what do you mean “lean” – bandwagon or benefit?
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© 2014 Copyright ISC Ltd.1
What do you mean “Lean” – Bandwagon or Benefit?
A facilitated “Making an Impact” workshop at OR56
Ian J Seath
© 2014 Copyright ISC Ltd.
What you will learn…
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Find out where Lean came from and why it is relevant, not just in the manufacturing sector
Understand key Lean concepts such as Value, Waste and Flow
Have a go at using some Lean tools and techniques (e.g. Value Stream Mapping, 7 Wastes Process Walk-through)
See what tools and techniques are in the Lean toolkit
Understand why Lean is really all about engaging people in improvement (and not about tools)
Be able to spot opportunities to apply Lean Thinking, back at work
Is that an “active banana” or an “inactive banana” on your desk?
© 2014 Copyright ISC Ltd.3
© 2014 Copyright ISC Ltd.4
In a nutshell…
Lean: Driving out waste by using TIME as a
competitive weapon
Evolution of Lean Thinking
© 2014 Copyright ISC Ltd.
Lean Concepts
Toyota ProductionSystem
Lean Thinking“Lean Enterprise”
5
1991
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Who’s using Lean?
© 2014 Copyright ISC Ltd.
Some examples of ‘service’ or ‘back office’ programmes that have delivered significant benefits:
Housing Association
Call Centre
30% reduction in “chasing” calls from
customers
Home Office
Claim process capacity increased by 130%
ING
Foreign Exchange Processing
Increased straight- through processing from
70% to 95%
O2
Value Stream Programme
25% reduction in time spent on non-value-
adding activity in stores
Probation
Drug Testing Programme
Capacity increased to 110% of target
Bolton Hospital
Pathology Lab
Sample testing time reduced from 24 to 2
hours
Where are we now?Understand
current performance
Reduce waste
Implement improvement
Improve continuously
Lean improvement approach
© 2014 Copyright ISC Ltd.7
Current State VSM VAR Waste/Flow Future State VSM
ELAPSED TIME =
V.A. TIME=
V.A.RATIO= %
Lean: Time as a competitive advantage
8 hrs 24 hrs
ENQUIRIES RECEIVED
.5 hrs 8 hrs 2 hrs 24 hrs .5 hr
ALLOCATION&
PLANNING WRITTENACK
CUSTOMERS
ACTION
SIGN OFF
SIGNOFF
SIGNOFF
MEMO
SORTINGANALYSIS RESPONSE AGREEMENT
16 hrs
16 hrs
.5 hr8 hrs
8hrs
8 © 2014 Copyright ISC Ltd.
ELAPSED TIME =59.5 hrs
V.A. TIME= 3.5
hrsV.A.RATIO
= 6%
Lean: Time as a competitive advantage
8 hrs 24 hrs
ENQUIRIES RECEIVED
.5 hrs 8 hrs 2 hrs 24 hrs .5 hr
ALLOCATION&
PLANNING WRITTENACK
CUSTOMERS
ACTION
SIGN OFF
SIGNOFF
SIGNOFF
MEMO
SORTINGANALYSIS RESPONSE AGREEMENT
16 hrs
16 hrs
.5 hr8 hrs
8hrs
9 © 2014 Copyright ISC Ltd.
ELAPSED TIME =59.5 hrs
V.A. TIME= 3.5
hrsV.A.RATIO
= 6%
What causes delay in a process?
8 hrs 24 hrs
ENQUIRIES RECEIVED
.5 hrs 8 hrs 2 hrs 24 hrs .5 hr
ALLOCATION&
PLANNING WRITTENACK
CUSTOMERS
ACTION
SIGN OFF
SIGNOFF
SIGNOFF
MEMO
SORTINGANALYSIS RESPONSE AGREEMENT
16 hrs
16 hrs
.5 hr8 hrs
8hrs
10 © 2014 Copyright ISC Ltd.
Value Stream Mapping
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© 2014 Copyright ISC Ltd.12
Value Stream Mapping There's a man called Santa who sleeps most of the year and only
gets up at Christmas. He's got a band of dwarves, fairies and elves who do things for him. The elves take care of the mail that arrives at his grotto all through the year, and the fairies deal with his stock: presents which are made to order by dwarves.
Throughout the year, Santa gets letters (60%) and e-mails (40%) from boys and girls asking for presents.
When an elf gets a letter from a boy or girl who has been good, they send the letter to the dwarves, who make the requested present. Letters from boys and girls who have been bad (5%), get posted back to the sender, with a 'do better' message.
The dwarves send the newly-made presents to the fairies who pack them, taking care to put them in the right sacks so that Santa's very full schedule on Christmas Eve runs without a hitch.
© 2014 Copyright ISC Ltd.13
Value Stream Mapping There's a man called Santa who sleeps most
of the year and only gets up at Christmas. He's got a band of dwarves, fairies and elves who do things for him. The elves take care of the mail that arrives at his grotto all through the year, and the fairies deal with his stock: presents which are made to order by dwarves.
Throughout the year, Santa gets letters (60%) and e-mails (40%) from boys and girls asking for presents.
When an elf gets a letter from a boy or girl who has been good, they send the letter to the dwarves, who make the requested present. Letters from boys and girls who have been bad (5%), get posted back to the sender, with a 'do better' message.
The dwarves send the newly-made presents to the fairies who pack them, taking care to put them in the right sacks so that Santa's very full schedule on Christmas Eve runs without a hitch.
www.improvement-skills.co.uk ian.seath@improvement-skills.co.uk M: 07850 728506 @ianjseath
One possible answer…
© 2014 Copyright ISC Ltd.14
Value…
Real Value Add Those activities which a
customer would expect you to do for them in producing the output
Ask “Could we invoice the customer for having done this activity?”
Business Value Add Those activities which you
have to do in order to… Stay legal Be compliant Manage the organisation
Challenge: “Would we get locked up, shut down, or fined, if we didn’t do this activity?
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• Every activity in a process either adds value or cost.• Value Add is determined firstly from the Customer’s perspective.• There may also be Business Value Adding activities.• Everything else is Waste.
Waste Waste is anything that does not add value to
your product or service Eliminating waste gives you more resource to
meet your customers’ requirements Waste will always be present, so there is always
something that you can do to improve your performance
Identifying all the waste in your processes forces you to compare your operation against perfection.....…and this is not a comfortable experience!
© 2014 Copyright ISC Ltd.16
The Seven Wastes
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Waste ExamplesPeople Waiting Waiting for “stuff to arrive”, Waiting for people to make a decision
Over-production
Producing extra copies “just in case”; Sending two people, when one would be enough
Rework & Failures
Correcting errors in reports, databases, plans, documents , Dealing with complaints, Paying compensation claims, Operating a Helpdesk
People Moving Travelling to and from meetings, incidents, interviews
Over-processing
Doing any steps that are unnecessary; Checking the quality of somebody else’s work; Keying the same information into multiple databases; Gathering the same information from a client/victim/suspect on different Forms
Inventory Cupboards full of stationery in every office; Stores of obsolete brochures, forms, posters; Piles of files on desks (work in progress)
Transport of materials
Moving files around between locations; Moving files to and from archives
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Some Lean tools and techniques
© 2010 Copyright ISC Ltd.19
ReducedBatching
5S
Standard-isedWork
Visual Control
KaizenBlitz
Supplier/Customer Relationships
Poka Yoke
Continuous Flow
Setup Reduction(SMED)
SevenWastes
Overall Equipment Effectiveness
PullSystem
Lean is a “people thing”…
Continuously meeting agreed customer requirements
At the lowest cost
By releasing the potential of all employees
© 2014 Copyright ISC Ltd.20
Ensuring Success: Force Field Analysis What are all the things that will help us
implement successfully?
Include actions in your Plan to build on these
What are all the things that might hinder successful implementation?
Include actions in your Plan to minimise, or eliminate, these
© 2014 Copyright ISC Ltd. 21
Ian J Seath, DirectorImprovement Skills Consulting Ltd.
www.improvement-skills.co.uk
ian.seath@improvement-skills.co.uk
M: 07850 728506
@ianjseath
© 2014 Copyright ISC Ltd.22
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