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The Lean Toolkit - Value Stream Mapping and Problem Solving

Improvement Strategies and Execution

Hanno Jarvet

www.jarvet.com

Agenda

•  Defining a Value Stream –  Identifying a suitable process(es) –  Creating a current state Value Stream Map –  Creating a future state Value Stream Map

•  Creating an action plan –  Planning and execution (Deming Cycle: Plan, Do,

Check, Act) –  Identifying root causes of problems –  Problem solving with an A3 template

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Expected results

After the session the participants are better able to: • improve efficiency •  build transparency •  increase the quality of the output and customer

satisfaction •  set strategies for future improvements •  create accountabilities

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What is Lean?

•  Deliver continually increasing customer value

– Expending continually decreasing effort

– By leveraging the time and energy of bright, creative workers

Project  noise  level  

Simple  

Complex  Anarchy  

Complicated  

Technology  

Requ

iremen

ts  

Far  from  Agreement  

Close  to  Agreement  

Close  to  

Certainty  

Far  from  

Certainty  

Source:  Strategic  Management  and  Organiza0onal  Dynamics  by  Ralph  Stacey  in  Agile  So7ware  Development  with  Scrum  by  Ken  Schwaber  and  Mike  Beedle.  

Pilt:  Mountain  Goat  SoKware     www.jarvet.com

What Is Value?

•  A capability provided to a customer – of the highest quality – at the right time – at an appropriate price

as defined by the customer. "Value" is what the customer is buying

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Eliminate Waste

Stop doing things customers don’t value! Value is…

Seen through the eyes of those who pay for, use, support, or derive value from our systems.

Waste is… Anything that depletes resources of time, effort, space, or money

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Stop making customers unhappy

Value Demand –  Demand for work that adds value from a customer

perspective –  The Goal: Deliver products and services that will

delight Customers

Failure Demand –  Demand on the resources caused by your failures.

Eg. Support Calls

–  The Goal: Eliminate Failure Demand. Meanwhile respond as fast as possible.

What creates value? (SIPOC) Suppliers Input Process Output Customers •  Product and service design •  Product development •  Service development •  Customer Service and sales •  Product and service delivery •  Customer advisory/training

after delivery •  Routine client “maintenance”

•  Most management activities •  Customer surveys •  Systems and process design •  HR •  Office and production

facilities cleaning and maintenance

•  Finance / bookkeeping / Accounting

•  Purchasing /Procurement •  Administration •  Training •  Management information

systems •  Service / Production Planning

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The Original 7 Wastes •  Transport

–  moving products that are not actually required to perform the processing

•  Inventory –  all components, work in process and finished product not being processed

•  Motion –  people or equipment moving or walking more than is required to perform the

processing

•  Waiting –  waiting for the next production step

•  Overproduction –  production ahead of demand

•  Over Processing –  resulting from poor tool or product design creating activity

•  Defects –  the effort involved in inspecting for and fixing defects

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SoKware  Development  7    

•  ParOally  Done  Work  •  Extra  Processes  •  Extra  Features  •  Handoffs  •  Delays  •  Task  Switching  •  Defects  

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If  Each  Handoff  Leaves  50%  Behind  

•  25%  of  knowledge  leK  aKer  2  handoffs  •  12%  of  knowledge  leK  aKer  3  handoffs  •  6%  of  knowledge  leK  aKer  4  handoffs  •  3%  of  knowledge  leK  aKer  5  handoffs  

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Apply Five Simple Principles

•  Specify value from the standpoint of end customer

•  Identify the value stream for each product family

•  Make the product flow •  So the customer can pull •  As you manage toward perfection

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What is the Value that Flows?

•  Specify value from the standpoint of the end customer

•  Ask how your current products and processes disappoint your customer’s value expectation: –  price? –  quality? –  reliable delivery? –  rapid response to changing needs? –  ???

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What Flows?

•  "ITEMS" flow through a value stream – In manufacturing, materials are the items – In design & development, designs are the items – In service, external customer needs are the items – In admin., internal customer needs are the items

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Value Stream Mapping Purpose

•  Provide optimum value to the customer through a complete value creation process with minimum waste in: – Design (concept to customer) – Build (order to delivery) – Sustain (in-use through life cycle to service)

Value Stream Mapping (VSM): Is a special type of flow chart that uses symbols known as "the language of Lean" to depict and improve the flow of inventory and information.

Value Stream Map

Thanks to: Henrik Kniberg, of    Crisp, Stockholm  Used with Permission

Write    up  Idea

Concept  presen-    tation

 Lisa assigns people

Graphics  design

Sound design

Develop-  ment

Integrate & deploy

Game backlog      8

Design-ready  games      15

Product-ready  games      12

3 m value added time  25 m cycle time

 Process = 12% cycle

 efficiency

Games out of date ⇒ Missed market windows ⇒ Demotivated teams ⇒ Overhead costs

2d 1m 4h

6m 1w 6m 6m 1m 3w

(Total 3m) 3w 2h 1d

2m 1m

 Waste Value

 What would you do?        Copyright©2010 Poppendieck.LLC

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Different Organizations

High Reliability Organizations •  Far less than their fair share of accidents. •  Failure is a learning opportunity. •  So small failures are deeply investigated and corrected. •  Noise is not tolerated. Low reliability Organizations •  Far more than their fair share of major accidents. •  Failure is not an option. So failures are hidden. •  Noise is ignored.

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Excellence

Excellence is the product of good people and good systems. (Don Reinertsen)

Good people: – Have the capability and experience to do

their work well. – Have a disciplined approach to work – Don’t need to be tightly managed – Fulfill their commitments

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Seeing Problems is Easy …Caring about them is not

Everybody sees symptoms –  And ignores them –  Or complains about them –  And works around them and goes on

Problem SOLVING organizations –  Look for symptoms –  Use PDCA to address the underlying problem and find

permanent remedies –  Even for small problems

How do you compete against an organization where everyone is a problem solver???

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High Velocity Organizations Improve & adapt faster than their competitors 1. Use well defined team work processes designed to

reveal failure rapidly. 2. Whenever failure occurs, the team swarms the

problem close in space and time to the event. 3. Teams are expected to share what they learn with

the rest of the organization 4. The primary responsibility of leaders and managers:

make sure 1, 2, & 3 happen. (not to deliver results)

Compare: “I thought I was a great problem solver, but I

have been solving the same problem for 20 years!”

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Dr. W. Edwards Deming

Most of the problems we encounter (perhaps 90%) are the result of multiple influences, they generally can not be attributed to a single cause. Assigning blame for a problem to the last person involved is worse than counterproductive, it will probably make a bad situation worse.

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•  Safe Flying – 1935: Major Ployer Hill was killed while

testing a new plane – Forgot to release new locking on elevator

and rudder controls – Conclusion: New planes are too complex to

fly. – Group of test pilots devised a solution:

Good People Make Mistakes Good Systems Prevent Mistakes

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Problem Solving A3 For boundary-spanning problems Develop a Consensus for action

–  Boundary –spanning communication •  30 second glance, 10 minutes to read

–  Pull based authority •  Agreement of those affected by the change

–  Owner Responsibility •  Team collaboration

–  Cautions •  Define the problem carefully •  Find REAL root cause •  Manager as mentor

Sorbek & Smalley: Understanding A3 Thinking

The Deming Cycle

Typical PDCA •  Plan quickly

–  Address Symptoms

•  Do immediately –  Jump to conclusions

•  Check roughly –  Act pretty much the way

you did before

High Velocity Organization PDCA •  Plan deeply

–  Discuss actual situation and target with everyone affected

–  Really understand/model the problem and its root cause

•  Do many quick experiments –  Validate your thinking –  Check implications carefully

•  Act systematically –  Update and deploy

standards and checklist disciplines

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Improvement Kata

1.  Visualize Perfection 2.  Have a first hand grasp of the situation 3.  Define a target condition on the way to

perfection (strive to move step by step to target)

4.  As obstacles are encountered, they are systematically understood and overcome

(You do this until you retire or die. Whichever comes first. ;) )

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Coaching Kata

•  Everyone has a mentor •  The mentor – Knows the details – Asks questions – Teaches the improvement kata – Focuses on learning •  Not results

•  We build people before we build cars. (Toyota)

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Theme and Background – Look Very Carefully

•  Theme is A3 Title –  Identifies relevance – Revised as situation understanding improves

•  Background identifies problems impact – Why this problem matters

•  Impact of problem on organization •  Specific and Quantitative –use graphs, tables, etc.

–  People affected understand, agree on, and care •  10 second rule – Reader can assess relevance of A3 within 10

seconds

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Current Condition – Ask what we already know

•  Specific, detailed, quantitative, concise –  Tables, graphs, histograms, value-stream maps, diagrams –  Countermeasures (Experiments) –  Highlight exactly where problem occurs –  Baseline to compare to metrics after countermeasures

are applied •  Engage everyone affected by or causing symptoms

–  Build Consensus on what is •  Symptoms / Undesirable Effects everyone can see •  Foundation of authority to experiment with countermeasures

•  Update as understanding improves

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Goal –Next Target Condition Model what we expect

•  What baseline change is wanted? – What does perfect look like? – What does the organization need?

•  Mentor ensures that the owner has both – Plausible Hypothesis

•  Based on best available model/understanding of how the system should work

– Consensus among stakeholders •  Target is attainable and desirable

•  Update as root cause and countermeasures developed

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Root Cause – Model Cause & Effect

•  Identify underlying problem(s) causing symptoms –  Root cause is typically faulty thinking or assumptions

•  Addressing the root cause(s) improves all levels of symptoms/undesirable effects/visible damage.

•  Build consensus among stakeholders –  Broad agreement on Cause & Effect network –  Reflect best current knowledge about how things work

•  Some techniques: •  Some techniques:

–  5 Whys -track down the –  Ishikawa (fishbone) diagram –  Cause-effect diagram –  Current Reality Tree

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Propose Countermeasures – DO [Many Experiments]

•  Identify countermeasures for each candidate root cause –  Experiments expected to mitigate underlying

problem –  Suggested by people involved or A3 owner

•  Assess each countermeasure –  Discuss with Stakeholders affected –  Identify expected changes in meaningful measures

from each countermeasure –  Select those with most promise

•  (DO) Try each selected countermeasure to get evidence for their effectiveness

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Results & Follow-up – Check& Act: Know WHY, not just know how!

•  For each countermeasure implemented –  What actually happened

•  If different than expected, –  Why? –  Does the model you used correctly represent what

happens? –  How do the results improve your knowledge of how

to think about your work? •  What will you monitor to know that the problem

remains “solved”? •  What additional problems are revealed after the

countermeasures are in place?

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Learning Results and Follow-up

•  The reliable learning comes from checking the results of your experiments. –  If the hypotheses in your root-cause analysis are correct,

your countermeasures should make the situation better by the amount you expected.

–  If they do not, either your model is wrong or the countermeasure is not correct or sufficient to address the root-cause and you have to try again.

•  Learning only has value if it changes the way you act –  Improved workflow, better method, better skills, needed

checklist item, better standards, etc. –  This is the ACT part or PDCA, change the way you do this

kind of work.

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Scopes of A3s

Strategic    (6-­‐12  months)  

System  (1  week  –  6  months)  

Process  (1  week)  

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Ishikawa or Fishbone Diagram

Root Cause Analysis

Root Cause Analysis