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Lean Symposium 2008 Irish Centre for Business Excellence Beau Keyte Managing Value Stream Improvement Projects

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Page 1: Lean Symposium 2008 Irish Centre for Business Excellence Beau Keyte Managing Value Stream Improvement Projects

Lean Symposium 2008Irish Centre for Business Excellence

Beau Keyte

Managing Value Stream Improvement Projects

Page 2: Lean Symposium 2008 Irish Centre for Business Excellence Beau Keyte Managing Value Stream Improvement Projects

Let’s Put This in Context

• What does your company want from lean?• What do you personally want from lean?• What do you really think will happen?• What do YOU have to do to get “it”?

Page 3: Lean Symposium 2008 Irish Centre for Business Excellence Beau Keyte Managing Value Stream Improvement Projects

It Isn’t About Waste Elimination(and never has been)

• How many Wall Street analysts stand up and cheer when a company announces how much waste was eliminated?

• Toyota (and others!) focus on performance all the time!

• Lean thinking adds capacity in many forms. What can this capacity do?

Page 4: Lean Symposium 2008 Irish Centre for Business Excellence Beau Keyte Managing Value Stream Improvement Projects

It’s About Performance

• Performance to Purpose– Additional capacity ensures the ability to

perform to customer expectations

• Performance to Plan– Once Purpose is secured, additional

capacity ensures the ability to perform to Plan….ANY plan

Page 5: Lean Symposium 2008 Irish Centre for Business Excellence Beau Keyte Managing Value Stream Improvement Projects
Page 6: Lean Symposium 2008 Irish Centre for Business Excellence Beau Keyte Managing Value Stream Improvement Projects

Hotel-Dieu Grace

• Find it at “case studies” at www.lean.org• Start with “grasping the situation” in the

Emergency Department– High volumes of ED visits– Long waits– Unsafe conditions– Unable to transfer to hospital– High staff turnover

Page 7: Lean Symposium 2008 Irish Centre for Business Excellence Beau Keyte Managing Value Stream Improvement Projects

What Isn’t Told

• Realized purpose: serve the needs of the community

• Problem: not enough capacity to meet needs• Solution: improve throughput times (LOS) to

support more patients with existing capacity• Re-aligned focus to drive throughput: the

discharge process

Page 8: Lean Symposium 2008 Irish Centre for Business Excellence Beau Keyte Managing Value Stream Improvement Projects

Results

• Performance improved: purpose is being met• Performance to Plan is engaged: efforts have

spread to many other areas to improve efficiencies

• And……………..waste was reduced• What is discussed with the community?

– Performance to purpose?– Elimination of waste?

Page 9: Lean Symposium 2008 Irish Centre for Business Excellence Beau Keyte Managing Value Stream Improvement Projects

Visual Management

First response, corrective action, containment

Tracking Centers

Periodic reflection, tracking process metrics, system-level problem solving

A3 Reports

Strategic deployment, breaking barriers, supporting drivers

Directors – Enterprise Level

Drivers – System Level

Doers – Front Lines

Responsibility (and managing)Agree on what level is responsible for what problems

Page 10: Lean Symposium 2008 Irish Centre for Business Excellence Beau Keyte Managing Value Stream Improvement Projects

Visual Management

First response, corrective action, containment

Tracking Centers

Periodic reflection, tracking process metrics, system-level problem solving

A3 Reports

Strategic deployment, breaking barriers, supporting drivers

Directors – Enterprise Level

Drivers – System Level

Responsibility (and managing)

Where do we capture process information? How do we visualize an abnormal condition?How do we improve the quality of the material/information?How do we create better standards of work?

Doers – Front Lines

Page 11: Lean Symposium 2008 Irish Centre for Business Excellence Beau Keyte Managing Value Stream Improvement Projects

Visual Management

First response, corrective action, containment

Tracking Centers

Periodic reflection, tracking process metrics, system-level problem solving

A3 Reports

Strategic deployment, breaking barriers, supporting drivers

Directors – Enterprise Level

Doers – Front Lines

Responsibility (and managing)

How do we level demand?Where and when should we trigger work?What are the system trends and “problems”?

Drivers – System Level

Page 12: Lean Symposium 2008 Irish Centre for Business Excellence Beau Keyte Managing Value Stream Improvement Projects

Visual Management

First response, corrective action, containment

Tracking Centers

Periodic reflection, tracking process metrics, system-level problem solving

A3 Reports

Strategic deployment, breaking barriers, supporting driversDrivers – System Level

Doers – Front Lines

Responsibility (and managing)

Are we meeting our customer needs? What’s happening in the market that influences our efforts?Should we be going in a new direction?How do we deploy our new extra capacity?

Directors – Enterprise Level

Page 13: Lean Symposium 2008 Irish Centre for Business Excellence Beau Keyte Managing Value Stream Improvement Projects

Visual Management

First response, corrective action, containment

Tracking Centers

Periodic reflection, tracking process metrics, system-level problem solving

A3 Reports

Strategic deployment, breaking barriers, supporting drivers

Directors – Enterprise Level

Drivers – System Level

Doers – Front Lines

Responsibility (and managing)

Page 14: Lean Symposium 2008 Irish Centre for Business Excellence Beau Keyte Managing Value Stream Improvement Projects

Back to Managing!!

• At Hotel-Dieu Grace, who would be responsible for what type of “performance?”– Wait time in the ED– Standard work for rooming patients– Finding ways to deal with maximum

capacity– Understanding community needs– Understanding staff needs

Page 15: Lean Symposium 2008 Irish Centre for Business Excellence Beau Keyte Managing Value Stream Improvement Projects

Problem Solving by LevelA PC D

StrategiesBusiness ObjectivesFinancial Performance

GoalsOps/Project PlantsBudgets

Action PlansProduction SchedulesTargets

Assignments Rates/Due DatesStandards

Executive

Manager

SupervisorTeam LeaderStaff

Team

“Good thinking” “Good Products/Services”

A PC D

A PC D

A PC D

A PC D

A PC D

A PC D

A PC D

A PC D

A PC D

A PC D

A PC D

A PC D

A PC D

A PC D

A PC D

Page 16: Lean Symposium 2008 Irish Centre for Business Excellence Beau Keyte Managing Value Stream Improvement Projects

In Your Handout: Invisible Work

• Invisible work leads to lack of job satisfaction.

• Workers go home to “accomplish something”

• Why not have them solve problems, display visible solutions at work?

Page 17: Lean Symposium 2008 Irish Centre for Business Excellence Beau Keyte Managing Value Stream Improvement Projects
Page 18: Lean Symposium 2008 Irish Centre for Business Excellence Beau Keyte Managing Value Stream Improvement Projects
Page 19: Lean Symposium 2008 Irish Centre for Business Excellence Beau Keyte Managing Value Stream Improvement Projects
Page 20: Lean Symposium 2008 Irish Centre for Business Excellence Beau Keyte Managing Value Stream Improvement Projects

PROBLEM CAUSE COUNTER RESPON TARGET REVIEWMEASURE DATE DATE

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F M A M A S O N D

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F M A M A S O N D

Value Stream Improvement Tracking CenterCurrent State

Value Stream MapFuture State

Value Stream Map

Master Schedule Actions Plans

Value Stream Output Measures

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F M A M A S O N D

In-Process Improvements

DELIVERABLE RESPONSIBLE DUE REVIEW CHAMPIONDATE DATE

Review Responsibilities

Countermeasure Sheets

Week ending:

Item Task Metric Champion

Target Date

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Started Task Proposed Completion Review DateActual Start Actual Completion

Week ending:

Item Task Metric ChampionTarget Date

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Started Task Proposed Completion Review DateActual Start Actual Completion

Week ending:

Item Task Metric ChampionTarget Date

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Started Task Proposed Completion Review DateActual Start Actual Completion

Week ending:

Item Task Metric ChampionTarget Date

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Started Task Proposed Completion Review DateActual Start Actual Completion

PROBLEM CAUSE COUNTER RESPON TARGET REVIEWMEASURE DATE DATE

PROBLEM CAUSE COUNTER RESPON TARGET REVIEWMEASURE DATE DATE

Page 21: Lean Symposium 2008 Irish Centre for Business Excellence Beau Keyte Managing Value Stream Improvement Projects
Page 22: Lean Symposium 2008 Irish Centre for Business Excellence Beau Keyte Managing Value Stream Improvement Projects
Page 23: Lean Symposium 2008 Irish Centre for Business Excellence Beau Keyte Managing Value Stream Improvement Projects
Page 24: Lean Symposium 2008 Irish Centre for Business Excellence Beau Keyte Managing Value Stream Improvement Projects

Standard Work: VP Of Ops.

• Walk the Gemba at site being visited– Safety, quality, delivery issues– Signs of problem solving, continuous

improvement– Repeat same route and questions each visit

• Review progress and assign actions– What has been accomplished since last visit?– What is the plan to improve? – Are there new problems to address?– What will happen by the next visit?

Page 25: Lean Symposium 2008 Irish Centre for Business Excellence Beau Keyte Managing Value Stream Improvement Projects
Page 26: Lean Symposium 2008 Irish Centre for Business Excellence Beau Keyte Managing Value Stream Improvement Projects
Page 27: Lean Symposium 2008 Irish Centre for Business Excellence Beau Keyte Managing Value Stream Improvement Projects

Which of These Are Review Problems?

• Cross functional team can't find time to work through Kaizen so VSM is going to complete it.

• Work is progressing well and the improvements seem to be working.

• Kaizen uncovered need for IT support, but they are too busy to deal with it.

• Accounting wasn’t involved in the VSM workshop and doesn’t see the need to change.

Who owns the countermeasure?

Page 28: Lean Symposium 2008 Irish Centre for Business Excellence Beau Keyte Managing Value Stream Improvement Projects

Let’s End With This Context

• What does your company want from lean?• What do you personally want from lean?• What do you really think will happen?• What do YOU have to do to get “it”?