finlay miller - daily kaizen
TRANSCRIPT
Daily Kaizen
Fin Miller: Change Manager
Outline of today’s session• Overview of St Andrews and the case for change• The wider context of improvement
– Changing the business– Definitions and methods
• Daily kaizen– Kaizen theory– Daily kaizen tools
• Visual management• Daily huddle• Universe of work
• Q & A
University of St Andrews
History• The University was formally
constituted by the issue of a papal bull in 1413.
• Almost 8,000 students.• 47% students from outside the
UK.• 98% retention rate.• St Andrews is ranked 2nd in
Scotland and 19th in the UK for overall research performance, assessed by quality of publications, impact and the environment in which research takes place.
UK University Rankings20081. Oxford2. Cambridge3. Imperial College4. St Andrews5. UCL6. LSE7. Edinburgh8. Warwick9. Bath10. Loughborough
20151. Cambridge2. Oxford3. St Andrews4. Bath5. Imperial College6. Surrey7. London school of economics8. Durham9. Warwick10. Lancaster
So why change?
We face some opportunities– Estate (for example conference facilities).– Physical assets (for example IT outsourcing deals).– Intellectual property (for example patents).– New markets (for example summer schools).
So why change?
We face some challenges– Fragmentation (for example data centre
management).– Devolved control (for example budget).– Complexity (for example IT supporting schools,
units and commercial services).– Funding (for example REF).
So why change?HEIs are not great at differentiation
– Where does the institution derive its identity?– Where does it invest the most and receive the greatest
return?– What is the University’s unique core business?– How is the market changing around us?
Do we need to change in answer to these fundamental questions?
But what does this mean?
• It means we can improve.• It means we need to improve.• And begs the question…how do we improve?• Especially with a high level of devolution
where change struggles to be mandated from the top.
The wider context:Changing the business
BaU definition• The way the business normally/currently
achieves its strategic objectives.• Also referred to as ‘running the business’
Portfolio definition• The totality of an organisation’s investment (or
segment thereof) in the changes required to achieve its strategic objectives.
Programme definition• A temporary, flexible, organisation structure
created to coordinate, direct and oversee the implementation of a set of related projects and activities in order to deliver outcomes and benefits related to the organisation’s strategic objectives.
Project definition• A temporary organisation that is created for the
purpose of delivering one or more business products according to an agreed business case. – It is temporary in that it has a defined beginning and end in time, and
therefore defined scope and resources.– It is unique in that it is not a routine operation (i.e. BaU), but a specific
set of operations designed to accomplish a singular goal. A project team often includes people who don’t usually work together.
In summary– The need for change is identified by comparing business as usual
performance to the achievement of strategic objectives.– Changes are planned through portfolio management and delivered
via projects and programmes of varying size, nature and complexity.– This delivery changes our BaU and results in the realisation of
benefits that allow us to achieve strategic objectives.
Fundamentally, projects and programmes are the means by which a business adapts what it does in order to meet the challenges of its competitive environment. And portfolio management is the planning of those.
The Change sliding scale
Project management overhead justified
‘Small’ change ‘Big’ change
Programme management overhead justified
Methods• Portfolio management (e.g. MOP)• Programme management (e.g. MSP)• Project management (e.g. Traditional/Agile/St Andrews Lean)
– Traditional• Fixed features• Variable time/resource/quality• One deployment
– Agile• Fixed time/resource/quality• Variable features• Deploys iteratively
– St Andrews Lean• Process improvement• Maximise value/remove waste• Deploy immediately• Culture change
However….• Today we are not looking at portfolio, programme and project
management (i.e. ‘big change’)• We are looking at Daily kaizen (i.e. ‘small change’)• But, they are related to one another in many ways, not least:
– Neither are BaU– Both require planning and delivery– Both use the same finite resource– Both aim to deliver benefits that enable the achievement of strategic
objectives
Daily kaizen
Kaizen theory• Japanese kaizen consultants don’t like the word
Lean (and they don’t hide it).• They refer to kaizen.• Some translate ‘kaizen’ as:
– Continuous improvement (taken from the words ‘Kai‘ that means continuous and ‘zen‘ that means improvement)
– Change for the better (‘kai‘ to mean change and ‘zen‘ to mean good, or for the better)
Nakao-san of Shingijutsu consulting showing his liking for ‘Lean’ and process mapping
Continuous Improvement• Always looking for better ways to do
thingsRespect for People• “make every effort to understand each
other… [to] maximise individual and team performance”
Toyota
W&J - 2 Fundamentals
W&J - 5 Principles/8 wastes
1. Maximise VALUE (incl. TIMWOODS)2. Understand work as a PROCESS3. Create smooth FLOW4. Respond to PULL5. Aim for PERFECTION
Toyota/Shingijutsu – Focus on waste
Muda = 7 wastesMura = Unevenness
of burdenMuri =Unreasonableness
of burden
Monden’s challenging translationProfessor Monden, says in Toyota Production System (first edition, 1983, page 2):
“…although cost-reduction is the system’s most important goal, it must achieve three other sub-goals in order to achieve its primary objective.
They include: 1. Quantity control, which enables the system to adapt to daily and monthly fluctuations in demand in terms of quantities and variety;2. Quality assurance, which assures that each process will supply only good units to subsequent processes;3. Respect-for-humanity, which must be cultivated while the system utilizes the human resources to obtain its cost objectives.
Professor Monden, goes on to say:
“It should be emphasized here that these three goals cannot exist independently or be achieved independently without influencing each other or the primary goal of cost reduction. It is a special feature of the Toyota production system that the primary goal cannot be achieved without realisation of the subgoals and vice versa. All goals are outputs of the same system; with productivity as the ultimate purpose and guiding concept, the Toyota production system strives to realise each of the goals for which it has been designed.”
Monden’s challenging translation
Yamazumi chart
• The scope of shopfloor kaizen includes the removal of waste and the reordering of value adding steps. It does not include the redesign, removal or addition of value adding steps.
• Often the addition of new value (for example redesigning a car) involves significant stakeholder engagement, requirements gathering, market analysis, etc.
Value vs waste
Kaizen theory• The point of shopfloor kaizen then, is to:
– Remove waste (muda, mura, muri)– Establish/improve the standard work– Support/encourage a culture of waste
removal/continuous improvement
Manufacturing v HE• Manufacturing production lines:
– Process does not equal the service which does not equal the product.
• HE ‘production lines’: – Often the process does equal the service which does equal the product.
• To increase complexity, HE staff (operators):– Run the process– Design the process/service/product – And sometimes are the owners.
• This raises an interesting question? – Can we manoeuvre shopfloor kaizen to not only look at waste removal but
also look at redesigning, removing or adding value?
• Visual management– Kaizen action sheet (KAS)– Kaizen board
• Daily huddle– Complexity model– Genba
• Improvement time– Universe of work
Daily kaizen - tools
Kaizen action sheet• Helps the team to decide what they can tackle
themselves using simple problem solving.• Encourages adoption of a structured approach to
continuous improvement.• Enables all work group members to contribute to
improvement activity in real time.
KAS in practice• A low-tech format to capture small improvement
opportunities and ideas in words and pictures.• Identifies and captures waste removal/improvement
opportunities that fall below the radar.• Reviewed at Daily huddle meetings.• Remember
• Simple and hand-written• Includes key information in words and pictures• Sheets are attached to the kaizen board
KAS templateDESCRIBE
ISSUE/PROBLEMDESCRIBE SOLUTION DESCRIBE RESULTS
‘BEFORE’ PICTURE ‘AFTER’ PICTURE
Kaizen board
• Means of communicating and sharing key team-focused information, including team startegy, KPIs, and performance improvement activities.
• Provides the focus for the Daily huddle and is designed/maintained by the team.
Kaizen board – Trello.com
Daily huddle• A short, all staff mandatory meeting to focus the
team on what’s important and how they will work together to achieve outcomes.
• Builds team ethos and provides the forum to identify improvement opportunities (small and big).
• Held standing in front of the kaizen board.• Maximum of 10 minutes.
Daily huddle can cover…Daily topics• How are we all?• Cover for absences• Kaizen board• Kaizen action sheets• Review of Performance Measures• Quality issues• Housekeeping reminders• Critical Institution news
Additional topics• Transition of small change• Skills training plans• Dept. performance/status• Key customer reviews• General instruction initiatives and
news• Status and plans for long term
process improvement issues
Complexity modelingDescription A = 0 B = 10 C = 20 D = 40 Select
columnComplexity scoring
Customer:Assess how the solution will impact customers
No customer impact
Awareness from customers
Minor behaviour change from customers
Major behaviour change from customers
C 20
Risk exposure:The organisation’s exposure to risk and the impact if errors were found in the solution
No impact Minor impact to reputation and downstream processes
Minor impact to reputation but major impact to downstream processes
Major impact to reputation and downstream processes
C 20
Stakeholders:Each stakeholder may represent a group of people either internal or external to the organisation
1 key stakeholder
2-4 key stakeholders
5-10 key stakeholders
11+ key stakeholders
B 10
Applications and data:Assess integration of solution
1 key system and no data interface
2 key systems and no data interface
3 key systems with 1 data interface
> 4 key systems with 1 data interface
D 40
Cost Up to £100,000
£100,000 to £500,000
£500,000 to £2m > £2m D 40
Project completion time Up to 1 month > 1 month up to 6 months
> 6 months up to 12 months
> 12 months C 20
Governance and lifecycle determined by complexity
Complexity score Sponsor Project board required
Level of project manager required
Reporting Project lifecycle
360-480 Board level Y Senior PM Fortnightly using detailed highlight report
Complex
210-350 Divisional level Optional PM Monthly using summary highlight report
Standard
50-200 Department level N Junior PM Ad hoc using summary highlight report
simple
0-50 Supervisor/Team leader
N Any member of staff
Simple communication
Daily kaizen - PDCA
Daily huddle is ‘in’ the genba - “The real place”
• See the facts.• See where the work happens.
• The office• The team• The systems (applications, shared drives, desktops)
PDCAFor both ‘small’ and ‘big’ change/projects, Deming’s cycle applies.
If successful, capture new standard.
If not, re-visit root cause.
Monitor effectiveness of the solution(s)
Identify the problem,
Measure the problem
Develop solution(s)
Implement the change (keeping a record as you go)
Improvement time
Here is Edward Bear, coming downstairs now, bump, bump, bump, on the back of his head behind Christopher Robin.It is, as far as he knows, the only way of coming downstairs, but sometimes he feels that there really is another way, if only he could stop bumping for a moment and think of it.
A. A. Milne
Universe of work
Daily kaizen management
• For daily kaizen, management is local and follows the Toyota shop floor model:– Supervisor (80%)– Team leader (20%)– Operator (5%)
How to implement daily kaizen?
“Management have to recognise the need for significant change and must be willing to change everything. The top leader is the change owner and must be fully committed.”
Chihiro Nakao, FOM
How to implement daily kaizen?
• Implementing these tools is itself changing the business and needs to be managed appropriately.
• Drop the idea into a complexity model and determine the correct approach to ensure success.
Why do daily kaizen?"People need aligned and purposeful goals alongside the ability to affect change and see progress. Basically, give staff the ownership to innovate but also the feedback mechanisms that show them if their ideas are working. Not forgetting the safety to take risks, make mistakes and grow.”
Mike Martyn, Shingo Prize winner
Any questions?