BHSIntroduction to Lean

September 24th, 2014

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Agenda

• Welcome and Introductions• Understanding Lean• What is Value• Identifying Waste• Brief Introduction to Lean Tools

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Defining Lean

“A systematic approach to identifying and

eliminating waste (non-value-added activities) – through continuous improvement – by flowing the service – at the demand of the customer – in pursuit of perfection”

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Defining Lean

“Lean implementation is therefore focused on getting the right things to the right place at the right time in the right quantity to achieve perfect work flow, while minimizing waste and being flexible and able to change.”

“Essentially, lean is centered on preserving value with less work.”

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Why Lean?

• Budgets shrinking• Positions vacated and not replaced, work

redistributed• Unwieldy processes• No time to make it better, too much to do already!• Stressful work environment• Not responsive to our customers

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What Can Lean Do for Me?• Reduce time to complete tasks• Take redundancy out of processes• Increase quality of work completed• Completion of a day’s work in a day… (less stress!)• Proper use of technology• Expand my abilities through cross-training • Make my work-life more enjoyable!• More time to complete other tasks• Better serve both internal and external customers• Sense of accomplishment and satisfaction

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Understanding Lean

In order to better understand Lean, we must first understand:• Value • Waste

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Customer ValueCustomer Value Added

Any activity that the customer expects and would be willing to pay for regarding

the service provided.

Non-Value Added

Any activity that consumes time and resources, but from the customer’s

perspective does not “add value” to the service provided. (These activities

should be eliminated, simplified, reduced or integrated.)

Non-Value Added, but Necessary

Sometimes work must be performed in order to comply with state or federal

regulations or as necessary business activities. (These activities should be

simplified, reduced or integrated)

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Sound Familiar?

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Waste

Any Non-Value added activity is considered “Waste”.

Any activity which absorbs resources, but creates no value

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Video

Before Lean

What did you see?

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Focus - Eliminating Waste

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Transportation• Transporting documents and information around

the office

Examples:– Poor location of office to other essential departments– Physical routing of documents for signature– Routinely taking files to a central area away from your work

area– No signs identifying areas or departments– Walking back and forth to correct mistakes

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Transportation

Centralized Printer

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Inventory• “Any supply in excess of a one-piece flow through your office

process”

Examples:– Batches of documents– Files pile up on or between work areas– Unbalanced work load in a process– Documents waiting to be matched or signed– Reward system based on “quantity buys”– No storage space because it is filled with supplies we don’t need yet

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Inventory

Arrived this morning…

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Inventory

Extracolorcartridge

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Excess Motion• “Any movement of people or action that does not

add value to the service provided”

Examples:– Poor layout of office area– Walking to printers and copiers– Un-filed papers– people must keep moving them– Poor workplace organization and housekeeping– Time spent looking for items because they do not have a

defined place

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Excess Motion

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Waiting

Idle time created when waiting for…– Documents in a batch not being attended to– Printer or computer break-down– Unbalanced Workload– Attendees not all on time for meetings – Redundant approvals– Routing for Signatures

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Waiting

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Overproduction• Processing more information than is needed, or sooner than is

needed, by the next step in the process

Examples:– Working ahead. Making 5 days worth of work for the next step

in the process.– Printing documents in batches due to long printer/copier set-up

times– Printing documents and keeping an electronic, just-in-case– Memos/Emails to everyone

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Over Processing• Effort that adds no value to the service from the customer’s

viewpoint

Examples:– Printing, faxing, overnight mailing, and emailing the same memo– Filling out more information on a form than needed– Repetition of same information in different forms– Re-keying information

• Use of different or incompatible software • Use of “back-up” software/systems (this is a biggie!)

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Correction / Defects

• Inspection and correction of paperwork

Causes of Defects:– Inadequately or improperly trained employees– Lack of communication/information– Performing monotonous work– Doing process in a rush– Poor design of forms and equipment– Lack of or confusing procedures

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Underutilized People• Not using people’s abilities, talents or skills

Examples:– Not asking workers for input to make improvements– Inadequately or improperly trained employee– Unclear expectations of performance– Politics/Culture (department silos vs. shared resources)– Start using software without proper training– Not providing opportunity for growth

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Video

What changed?

After Lean

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Lean Tools

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Kaizen - literally "change for the better" or "improvement“

改善 In Japanese this is pronounced 'Kaizen'.

改 ('Kai') means 'change' and善 ('zen') means 'good'.

Definition - Kaizen

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Kaizen Events: Key Elements

Go to GembaObserve, listenLook for work arounds and variationsID “extreme users”Build relationships, champions & language changes

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5 Initial BHS Teams

• “Breakfast Club” - Living Community of St. Josephs, St. Joseph, MO

• Supply Acquisition - St. Anne Extended Care, Winona, MN

• Intercompany Therapy Billing - Corporate Finance, Cambridge, MN

• “Project Face Time” - St. Gertrude’s, Shakopee, MN

• New Employee Hire/Train/Retain Team & “Blissful Mornings” - Villa St. Vincent, Crookston, MN

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What Can You Do?• Identify opportunities in your own work areas to

conduct a kaizen event.• Reach out to the leaders of the first 5 events and

understand how their improvements can apply to your areas.

• Contact your OVP and volunteer to participate in a future one-day Lean training session and conduct a kaizen event (dates scheduled for early December 2014 and February 2015).

• Apply what you have learned today!!!