation through relentless reflection and continuous
improvements (Kaizen).
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21. Value Stream Mapping
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21
Step 1:
Test the build
Step 2: Report
issues found
Step 3:
Fix Defects
Step 4:
Receive fixed builds
and verify issues
Step 5:
Close issue
Test Log Fix Verify Close Total
PT 4 mins 15 mins 120 mins 12 mins 5 mins 156 mins
WT 0 mins 4469 mins 2644 mins 8054 mins 0 mins 15167 mins
LT 4 mins 4484 mins 2796 mins 8066 mins 5 mins 15323 mins
%Act 100% 0.3% 4.3% 0.1% 100% 1.0%
%RFT 76.9% 63.2% 93.4% 97.0% 99.2% 42.7%
InformationFlow
LT (mins)
PT (mins) 4
4
15 120 12 5
4484 2796 8066 5

22. Standardisation, Outsourcing, Automation
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23. 5S Methodology
• Lean Manufacturing Technique to
use neatness / cleanliness as a
form of process control
Sort
Set in
Order
Shine
Stand-
ardise
Sustain
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24. Agile / DevOps
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25. 4 “Overs” of Agile
Manifesto for Agile Software development:
• Individuals and interactions over processes and tools
• Working software over comprehensive documentation
• Customer collaboration over contract negotiation
• Responding to change over following a plan
That is, while there is value in the items on the right, we value
the items on the left more.
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26. DevOps
• Intersection of development and operations.
• Applies some lean and systems thinking.
• 3 Ways
• Left-to-right flow of work
• Right-to-left fast feedback
• Culture
• 4 Types of Work
• Business Projects
• Internal Projects
• Operational Change
• Unplanned Work
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27. 6σ
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28. Six Sigma
• A series of tools and techniques for
process improvement
• Six sigma (6σ) is a statistical measure
to denote that a process is:
• 99.997% accurate,
• six standard deviations from the sample
mean,
• fewer than 3.4 defects per million
opportunities
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29. Next Steps on Your Lean Journey
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Lean Thinking
Lean In
Lean Startup
TPS
Agile /
DevOps
6σ

30. Ammeon’s Agile Lean
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Contact Us: consulting@ammeon.com
Lean Innovation Workshop
A one day introduction to lean principles and the lean startup method
LeanStart for Software
A practical introduction to cost-saving using lean in a guided 8-10 week training
and project.
LeanPlus for Software
An advanced project to realise substantial cost savings using lean methods over a 6
month project

31. www.ammeon.com Ammeon@ammeon
Thank You
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32. Recommended Reading - Books
The Toyota Way
• Liker, JK
Operations Management
• Krajewski, LJ. Ritzman,
LP. Malhotra MK
The Lean Startup
• Ries, E
Running Lean
• Maurya, A
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33. Recommended Reading - Books
The Goal
• Goldratt, EM. Cox, J
The Phoenix Project
• Kim, G. Behr, K.
Spafford G
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Thinking Fast & Slow
• Kahneman, D.
Naked Statistics
• Wheelan C.

34. Recommended Reading - Websites
• http://planet-lean.com/
• https://www.enterprise-ireland.com/en/Productivity/Lean-Business-Offer/
• https://www.wit.ie/research/centres_and_groups/research_groups/business/lean
_enterprise_excellence_group#tab=panel-team
• https://www.lean.org
• http://agilemanifesto.org/
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35. Picture References
• Slide 1: http://bit.ly/2r4R3sa
• Slide 2: http://bit.ly/2quyOis
• Slide 3: http://bit.ly/2q7Z8fp
• Slide 4: http://bit.ly/2pBZKsy
• Slide 6: http://bit.ly/2q57WVc
• Slide 9: http://bit.ly/2q4UrVE
• Slide 11: http://bit.ly/2pmYv4k
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• Slide 13: http://bit.ly/2q5B26Q
• Slide 17: http://bit.ly/2r2OFBb
• Slide 22: http://bit.ly/2r4vMyJ
• Slide 26: http://bit.ly/2r4wr3b
• Slide 28: http://bit.ly/2pmRFMq
• Slide 29: http://bit.ly/2q59yi2