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Workplace Essentials Training

Lean Process Improvement

Self-Study Guide

Lean Process Improvement Self-Study Guide

Velsoft LearningWorks Training

Copyright All rights reserved world-wide under International and Pan-American copyright agreements. No part of this document can be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise.


How to Use this Guide This Self Study Guide is designed and laid out in a way that will guide student learning much in the same way that an instructor would. This workbook is comprised of several modules called Sessions. Each Session focuses on a major concept in the course. In each Session, we have included short-answer and (in some instances) multiple choice questions which relate directly to the Session material. Several times throughout the guide, you can take the opportunity to internalise what you have learned by completing the self-reflection exercises entitled “Making Connections”.


Table of Contents Session One: Course Overview ........................................................................................................ 1

Learning Objectives ................................................................................................................ 1 Pre-Assignment ....................................................................................................................... 3

Session Two: Understanding Lean ................................................................................................... 4 Defining Lean .......................................................................................................................... 4 The History of Lean ................................................................................................................. 6 Making Connections ............................................................................................................... 8 Lean vs. Six Sigma ................................................................................................................... 9 A Lean Glossary ..................................................................................................................... 10 Making Connections ............................................................................................................. 12

Session Three: The Toyota Production System ............................................................................. 14 Overview of the Liker Pyramid ............................................................................................. 14 The Levels of the Pyramid ..................................................................................................... 15 Philosophy ............................................................................................................................ 16 Making Connections ............................................................................................................. 16 Case Study: People and Partners .......................................................................................... 17 Problem Solving .................................................................................................................... 18 Making Connections ............................................................................................................. 19

Session Four: The Toyota Production System House .................................................................... 20 A House ................................................................................................................................. 20 Making Connections ............................................................................................................. 23

Session Five: The Five Critical Improvement Concepts ................................................................. 24 Key Ideas ............................................................................................................................... 24 Case Study: Smith Plumbing ................................................................................................. 28

Session Six: Understanding Value with the Kano Model ............................................................... 31 A Customer Needs Model ..................................................................................................... 31 A Needs Example .................................................................................................................. 32 Making Connections ............................................................................................................. 33

Session Seven: Types of Waste ..................................................................................................... 34 The Four Categories .............................................................................................................. 34 Making Connections ............................................................................................................. 36

Session Eight: Creating a Lean Enterprise ..................................................................................... 37 Going Green with Lean ......................................................................................................... 37 Making Connections ............................................................................................................. 38 The Characteristics of a Lean Organisation .......................................................................... 39 Making Connections ............................................................................................................. 40

Session Nine: The Plan, Do, Study, Act (PDSA) Cycle .................................................................... 41 PDSA ...................................................................................................................................... 41 Making Connections ............................................................................................................. 43

Session Ten: Using the R-DMAIC-S Model ..................................................................................... 44 R-DMAIC-S Model ................................................................................................................. 44 Exploring the R-DMAIC-S Model ........................................................................................... 46

Session Eleven: Lean Thinking Tools ............................................................................................. 48 5W-2H ................................................................................................................................... 48


Genchi Genbutsu and Gemba ............................................................................................... 49 Making Connections ............................................................................................................. 49 Performing a 5-S ................................................................................................................... 50 Making Connections ............................................................................................................. 52

Session Twelve: Kaizen Events ...................................................................................................... 53 About Kaizen and Kaizen Events ........................................................................................... 53 Typical Kaizen Blitz Workflow ............................................................................................... 55 Making Connections ............................................................................................................. 56

Session Thirteen: Data Gathering and Mapping ........................................................................... 57 Flow Charts ........................................................................................................................... 57 Ishikawa (Cause and Effect) Diagrams .................................................................................. 59 SIPOC Diagrams .................................................................................................................... 60 Value Stream Maps ............................................................................................................... 61 Tips for Effective Data Analysis ............................................................................................. 63 Making Connections ............................................................................................................. 64

Session Fourteen: A Plan to Take Home ....................................................................................... 65 Roadblocks and Pitfalls ......................................................................................................... 65 Possible Problems ................................................................................................................. 66 Creating a Successful Organisational Structure .................................................................... 67 Where to Get Started?.......................................................................................................... 69 Making Connections ............................................................................................................. 70

Session Fifteen: A Personal Action Plan ........................................................................................ 72 Starting Point ........................................................................................................................ 72 Short-Term Goals and Rewards ............................................................................................ 73 Long-Term Goals ................................................................................................................... 73

Summary........................................................................................................................................ 74 Recommended Reading List .......................................................................................................... 75

Lean Process Improvement |


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Session One: Course Overview

Lean principles have come a long way over the past three hundred years. From Benjamin Franklin’s early ideas, to Henry Ford’s work in the 1920’s and the Toyoda precepts in the 1930’s, to Jeffery Liker’s publication of The Toyota Way in 2004, Lean processes have evolved from a simple concept to a set of widely used best practices. In this course, you learn foundational concepts and strategies to begin implementing Lean Process Improvement. We explore the foundations of Lean through the Toyota precepts and the five critical improvement concepts (value, waste, variation, complexity, and continuous improvement). As well, we present you with tools to perform continuous improvement in your organisation, including 5S, 5W-2H, PDSA, DMAIC, Kaizen, Genchi Genbutsu, and various Lean data mapping methods.

Learning Objectives

After you have completed this course, you will be able to:

Define Lean and its key terms

Describe the Toyota Production System and the TPS house

Describe the five critical improvement concepts

Use the Kano model to understand, describe, analyse, and improve value

Identify and reduce various types of waste

Create a plan for a more environmentally Lean organisation

Use the PDSA and R-DMAIC-S models to plan, execute, and evaluate Lean changes

Use Lean thinking frameworks, including 5W-2H, Genchi Genbutsu and Gemba

Prepare for and complete a basic 5-S

Describe the key elements of Kaizen events, particularly a Kaizen blitz

Gather, analyse, and interpret data using flow charts, Ishikawa (fishbone) diagrams, SIPOC diagrams, and value stream maps

Go back to your organisation with a plan to begin incorporating Lean into your corporate culture



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Why did you take this course? Please take this opportunity to consider your personal learning objectives and reasons for taking this course.



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Pre-Assignment

One of the challenging aspects of learning about Lean and Six Sigma is that a lot of the terminology is Japanese. This exercise will familiarise you with some of the most common terms. This is intended to be fun; use whatever resources you need and don’t worry if you don’t get all of the answers. We’ll review it during the course. Next to each word or phrase, write the number of the correct definition.

Word List

Term Definition

A. Kaizen

B. Jidoka

C. Ishikawa

D. Heijunka

E. Muda

F. Pokayoke

G. Kaikaku

H. Genchi Genbutsu

Definition List

1. A fast, radical change process 2. Continuous improvement 3. Error proofing 4. Error-free production 5. Go and see (where the action is) 6. Resource leveling 7. The name of the scientist who invented cause and effect (fishbone) diagrams 8. Waste



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Session Two: Understanding Lean

As we begin our investigation into Lean Process Improvement, it is necessary to understand the history and underlying principles of the methodology. Successfully implementing Lean Process Improvement strategies in your organisation requires patience and an unrelenting commitment to overhauling your current business practices over time. In this session, we present you with a brief historical perspective of Lean Process Improvement. The terms we use in this course are translated and defined for gaining an acute knowledge of this effective management philosophy.

Defining Lean

Lean process improvement is a culture of ideas, tools, and processes that are designed to eliminate waste and improve workflow, to provide maximum value for minimum cost. Although it has only emerged as a popular business idea in the past few decades, its basic concepts have existed for over 300 years. Examples of Lean process improvement include the following ideas.

A non-profit organisation re-designs accounting processes to use 100% electronic documents.

An assembly line is re-engineered to increase automation and reduce downtime.

A company changes how customer complaints are handled so that response time and handoffs are minimised.

It is important to note that Lean should not be viewed as a quick fix or something that just a particular department does. The companies that have success with Lean efforts are those that incorporate it as part of their culture. Ideally, all employees should have some form of Lean training, whether it is a quick seminar or a complete certification.



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Exercise: Your Lean Process Experience

What experience do you have in this subject? Outline any knowledge you have about Lean Process Improvement.



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The History of Lean

During the mid-1700’s, the production of goods gradually shifted from a single person making a single product to mass production. This period is referred to as the Industrial Revolution. However, right from the beginning of the revolution, some scientists started to realise that mass production could cause waste. Benjamin Franklin is widely regarded as the first efficiency expert. In his 1758 treatise The Way To Wealth, he said, “You call them goods; but, if you do not take care, they will prove evils... if you have no occasion for them, they must be dear to you.” This is the core of a key Lean principle – Just-In-Time production. Scientists Frank and Lillian Gilbreth were famous for their motion studies in the early 1900’s. Frank Gilbreth observed brick workers, for example, and noted that they although they all had the same tasks, all did their work slightly differently using different motions. He felt that developing one best way to lay bricks would reduce the number of motions needed and thereby save effort and time. He eventually reduced each bricklayer’s motions to 4.5 from 18.

Creating the Lean Philosophy

In 1911, Frederick Winslow Taylor took things a step farther with his book Principles of Scientific Management. He said: “And whenever a workman proposes an improvement, it should be the policy of the management to make a careful analysis of the new method, and if necessary conduct a series of experiments to determine accurately the relative merit of the new suggestion and of the old standard. And whenever the new method is found to be markedly superior to the old, it should be adopted as the standard for the whole establishment.” This coincided with Henry Ford’s work in the 1920’s to develop the first comprehensive Lean manufacturing strategy to build the Model T automobile. His focus was on improving assembly lines (an idea he got from meat packing plants) by reducing waste and improving the flow of work. He was heavily influenced by the works of Benjamin Franklin, Taylor, and the Gilbreths. The ideas that would later be called “Lean philosophy” also originated in the early 20th century. In 1934, Sakichi Toyoda changed the family business from textiles to automobile production. Things were not going smoothly, however, and Toyoda sent Taiichi Ohno to America to observe Ford’s methods. Ohno’s experiences and ideas evolved into the Toyota Production System.



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The Toyoda Precepts

When Sakichi Toyoda died in 1930, his son Kiichiro officially adopted his business philosophy as Toyota’s way of doing business. This philosophy became the Toyoda Precepts:

(Source: http://www.toyota.co.jp/en/environmental_rep/03/rinen.html) And thus, Lean philosophy was begun. Major efforts to bring this philosophy to the Western world have included:

The Machine That Changed the World, by Daniel Jones, Daniel Roos, and James Womack (1990, reprinted in 2007)

The Toyota Way, by Jeffery Liker (2003)

1. Be contributive to the development and welfare of the country by working together, regardless of position, in fulfilling your duties.

2. Be ahead of the times through endless creativity, inquisitiveness, and pursuit of improvement.

3. Be practical and avoid frivolity.

4. Be kind and generous; strive to create a warm, homelike atmosphere.

5. Be reverent, and show gratitude for things great and small in thought and deed.

http://www.toyota.co.jp/en/environmental_rep/03/rinen.html



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Making Connections

Exercise: Practicing the Toyoda Precepts

Do you recognise any of these qualities and characteristics in your organisational practices?



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Lean vs. Six Sigma

You may have heard various terms describing Lean philosophy. You may have heard talk of Six Sigma, different belts, and even Six Sigma variations for different industries. What does it all mean?

Six Sigma Is a set of tools used to control business processes by reducing defects and improving quality. It is based on the idea that defects result from deviation, and that therefore there should be no more than six sigma (standard deviations) between a process and its norm. Six Sigma involves understanding customer needs, analysing data, and process improvement.

A Six Sigma Belt (yellow, green, or black) Denotes a particular level of expertise.

Lean Refers to a set of tools that are designed to improve flow and reduce waste during a business process or material production. They can be used within Six Sigma efforts or on their own.

Lean Six Sigma Combines the two methodologies. First, Lean methodologies are used to improve processes. Then, Six Sigma tools are applied to reduce deviations and defects.

Design for Six Sigma (DSS) and Design for Lean Six Sigma (DLSS) Are methodologies used to design (or re-design) products and processes from scratch using Six Sigma or a combination of Six Sigma and Lean tools. These methodologies focus on getting it right the first time rather than improving it later.

It is worthwhile to note that Six Sigma and Lean have been customised and specialised for many industries and ranks.



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A Lean Glossary

One of the difficult aspects of learning about Lean is that many of its terms are unfamiliar or in Japanese. As a pre-assignment, you were asked to define a few of these words. Let’s see how you did.

Term Definition

Autonomation or Jidoka

A semi-automatic process; human and machine working together.

Benchmarking Measuring products, processes, services, etc. against the highest standard.

Blitz A fast, structured, focused process for improving something (a process, a workspace, etc.).

Cycle Time The time required to complete one cycle of a particular operation.

Five S (5S) The principles for achieving and maintaining an effective workplace: Seiri, Seiketsu, Seiso, Seiton, and Shitsuke.

Flow The way production moves from the beginning (raw material) to the end (customer). This is a key principle of Lean – Lean envisions the flow as one smooth process.

Gemba A Japanese term meaning, “Where the action is.”

Genchi Genbutsu A Japanese term meaning, “Go and see for yourself.”

Heijunka The process of leveling the workload between resources.

Just-in-Time (JIT) A production system where each item required is produced and available precisely when needed, in the exact amount.

Kaikaku A fast, radical change process.

Kaizen Constant, gradual improvement to a process in order to create less waste but more value.

Lead Time How long a customer must wait for the product after they place an order.

Muda An activity that creates no value but consumes resources and is therefore considered waste. There are seven types of muda which will



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Term Definition

be covered later on in this course.

Mura Inconsistency and deviation.

Muri Irrationality.

Pokayoke A mistake-proofing device such as quality testing or checklists.

Pull A production philosophy where only what is ordered by customers is produced. Key element of Just-In-Time.

Push A production philosophy where products are created regardless of demand.

Takt Time The rate at which customers are demanding a product. This is the heartbeat of any Lean enterprise.

Value Desired characteristics provided to the customer at the right time, place, and cost.

Value Stream The process of designing, producing, and delivering a product.



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Making Connections

In Your Own Words

Choose six of the Lean definitions and describe them in your own words. Provide examples of the definition from either your current business organisation, or from a previous employer. Demonstrate your knowledge of the term. Definition 1:

Definition 2:

Definition 3:

Definition 4:



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Definition 5:

Definition 6:



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Session Three: The Toyota Production System

Using the Lean Process Improvement model requires your business leaders to gain alternative perspectives about their current organisational procedures. Changing the basic philosophies of your business practices is a challenging responsibility. Your training can make this possible, by understanding learner-friendly diagrams which explain abstract concepts involved in the topic of Lean Process Improvement. In this session, we delve deeper into the philosophies of the Lean principles. We present you with the Liker Pyramid diagram, and a problem solving diagram that represent and explain some of the concepts we discuss in our study.

Overview of the Liker Pyramid

One of the most popular descriptions of Lean philosophy for Western audiences is that portrayed by Jeffery Liker in his 2004 book The Toyota Way. This representation organises the four main principles of Lean as a pyramid. Each part of the pyramid contains one or more key Lean principles.



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The Levels of the Pyramid

When following the pyramid, you need to take a bottom-to-top approach. That is, in order to build a pyramid, the foundation/bottom level must be established first. The foundation of the pyramid represents Philosophy. Its sole principle is to base your management decisions on long-term philosophy. This is related to the previous reading on Lean being part of the corporate culture. The second level is Processes, where we can eliminate waste and increase value. This involves:

Creating continuous flow

Using pull production systems, where we make only as much product as is demanded by the customer

Levelling out work so that resources are not overwhelmed nor idle

Encouraging members of the organisation to get it right the first time and to stop and fix problems

Standardising and documenting work

Using visual tools, like lights and signage

Use reliable technology We can move onto the third level, People and Partners, once we have the philosophy and processes in place. Here, we will aim to:

Grow leaders and exceptional people and teams

Treat your partners as such – encourage them to improve and challenge them in a respectful manner

At the top of the pyramid, we have Problem Solving. In other words, once your Lean system is solidly in place, you can focus on continuously improving your systems. The key principles of continuous improvement are:

Always go and see for yourself (genchi genbutsu); never assume or believe what you are told.

Remember the old saying: Ready, aim, fire! (In other words, take your time when making a decision, but implement it quickly.)

Become a learning organisation. Encourage or require all members to grow and evolve.



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Philosophy

Short-term philosophy is just like it sounds. It often focuses on the short term, the small picture, and/or definite ideas and processes. Short term philosophies can be great for achieving quick results, but they may leave your organisation floundering when that result is achieved. Your organisation’s long term philosophy is what will set its long term path and ultimately determine its success. Your philosophy should not be specifically about Lean processes or tools; rather, embrace Lean ideas and combine them with your corporate culture to create a philosophy to guide your business for years to come.

Making Connections

Process Improvements

Consider the principles from the Process category of the Liker Pyramid. Come up with some ways that you could implement those process ideas in your own organisation. (Think about all aspects of your operations; production, distribution, sales, or data management, for example.)



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Case Study: People and Partners

Read through this Case Study and answer the discussion question that follows.

Challenging our Partners at Acme Wholesalers

Acme Wholesalers Inc. did a lot of importing from other countries. Their customs team always had a lot of paperwork and there were always a lot of phone calls between the team, the border services agency, and the suppliers trying to get mistakes and corrections sorted out. Everyone in the company knew about the problem but no one knew how to fix it. One day, the vice president of Acme Wholesalers was at a conference. He heard about a new computer programme provided by the government that enabled companies to order products from other companies. Customs paperwork was then automatically generated for all three parties, and corrections were made via a structured, real-time process. The vice president immediately went back to his organisation and set up a project team to examine and implement this solution. He challenged them to have 75% of their suppliers on board with this programme within a year. The team did such a great job outlining the benefits of the programme that 95% of the suppliers were on board within six months. Errors for those suppliers were reduced by 88% and the team’s workload was reduced by 78%. This enabled some members to be re-assigned to new tasks, and other members to take on new continuous improvement efforts. And, the team uses much less paper and other office supplies – extending the savings to the environment and the organisation much further.

Discussion Question

Describe one way that you could challenge a partner or supplier (or other external customer) to make a commitment to continuous process improvement.



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Problem Solving

The top of the Liker Pyramid is problem solving. This involves gathering data and using the PDSA cycle (Plan, Do, Study, Act) to continuously improve your organisation. It is important to have a basic understanding of problem solving to successfully achieve this step. Whenever you read a book on problem solving, this model, in some form or other, is sure to be there. It may have six steps rather than seven, or it may have five steps. However, the model doesn’t really change...just the authors’ ways of breaking it down.

Identifying the Phases

As you work your way from problem to solution, you are actually shifting your focus.

When you define a problem, you ask yourself: What is my problem?

As you try to analyse the root causes you ask: Why is it a problem?

When you are generating options, you ask yourself: What are some ways I can solve my problem?

We have included diagram for the three important phases in effective, business problem solving.

• Identify apparent problem

•Seek and analyse the causes

•Define the real problem

Phase One: Problem Identification and

Definition

• Identify alternative solutions

•Choose the best solution Phase Two: Decision

Making

•Plan a course of action

• Implement Phase Three: Planning and

Organising



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Making Connections

Solving Problems as Work

Do you currently use any type of formula to help you solve problems that arise in your department?

What benefits can you think of that occur if you decide to implement this model into your daily work routine?



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Session Four: The Toyota Production System House

We often use diagrams or visual representations to explain hierarchical levels of corporate management, or to envision the direction of production flow. The Toyota Production System is different, as the components of the diagram are not prioritised or individually valued. Rather, the success of the system relies upon our ability to consider each concept as part of a whole; a variety of philosophies and principles working together at the same time. In this session, we present a detailed diagram of the Toyota Production System House. Each component of the house represents underlying principles and activities involved in the overall theory of organisational Lean Process Improvement.

A House

The concepts of Lean and the Toyoda precepts are often translated into a house to help us understand how all the elements come together. We have included a diagram to give you a visual representation of the concepts. As well, we describe the function and purpose of each component of the house.



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The Roof

The goals and objectives of the Toyota Production System make up the roof of the house. The system aims to achieve:

Top quality

Minimal cost

Proper delivery time

Good safety and morale



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The Pillars

Just-In-Time and Jidoka are the two pillars of the system. Just-In-Time means that you have what you need when and where you need it. It means no shortages, no waste, no bottlenecks, and no waiting. This can be accomplished with continuous flow, pull systems, quick changeovers, and attention paid to takt time (the rate at which customers are demanding product). Jidoka means error-free production. This means getting it right the first time, every time. This means stopping production if a defect is found, performing root cause analysis to fix the true nature of problems, error proofing processes, assigning appropriate work to people and machines, and using visual signals (andon) to signal progress or issues.

The Core

The core of the system relates back to the principles we looked at earlier: people, problem solving (through Kaizen improvement), and the process of waste reduction. We can look at these three things as the core of the TPS philosophy.

The Foundation

A strong system must have four basic elements:

Levelled production, so that resources are not overworked or idle (heijunka)

Standardised, stable, non-varying, documented processes

Visual management tools (signs, lights, etc.)

Commitment to the Toyota philosophy of long-term learning, problem solving, and the involvement of people



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Making Connections

Your House

Consider your own house or office building. Imagine what would happen if the roof, pillars, foundation, or core fell apart or collapsed. What would happen? How can you relate this example to the Toyota Production System House? That is, why is it so important to keep each individual component of the house well-maintained?



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Session Five: The Five Critical Improvement Concepts

As you continue with your training, the Lean Process Improvement concepts are probably beginning to make better sense. It is difficult to imagine how your business could operate any other way, especially if you have limited financial and human resources. Discovering the advantages of the model requires an understanding of the five critical improvement concepts. In this session, we reveal the key concepts of Lean Process Improvement to keep in mind as you consider your own business practices. However, you cannot imagine these definitions as separate from one another; they are all part of the whole process of Lean improvement.

Key Ideas

There are five key ideas supporting Lean process improvement. They are:

Value

Waste

Variation

Complexity

Continuous Improvement

Value

The Oxford English Dictionary defines value as, “The regard that something is held to deserve; importance or worth.” In terms of Lean, value means what we want out of a product, service, or process – a desirable result that has some worth. Any process should put out more than it consumes. For example, if producing a widget costs $20 but you’re only selling it for $15, you are not creating value. There are two basic ways to increase value: increase revenue or decrease cost. Both of these can be done with Lean processes.



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Exercise: Adding Value

What are some ways of increasing revenue and decreasing cost using Lean methods?

Waste

Waste is the second key concept of Lean. It is the opposite of value – anything that we do not want, or a result that has no worth. Eliminating waste is at the root of most, if not all, Lean processes. In his book Toyota Production System, Taiichi Ohno says, “In production, ‘waste’ refers to all elements of production that only increase cost without adding value – for example, excess people, inventory, and equipment.”

Exercise: Reducing Waste

Provide some examples of waste that come from your business practices.



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Variation

All processes have variation, no matter how undesirable it is. For example, the earth takes about 365.25 days to revolve around the sun. What most people don’t know is that that figure is just an average – sometimes it’s a bit more and sometimes it’s a bit less. Variations in production, however, inevitably cause waste. The key to Lean processing is identifying the cause of variations and resolving them where possible. Variations usually arise from three key areas.

System Variations These variations arise from common, random, systemic causes. An example is the solar system variation that we just discussed. To reduce this type of variation, you need to change the system by identifying the root cause(s) of the variation and addressing that specific problem.

Special Cause Variations These are caused by an assignable event. For example, your sales go down because of a competing product introduced to the marketplace at a much lower price than your product. To reduce special cause variations, find out what is causing it and examine how it impacts performance. There may be ways that you can minimise the negative effects and boost the positive effects.

Structural Variation These variations happen because of cycles or long-term trends. For example, you may sell a particular product only at Christmas. You often cannot address this type of variation directly (for example, you can’t cancel Christmas!). However, you may be able to make changes to reduce the impact of the cycle or trend.

Complexity

Complexity is another factor that can cause waste. There are four aspects to complexity:

Size (how many parts are involved in the process)

Volume (the size of the process)

Density (relationship of size and volume)

Time to complete a product cycle The smaller that these parts are, the simpler the system is. Increasing any of these items will increase complexity. This means that in order to make a process lean and efficient, we should make its components simple and straightforward.



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Exercise: Reducing Complexity

How complex are your business processes?

What Lean strategies can you use to reduce the complexity of your processes?


Our final concept is continuous improvement. Lean processes must not be a one-time event. Your path towards improvement should be a continuous cycle. The most important part of this is creating a commitment to constant learning and knowledge management. This can be done through organisational problem solving, a commitment to cyclical Lean efforts, and the PDSA cycle.



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Case Study: Smith Plumbing

Read through the following case study and then provide methods in which Smith Plumbing can go Lean.

Background

Smith Plumbing is facing some serious problems. After some major organisational changes, their profits have dropped and their customer base has shrunk significantly. The new president has implemented a system where plumbers return to home base to have their previous job signed off on by two supervisors. The sign-off process includes an interview, a checklist, and a carbon copy form. Only then can plumbers receive their next assignment. Another source of frustration is that the instructions with the sign-off process are unclear, causing each supervisor to require it completed in a different way. Plumbers complain that this has significantly reduced their available field time, particularly since supervisors are not always available. As well, the new president has discontinued the Smith Superstars membership programmeme, which gave customers one free service after ten paid services.

Discussion Questions

Task

You have been asked to use your new Lean knowledge to help Smith Plumbing get back on track. Offer some suggestions based on the five key critical improvement concepts. Value



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Waste

Variation

Complexity




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Five Explanations

How would we have answered the case study question? We have included some suggested responses below, to help guide you through this lesson. Value Customers have already told the plumbers what they want: their membership programmeme! You could also take a survey to see if there are any other services that customers want. Waste Clearly, driving back and forth to base is wasteful. Perhaps drivers could do all their paperwork on the road and have it signed off at the end of the day. Variation and Complexity The sign-off process sounds a little intense. At the very least, it needs to be standardised to reduce variation. Perhaps it could also be reviewed and simplified. Continuous Improvement The president is on the right track with this improvement effort, but he needs to extend it to the entire organisation and ensure that cyclical improvement efforts are established.



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Session Six: Understanding Value with the Kano Model

How do you provide your customers with the products and services they want and need, to ensure their satisfaction? Understanding the important role of “value” in Lean Process Improvement theory is critical for forming an awareness of what is at stake if you lose value in your operations and thereby, your products. In this session, we review the Kano Model of Needs to explain how value is incorporated in the overall model of Lean Process Improvement. We expand on this topic by using an example of a common product that demonstrates the relationship between product value and customer needs.

A Customer Needs Model

One way to understand value is with Dr. Noriaki Kano’s needs model. It appears in many forms; we have presented our version here.



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Kano’s model states that there are three kinds of customer expectations. The first level is the basic characteristics. These are the things that customers expect, don’t ask for, and take for granted. If you don’t provide them, customers will be dissatisfied. If you do provide them, you won’t get any brownie points. The second type is performance characteristics. These are the things that customers want but don’t need. An example would be free bonus items or faster delivery. The more of these that you can offer, the more satisfied the customer will be. Lastly, we have the value added characteristics. These are the things that the customer doesn’t expect, so if they aren’t present, they won’t be dissatisfied. However, if you can offer one of these experiences to your customers, their satisfaction levels will increase exponentially.

A Needs Example

The following reading provides you with an example of the customer needs model. We have used a car as an example product to describe the three levels of expectations and characteristics included in the customer needs model.

A New Car

Basic Expectations

Has wheels and tires

Doors open

Will drive Performance Characteristics

Power windows and doors

Air conditioning

MP3 player Value Added Characteristics

Vehicle is washed and waxed for free

Salesperson delivers the vehicle to your door



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Making Connections

Your Products

Consider the products or services your business provides for your customers. Indicate the type of product or service you are using for this exercise. Describe each level of customer needs in your example. Product or Service:_______________________ Basic Expectations

Performance Characteristics

Value Added Characteristics



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Session Seven: Types of Waste

Reducing the waste that is produced by your business operations is a critical part of Lean Process Improvement. We don’t just mean material waste; there are other types of waste that exist in business operations that are not so evident. In Lean systems of operations, achieving your waste reduction goals can potentially increase the value of your products. In this session, we identify three major types of waste that are produced in any business operations. Implementing the philosophies and activities we’ve described in this training can help you better manage your organisational processes to eliminate waste.

The Four Categories

The concept of eliminating waste is one of the core ideas of Lean Process Improvement. Below we have identified three different categories of waste in a business environment.

Muda

Muda is the Japanese word for waste. Taiichi Ohno originally identified seven wastes, although others have been added due to changes in manufacturing. Ohno’s seven wastes include the following:

Overproduction (making more of something than needed)

Unnecessary motion

Surplus inventory

Unnecessary processing steps

Excessive transportation

Idleness and waiting

Defects

Muri

Another waste is when resources (people or equipment) are overburdened. This can cause problems with safety, reliability, and quality.

Mura

Mura means unevenness – sometimes a person sits idle and sometimes they are overburdened. The process of leveling this out (heijunka) is one of the pillars of the TPS house.



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Exercise: Additional Waste

Can you think of any additional wastes that might exist in business operations?

Your answers may include:

People not being used to their full potential, and therefore becoming bored and de-moralised

Unnecessary paperwork, systems, and checking

Systems that are not environmentally friendly (i.e., consuming more power than necessary)



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Making Connections

Identifying Waste

Choose one of the three waste categories. Describe some examples of this type of waste and provide some ideas for how it might be eliminated. Waste Category

Examples

How could it be eliminated?



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Session Eight: Creating a Lean Enterprise

In our current global economy, any activity your business can do to reduce waste and increase value in your products or services will give you a significant, competitive advantage. Using “green philosophies” can trim the fat off your operations, and help you become a lean enterprise. In this session, we describe the five “R’s,” which are proactive ways to initiate Lean Process Improvements in your organisation. The “R’s” that are described are part of a larger concept that should be fundamental in any business; that is respect.

Going Green with Lean

In order to create a Lean, green enterprise, there are five R’s that we can use to guide us. (These are similar to the three R’s popularly used in environmental campaigns.) Below we have described the definition of each R.

Recover

If you operate a manufacturing plant, look at your processes and see where scrap and waste can be recovered and reused. (This can also be applied on an individual level – for example, using unwanted printouts as scrap paper.) You may also be able to recover energy – some organisations have had great success converting steam output from machines to power.

Recycle

This is a concept that most of us should be familiar with. When something has served its use, see if it can be used for something else. At the very least, participate in your area’s recycling programmemes.

Redesign

Can your products and processes be designed to use less energy, last longer, require less maintenance, and be more environmentally friendly during and after their use?

Reduce

This is another concept that you should be familiar with. Reducing the energy and materials used to produce a product should be an important focus of any manufacturing organisation. Organisations should also look at how to reduce the resources that a product consumes during its lifetime, and the resources required for disposal, and how to reduce those levels.



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Remanufacture

More and more, businesses are making new products from old products. For example, this may involve using still-functioning parts from various old machines to create a new machine. Or, products may be broken down to create something entirely new.

Making Connections

Leaning Your Organisation

Consider the five Rs. Is your business currently practicing these lean activities?

If your answer is yes, provide some examples.

If your answer is no, explain why you haven’t.



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The Characteristics of a Lean Organisation

In his series The Lean Toolbox, author John Bicheno lists 20 key elements of Lean organisations. These elements summarise the work of Lean masters (including James Womack, Daniel Jones, Richard Schonberger, Eliyahu Goldratt, and Masaaki Imai) and management experts such as Peter Drucker. (Don’t forget that all of these people based their work on the early masters – the Toyodas, Henry Ford, and Taiichi Ohno.) The key elements of Lean organisations include the following.

1. The customer is the starting and ending point. 2. Think simplicity. 3. Reduce or remove waste. 4. Think in terms of process. 5. Increase visibility and transparency wherever possible. 6. Encourage routine and standardisation. 7. Make flow as constant and smooth as possible. 8. Pull at the customer’s rate, rather than pushing product through. 9. Get the timing right. Starting work at the optimal time will increase flexibility and reduce

waste and risk. 10. Be proactive and preventative rather than reactive. 11. Keep production and process timelines as short as possible. 12. Make continuous improvement a priority for everyone. 13. Encourage internal and external players to be partners rather than competitors. 14. Create a supply chain that creates value. 15. Remember Gemba: go to where the action is and seek the facts. 16. Reduce variation where possible. 17. Encourage participation and accountability from all employees. 18. When making changes, start with the smallest component and build up. 19. Build trust internally and externally by sharing information and acting as a partner. 20. Build and distribute knowledge throughout the organisation.



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Making Connections

Becoming a Lean Organisation

Do you recognise any of these characteristics in your business organisation?

How could you begin to incorporate these activities into your daily schedule, to become a successful, lean organisation?



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Session Nine: The Plan, Do, Study, Act (PDSA) Cycle

Any efforts you make to implement Lean Process Improvements should be well-planned, and evaluated for their effectiveness. We suggest that the PDSA Cycle can help you to identify operations that are creating waste, and provide a solid foundation on which to raise your Toyota Production Systems house. In this session, we describe the elements of the PDS(C)A Model; plan, do, study (check), and act. Using this cycle as you attempt to make Lean Process Improvements in your operations can help you make informed and wise decisions.

PDSA

Earlier, we discussed a number of Lean ideas that can be implemented in an organisation. But where do you start? One answer is PDSA (also known as PDCA):

This cycle was developed by Walter Shewhart in the late 1930’s and made popular in the 1980’s by Edward Deming. Let’s look at each aspect more closely.

Plan

Do

Study (Check)

Act



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Plan

You need to ask these questions in your planning stage:

What do we want to achieve?

What problems must be solved?

What are the goals and objectives?

What processes or systems do we want to change?

How will we determine if we’re using the right approach?

Do

Next, try out the idea on a small scale. Some examples:

If you think an online advertising method will be more effective than the current mail-outs, try it on a control group.

If you think a new printer will be more efficient, try it out in one department.

If you think a new machine will improve manufacturing defect rates, try it out for one product or on one line.

Study (also called Check)

Now study the results. Your goal is to understand what worked and what did not, and add to it what you know about the proposed changes.

What positive and negative things did we learn?

Will the experiment work on a large scale? Why or why not?

If it will not work, what can be done to make it work? Only now can you make an informed decision. You may have to go back to one of the previous stages, or you might be able to go onto the next stage.

Act

Now that you have a good understanding of the proposed change, it’s time to put your plan into action.



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Making Connections

PDSA at Work

In what ways do you think this approach could be beneficial to your business operations? Why?



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Session Ten: Using the R-DMAIC-S Model

The PDSA model is useful in our study of Lean Process Improvements, but it can be further explained when it is used alongside the R-DMAIC-S model. It is a diagram that explores a cycle of activities to review, evaluate, and change your business operations to be in accordance with Lean practices. In this session, we investigate the various elements of the R-DMAIC-S model; recognise, define, measure, analyse, improve, control, and sustain. Understanding the cyclic nature of the process is essential for continuously improving the outcomes of your production.

R-DMAIC-S Model

An advanced version of PDSA is the R-DMAIC-S model used in Six Sigma.

Recognise

Define

Measure

Analyse Improve

Control

Sustain



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Combining the Two Models

You can even imagine the PDSA cycle inside the R-DMAIC-S model:



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Exploring the R-DMAIC-S Model

Let’s look at this new model more closely. We have provided a definition and description of the activities involved in each stage of the process.

Recognise

The first step is to recognise a need for improvement. You may see your cashiers operating in an ineffective way, a manager may let you know that your accident prevention policy is outdated, or an employee might suggest a more effective method of scheduling production. In any Lean organisation, where there is an ongoing commitment to improvement and learning, an inventory of possible projects should be maintained and regularly updated and reviewed. Then, projects should be prioritised, selected, and assigned. This committee would also be responsible for making sure projects adhere to Lean methodologies and stay on track.

Define

Next, the problem to be solved is defined. This is where the who, what, where, when, why, and how of the approach is determined. Often, project management tools like project charters, business cases, and statements of work are used to lay out what is to be done.

Measure

The third step is to measure the data to set pre-change benchmarks and set priorities for improvement.

Analyse

Next, we will analyse the data and set specific improvement priorities.

Improve

Now it’s time to solve the problems and make changes. You will typically follow the problem-solving model that we used earlier:



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Control

The next phase is about keeping up the work that has been done. This can be done through various control tools, inspections, and evaluations.

Sustain

The last part of the process is to sustain the learning and share it throughout the organisation. An overall project success evaluation may be appropriate.

• Identify apparent problem

•Seek and analyse the causes

•Define the real problem

Phase One: Problem Identification and

Definition

• Identify alternative solutions

•Choose the best solution Phase Two: Decision

Making

•Plan a course of action

• Implement Phase Three: Planning and

Organising



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Session Eleven: Lean Thinking Tools

To become a successful, lean organisation, you need to consider your business organisation as an object that needs fixing. There are several tools you can use to put the pieces back together, even more efficiently than when you started. Lean thinking tools are not overly complex; in fact they are the common questions we ask ourselves every day. In this session, we describe the 5W’s and 2H questions that are useful for promoting your Lean Process Improvements. As well, we discuss a variety of Japanese terms that are essential for developing your Lean-thinking tool kit.

5W-2H

In school, you may have learned about the 5 W’s and the H of good reporting:

Who?

What?

Where?

When?

Why?

How? This framework is often used in Lean to gather information, with the addition of another H:

How much?



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Genchi Genbutsu and Gemba

One Lean principle is Genchi Genbutsu, which means going to see for yourself. This is closely tied to Gemba, which means where the action is. Lean encourages upper management to get into the day-to-day work and get their hands dirty. Many Japanese companies make their upper management work on the floor as part of the training process, including Honda, Nikon, and Toyota. Taiichi Ohno, the founder of the Toyota Production System, had several famous techniques involving Genchi Genbutsu. One was the three foot circle. If an engineer had an idea for improving the production line, Ohno would take the engineer to the production floor. He would then draw a circle a few feet in diametre and make the engineer stand there and watch the process for a few hours. After that, if the engineer still thought the idea was a good one, then they would begin planning to implement it.

Making Connections

Using Genchi Genbutsu

How could your organisation use this principle for more effective decision making?



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Performing a 5-S

Visual tools are an important part of Lean that we have not specifically discussed yet. Lean advocates visual tools such as charts and diagrams (for analysis) and lights and colours (in the workplace itself), in the belief that they increase transparency, communication, and visibility. For visual tools to have their maximum impact, the work area must first be cleaned and organised. This is called a 5-S. This process may take place at an individual workstation, a team floor, or throughout an entire company. There are many templates and checklists out there for conducting a 5-S. We will offer a brief guide here to get you started, but we strongly encourage you to customise it for your workplace.

Preparing for 5-S

Gather the team.

Make sure everyone is trained in the process and in any necessary safety regulations.

Appoint a team leader.

Let others in your organisation know about the effort and what help you may need (i.e. from maintenance, IT, etc.).

Set up a supply area with signs, red tags, cleaning materials, paint, labels, marker, tape, etc.

Set up a red tag area (holding space) for items to potentially be removed from the area.

Sort (Seiri)

Sort through the items in the work area. Place them in groups, considering how often you use each item, what situation might require it, how urgently you might need it, and the item’s size and weight.

Place objects that you use every day in a convenient location in the workspace.

Place items that are required often but not used daily in a convenient storage space.

Place a red tag on all other items. This tag should list the item name, quantity, original location, and any other pertinent information. Place the item in the red tag area. You will review this area after five and thirty days and retrieve or discard items as needed.

Create a plan for keeping the work area tidy.



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Shine (Seiso)

Clean the workplace.

Inspect equipment.

Create a plan for keeping the work area shiny and clean.

Straighten (Seiton)

Create a workflow map of the workspace. Show equipment, tools, people, and work areas. Draw lines to show the various paths that employees must take throughout the workday.

Now, create a more efficient map. Include the location of supplies and how much of each should be kept there, and where additional supplies are kept. (These are called location indicators. Larger signs corresponding to the map can then be created and hung in the supply area.)

Make sure to include the team that works in the area in both processes.

Next, create a plan to rearrange the workspace. Make sure that you adhere to company policies, industry regulations, safety rules, etc.

Get the plan approved.

Gather resources and make it happen!

Post the new workspace map for easy reference.

Standardise (Seiketsu)

Make the sort, shine, and straighten steps part of the team’s work routine.

Encourage workspace members to record ideas for further improvement.

Share the standards with everyone.

Sustain (Shitsuke)

Ensure that information is properly communicated and that all employees are trained.

Obtain support from all levels of the work area.

Evaluate the programmeme on a regular basis.



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Making Connections

Returning to Work

In the space provided below, list some activities you are going to start immediately when you return to work. These activities should reflect the lessons we have discussed in this course and relate to Lean Process Improvement tools. Be specific in your answers, and explain which tools you will use to implement the changes.



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Session Twelve: Kaizen Events

The success of your organisation is dependent on the individual performances of your employees, as related to an overall team effort. Lean Process Improvement training should be considered as a strategy for developing the skills of your workforce to recognise when a particular task or responsibility (individual or team) can be changed for the better. In this session, we review the types of “Kaizen” events that can take place in your organisation to improve your operations, in order to create more value, and less waste. Achieving you short/long-term goals is reliant on the efforts of your entire staff; however, they require quality leadership throughout the process of change.

About Kaizen and Kaizen Events

Kaizen is the Japanese word for improvement, or “change for the better.” It encompasses the philosophy of continuous, incremental improvement of an activity. It is used in many forms. Here we are going to look at Kaizen events, where an individual or a team uses a specific approach to tear down and rebuild a process or product so that it functions more efficiently, with less waste and more value. Kaizen events typically take place at five different levels. (A Kaizen event is also known as a Kaikaku.) We describe the levels below.

Level 1: Individual

The individual should constantly strive to reduce waste and improve efficiency in their own processes at their own workstations. They should keep records of ideas for additional improvement.

Level 2: Mini Point Kaizen

At the next level, individuals work with their team (typically about six people) to improve their workspace. They may perform a 5-S, change a process, or change work flows. This level is often done on the fly or through one or two day workshops.



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Level 3: Kaizen Blitz

This level is also known as a Point Kaizen. It is similar to a Mini Point Kaizen but is longer (usually three to five days) and involves larger work teams and sometimes outside parties. These events typically address bigger issues, such as large workspace changes or cross-departmental process changes.

Level 4: Flow Kaizen

At this level, many people from different departments in the organisation work to improve cross-functional value streams. They may be led by a project manager and/or be assisted by outside consultants. An example would be a plan to change packaging and shipping methods – the marketing, packaging, shipping, and transporting teams would all need to be involved. These events typically take several weeks to three months.

Level 5: Supply Chain Kaizen

These events are very similar to Level 4, except they involve other organisations. In the example above, where the plan is to change packaging and shipping methods, third party transportation companies and the outsourcers who provide packaging materials may be involved. A project manager and consultants are almost always present. These types of projects can take months or years.



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Typical Kaizen Blitz Workflow

Successful Lean organisations do Kaizen blitzes regularly and frequently. They use the PDSA cycle discussed earlier in this course to make changes quickly and efficiently. Although the event itself takes place within a short period of time, extensive preparation and event management is required to ensure that the process is completed effectively and delivers the required results. The event workflow should look like this:

Day 1 PDSA cycle is initiated

Plan is created for blitz

Weeks 1 and 2 (Avg)

Measurements taken

Benchmarks set

Targets set

Week 3 2 day

preparation workshop

Basic education completed

Goal mapping completed

Approval for changes obtained

Weeks 4 to 6

Final preparation

Resources obtained

Final checkpoint set and completed

Week 7 Five day workshop

Complete PDSA cycle several

times

Result is standardised,

tested changes Tasks assigned

Weeks 11, 15, 19

One day follow-up sessions

Check progress and adjust plan



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Making Connections

Personal Reflection

Think of one example of each type of Kaizen event that could take place in your workplace. Level One

Level Two

Level Three

Level Four

Level Five



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Session Thirteen: Data Gathering and Mapping

The information you have gathered from your Lean thinking tools and other strategies for process improvement can be mapped in charts and diagrams. Recent advancements in information technology have made scheduling, charting, and analysing information about your business operations very accessible and user-friendly. In this session, we present a variety of diagrams and charts that you can use to recognise possible areas of Lean Process Improvement in your business. Your choice of information formatting is dependent on the type of information you have, and the information you need.

Flow Charts

As you delve deeper into Lean principles and take on more complex projects, you will need more advanced tools to record and analyse data. We will look at some of those tools in this session. This is only an introduction; you may need more education to be able to create and use these tools properly. The first tool that we will look at is a flow chart. You have likely seen or used these before: they literally draw out a process or system. For this reason they are often called system or process maps. We are going to start with a very basic chart, but keep in mind that Lean flow charts can get quite complex.

Pieces of a Flow Chart

Most flowcharts are made up of three main types of symbols.

Elongated circles signal the beginning or end of a process.

Rectangles show actions or instructions.

Diamonds show the part of the process where decisions are made.



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Within each symbol is a word or short phrase that describes the action that takes place at that step. Symbols are connected one to the other by arrows, showing the flow of the process. These are only the basic symbols; there are many other symbols in use. However, since a flowchart is a communication tool, it is important to use symbols that your readers will understand.

Creating a Flowchart

To create your flowchart, brainstorm tasks and list them in the order that they occur. Ask questions like, “What happens next?” and, “Is there a decision that needs to be made before the next step?” If you are trying to work out where to improve a process, for example, ask the people who actually do the work for their input. Be careful because a flowchart can become very complicated and take up several pages. If that is the case, consider breaking processes up into smaller charts or use connector symbols to show where a task continues (or originates) on the next page. Connectors can also be used to track back and repeat a step. This example is a flow chart for paying bills.



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Ishikawa (Cause and Effect) Diagrams

The next tool that we will look at is an Ishikawa diagram. You may also know this as a fishbone or cause and effect diagram.

The problem or undesired effect is placed on the right hand side of a piece of paper. A straight line is then drawn to the left hand side. Primary causes are branched off of that, and secondary causes are branched off of those. The purpose of this is to help you identify the real causes of the problem and then address them appropriately.



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SIPOC Diagrams

SIPOC stands for Suppliers, Inputs, Processes, Outputs, and Customers. These are the five key components of any organisational system. It is a good way to define a system or process and break down its parts before trying to improve it. There are many different ways that this diagram can be drawn. The simplest template is:

Suppliers Inputs Processes Outputs Customers

Let’s look at the example of making chocolate chip cookies:

Suppliers Inputs Processes Outputs Customers

Grocery store Dry ingredients Mix ingredients Cookies! Me

Wet ingredients Put cookies on sheet

Joe

Cookie sheet Bake cookies

Oven Cool cookies



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Value Stream Maps

A value stream map looks quite complicated, but its concept is quite simple. It is basically a map showing how the product’s life cycle begins and ends. The customer is usually the start and end point. The process has four steps:

Identify what to map

Create as-is map (how are things

now?)

Create to-be map (how do we want

things to be?) Create work plan



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Value Stream Map Example

Here is a sample value stream map. Note that the customer is on the right of the diagram.



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Tips for Effective Data Analysis

Before you begin gathering data, make sure that your improvement goal is clearly stated. Your data gathering question should aim to answer one question. (Use one of the 5 W’s or 2 H’s discussed earlier.) For example, you might want to know, “What was the difference between sales last year and sales this year?” or, “What is the defect rate for the Widget Master 5000?” Next, decide what will be measured—profits, expenses, returns, defect rate, etc.—and how it will be measured. You may choose several metrics to analyse. Now, decide what data gathering tools you will use and how data will be recorded. Once data has been gathered, be careful when analysing it. It is easy to analyse the data in such a way that it gives you the results that you are looking for. Double and triple check your analysis. Make sure any conclusions are truly supported by the data. Likewise, be careful when depicting data visually. Be sure to choose the right type of visual aid. Sometimes a simple line graph will suffice. At other times, you may need a more visual tool (such as a flow chart) or a more complicated statistical tool (such as a histogram). Try to choose the simplest type of illustration possible.



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Making Connections

The Right Tools for the Job

What type of data analysis tool do you feel would be best in each of these situations?

Situation Tool(s)

Show the cause of widget returns

Show how widgets are shipped

Lay out the steps for packaging a widget

Summarise the people, materials, and processes for creating a widget

The correct answers are:

Show the cause of widget returns (Ishikawa)

Show how widgets are shipped (Value Stream Map)

Lay out the steps for packaging a widget (Flow Chart)

Summarise the people, materials, and processes for creating a widget (SIPOC)



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Session Fourteen: A Plan to Take Home

Although you have learned a variety of ways to transform your business organisation into a lean enterprise, it will take patience and hard work to create real change. There are many problems that can get in the way of developing lean processes, and they must be taken into consideration as you develop your Lean Process Improvement plans. In this session, we encourage you to create a plan to take home; to your work environment, that is! As with any managerial training topic, preparation and planning are essential for any unveiling of procedural changes to your staff.

Roadblocks and Pitfalls

So far, we have learned a lot about Lean, including what Lean is; what the philosophy looks like; how to think Lean; how to perform Lean improvements; and how to gather, record, and analyse data with Lean tools. For the last part of this course, we are going to help you build a plan to incorporate Lean into your company’s culture.

Exercise: Problems with Lean at Work

What might be some problems with implementing Lean in your organisation?



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What solutions do you suggest?

Possible Problems

We have identified several problems that may affect your ability to implement Lean Process Improvement plans in your organisation.

Training at the Wrong Time

Lean training should not be done in a blitz as the new flavour of the day. Training should be done just in time for a particular Lean event and then used immediately.

Uneven Responsibility and Delegation

Strive to make everyone in your organisation familiar with Lean. Lean improvement leaders must be advocates for Lean and for the organisation. Lean must not be something that one particular person or team does; it must be something that the entire company embraces day-to-day. This means, too, that senior management must get in and get their hands dirty.

Seeing Lean as a Short-Term Solution

In the same vein, Lean must not be viewed as a short-term, band-aid solution. When Lean first began gaining popularity in the Western world, it was treated much like a fad. This resulted in partial Lean implementations that, of course, did not succeed as expected (or failed outright). As



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we have emphasised during this course, Lean is not your average toolkit – it is a corporate culture that must be fully embraced to ensure success.

Fear

Lean can be a very intimidating topic, and indeed, some of its ideas (particularly Six Sigma ideas) can be very complex and tough to grasp. Not only is it rife with Japanese terms, its basic philosophy, while simple, can be hard to live up to. We suggest that you start small and work your way up. Any change can be a difficult one – it’s how you manage it that makes the difference.

Creating a Successful Organisational Structure

Organisations that have had great success with Lean all have a few common characteristics. As you might imagine, one of the driving factors is the approach to Lean: successful companies see it as a long-term systemic change and have enthusiastic leadership supporting the effort. Consistency and persistency are the two keys. Many organisations have found the following process helpful in giving Lean a foothold in their organisation. We have described the components of the cycle below.

Establish Team

Customise Lean

Train Team

Review and

Modify



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Establish a Lean Team

Your first step is to establish a Lean champion. In a small organisation, this may be just one person with a part-time Lean champion role. In a larger organisation, you may establish a Lean Promotion team who will be responsible for overseeing and coordinating Lean events. Remember, your Lean champion should be very familiar with Lean and the organisation. As the Lean champion or Lean team spreads Lean throughout the organisation, their role and the very structure of Lean in your company will expand and change. Make sure that you plan for this.

Customise Lean

As you have seen throughout the course, there are a lot of ways that Lean can be interpreted and applied – and this is just the beginning! Decide what tools and training you want to offer and grow from there.

Perform Training

Clearly, the person or people that you have identified as your Lean champion(s) will be the first people to get training. Upper management should also be in this group. Next, the organisation should decide what the first Lean project should be. Those organisational members will be the next to get training and perform a project… and so the first wave begins.

Review and Repeat

Once the first pilot project is complete, evaluate how it went, and revise as needed. Then, train other teams and perform other projects, revising your Lean approach as you go.



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Where to Get Started?

Once your Lean champion has been established and your organisational framework is complete, it can be hard to pick a project. Do not choose the biggest, hardest project. Rather, pick a small, manageable project in an area that the Lean champion is familiar with. Make sure that the endeavour has clear goals and is easily measurable. Most Lean projects fall into one of nine categories. These categories should help jump-start some project ideas.

Change the work environment

Reduce or eliminate waste

Enhance relationships with customers, suppliers, or other third parties

Error-proof systems

Improve the focus on a product or service

Improve work flow

Manage time

Manage variation

Optimise inventory



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Making Connections

A Plan for Success

What roadblocks might your organisation encounter and how might you get around or solve those?

Once the Lean Process has been implemented, what successes might your organisation inherently have and how might you build off of those?



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What will be your first step back at the workplace?

Can you think of some project ideas based on the nine categories?



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Session Fifteen: A Personal Action Plan

Now you have completed this course on Lean Process Improvement, how will you use the things you have learned in the future? In this session, you will be asked questions to help you plan your short-term and long-term goals. By reflecting on where you currently are and where you want to be, you can solidify, in your mind, what you want your future to hold.

Starting Point

I know where I’m starting from. I know I am already good at these things, and I can do them more often:

I can learn this, I am learning this, and I am doing what I can at this stage as well. I have already learned:



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Short-Term Goals and Rewards

I will start with small steps, especially in areas that are difficult for me. My short-term goals for improvement are:

I promise to congratulate and reward myself every time I do something, no matter how small, to maintain and improve my skills. My rewards will be:

Long-Term Goals

I’m setting myself up for success by choosing long-range goals to work for gradually. My long-term goals for success are as follows:



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Summary

Congratulations, you have completed the course “Lean Process Improvement!” In this course, we reviewed the foundational concepts and terms of Lean Process Improvement theory. We began by defining the main principles and activities involved in Lean processes. We presented you with a brief historical reading of Lean theory, to lay the foundation for your training. We described various models for implementing Lean processes in your organisation, and we provided the opportunity to reflect on your current business practices. As we continued through the course, you were introduced to several acronyms for recognising both waste in your operations, and value in your products. You were also given information about possible problems you may encounter as you try to implement the Lean process changes in your work environment. Finally, we encouraged you to develop a plan of action for practically applying the information in this course when you return to work.



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Recommended Reading List

If you are looking for further information on this subject, a recommended reading list is included below.

Bicheno, John, and Matthias Holweg. The Lean Toolbox (4th Edition). Picsie Books, 2008. Bodek, Norman, and Taiichi Ohno. Toyota Production System: Beyond Large-Scale Production.

Productivity Press, 1988. Jones, Daniel T., and James P. Womack. Lean Thinking: Banish Waste and Create Wealth in Your

Corporation. Free Press, 2003. Jones, Daniel T., Daniel Roos, and James P. Womack. The Machine That Changed the World. Free

Press , 1990. Liker, Jeffery. The Toyota Way. McGraw-Hill, 2003. Ohno, Taiichi. Taiichi Ohno's Workplace Management (Reprint). Gemba Press, 2009.

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