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Navigating Change:
Six Levels of Lean
Rob Healy
• 15 years developing, documenting,
testing and managing software
• Lean Six Sigma Certified
• MBA, H. Dip Mgmt....
The Dangers of Complacency
www.ammeon.com © 2017 Ammeon Ltd. All Rights Reserved.
3
Taiichi Ohno
www.ammeon.com © 2017 Ammeon Ltd. All Rights Reserved.
4
No one has more
trouble than the person
who claims t...
100 Years of Modern Lean
www.ammeon.com © 2017 Ammeon Ltd. All Rights Reserved.
5
• 1911: Scientific Management – Fredrick...
What Lean is NOT
Lean is not
• a way to drive layoffs
• about pressuring people to hit metrics
• a group of “best practice...
Lean Thinking
Lean In
Lean Startup
TPS
Agile /
DevOps
6σ
6 Levels of Lean
A model to connect lean concepts
• Lean Thinking...
Lean Thinking
www.ammeon.com © 2017 Ammeon Ltd. All Rights Reserved.
8
5 Principles of Lean Thinking
1. Specify value from the standpoint of the end
customer.
2. Identify all the steps in the v...
8 Wastes – TIM WOODS
www.ammeon.com © 2017 Ammeon Ltd. All Rights Reserved.
10
Transport Inventory Motion Waiting
Over-pro...
Parsons Steam Turbine
www.ammeon.com © 2017 Ammeon Ltd. All Rights Reserved.
11
• 1884 Charles Parsons (from Birr, Co. Off...
Lean-In
www.ammeon.com © 2017 Ammeon Ltd. All Rights Reserved.
12
Lean Champion
• An operations or business specialist.
• Has studied and / or gained practical
experience in the facets of ...
Growing in difficult situations using Lean & Kanban
www.ammeon.com © 2017 Ammeon Ltd. All Rights Reserved. Confidential - ...
Lean Startup
www.ammeon.com © 2017 Ammeon Ltd. All Rights Reserved.
15
Lean Startup Method
• Build, Measure, Learn cycle
• Rapid feedback loops to
continuously improve products
using customer f...
Lean Canvas: #ALI2017
www.ammeon.com © 2017 Ammeon Ltd. All Rights Reserved.
17
ALI was “born” here
Toyota Production System
www.ammeon.com © 2017 Ammeon Ltd. All Rights Reserved.
18
14 Principles of Toyota
Long Term Philosophy
1. Base your management decisions on a long term philosophy, even at the expe...
14 Principles of Toyota
Add value to your organisation by Developing your people and partners
9. Grow leaders who thorough...
Value Stream Mapping
www.ammeon.com © 2017 Ammeon Ltd. All Rights Reserved.
21
21
Step 1:
Test the build
Step 2: Report
is...
Standardisation, Outsourcing, Automation
www.ammeon.com © 2017 Ammeon Ltd. All Rights Reserved.
22
5S Methodology
• Lean Manufacturing Technique to
use neatness / cleanliness as a
form of process control
Sort
Set in
Order...
Agile / DevOps
www.ammeon.com © 2017 Ammeon Ltd. All Rights Reserved.
24
4 “Overs” of Agile
Manifesto for Agile Software development:
• Individuals and interactions over processes and tools
• Wor...
DevOps
• Intersection of development and operations.
• Applies some lean and systems thinking.
• 3 Ways
• Left-to-right fl...
6σ
www.ammeon.com © 2017 Ammeon Ltd. All Rights Reserved.
27
Six Sigma
• A series of tools and techniques for
process improvement
• Six sigma (6σ) is a statistical measure
to denote t...
Next Steps on Your Lean Journey
www.ammeon.com © 2017 Ammeon Ltd. All Rights Reserved.
29
Lean Thinking
Lean In
Lean Start...
Ammeon’s Agile Lean
www.ammeon.com © 2017 Ammeon Ltd. All Rights Reserved.
30
Contact Us: consulting@ammeon.com
Lean Innov...
www.ammeon.com Ammeon@ammeon
Thank You
www.ammeon.com © 2017 Ammeon Ltd. All Rights Reserved.
31
Recommended Reading - Books
The Toyota Way
• Liker, JK
Operations Management
• Krajewski, LJ. Ritzman,
LP. Malhotra MK
The...
Recommended Reading - Books
The Goal
• Goldratt, EM. Cox, J
The Phoenix Project
• Kim, G. Behr, K.
Spafford G
www.ammeon.c...
Recommended Reading - Websites
• http://planet-lean.com/
• https://www.enterprise-ireland.com/en/Productivity/Lean-Busines...
Picture References
• Slide 1: http://bit.ly/2r4R3sa
• Slide 2: http://bit.ly/2quyOis
• Slide 3: http://bit.ly/2q7Z8fp
• Sl...
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6 levelsoflean

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This presentation was delivered at the #ALIConference. It describes a novel model that demonstrates the connections between Lean, Agile and Six Sigma approaches.

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6 levelsoflean

  1. 1. Navigating Change: Six Levels of Lean
  2. 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 www.ammeon.com © 2017 Ammeon Ltd. All Rights Reserved. 2
  3. 3. The Dangers of Complacency www.ammeon.com © 2017 Ammeon Ltd. All Rights Reserved. 3
  4. 4. Taiichi Ohno www.ammeon.com © 2017 Ammeon Ltd. All Rights Reserved. 4 No one has more trouble than the person who claims to have no trouble
  5. 5. 100 Years of Modern Lean www.ammeon.com © 2017 Ammeon Ltd. All Rights Reserved. 5 • 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. 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 www.ammeon.com © 2017 Ammeon Ltd. All Rights Reserved. 6
  7. 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 www.ammeon.com © 2017 Ammeon Ltd. All Rights Reserved. 7
  8. 8. Lean Thinking www.ammeon.com © 2017 Ammeon Ltd. All Rights Reserved. 8
  9. 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. www.ammeon.com © 2017 Ammeon Ltd. All Rights Reserved. 9
  10. 10. 8 Wastes – TIM WOODS www.ammeon.com © 2017 Ammeon Ltd. All Rights Reserved. 10 Transport Inventory Motion Waiting Over-production Over-processing Defects Unused Skills
  11. 11. Parsons Steam Turbine www.ammeon.com © 2017 Ammeon Ltd. All Rights Reserved. 11 • 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. 12. Lean-In www.ammeon.com © 2017 Ammeon Ltd. All Rights Reserved. 12
  13. 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. www.ammeon.com © 2017 Ammeon Ltd. All Rights Reserved. 13
  14. 14. Growing in difficult situations using Lean & Kanban www.ammeon.com © 2017 Ammeon Ltd. All Rights Reserved. Confidential - Do Not Distribute. 14 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. 15. Lean Startup www.ammeon.com © 2017 Ammeon Ltd. All Rights Reserved. 15
  16. 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. www.ammeon.com © 2017 Ammeon Ltd. All Rights Reserved. 16 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. 17. Lean Canvas: #ALI2017 www.ammeon.com © 2017 Ammeon Ltd. All Rights Reserved. 17 ALI was “born” here
  18. 18. Toyota Production System www.ammeon.com © 2017 Ammeon Ltd. All Rights Reserved. 18
  19. 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 www.ammeon.com © 2017 Ammeon Ltd. All Rights Reserved. 19
  20. 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). www.ammeon.com © 2017 Ammeon Ltd. All Rights Reserved. 20
  21. 21. Value Stream Mapping www.ammeon.com © 2017 Ammeon Ltd. All Rights Reserved. 21 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. 22. Standardisation, Outsourcing, Automation www.ammeon.com © 2017 Ammeon Ltd. All Rights Reserved. 22
  23. 23. 5S Methodology • Lean Manufacturing Technique to use neatness / cleanliness as a form of process control Sort Set in Order Shine Stand- ardise Sustain www.ammeon.com © 2017 Ammeon Ltd. All Rights Reserved. 23
  24. 24. Agile / DevOps www.ammeon.com © 2017 Ammeon Ltd. All Rights Reserved. 24
  25. 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. www.ammeon.com © 2017 Ammeon Ltd. All Rights Reserved. 25
  26. 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 www.ammeon.com © 2017 Ammeon Ltd. All Rights Reserved. 26
  27. 27. 6σ www.ammeon.com © 2017 Ammeon Ltd. All Rights Reserved. 27
  28. 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 www.ammeon.com © 2017 Ammeon Ltd. All Rights Reserved. 28
  29. 29. Next Steps on Your Lean Journey www.ammeon.com © 2017 Ammeon Ltd. All Rights Reserved. 29 Lean Thinking Lean In Lean Startup TPS Agile / DevOps 6σ
  30. 30. Ammeon’s Agile Lean www.ammeon.com © 2017 Ammeon Ltd. All Rights Reserved. 30 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. 31. www.ammeon.com Ammeon@ammeon Thank You www.ammeon.com © 2017 Ammeon Ltd. All Rights Reserved. 31
  32. 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 www.ammeon.com © 2017 Ammeon Ltd. All Rights Reserved. 32
  33. 33. Recommended Reading - Books The Goal • Goldratt, EM. Cox, J The Phoenix Project • Kim, G. Behr, K. Spafford G www.ammeon.com © 2017 Ammeon Ltd. All Rights Reserved. 33 Thinking Fast & Slow • Kahneman, D. Naked Statistics • Wheelan C.
  34. 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/ www.ammeon.com © 2017 Ammeon Ltd. All Rights Reserved. 34
  35. 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 www.ammeon.com © 2017 Ammeon Ltd. All Rights Reserved. 35 • 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

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