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Lean Learning Center 2006 1
Tactics of Lean Innovation:
Improving Your Lean Transformation
Lean Learning Center 2006 2
Lean Systems Principles
• Essential to the lean
journey
• Principles drive
behaviors and behaviors
drive results
Lean Learning Center 2006 3
Lean Principle:
Directly Observe Work
• Identify how customers and suppliers are
connected
• Identify the information, material and
people flow
• Move beyond traditional sources of
information
• Adopt new way of thinking
Lean Learning Center 2006 4
Develop a New Lens
to Observe Work
Old Way New Way
Reports Walk the floor
My view of the world Build a common view
Information quantity Information quality
Equipment, materials,
paper and tools
Activities, connections
and flows
Lean Learning Center 2006 5
Lean Principle: Systematic Waste Elimination
Waste Type Example
Transportation Retrieving and returning files, multiple
handling of products
Inventory Retaining files/forms for obsolete activities
Just-in-case buffers
Motion Hand delivery of hard copy reports, excessive
reaching/bending for tools
Waiting Waiting for approvals, waiting for materials to
arrive at work station from storage
Overproduction Generating unused reports, over-speed in a
production line
Overprocessing Re-keying data, multiple inspections
Defects Forms with typos, shipping wrong parts
Lean Learning Center 2006 6
Waste Examples
Operational Waste Organizational Waste
Long set-up time Lack of training
Layout/Distance Lack of standardization
Supplier Quality Ineffective policies
Batching Poor communication
Process Variation Changing priorities
Lean Learning Center 2006 7
Lean Principle:
Systematic Problem Solving
• Problems indicate the gap between ideal
state and current reality
• Problems build creative tension
• Problems embraced as opportunities to learn
Lean Learning Center 2006 8
Lean Principle:
Systematic Problem Solving
Principle Behaviors
• Problems are immediately
brought to the surface
without fear of
repercussion
• Stay with problems longer
and dig deeper
• Problems are opportunities
Lean Learning Center 2006 9
Lean Principle:
Establish High Agreement
• Value a common way or process more
than we value our own way
• Standardization ensures utilization of the
common way
Lean Learning Center 2006 10
Tools to Establish High Agreement
• Standard Work Instructions
• Visual Controls
• Error Proofing
• Control Point Standardization
• Master Schedule
Lean Learning Center 2006 11
Lean Principle:
Create a Learning Organization
• ‘Glue Principle’—holds other 4 together
• Learning organization learns from its
improvement efforts
• Use processes as laboratories and employees
as scientists
• Every new idea generates more learning, more
capabilities, more skill
• Experimentation is key to a learning organization
Lean Learning Center 2006 12
A Learning Organization
Structure
LEARN
APPLY
REFLECT HEART
HAND
HEAD
Learn Obtain knowledge
formally and informally
Apply Apply knowledge
learned
Reflect What worked well?
What didn’t work well?
Why?
Lean Learning Center 2006 13
Inventor or Innovator?
Inventor
• Devises by thinking
• Produces for the 1st
time
Innovator
• Makes changes
• Introduction of
something new
Lean Learning Center 2006 14
Tactics of Innovation
Lean Learning Center 2006 15
Upside Yes/Downside No
Lean Learning Center 2006 16
Seemingly Simple/Small Steps
Lean Learning Center 2006 17
Clear Message/Reliable Fit
Lean Learning Center 2006 18
Credible Messenger/
Reliable Performance
Lean Learning Center 2006 19
Easy In/Easy Out
Lean Learning Center 2006 20
Assessing the Tactics of Innovation:
Your Reflection Assingment
• What tactics do you address well?
• What do you currently do in your
organization to currently satisfy those
tactics?
• What tactics don’t you address well?
• What do you need to do to satisfy these
tactics?
Lean Learning Center 2006 21
Innovative Technique 1:
The Lean Learning Laboratory
• A place to learn, experiment and practice with ideas
• Small group of people in a highly visible area that will learn and apply rules, principles and tools
• Allows for the application of tools at a faster pace with less risk
Lean Learning Center 2006 22
Lean Learning Laboratory
Characteristics
• Visible
• Teaches skills, leadership and
implementation
• Low-risk, bounded space
• Living model to set the example
• Builds culture
• Meaningful performance gains
Lean Learning Center 2006 23
Common L3’s
Audience Learning Method Used
Sports Teams Scrimmages
Students Homework
Nurses CPR Dummy
Student Pilots Boeing Simulator
Army Simulated Missions
Lean Learning Center 2006 24
L3 Roles and Responsibilities
Team Member Support Member
• Actively participates in
team meetings
• Actively participates in
problem solving meetings
• Day-to-day application • Organizational support
• Frequent contribution
of ideas
• Frequent contribution of
ideas
• Reviews scorecards • Solicits opportunities to
contribute
• Open communication • Open communication
Lean Learning Center 2006 25
L3 Structured Activities
Module Training Presents brief modules that are
provided 4 weeks apart
Decision Making Empowers learners to brainstorm
solutions and makes then less
reliant upon others
Huddle/Team
Meeting
Huddle to review performance and
identify improvements
L3 Reviews/Audits Managers periodically review the
progress of the L3 to determine
current state
Lean Learning Center 2006 26
Innovative Technique 2:
Management Lean Learning
Laboratory
• Provide an often ignored
structured set of tools that
executives and managers
would use on a daily basis
to lead and direct the lean
transformation throughout
the organization
LEARN
APPLY
REFLECT HEART
HAND
HEAD
Lean Learning Center 2006 27
ML3 Characteristics
• Transforms management into leadership
• Encourages behavior and culture change
by becoming a living example of lean
• Not just ‘talk the talk,’ but ‘walk the walk’
• Utilize lean thinking to analyze the most
critical tasks and issues
Lean Learning Center 2006 28
ML3 Structured Activity:
Creative Tension
• Vision of ideal
state
• Grasp of current
reality
• Right skills and
actions to close
gap
Lean Learning Center 2006 29
ML3 Structured Activity:
Control Point Standardization
• Audit forms
• Check lists
• Area maps
• Process owners manual
• Placards
Lean Learning Center 2006 30
ML3 Structured Activity:
Direct Observation
Old Way
• Reports
• Controller drives
costs
• First answer accepted
• My view of the world
• Information quantity
• Equipment, materials
New Way
• Walk the floor
• Waste walks drive
cost
• Dig past first answer
• Build common view
• Information quality
• Activities, connections
Lean Learning Center 2006 31
ML3 Structured Activity:
Five Why Problem Solving
• Simple and structured way to solve any
problem as it occurs
• Five is not the magic number
• Asking ‘why’ 1x answers the surface
symptom
• Asking ‘why’ requires you to dig deeper to
the root cause
Lean Learning Center 2006 32
ML3 Structured Activity:
Visual PDCA
Lean Learning Center 2006 33
Visual PDCA
Plan •Identify the condition
•Analyze the current state
•Develop solutions
•Develop hypothesis
Do • Execute a solution
Check • Evaluate the results
Act • Strategize revisions to the solution?
• Standardize?
Lean Learning Center 2006 34
Innovative Technique 3:
Demonstration Projects
• Coach instructs participants in lean
principles and practices
• Produces minimum of $500,000 in savings
or additional revenue
• High value placed on participant learning
Lean Learning Center 2006 35
Demonstration Project
Characteristics
• Generates significant results
• Builds skill and culture
• Uses real work as the learning tool
• Develops leaders with the assistance of a
lean coach
Lean Learning Center 2006 36
Demonstration Project Method1.
Identify
Opportunity
2.
Form Team
and Scope
Project
3.
Analyze
Current
Reality
4.
Define
Desired
Outcomes
5.
Identify Gaps and
Countermeasures
6.
Prioritize, Plan,
and Test
Proposed
Solutions
7.
Refine and
Implement
Solutions
8.
Measure
Progress and
Hold Gains
9.
Acknowledge Team, Reflect
and Communicate Results
Lean Learning Center 2006 37
Innovative Technique 4:
Communication Rooms
• Recognizes the gap occurring between the
current and ideal state
Lean Learning Center 2006 38
Communication Rooms
Characteristics
• Aligns and connects goals and objectives
• Provides high agreement of where and how
• Simple methods to communicate
• Helps management identify problems
• Utilizes PDCA
• Reinforce accountability and continuous improvement
Lean Learning Center 2006 39
Communication Room Tools
• Scoreboards
• Continuous Improvement/PDCA
• Measurements
• Value Stream Mapping
• Master Schedule
• Area/Line Shop Floor Status Board
• Shop Floor Action Planning
Lean Learning Center 2006 40
Innovative Technique 5:
A3 Projects and Report Writing
• Structured process for guiding thinking
• Used throughout a project, problem
solving or continuous improvement activity
Lean Learning Center 2006 41
A3 Projects and Report Writing
Characteristics
• Simplifies all report writing
• Makes thinking visible
• Structures processes
Lean Learning Center 2006 42
A3 Projects
• Coached by lean
master
• Follow step-by-step
• Peer reviews
• Visible posting
Project Area: Owner:
Background &
Business Case
CurrentCondition
TargetCondition
Steps,Schedule andMeasurements
Information should FLOW and be simple.
Lean Learning Center 2006 43
Project Area: Remit. Process Owner: Joe Cool BACKROUND
BUSINESS CASE
ØRemittance processing is based on operations but is considered a support
organization
ØOver 40 employees, 3 shifts, 3 departments
ØHas continually been a candidate for outsourcing
ØSuffers from 25% misreads that need to manually input
ØBest opportunity for finance to learn about TPS because of its operation
focus
ØVery little pressure to adopt any continuous improvement philosophy
and practice
CURRENT CONDITION
ProductionProduction QCQC SystemSystem ShiftShift
Lean FacilitatorLean Facilitator
1
2
3
ØMultiple shifts that don’t match up or overlap
ØNo process for driving change through this group
ØDesire to engage to engage everyone in the organization
ØLack of traction and ability to engage
TARGET CONDITION
Lean
Facilitator
Leadership
Group
Leadership
Group
Shift
Teams
ØCreate a simple flow where the facilitator guides and teaches the leadership
team and the leadership team guides the shift teams
(rule 3—flow of learning and information
ØCreate a clear link between facilitators and leadership (rule 2)
ØCreate a learning process that involves supervisors- their teams and projects
will be more sustainable
STRATEGIC STEPS
ØStart with 5’S as a simple lesson that can be transferred
ØGet commitment from each supervisor to take responsibility
ØStart with a small project for each team led by each supervisor
SCHEDULE MEASUREMENT
Hold Learning
CircleStart
Projects
Supervisors
Present to
Teams
Begin Next
Learning
Circles
1/15/01 2/15/01
12/10/00 1/30/01
# of Interactions % Teams Involved
40
5
100
10
ØMuch stronger commitment to
than before
Lean Learning Center 2006 44
Lean Learning Center 2006 45
A3 Report Guidelines
• Report for each major action item on
master schedule
• 11x17 paper
• Write in pencil
• Should explain how Operating System is
improving business
Lean Learning Center 2006 46
Innovative Technique 6:
After Action Reviews
• Structured way to reflect on an incident
• Designed by United States Army
• Identifies performance gaps
• Develops strategies to improve future
performance
• Used for any repetitive event
Lean Learning Center 2006 47
AAR’s Address:
Ideal State What was supposed to happen?
Current Reality What did happen and why?
Learning
Organization
What can we learn?
What successes can we
sustain?
What weaknesses can we
improve?
High Agreement What will we do differently next
time?
Lean Learning Center 2006 48
Innovative Technique 7:
Master Schedule
• Method to monitor and manage major
projects
• Designed to quickly surfaces problems
Lean Learning Center 2006 49
Master Schedule Characteristics
• Applies lean principles to projects
• Assists in reflection process
• Manages implementation in open
environment
• Problems surface quickly
• Improves problem resolution speed
Lean Learning Center 2006 50
The Master ScheduleActivity / Week 1 2 3 4 5 6 7 8 9
Setup reduction / Bob
Develop supermarket
in shipping / Sue
Change scheduling
procedure / Sue
Visual process mgmt
to takt time / Matt
Develop new
measurement system
/ Chris
Ran into problems in
access to scheduling
data – will get extra help
from Chris
= Target Completion Date
= Start DateOK
At Risk In Trouble
Lean Learning Center 2006 51
Master Schedule Development
• Use whiteboard, flipchart, butcher paper
• Large and visual
• Keep schedule at a fairly high level
• Conversation and schedule development
go hand in hand
• Easy to update
Lean Learning Center 2006 52
Lean Learning Center 2006 53
Utilizing the Master Schedule
• Everyone updates their area of
responsibility prior to the meeting
• Ignore ‘on-track’ areas
• Focus on areas that need attention
• Work to identify root cause of problems
• Agree upon a modified course of action
Lean Learning Center 2006 54
Master Schedule
Meeting Guidelines
• Structure every meeting
• Stand up around the schedule
• Go see problems that have surfaced
• Take off line lengthy debates
• Focus on the system, not blame
• Leaders use meetings to model and coach
• Reflect on both successes and failures
Lean Learning Center 2006 55
Master Schedule Cascading
The Master Schedule
Activity / Week 1 2 3 4 5 6 7 8 9
Setup reduction / Bob
Develop supermarket
in shipping / Sue
Change scheduling
procedure / Sue
Visual process mgmt
to takt time / Matt
Develop new
measurement system
/ Chris
Ran into problems in access to scheduling
data – will get extra help
from Chris
= Target Completion Date
= Start Date
OK
At Risk In Trouble
The Master Schedule
Activity / Week 1 2 3 4 5 6 7 8 9
Setup reduction / Bob
Develop supermarket
in shipping / Sue
Change scheduling
procedure / Sue
Visual process mgmt
to takt time / Matt
Develop new
measurement system
/ Chris
Ran into problems in access to scheduling
data – will get extra help
from Chris
= Target Completion Date
= Start Date
OK
At Risk In Trouble
The Master Schedule
Activity / Week 1 2 3 4 5 6 7 8 9
Setup reduction / Bob
Develop supermarket
in shipping / Sue
Change scheduling
procedure / Sue
Visual process mgmt
to takt time / Matt
Develop new
measurement system
/ Chris
Ran into problems in access to scheduling
data – will get extra help
from Chris
= Target Completion Date
= Start Date
OK
At Risk In Trouble
Lean Learning Center 2006 56
Some Final Thoughts
• A lean transformation is more than training
• A lean transformation requires mechanisms
to engage and build momentum
• There is no one tool
• Engage the entire organization
• Failures will occur
• Reflection is essential