Lean Thinking Baljit

Lean Thinking Quality Management

By

Baljit Singh Modi

Manager QSE

WS Atkins

Sharjah

Baljit Singh Modi – MCQI WS Atkins, Sharjah

Here is Edward Bear coming down stairs now, bump, bump, on the back of his head, behind Cathy. It is, as far as he knows, the only way of coming downstairs but sometimes he feels that there is really another way, if only he could stop bumping for a moment and think of it


Two Views of an Organization

THE WAY WE ARE ORGANISED

THE WAY AN ORGANISATION SHOULD WORK

SUPPLIERS CUSTOMERS


The Manager’s New Job

People work IN the System The Manager’s new job is to work ON the System and improve it – continuously

– with their help Myron Tribus


Fundamentals of Lean Management System

• Thinking in terms of systems• Understanding the variability of work• Understanding how we learn• Understanding people and behavior• Understanding the interdependence and interaction

between the above• Giving vision, meaning, direction and focus


Lean Thinking origin

• Define value from the perspective of the end customer• Provide what customers want, when they want it• Work on the processes that lead to results – rather than

the results themselves• Identify the entire value Stream and eliminate waste• Make the remaining value steps flow• Pursue perfection


What is a Process?

Inputs PROCESS Outputs

CUSTOMERS

Collect Data

Analyze Data

Improve

Insight

Plan

DoCheck

Act

How do we Improve a Process?


The Lean Approach

Hidden Costs

Examples:• Wastes• Morale• Reputation• Goodwill

Visible Costs

Examples:• Staffing• Transport• Training• IT renewals• etc

Hidden Costs• Morale• Reputation• Goodwill

Visible Costs

• Wastes

Hidden Costs

Visible Costs

More Cost saving (long term)


The Three Voices

VOICE OF THE CUSTOMER

VOICE OF THE PROCESS

VOICE OF THE PEOPLE

LEADERSHIP

THE VOICE OF

THE

CUSTOMER

•Improvement Statements•Operational Definitions


IMPROVEMENT STATEMENT

• A statement that gives purpose and structure to process improvement


• An indicator of change and direction• An indicator of quality• A process

Three parts of an Improvement System:


Improvement Statement Examples

•SUPPORT

•PRODUCTION

•SERVICE

•ADMINISTRATION

• To reduce the waiting time for the vehicle to be serviced by the

authorized dealer

• To reduce the variation in in Fat content (1.5 – 3%) in the Milk produced

• To shorten the time for hotel guests to check out

• To reduce the customer wait/hold time during telephone transfers



OPERATIONAL DEFINITIONS

• Express the Quality indicator in terms you can do business with.

• Are developed by customer and supplier together

What do the following MEAN?

“on-time”

“accurate”

“safe”

“clean”



THE SEVEN QUESTIONS

1. Who are my customers?

2. What do they want?

3. What is my product or service?

4. What are my customers’ measures/expectations?

5. Is my product meeting my customers’ expectations?

6. What is my process for providing the product?

7. What action is required for improvement?



The Eighth question

What do my customers DO with my product or service

-and, can I HELP the customers to do that better?


• Reacting to customers approaching you• Proactively asking customers • Gemba visits

Gathering their voice:

THE VOICE OF THE PEOPLE

• Process Maps• SIPOC• Value and the 7+1 Wastes


PROCESS MAPS - FLOWCHARTS

• Are powerful tools that enable people to understand the processes they are involved with

• Are the pictures that represent the steps in a process, and how work or information flows through the process from beginning to end.

• Can be working documents used for analyzing a process• Can be planning tools to help design a new process.

VOICE OF THE PEOPLE


Practical Guidelines for Flowcharting

Involve people who do the work. Make sure everyone in the team participates.

Keep it simple – use shadow boxes..

Treat as working document – subject to constant change and improvement.

Generate lots of objective questions.

Discuss with others affected by the process

(Customers and Suppliers).

VOICE OF THE PEOPLE


The Customer-Supplier Chain

S I P O C

Measures Measures

Process Map

Suppliers Inputs Process Outputs Customers

Requirements Requirements

VOICE OF THE PEOPLE


Value Assessment or Stream Mapping

Steps that are considered essential to produce and deliver the product or service to meet the Customers needs and requirements. The Customers are willing to pay for these steps.

Steps that are not essential to the Value Flow – but which enable it to operate

Steps that are considered non-essential to produce and deliver the product or service to meet the Customer’s needs and requirements. The Customers are not willing to pay for these steps.

VOICE OF THE PEOPLE

VALUE ADDED WORK

NON-VALUE ADDED WORK

VALUE ENABLING WORK


The 7+1 Wastes (TIM WOOD)

• Transportation

• Unnecessary movement of materials, products or information

• Inventory

• Any work in process that’s in excess of what is required to produce for the customer

• Motion

• Needless movement of people

• Waiting time

• Any delay between when one process step ends and the next begins

• Over-processing

• Trying to add more value to a service than your customers will pay for

• Overproduction

• Production of service outputs beyond what is required for immediate use

• Defect

• Any aspect of the service that does not conform to customer needs

PLUS

• Unused employee creativity• Losing time, ideas, improvements, learning

VOICE OF THE PEOPLE

THE VOICE OF THE PROCESS

• Data Collection approaches• Cause & Effect• Root Cause Analysis – 5 Why’s• Check Sheets & Tally Charts• Time series data – Run Charts• Variation• Stratification – Pareto Charts• Histograms & Scatter diagrams


Three Approaches – Data Collection

• Jump in with both feet– No data, gut feel– Take an Uncontrolled Risk– If lucky, steal market place – if unlucky, immediate bankruptcy– Illusion of learning (wing it, seat of pants)

• Analysis Paralysis– Take loads of data – don’t use it effectively– No controlled risks– No growth, no learning

• PDSA– A “learning” approach



Why do we need to measure?

• To understand current performance• As a basis for taking action to solve problems• To know when not to take action (new one this!)• To be able to predict the future and decide whether this

is the future we want• To drive and evaluate improvement efforts



Cause & Effect Root Cause Analysis

Practical guidelines for Brainstorming

• 5 mins thinking time – each person writes down his/her ideas.

• Each person at a time gives one idea from the list

• Ideas are written on flip chart (choose a scribe).

• No idea too obvious or stupid

• No criticism

• Ideas should not be enlarged upon.

• Leader leads the group.

• Process is repeated until ideas dry up.

THEN:• DISCUSS IDEAS/EXPLAIN THEM

• ELIMINATE UNLIKELY ONES

• IDENTIFY THOSE WITH HIGH POSSIBILITIES

CONVERGENT

DIVERGENT



Example : Cause & Effect

Problem:

Eg project does not deliver on budget

Possible

causes

Possible

causes

People

Processes

Finance

Resources

Inexperienced

Poor communications

Late invoicing

Cash flow not monitored

Change not managed

Inefficient

Computer network

problems



The Five Whys

• Why?

• Why?

• Why?

•Why?

•Why?


PLANNING IMPROVEMENT

• Design, Select, and Test Solutions• Cause Solution Diagrams• Concept Solution (Pugh) Matrix• Measurement of Improvement - Process Behaviour

Chart


Improve

Three simple steps

• From the Insight gained from process analysis – design possible alternative solutions

• Select best solution

• Test the solution



Selecting Solutions: Eliminate Low Payoff Solutions

Low High

Low

High

Benefit

Eliminate all Low Effort/Low Payoff and High Effort/Low Payoff solutionsFrom further Consideration

Effort

A payoff Matrix looks at theRelationship of Benefit And effort to reduce the number of Solutions to address



Concept Selection (Pugh) Matrix

+ -

= +

Timeliness

Accuracy

Cus

tom

er R

equi

rem

ents

Concept 1 Concept 2


• Possible designs identified compared to customer requirements

• Better(+), Same(=), or worse(-) than the datum


Aligning the Voice of the Process and the Voice of the Customer

TIME SERIES OR SEQUENCE

The Voice of the Customer

The Voice of the Process

What was, what is

And what will be

BA

D

GO

OD


• Standardization• Monitoring• Problem Prevention

• Poka – Yoke• FMEA

Holding the Gains


Standardization

• Involves formally agreeing and implementing the best known ways of carrying out each process.

• If a process is operated consistently in the best currently known way, the outputs at each stage will remain predictable.

• Customers will be able to rely on the outputs.

HOLDING GAINS


The Purpose of Standardisation

A

D

S

C

A P

CA S

C DD

A P

C D

Improvement

Improvement

Maintenance

Maintenance

There can be no improvement where are there are no standards

HOLDING GAINS


What are recommendations for formalization and documentation?

• Process maps• Measures, with operational definitions• Charts indicating the state of the process• Descriptions and diagrams of how the process

operates• Monitoring and review schedule

HOLDING GAINS


Failure Mode Effect Analysis

FMEA is a systematic process approach for identifying potential design and process failures before they occur, with the intent to eliminate them or minimize the risk associated with them

HOLDING GAINS


The FMEA Process

IDENTIFY FUNCTIONS

IDENTIFY FAILUREMODES

IDENTIFY EFFECTS OF THE FAILURE MODES

DETERMINE SEVERITY

IDENTIFY POSSIBLE CAUSES

DETERMINE LIKELIHOOD

CALCULATE CRITICALITY

IDENTIFY DESIGN OR PROCESS CONTOLS

DETERMINE DETECTABILITY

FINAL RISK ASSESSMENT

ACTION TO REDUCE RISK

HOLDING GAINS


POKA YOKE

• What could go wrong?• What check could we put in place

that would either prevent it happening or reduce the chances of it happening?

HOLDING GAINS


Continuous Improvement-desirability Vs acceptability

Acceptable

Acceptable

Acceptable

Not acceptable

Most desirable

Less desirable

Even less desirable

HOLDING GAINS


RESULTS

IMPROVED LEADERSHIP

ENHANCED CUSTOMER

SATISFACTION



VOICE OF THE PEOPLE


Here is Edward Bear coming down stairs now, bump, bump, on the back of his head, behind Cathy. It is, as far as he knows, the only way of coming downstairs but sometimes he feels that there is really another way, if only he could stop bumping for a moment and think of it

IMPROVEMENT !!


Many Thanks………..

Business

Lean Thinking Baljit