Tactics of Lean Innovation: Strategies to Improve ...Lean Learning Center 2006 1 Tactics of Lean Innovation: Improving Your Lean Transformation. Lean Learning Center 2006 2 Lean Systems

Lean Learning Center 2006 1

Tactics of Lean Innovation:

Improving Your Lean Transformation


Lean Systems Principles

• Essential to the lean

journey

• Principles drive

behaviors and behaviors

drive results


Lean Principle:

Directly Observe Work

• Identify how customers and suppliers are

connected

• Identify the information, material and

people flow

• Move beyond traditional sources of

information

• Adopt new way of thinking


Develop a New Lens

to Observe Work

Old Way New Way

Reports Walk the floor

My view of the world Build a common view

Information quantity Information quality

Equipment, materials,

paper and tools

Activities, connections

and flows


Lean Principle: Systematic Waste Elimination

Waste Type Example

Transportation Retrieving and returning files, multiple

handling of products

Inventory Retaining files/forms for obsolete activities

Just-in-case buffers

Motion Hand delivery of hard copy reports, excessive

reaching/bending for tools

Waiting Waiting for approvals, waiting for materials to

arrive at work station from storage

Overproduction Generating unused reports, over-speed in a

production line

Overprocessing Re-keying data, multiple inspections

Defects Forms with typos, shipping wrong parts


Waste Examples

Operational Waste Organizational Waste

Long set-up time Lack of training

Layout/Distance Lack of standardization

Supplier Quality Ineffective policies

Batching Poor communication

Process Variation Changing priorities


Lean Principle:

Systematic Problem Solving

• Problems indicate the gap between ideal

state and current reality

• Problems build creative tension

• Problems embraced as opportunities to learn


Lean Principle:

Systematic Problem Solving

Principle Behaviors

• Problems are immediately

brought to the surface

without fear of

repercussion

• Stay with problems longer

and dig deeper

• Problems are opportunities


Lean Principle:

Establish High Agreement

• Value a common way or process more

than we value our own way

• Standardization ensures utilization of the

common way


Tools to Establish High Agreement

• Standard Work Instructions

• Visual Controls

• Error Proofing

• Control Point Standardization

• Master Schedule


Lean Principle:

Create a Learning Organization

• ‘Glue Principle’—holds other 4 together

• Learning organization learns from its

improvement efforts

• Use processes as laboratories and employees

as scientists

• Every new idea generates more learning, more

capabilities, more skill

• Experimentation is key to a learning organization


A Learning Organization

Structure

LEARN

APPLY

REFLECT HEART

HAND

HEAD

Learn Obtain knowledge

formally and informally

Apply Apply knowledge

learned

Reflect What worked well?

What didn’t work well?

Why?


Inventor or Innovator?

Inventor

• Devises by thinking

• Produces for the 1st

time

Innovator

• Makes changes

• Introduction of

something new


Tactics of Innovation


Upside Yes/Downside No


Seemingly Simple/Small Steps


Clear Message/Reliable Fit


Credible Messenger/

Reliable Performance


Easy In/Easy Out


Assessing the Tactics of Innovation:

Your Reflection Assingment

• What tactics do you address well?

• What do you currently do in your

organization to currently satisfy those

tactics?

• What tactics don’t you address well?

• What do you need to do to satisfy these

tactics?


Innovative Technique 1:

The Lean Learning Laboratory

• A place to learn, experiment and practice with ideas

• Small group of people in a highly visible area that will learn and apply rules, principles and tools

• Allows for the application of tools at a faster pace with less risk


Lean Learning Laboratory

Characteristics

• Visible

• Teaches skills, leadership and

implementation

• Low-risk, bounded space

• Living model to set the example

• Builds culture

• Meaningful performance gains


Common L3’s

Audience Learning Method Used

Sports Teams Scrimmages

Students Homework

Nurses CPR Dummy

Student Pilots Boeing Simulator

Army Simulated Missions


L3 Roles and Responsibilities

Team Member Support Member

• Actively participates in

team meetings

• Actively participates in

problem solving meetings

• Day-to-day application • Organizational support

• Frequent contribution

of ideas

• Frequent contribution of

ideas

• Reviews scorecards • Solicits opportunities to

contribute

• Open communication • Open communication


L3 Structured Activities

Module Training Presents brief modules that are

provided 4 weeks apart

Decision Making Empowers learners to brainstorm

solutions and makes then less

reliant upon others

Huddle/Team

Meeting

Huddle to review performance and

identify improvements

L3 Reviews/Audits Managers periodically review the

progress of the L3 to determine

current state



Management Lean Learning

Laboratory

• Provide an often ignored

structured set of tools that

executives and managers

would use on a daily basis

to lead and direct the lean

transformation throughout

the organization

LEARN

APPLY

REFLECT HEART

HAND

HEAD


ML3 Characteristics

• Transforms management into leadership

• Encourages behavior and culture change

by becoming a living example of lean

• Not just ‘talk the talk,’ but ‘walk the walk’

• Utilize lean thinking to analyze the most

critical tasks and issues


ML3 Structured Activity:

Creative Tension

• Vision of ideal

state

• Grasp of current

reality

• Right skills and

actions to close

gap



Control Point Standardization

• Audit forms

• Check lists

• Area maps

• Process owners manual

• Placards



Direct Observation

Old Way

• Reports

• Controller drives

costs

• First answer accepted

• My view of the world

• Information quantity

• Equipment, materials

New Way

• Walk the floor

• Waste walks drive

cost

• Dig past first answer

• Build common view

• Information quality

• Activities, connections



Five Why Problem Solving

• Simple and structured way to solve any

problem as it occurs

• Five is not the magic number

• Asking ‘why’ 1x answers the surface

symptom

• Asking ‘why’ requires you to dig deeper to

the root cause



Visual PDCA


Visual PDCA

Plan •Identify the condition

•Analyze the current state

•Develop solutions

•Develop hypothesis

Do • Execute a solution

Check • Evaluate the results

Act • Strategize revisions to the solution?

• Standardize?



Demonstration Projects

• Coach instructs participants in lean

principles and practices

• Produces minimum of $500,000 in savings

or additional revenue

• High value placed on participant learning


Demonstration Project

Characteristics

• Generates significant results

• Builds skill and culture

• Uses real work as the learning tool

• Develops leaders with the assistance of a

lean coach


Demonstration Project Method1.

Identify

Opportunity

2.

Form Team

and Scope

Project

3.

Analyze

Current

Reality

4.

Define

Desired

Outcomes

5.

Identify Gaps and

Countermeasures

6.

Prioritize, Plan,

and Test

Proposed

Solutions

7.

Refine and

Implement

Solutions

8.

Measure

Progress and

Hold Gains

9.

Acknowledge Team, Reflect

and Communicate Results



Communication Rooms

• Recognizes the gap occurring between the

current and ideal state


Communication Rooms

Characteristics

• Aligns and connects goals and objectives

• Provides high agreement of where and how

• Simple methods to communicate

• Helps management identify problems

• Utilizes PDCA

• Reinforce accountability and continuous improvement


Communication Room Tools

• Scoreboards

• Continuous Improvement/PDCA

• Measurements

• Value Stream Mapping

• Master Schedule

• Area/Line Shop Floor Status Board

• Shop Floor Action Planning



A3 Projects and Report Writing

• Structured process for guiding thinking

• Used throughout a project, problem

solving or continuous improvement activity


A3 Projects and Report Writing

Characteristics

• Simplifies all report writing

• Makes thinking visible

• Structures processes


A3 Projects

• Coached by lean

master

• Follow step-by-step

• Peer reviews

• Visible posting

Project Area: Owner:

Background &

Business Case

CurrentCondition

TargetCondition

Steps,Schedule andMeasurements

Information should FLOW and be simple.


Project Area: Remit. Process Owner: Joe Cool BACKROUND

BUSINESS CASE

ØRemittance processing is based on operations but is considered a support

organization

ØOver 40 employees, 3 shifts, 3 departments

ØHas continually been a candidate for outsourcing

ØSuffers from 25% misreads that need to manually input

ØBest opportunity for finance to learn about TPS because of its operation

focus

ØVery little pressure to adopt any continuous improvement philosophy

and practice

CURRENT CONDITION

ProductionProduction QCQC SystemSystem ShiftShift

Lean FacilitatorLean Facilitator

1

2

3

ØMultiple shifts that don’t match up or overlap

ØNo process for driving change through this group

ØDesire to engage to engage everyone in the organization

ØLack of traction and ability to engage

TARGET CONDITION

Lean

Facilitator

Leadership

Group

Leadership

Group

Shift

Teams

ØCreate a simple flow where the facilitator guides and teaches the leadership

team and the leadership team guides the shift teams

(rule 3—flow of learning and information

ØCreate a clear link between facilitators and leadership (rule 2)

ØCreate a learning process that involves supervisors- their teams and projects

will be more sustainable

STRATEGIC STEPS

ØStart with 5’S as a simple lesson that can be transferred

ØGet commitment from each supervisor to take responsibility

ØStart with a small project for each team led by each supervisor

SCHEDULE MEASUREMENT

Hold Learning

CircleStart

Projects

Supervisors

Present to

Teams

Begin Next

Learning

Circles

1/15/01 2/15/01

12/10/00 1/30/01

# of Interactions % Teams Involved

40

5

100

10

ØMuch stronger commitment to

than before



A3 Report Guidelines

• Report for each major action item on

master schedule

• 11x17 paper

• Write in pencil

• Should explain how Operating System is

improving business



After Action Reviews

• Structured way to reflect on an incident

• Designed by United States Army

• Identifies performance gaps

• Develops strategies to improve future

performance

• Used for any repetitive event


AAR’s Address:

Ideal State What was supposed to happen?

Current Reality What did happen and why?

Learning

Organization

What can we learn?

What successes can we

sustain?

What weaknesses can we

improve?

High Agreement What will we do differently next

time?



Master Schedule

• Method to monitor and manage major

projects

• Designed to quickly surfaces problems


Master Schedule Characteristics

• Applies lean principles to projects

• Assists in reflection process

• Manages implementation in open

environment

• Problems surface quickly

• Improves problem resolution speed


The Master ScheduleActivity / Week 1 2 3 4 5 6 7 8 9

Setup reduction / Bob

Develop supermarket

in shipping / Sue

Change scheduling

procedure / Sue

Visual process mgmt

to takt time / Matt

Develop new

measurement system

/ Chris

Ran into problems in

access to scheduling

data – will get extra help

from Chris

= Target Completion Date

= Start DateOK

At Risk In Trouble


Master Schedule Development

• Use whiteboard, flipchart, butcher paper

• Large and visual

• Keep schedule at a fairly high level

• Conversation and schedule development

go hand in hand

• Easy to update



Utilizing the Master Schedule

• Everyone updates their area of

responsibility prior to the meeting

• Ignore ‘on-track’ areas

• Focus on areas that need attention

• Work to identify root cause of problems

• Agree upon a modified course of action


Master Schedule

Meeting Guidelines

• Structure every meeting

• Stand up around the schedule

• Go see problems that have surfaced

• Take off line lengthy debates

• Focus on the system, not blame

• Leaders use meetings to model and coach

• Reflect on both successes and failures


Master Schedule Cascading

The Master Schedule

Activity / Week 1 2 3 4 5 6 7 8 9


Develop supermarket

in shipping / Sue

Change scheduling

procedure / Sue

Visual process mgmt

to takt time / Matt

Develop new

measurement system

/ Chris

Ran into problems in access to scheduling


from Chris


= Start Date

OK

At Risk In Trouble

The Master Schedule

Activity / Week 1 2 3 4 5 6 7 8 9


Develop supermarket

in shipping / Sue

Change scheduling

procedure / Sue

Visual process mgmt

to takt time / Matt

Develop new

measurement system

/ Chris



from Chris


= Start Date

OK

At Risk In Trouble

The Master Schedule

Activity / Week 1 2 3 4 5 6 7 8 9


Develop supermarket

in shipping / Sue

Change scheduling

procedure / Sue

Visual process mgmt

to takt time / Matt

Develop new

measurement system

/ Chris



from Chris


= Start Date

OK

At Risk In Trouble


Some Final Thoughts

• A lean transformation is more than training

• A lean transformation requires mechanisms

to engage and build momentum

• There is no one tool

• Engage the entire organization

• Failures will occur

• Reflection is essential

Documents

Tactics of Lean Innovation: Strategies to Improve ...Lean Learning Center 2006 1 Tactics of Lean Innovation: Improving Your Lean Transformation. Lean Learning Center 2006 2 Lean Systems