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?