Supervisory Core Training

LEAN – Continuous Process ImprovementImproving organizational

performance in Minnesota state government

What is LEAN?• LEAN is a time-tested set of tools and methods

that identifies and reduces waste and defects within processes while improving productivity, employee morale, and customer service.

• LEAN engages those people who work in the process, in the effort to improve the process.

• It is designed to bring measureable, quantifiable improvement to your business processes.

Why focus on process?

• Nearly every tangible output; service or product, is created as the result of a process or series of processes.

• It’s been shown that over 85% of the opportunity to improve those outputs lie within the process itself.

Some definitions…

• Quality – meeting customers key requirements

• Cycle time – reducing the amount of work needed to perform a task

• Lead time – reducing the amount of time needed to complete one output

• Cost – reducing the amount of resources needed to produce one output

7 Wastes7 Wastes 5S5S

StrategyStrategy

LeadershipLeadership

SustainmentSustainment

KaizenKaizen

TrainingTraining

PlanningPlanning

Lean Lean TransformationTransformation

Standard WorkStandard Work

Building a Successful Lean Transformation

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Fundamentals of Lean

The Seven Wastes

Value vs. Non-Value

Are we adding value, or just doing stuff?

In the LEAN world, if it is not value-added,

it is considered waste –

-even if it is essential.

Value added vs. non-value added

• It is an action that a customer would be willing to pay for

• It transforms a product or service

• It is done correctly the first time

• It’s an activity that consumes resources without directly creating value for the customer

• It is an activity that is unpredictable in creating value

• It’s an activity that requires more time, effort, or resource than it has to.

Value added vs. non-value added

Non-valueAdded

Value Added

Typically, less than 1% of a time that we own a product or service is spent adding value.

The seven wastes + 1• Defects (poor quality)• Transportation• Waiting• Overproduction• Inventory• Motion• Extra processing• Underutilized creativity

Can you see the wastes?

DefectsAny element of a product or service that does not meet or exceed a key customer requirement.

Fixing defects usually means:

• Re-work• Re-inspection• Re-design• More cost,• And unhappy customers

TransportationThe unnecessary movement of people, information or materials between processes.

Follow the bouncing paperwork

WaitingPeople, parts, systems, or facilities idly waiting for a work cycle upstream to be completed.

Factoid

About 95% of the time that is required to produce a product or service is because of waiting.

1

1

We eliminate the waste so we use our resources to do the work that our customer

pays us for.

OverproductionProducing products or services faster than

your customers are using them requires:

• more movement• more storage • more capital tied up in inventory • more resources to track inventory

Office examples of overproduction

• We need 54 copies, but we make 60, just in case.

• We print 5000 brochures because the price per piece is cheaper, we inventory, store and finally recycle 2/3 of them.

• We print and distribute forms that frequently change.

Inventory

Storing more materials than you need in the near-term, creating and storing more products than are being demanded by the customer in the near-term

MotionAny movement of peoples’ bodies that does not add value to product or service

-Frequency of Use Analysis Physical Files

1 Where should this item be located?

How about this one?

Frequency of gets and put-awaysTimes/Day

Distance Carried (feet)2 4 6 8 10 12 14 16 18 20 22 24 26 28 30 32

10

20

30

40

50

Extra processing• Multiple inspections (no quality at the

source)• Multiple signatures/authorizations

• Different ways to produce the same product (no standardized work)

• Batching work

Underutilized creativity

• People who work in the process, know the process best (both the strengths and weaknesses).

• Do they have the tools, training, and permission to systematically improve their process?

Fundamentals of Lean

5 S

What Is 5S?

• Methodology for creating a clean, safe, orderly, high performance work environment

• Some companies have added 6th “S” for a Safety focus.

The 5 “S’s”•Sort•Set In Order•Shine•Standardize•Sustain

1S - Sort

Catch Phrase: “When in doubt, move it out.”

Sort – What Is It?• Distinguishing between necessary and

unnecessary material, equipment, tools, data, and information

• Sort is done with initial 5S activities, but should be repeated semi-annually, or as 5S evaluations expose issues• Items may have accumulated• Needs may have changed

Example - Sort

Set In Order

Catch Phrase:“A place for everything, and

everything in its place.”

Set In Order - What is It?

• Organizing, arranging, and storing material, equipment, and information that is currently being used.

• Identifying a specific place for everything.• Arranging physical and electronic information so

that the most commonly used information is quickest to access

• Establishing procedures that will allow items to be easily found, handled, replenished, and returned to their original location quickly.

Set In Order – Why?• To immediately recognize items that are out of

place, recognize excess inventory, and identify the need to order more of a particular item

• To reduce wasted time spent locating materials and information

• To improve your level of customer service

“Set in Order” Rule of Thumb

• Arrange needed items so that they are easy to use and label them so that anyone can find them and put them away.

• YOU should be able to find ANYTHING in your office in 30 seconds or less.

• ANYONE should be able to find ANYTHING in YOUR office in 60 seconds or less.

• Eliminates many kinds of WASTE in our daily activities

Is this an efficient work place?

Shine

Catch Phrase:“The best cleaning is to not need cleaning.”

Shine – Why?• To boost morale• To improve the health and safety of employees• To develop a sense of ownership in the

equipment and facility• To identify and eliminate root causes of

cleanliness issuesIf a workspace is getting dirtyfaster than it can be cleaned,the root cause of the problem

has not been identified.

Standardize

Catch Phrase:“See and recognize what needs to

be done.”

Standardize – What Is It?• A method in which “Sort,” “Set in Order,”

and “Shine” are maintained and made habitual

• It is important to achieve buy-in and consistency from team members as well as institute the 5S process into a regular work routine, making it systematic

Sustain

Catch Phrase:“The less self-discipline you need,

the better.”

Sustain – What Is It?• Effective, ongoing application of knowledge,

skills, and abilities gained from the 5S process in order to improve organizational wide effectiveness

• Sustaining also involves motivating and maintaining an ongoing commitment to the 5S process and obtaining discipline in employee’s assigned roles and responsibilities

• “Sustain” is often the most difficult part of the 5S process

Fundamentals of Lean

Standard Work

Standard work is a foundation of Lean and continuous improvement.

To maximize the performance of any process, clear definitions of how the task should be

done, and the amount of time provided in the process must be established and maintained.

What is Standard Work?• A simple, written description of the safest,

highest quality, and most efficient way known to perform a particular task.

• The only acceptable way to do a task.

• Expected to be continually improved

1What is Standard Work?

• Includes the amount of time allotted for the task to be acted on.

• Focuses on the employee, not the equipment or materials

• Reduces variation, increases consistency

Kaizen - bringing the tools together • Kaizen

• Kai = Change• Zen = Good• Kaizen = “Change for the better”

• A facilitated, concentrated improvement event, involving those that work in the process.

• The focus is on employee-driven improvements

A focus on process can reduce waste

Review Swim Lane Maps

Swim Lane Mapping MetricsDHS kaizen

Qty. Time Qty. Time

Tasks 18 44 minutes 7 19 minutes

Waits 5 52 hours 1 2 hours

Handoffs 5 1

File/Store 0 0

Decisions 3 1

Totals - 52 hrs - 44 min - 2 hrs - 19 min

95% Improvement

InvoicingCurrent Future

Don

So what’s the supervisor’s role in continuous improvement?

• Help your people understand what it is • Be a role model • Encourage • Support • Recognize and reward • Repeat

Why LEAN won’t work in my unit• “We don’t have time for this foolishness”

• “Our people won’t like it”

• “We tried something like this 10 years ago and it didn’t work”

• “State policy and statute won’t allow it”

Can it make a difference in Minnesota state government?

• In the Department of Health it’s reduced the time for citizens to receive a duplicate birth certificate from 6 days to 1.

• In the Department of Human Services it reduced by 89% the amount of time to process health care premiums.

• In the Department of Military Affairs it’s reduced the time to process veterans benefits by 50%.

“You can think you can achieve something, or you can think you

can’t…….

Henry Ford

And you will be right”

As of today…• Seventeen state agencies currently have

process improvement efforts planned, or underway.

• The goal is to have active, sustainable process improvement programs in all state agencies by the end of 2010.

• For the latest on projects, participants and results, visit and bookmark the Enterprise LEAN website at www.Lean.state.mn.us.

There is help out there!• Training – Introduction to Lean – One day

customized to your agency or interagency –• Strategic direction workshop – identifying

priorities for improvement efforts• Kaizen event – participate in a facilitated, rapid

improvement event of a specific process or activity.

There are currently no costs to the agency for these activities.