Welcome to

Lean Principals

Todays Topics – For Managers

Duration: 1 DAY (From 9 AM – 4PM : Location: Learn IT)

Who can take this class? Anyone can take this course, but IT DPH Professional with the aim of

learning the language and culture of Lean will benefit most.

Course Description:

• Presentation of our IT DPH Lean RoadMap and Q&A.

• What is Lean?

• What does Lean have to do with IT?

• Who decides value?

• How can we practice respect & humility at work?

• Why is the Lean Principle of "Just-in-Time" and “Continuous Flow” so important?

• Why does Lean embrace technology to improve processes?

• Why does Lean focus on systemic improvement.

45 Mins

15 Mins

Todays Topics

Course Description

What are the Eight Types of Waste and Hardships? They Spell DOWNTIME.

Below are questions that will help you in your daily problem solving, projects and

communication

Q1 What is the target condition?

Q2 Where are we now (Current Condition)?

Q3 What are the barriers (Gaps) preventing progress?

Q4 What is your next step?

Q5: Where can we go and see (The Gemba)?

For Managers: When to use & manager exercise

• What is DMAIC and when to use it?

• What is PDCA & PDSA, and when to apply?

• Why are Pareto Charts and Cause-and-effect diagram so important to your

project success?

• Check Sheet vs. Check List ...know the difference in when to apply.

When I leave class what will I take with me? A better understanding of what IT DPH

is doing and why. Understand how my role as Manager can impact the group when

using Lean daily.

60 Mins

30 Mins

3 Hours

Next Slide will show

IT DPH Lean Transformation

3 Year Roadmap

Our Lean Journey is mandated by

Barbara Garcia and Bill Kim

IT DPH Transformation - 3 Year Roadmap

• Gain a predictable

communication

and business

cadence

• Collaborative

Conversations

• Coaching

Phase 0 - 2018

STABILITY

• Add workforce

capabilities

• Foster Lean

Learning

• Focus on Value

• Adopt Lean

Principals

Phase 1 - 2018

LEARNING

• Plan that addresses

implementation

strategy and

workforce changes

• Define customer

value.

• Consistent direction

and communication.

• Goals and Metrics

Phase 2 - 2018

HOSHIN / KPO

Phase 3 - 2019

Lean Pilot

• Conduct pilot to

capture the

current situation.

• Apply 5S,

Conduct VSM, A3,

process / work

flow.

• Visual Controls

• Establish

Standards

• Lessons

Learned from

Pilot

• Refine Plan

Phase 4 - 2020

Roll Out Lean to Org

• Monitor & Nurture

• Continue Training

• Sustainable

Improvement

Capability, in all

people at all levels

Phase 5 - 2020

Cultural change Kaizen Continuous Improvement

Team Development 5S Enterprise Wide Continuous Evaluation v. Metrics Succession Planning

Measure Benefits Realization Ongoing Kaizen Events Ongoing review of Ops & Strategy

Standardize

Level and Balance Continuous Flow

Strive for Perfection

Entry Point

Plan DO Check / Act / Adjust

What a Lean Transformation looks like?

WE ARE HERE AT THE

FOUNDATION STAGE

We begin our Lean

Transformation

Lean History

A Culture of Respect.

▪ Ford and Ohno, years of experience in the

shop

• getting their hands dirty

• understood machinery and systems

• putting new ideas into practice

• via experimentation

• worked alongside workers

• understood how workers... worked and

• how sometimes workers could not get their work done

Lean History

A Culture of Respect.

▪ So when people ask, what is one possible definition for

Respect?

▪ Hmmm, let me think: Getting your hands dirty, knowing

the technology and applications, trying new things,

working with data, collaborating with workers.

▪ Where do you learn most? The shop floor (the Gemba)

is where learning takes place. Where the customer

meets the problem.

GOOD

NOT SO GOOD

The Message is The Gemba

Gemba

Japanese term meaning "the real place"

The Gemba

the place where value is created

What do we practice daily?

▪ We practice a philosophy of Kaizen: Continuous

Improvement and the Elimination of Waste and Hardship.

▪ What does Lean have to do with Information Technology?

Lean key practices are very transferable to IT. One of our

primary goals in Information Technology is to deliver IT

services in predictable processes. Lean teaches us how

standard work produces predictable results and outcomes.

Who decides value?

At DPH the customer decides value. Customer are more than

the person that utilizes our services. Consider all other

“stakeholders”. Society as a whole has an expectation that

we will be responsible employees. Environment, as well as

ensuring that we keep our employees safe. A value adding

process satisfies the needs of our many customers or

stakeholders, not just the final consumer.

How does the customer communicate value to us?

Value

Everyone that works at DPH also has an important voice.

How can everyone communicate value?

Why does Lean embrace technology?

• As a manager ask yourself... Does my output change from week to

week, day to day ? If so, how to improve? Avoid losses in

productivity, waste and hardship.

• If I can add value through the application of technology and free

myself (others) to do higher level none repetitive work, that’s Lean.

• Applications and automation both optimize difficult portions of

processes, allowing the workforce to dedicate their efforts in

enhancing a process’s capabilities.

• So even as technology advances, there will still be a need for human

abilities and minds.

Everyone has their own perception of what

constitutes value.

Consider this question: When a barista writes

your name on the cup for your double espresso

are they “adding value” to your drink?

It all depends on how you (customer) define

value.

You could decide yes, adding my name adds

value, it lets me and the barista know the drink

belongs to me.

You could decide no, adding my name adds NO

value to my double espresso.

Everyone has their own perception of what

constitutes value.

Carwash

2,4,6,8,10,12,__

Who is this lady?

Respect & Humility

A "Lean" culture is characterized by two learning elements:

Humility and Respect. Learning begins with humility.

How do I practice respect & humility at work?

I don’t pretend - I know

I coach only 1 step ahead of the other person

MUDA, MURA, MURI

The Three M's - Three terms often used to collectively describe wasteful

practices to be eliminated.

Muda

Any activity that consumes resources without creating value for the customer.

Rework which is required to obtain acceptance from the customer

Mura

Unevenness in an operation; for example, uneven work pace in an operation

causing operators to hurry and then wait.

Muri

Requiring people to run at a higher or harder pace with more force and effort

for a longer period of time than appropriate workforce management allow.

Everyone dislikes waste, hardship and

non-value adding activities.

FULL FLIGHT - HATE LEAN

Waste & Hardship

In the USA we remember Waste using the acronym D-O-W-N-T-I-M-E

But we don’t become the Waste Police

We don’t go around looking for waste.

As managers we train to think systemic improvement

Plan, Do, Check, Act (PDCA) -and- Plan, Do, Study, Act (PDSA)

When we propose a change in a process, implement change, measure the results or

outcomes, and taking appropriate action. While Shewhart created PDCA in 1925, Deming

later adapted it for Japan and the Deming Cycle is known as PDSA (S for Study).

Both are Iterative

BELOW, example of questions you can use when tackling projects, issues, initiatives etc.

1. What is the target condition (goal)? Our Target Condition is a fast and accurate

order intake and inventory process.

2. Where are we now (current condition)? Today, the process begins when we receive

an order from a customer and proceeds to checking stock levels. If there is enough stock, we

fulfill the order. Usually we end up ordering equipment. Equipment takes a long time to get in

because orders are customized, thus customers have long wait times.

3. Manager - THINK ABOUT THE LAST STEP TAKEN

1. What did you plan or do to address the issue systemically?

2. What did you expect would happen?

3. What actually happened?

4. What did you learn?

4. SME and IC – We have identified (GAPS) preventing progress? For starters, we

do not have an E2E inventory tracking system, improve cross department communication,

supplier provides inconsistent deliver schedules (no forecast), need further data analysis...

5. TEAM – What’s the next step?

6. TEAM - Go and See the problem firsthand (The Gemba)? What did you learn?

In Future Classes we will be learning

Intro to DMAIC

Intro to PDCA

Managers, PDCA can be used in

many places

Group Coach SME IC

Plan, set expectation with customers, teams and

vendors, and understand clearly why your

customer needs this solution. How much do you

know about the current situation?

Do, means to run the propose pilot or process

Check, compare expected vs. actual outcomes

and results, then analyze.

Adjust, the process in order then set a new target

condition

Follow up all work with a Gemba walk.

Go out to the area and see for yourself.

PMI

What is PDCA (Plan Do Check Act)

For Managers: When to use PDCA

Continuous improvement: The repeated PDCA cycle drives forward process

improvement irrespective of the goals and shuts the door on complacency

Implementation of new projects or processes: PDCA allows fixing snags and

improving things at the process implementation stage, without putting entire resources or

reputation at stake.

Process trails: The PDCA cycle entails checking the implemented changes for

consistency before adopting it across the board

Process: Utilizing the plan-do-check-act cycle allows breakdown of a project into small

manageable steps and allows gradual incremental improvements.

Displaying data: Effective way to display data and a good first step in understanding the

nature of the problem as it provides a uniform data collection tool. It is very useful to help

distinguish opinions from facts in the Define and Measure phase in DMAIC.

Managers – When to use PDCA

PLAN

DO

CHECK

Adjust

Intro to

Check Sheets & Check Lists

Managers, when to use a Check Sheet

Using a check sheet is appropriate when the data can be observed

and collected repeatedly by either the same person or the same

location.

It is also an effective tool when collecting data on frequency and

identifying patterns of events, problems, defects, and defect location,

and for identifying defect causes.

Check Sheets Are DIFFERENT Than Check Lists

Check Sheet Check List

• Tool to help simplify and error-

proof data gathering

• Often used in the Plan and

Check phases of PDCA

• Used in the Measure and

Control stages of DMAIC

Check Sheet for Inspecting Forms

• Tool to help ensure standard, correct

process execution

• List of tasks to be performed

• Items ticked off as executed

• Compensates for limits of human

memory and attention

• Used in the Do and Act phases of

PDCA and Improve & Control phases

of DMAIC

Drone Pre-Flight Checklist

Types of Check Sheets

For Managers: Medical Examples

The problem: Frequent interruptions in the operating room, but everyone had a different

opinion about the causes and was unable to quantify (data) the magnitude of the

problem.

The Solution: We developed a check sheet to quantify (data) the interruptions and

distractions in the operating room and piloted the form for four weeks; the data helped the

team identify via data and not opinion what the leading causes of interruptions in the

operating room were.

The Results: Interruption down by 90%, no mobile phones or hospital pager allowed

For Managers: IT Testing Examples

For Managers: IT Back up and Re-image checklist

Intro to Cause and Effect

Ishikawa

Fishbone Diagram

When to Use Ishikawa or Fish

head Diagram

Managers use the Fish Head diagram in process improvement to identify all of the contributing root causes likely to be causing a problem.

The Fishbone chart is an initial step in the screening process. After identifying potential root cause(s), further testing will be necessary to confirm the true root cause(s).

This can be used on any type of problem, and can be tailored by the user to fit the circumstances.

Benefits:• Constructing a Fishbone Diagram is easy to learn and do• Excellent visual tool for organizing critical thinking• Involves workers in problem resolution• Explore root causes and record them helps organize the discussion

Ishikawa or Fishbone Diagram

Intro to Pareto Chart

When to use Pareto Chart

The Pareto analysis is based on the Pareto Principle, also known as the

80/20 rule, which states that 20 percent of effort yields 80 percent of

results.

A Pareto analysis requires identifying organizational problems and they

are ranked in order from the (most) to the (least) severe. As a Manager,

problems ranked (most) in severity should become the main focus for

problem resolution or improvement.

Teams get along best when employees identify the root causes of

problems and spend time resolving the biggest problems to yield the

greatest organizational benefit.

When to use Pareto Chart

To organizes problems into cohesive categories, facts, not opinion or

emergency. You argue for change based on data. Once you've clearly

outlined facts, you can begin the planning to solve the problems within

the framework we have to work with.

Budget Prioritize Time and Changes

Balance and Focus

When to use Pareto Chart

Have your SME conduct a Pareto analysis and measure and compare the

impact of changes that take place in your group.

As a manager focus on outcomes, not dates. Why? While dates are

important and sometimes necessary, begin to think systematically and long

term. Small continuous improvements long term is the answer to a stress

free environment.

A relentless push to small incremental improvements is the answer to

relieving the pain of fighting fires everyday. Pareto will prepare you for

your improvement decision making for future changes.

Pareto Chart

Welcome to

Lean – Back Up Slides

What is Lean? The core principal of Lean is

respect for the individual, provide value for

the customer while minimizing waste. Who

defines value? The customer. We help guide

and execute.

At the heart of Lean

is a focus on the

customer and a

spirit of continuous

improvement.

What the customer thinks is happening.

What is actually happening.

Without a target condition, it’s hard to get anywhere.

1. Set a direction

1. Set a goal

2. What is the challenge?

1. Be SMART about goals and decisions

2. Understand the Current Condition

1. Where are we?

2. Can we do this?

3. What are the gaps?

3. Establish the Next Target Condition

4. Conduct Experiments until you get there (PDCA)

Strong set of tools, practices and principles

Lean provides a strong set of implementation tools, practices and most important

principles. We see (the current situation – as-is state) in a realistic (data driven) point of

view, instead of listening to (or) speaking in opinions. Lean is also about creating a vision

for the (future state - the to-be), all the while eliminating waste continuously.

Waste can be easily recalled using the acronym DOWNTIME:

• Defects

• Over-Production

• Waiting

• Non or Under Utilized Talent

• Transportation

• Inventory

• Motion

• Extra-Processing

BEFORE

AFTER

What constitutes Value

from a Lean context?

Key Lean Concepts: Lean Enterprise

Institute: Source: Lean Lexicon.

Continuous Flow

Producing and moving one item at a time (or a small and consistent batch of items)

through a series of processing steps as continuously as possible, with each step making

just what is requested by the next step. It is also called one-piece flow, single-piece flow,

and make one, move one.

Cycle Time

How often a part or product is completed by a process, as timed by observation. This

time includes operating time plus the time required to prepare, load, and unload. The

appropriate calculation of cycle time may depend upon context. For example, if a paint

process completes a batch of 22 parts every five minutes, the cycle time for the batch is

five minutes. However, the cycle time for an individual part is 13.6 seconds (5 minutes x

60 seconds = 300 seconds, divided by 22 parts = 13.6 seconds).

At its core, Lean revolves around a

few key concepts.

Jidoka

Providing machines and operators the ability to detect when an abnormal condition has

occurred and immediately stop work. This enables operations to build-in quality at each

process and to separate men and machines for more efficient work. Jidoka is one of the

two pillars of the Toyota Production System along with just-in-time. Jidoka is sometimes

called autonomation, meaning automation with human intelligence.

Just-in-Time (JIT) Production

A system of production that makes and delivers just what is needed, just when it is

needed, and just in the amount needed. JIT and jidoka are the two pillars of the Toyota

Production System.

At its core, Lean revolves around a

few key concepts.

Kaizen

Continuous improvement of an entire value stream or an individual process to create

more value with less waste. There are two levels of kaizen: (1) System or flow kaizen

focuses on the overall value stream and (2) process kaizen focuses on individual

processes.

Kanban

A signaling device that gives authorization and instructions for the production or

withdrawal (conveyance) of items in a pull system. The term is Japanese for sign or

signboard.

At its core, Lean revolves around a

few key concepts.

Lean Thinking

A 5-step thought process proposed by James Womack and Dan Jones in their

1996 book Lean Thinking to guide managers through a lean transformation.

The steps are:

1. Specify value from the standpoint of the end customer.

2. Identify all the steps in the value stream.

3. Make the value creating steps flow toward the customer.

4. Let customers pull value from the next upstream activity.

5. Pursue perfection.

Lean revolves around a few key concepts

Plan, Do, Check, Act (PDCA) -and- Plan, Do, Study, Act (PDSA)

An improvement cycle based on the scientific method of proposing a change in a

process, implementing the change, measuring the results, and taking appropriate action.

It is also known as the Deming Cycle. While Shewhart created PDCA in 1925, Deming

later adapted it for Japan and the Deming Cycle is known as PDSA (S for Study).

At its core, Lean revolves around a

few key concepts.

Production Lead Time (also Throughput Time and Total Product Cycle Time)

The time required for a product to move all the way through a process from start to

finish. At the plant level this is often termed door-to-door time.

The concept can also be applied to the time required for a design to progress from

start to finish in product development or for a product to proceed from raw materials

all the way to the customer.

At its core, Lean revolves around a

few key concepts.

Takt Time

The available production time divided by customer demand. For example, if a widget

factory operates 480 minutes per day and customers demand 240 widgets per day, takt

time is two minutes. Similarly, if customers want two new products per month, takt time is

two weeks. The purpose of takt time is to precisely match production with demand. It

provides the heartbeat of a lean production system.

Value Stream

All of the actions, both value-creating and nonvalue-creating, required to bring a product

from concept to launch and from order to delivery. These include actions to process

information from the customer and actions to transform the product on its way to the

customer.

At its core, Lean revolves around a

few key concepts.

Value Stream Mapping (VSM)

A simple diagram of every step involved in the material and information flows needed to bring a

product from order to delivery. A current-state map follows a product’s path from order to delivery to

determine the current conditions. A future-state map shows the opportunities for improvement

identified in the current-state map to achieve a higher level of performance at some future point.

Waste

Any activity that consumes resources but creates no value for the customer.

At its core, Lean revolves around a

few key concepts.

A Process is a group of steps, tasks, or activities, which take Inputs (People, Material, Information)

and changes them to produce an Output (Service, Product)

Measure of “What is important to Customer”. In DMAIC, projects CTQ stands for a measurable

Critical to Quality attribute. Ex: of CTQ is improving customer waiting time in clinic waiting room.

Defect is nonconformance on one of many possible quality characteristics of a product or service that

causes customer dissatisfaction. Not delivering what the customer wants or needs.

Process Capability: What the process can deliver.

Variation: What the customer sees and feels.

Stable Operations: Ensuring consistent, predictable processes to improve what the customer sees

and feels.

Design : Designing to meet customer needs and process capability.

Customers feel the variance, not the means. Meaning they feel the mistakes not the daily operations.