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F2 and LEAN Introduction to LEAN January 20 th , 2011. Goals . Understand why Finance & Facilities (F2) is involved with LEAN Become familiar with basic LEAN principles and concepts Learn some basic LEAN tools Note: LEAN is not an acronym!. Who Is Finance & Facilities (F2)?.

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F2 and lean introduction to lean january 20 th 2011

F2 and LEANIntroduction to LEAN January 20th, 2011


  • Understand why Finance & Facilities (F2) is involved with LEAN

  • Become familiar with basic LEAN principles and concepts

  • Learn some basic LEAN tools

    Note: LEAN is not an acronym!


We are a global leader able to deliver outstanding service

anywhere, anytime

Values: Integrity • Collaboration • Innovation • Diversity • Excellence • Respect • Teamwork

Value to Our Customers

Enhance Resources


We help people who change the world

Provide value for your money

Help solve complex University-wide problems

Provide clear, timely, accurate, consistent communications from knowledgeable staff

Attract and Retain a Talented and Diverse Staff

Improve Operational Excellence

Enhance leadership effectiveness

Create and maintain collaborative relationships

Develop customer value proposition

Lead strategic UW-wide projects

Recognize performance excellence

Develop individuals to their full potential

Improve, streamline and innovate

Champion environmental stewardship

Provide key input for informed decisions on financial & physical assets

Grow and steward UW’s assets

Manage resources to support strategic priorities

What is lean
What Is LEAN?

LEAN is “a systematic approach to identifying and eliminating waste...” which includes—

  • Identifying the current state

  • Envisioning a future state

  • Rapid process improvements

  • Customer involvement

    LEAN engages staff—

    to identify and solve problems

    LEAN encourages leaders—

    to trust and respect staff to do so

    -- James P. Womack and Daniel T. Jones (2003),

    in Lean Thinking

1. LEAN helps F2 become more:

  • Customer sensitive

  • Nimble

  • Efficient

    2. LEAN helps F2 build a common culture

    • Those closest to the work constantly making that work better

  • Improving work and process flow through observation, experimentation and action

  • Becoming better problem identifiers and solvers

  • Developing transferable job skills

  • Lean terms
    LEAN Terms

    • 5S - A place for everything and everything in its place

    • A3 Report: A one-page report that documents a process. "A3" is an international-size paper about 11 x 17 inches

    Lean terms1
    LEAN Terms

    • GembaA Japanese term that means "actual place.“

    • Gemba WalkGoing to the actual place to see and understand the situation where the work is done. The first step is understanding the actual situation and "going to the gemba.”

    Lean terms2
    LEAN Terms

    • KaizenA Japanese term that means "change for the better" through continuous, incremental improvement.

    • Kaizen Event/WorkshopAn event or workshop that teaches how to identify waste in a given process and to make rapid improvements to a process.

    • Standard WorkA precise description of each work activity specifying cycle time, the work sequence of specific tasks, and the minimum inventory of parts on hand needed to conduct the activity.

    5 key lean principles
    5 Key LEAN Principles

    • Customer defines value

    • Produce at the rate of customer demand “pull”

    • Eliminate Waste

    • Focus on work flow and value streams

    • Pursue continuous improvement

    Lean concepts
    LEAN Concepts

    • Welcome problems (“Having no problem is the problem”)

    • Trust facts over data (go see what’s happening, “gemba”)

    • Focus on the process, not people

    • Develop people and teams

    • Learn by doing

    • “Wing-to-wing” improvements involving customers, F2 staff at all levels, process partners and suppliers

    • Faster rate of change – pace and rhythm

    • Aggressive improvement goals (often 50%)

    Control Spend

    Control spend

    Consolidate IT

    Consolidate IT

    Optimize Space

    Optimize space

    Construction Contracts

    A/E Contracts

    Reduce labor time

    CPO Close Out

    Furniture Procurement

    Shared Systems

    Protect the Core

    Campus Alterations

    Purchasing Supplier Registration

    Grant Unbilled

    Mailing Services

    SFS Direct Loans

    Real Estate Office Inquires

    Grant Closings


    Copy Centers

    UW Auditing Process

    Worker’s Compensation

    Print Management

    What is a process
    What is a Process?


    Added Tasks



    A resource that you will add value to:


    input to a desired output

    An input after you have added value

    • End product

    • Service

    • Performance

    • Physical

    • Non-Physical

    • Materials

    • Goods

    • Supplies

    • Resources

    • Physical

    • Non-physical

    • Data

    • Event

    • Manufacturing

    • Service

    • Physical

    • Non-Physical

    Identifying the 8 key wastes m uda
    Identifying The 8 Key Wastes (“Muda”)









    Excess inventory

    Reducing Processes To Core Value







    O P E R A T I O N A L L E A D T I M E





    Focus on eliminating the wasted time and activity.

    What is a kaizen event
    What Is A Kaizen Event?

    Two or Three Day Workshop

    • Team includes project leader, facilitator, staff members, customers/process partners

    • Identify Current State, Identify Issues, Envision Future State, Identify Kaizen Projects

      30, 60 and 90-Day Report Outs to Leadership

    Kaizen event scope document
    Kaizen Event Scope Document

    What is the problem?

    Why is it important?


    Problem Statement /Background:Event/Workshop Dates:

    Process Metrics:

    Event Mission/Vision:


    Goals / Objectives:

    Project Leader:

    Process Description:Lean Consultant:

    Team Members:

    What metrics will be used to track process improvements?

    What do you want to accomplish during the workshop?

    Name and title

    What are the overall goals / objectives you want to achieve?

    Name and title

    Name and title

    High level overview of the overall process to focus on from beginning to ending steps of the process

    Names /titles including customers

    What is a value stream map vsm
    What Is A Value Stream Map (VSM)?

    A process map:

    • Define first to last step

    • Clarify relationships of different tasks

    • Discover non-value added steps

    • Has values added to each step


    • Describes the entire current process

    • Helps identify problems

    • Helps team to choose improvements to work on

    Value stream mapping process
    Value Stream Mapping Process

    List how much time is needed for each step

    May also add other values to the map like - % Complete/Accurate/Correct (CAC%)

    Value Stream Mapping Time Measures

    Step 1

    Step 2

    Touch Time (T/T)

    Interruptions, Need more information, Breaks

    Touch Time (T/T)

    Wait Time (W/T)

    Process Time (P/T)

    Process Time (P/T)

    Total Lead Time (TLT)

    Value stream mapping exercise
    Value Stream Mapping Exercise

    • Choose a topic to map:

      • Requesting annual leave

      • Mailing a package

      • Planning a meeting

      • Preparing a PowerPoint presentation

      • Preparing a budget request

  • Identify the main steps you complete to accomplish this process

  • Place the notes in order from start to finish

  • Value stream mapping process continued
    Value Stream Mapping Process - continued

    • Calculate times:

      • Total time (TLT) it takes to complete the process

      • Total touch time (T/T)

      • Total wait time (W/T)

    • Look at the map and identify any issues that leap out at you

      • What do you see?

      • What does the process do well?

      • Where are the wastes?

      • Can you identify some “LEAN” opportunities?

    • Choose a Kaizen(s) to work on

    • Create an action plan

    What is 5s
    What Is 5S?

    5S creates an efficient workflow by reducing waste in the placement and movement of materials, information, equipment, and people.

    LEAN Activity : February 2010

    Facilities Services – 5S (All staff in Administration Building)

    Customer Impact/Benefit to Customer:

    Workspace Focus

    Facilities Services’ 5S projects are designed to improve customer service by identifying and eliminating wasted time and space to allow for increased accuracy and productivity.

    Before 5S

    After 5S

    5S LEAN concept:

    • Sort

    • Straighten

    • Shine

    • Standardize

    • Sustain

    5s warning

    -- The Toyota Way

    LEAN is not just about using 5S to clean and organize a work area.

    The real value of 5S is to create and maintain an efficient work flow and make problems visible.

    What is a visual control
    What Is A Visual Control?

    Visual representation of process in a highly visible location that:

    • Makes problems visible

    • Focuses on improving Value-Added Work Flow

    • Communicates at-a-glance how work should be done and whether it deviates from the standard

    • Helps the team to stay focused and accountable to improve the process

    • Provides a place for a team to share knowledge and experiences

    Visual Controls – Kaizen Examples

    GCA Unbilled Team discusses project with Sue Camber, AVP and other sponsors, guests

    GCA Budget Closings Team reports progress to V’Ella Warren, SVP and other sponsors, guests

    LEAN Kaizen Event #3: January 2010

    Financial Management – GCA Budget Closings

    Customer Impact / Benefit to Customer:

    • Eliminate backlog of GCA closing budgets

    • Customer feedback from April 2010 customer survey

    • April Backlog of 5,478 reduced by 4495 (82.1% ) as of 1/14/11

      2. Improve closing process and avoid future backlog

    • Currently, 673-day average to close a research budget

    • Improved process targets 120-day closing average

    • 72 days average to close with pilot of Future State

    GCA identifies opportunities for customer improvement with the help of Susan Carpenter-Brandt (Psychology) and Verna Blackhurst (Aquatic and Fishery Sciences).

    LEAN Kaizen Event #6: June 2010

    Financial Management – GCA Unbilled

    Customer Impact / Benefit to Customer:

    Reduce the amount of the unbilled backlog

    • December 2009 unbilled backlog of cost reimbursable grant expenditures was $15.8 million (reduced $10.7 million or 67.7% in 6 months)

    • Target amount is $2.0 million or less

      • Unbilled backlog has been reduced to $5.1 million as of December 2010

    GCA reviews their current process to identify opportunities to reduce the amount of unbilled

    LEAN Kaizen Event #4: April 2010

    Financial Management – Copy Centers

    Customer Impact / Benefit to Customer:

    1. Reduce customer cost by 10%

    2. Improve billing and reporting process

    • Change current once a month to real-time billing (daily)

    • Reports that help customers better manage their usage

    Customers explain and share their business needs to FM Copy Centers

    Aaron Munoz

    (Business School customer)

    • Sal Ramirez

    • (UWMC customer)

    Beth Berquist

    (Harborview customer)

    LEAN Kaizen Event #7: July 2010

    Financial Management – Mailing Services

    Customer Impact / Benefit to Customer:

    • Increase mail preparation revenue by 40%

    • Eliminate overtime hours (38% avoided in 3 months through cross training)

    • Reduce junk mail and misaddressed mail

      Recycled 8986 (avg = 499/wk) pounds of waste or junk mail since Aug 9 (18 wks)

    Sal explains how Mailing Services can help UWMC reduce their need to resort mail and handle junk mail, and teach them how to package outgoing mail to reduce mailing costs.

    • Sal Ramirez

    • (UWMC customer)

    LEAN Kaizen Event #10: July 2010

    Financial Management and College of Arts and Sciences – Shared Services Initiative

    Customer Impact / Benefit to Customer:

    Reduce Humanities department administrative labor time by 20% with focus on the Payroll, Purchasing and Web processes.

    Customers and process partners share their business needs with Financial Management staff

    David Miles

    (Spanish & Port, French & Italian process partner)

    Michael Furr

    (Linguistics process partner)

    • Amy Pelloff

    • (not pictured)

    • CHID process partner


    ( Simpson Center process partner)

    LEAN Kaizen Event #1: December 2009

    Financial Management - Furniture Procurement

    Customer Impact / Benefit to Customer:

    1. Simplify furniture ordering process

    • Customer feedback at project end indicated need for improvement

    • Customer word of mouth that current process is confusing

      2. Create a standardized process for buying furniture

    A typical LEAN workshop brings customer, suppliers, and process partners to one table.

    • Betty Lee Chen

    • Capital Projects Office

    • (process partner of Financial Management) helps improve the value chain

    Roberta Hopkins

    Not pictured

    (Classroom Support Services)

    • Amy Van Dyke

    • (Bothell Campus)

    Sherry Napier

    Bank & Office Interiors (suppliers)

    LEAN Kaizen Event #2: January 2010

    Facilities Services - Campus Alterations

    Customer Impact / Benefit to Customer:

    1. Enhance campus-client communications for alterations projects

    • June 2009 low customer-satisfaction survey rating (75%) for campus-client communications

      2. Reduce cycle time by 50% for alterations projects (= reduced customer costs)

    • June 2009 low customer-satisfaction survey rating (54%) for cost-effectiveness

    • Joyce Suzuki

    • (Housing and Food Services), explains the impact she and other customers feel

    Beth Hammermeister (Genome Sciences),

    participating as “voice of the customer”

    Facilities Campus Alterations listens to customer and process partner concerns and impacts. Everyone collaborates to create a process that results in minimal waste and maximum value to clients.

    LEAN Kaizen Event #5: June 2010

    Financial Management – SFS Direct Loans

    Customer Impact / Benefit to Customer:

    1. Reduce the number or record rejects by 70%

    • Currently 1,000 – 1,200 (2000)record rejects a year resulting in manual research and correction (1,700-85%)

      2. Create a standardized reject research and correction process

    Key Process Partners explain and share their business needs to Student Fiscal Services

    John Gannon

    (not pictured)

    Information Management

    • Fred McWhirter

    • Information Management

    LEAN Kaizen Event #8 – July 2010

    Treasury – Real Estate

    Customer Impact/Benefit to Customer

    • Reduce QTD: (Query to Deliverable)

      • Target measures:

      • Improve ACU% (Accurate, Complete, Useable) from 40% to 80%

      • Reduce maximum QTD time from 25 weeks to 2 weeks

    Customer Impact / Benefit to Customer:

    1. Reduce customer cost by 10%

    2. Improve billing and reporting process

    Customers explain and share their business needs with Real Estate staff

    • Kerry Kuenzi

    • (Office of Planning & Budgeting customer)

    • Amie Marston

    • (UW School of Medicine customer)

    • Lane McKittrick

    • (UW Bothell customer)

    LEAN Kaizen Event #9: July 2010

    Financial Management – Supplier Registration

    Customer Impact / Benefit to Customer:

    • Reduce the time to register new suppliers

      Current process takes up to 30 days

      Improved process targets 2 days or less

    • Reduce the number of discrepancies with supplier registrations

    Customers and process partners share their business needs the Purchasing staff

    • Chesca Ward

    • (Business Diversity Office process partner

    Ronda Grazen

    (Intercollegiate Athletics customer)

    Capital projects office lean projects

    Capital Projects Office LEAN Projects

    Architects & Engineers (A/E Contracts)

    Construction Contracts


    Process Wall

    Happy Camper Program

    A e contracts lean project

    A/E Contracts LEAN Project

    Goal was to reduce contract process time. To date we have achieved a 40% reduction in time on master agreements.

    A/E Contracts LEAN Project

    Goal: to reduce contract process time

    Sponsors/Decision Panel: Alan Nygaard, Brad Spencer

    Team Members: Hannah Eulenberg, Judy Giniger, Kurtis Jensen, Pirayeh Long/Regi Hampton, Shelly Marriott, Everett Spring

    Project Managers: Susan Smith, Kelly Casey


    10/27/09 Kick off Meeting

    12/03/09 Kaizens Presented to Sponsors/Decision Panel

    03/12/10 30 Day Review

    04/08/10 60 Day Review

    05/13/10 90 Day Review

    Construction contracts lean project
    Construction Contracts LEAN Project

    Efficiencies Kaizen – measuring some set steps between Spec creation and NTP.

    Getting to “Easy Street”

    Goal is to reduce contract processing time.

    Construction Contracts LEAN Project

    Goal: to reduce contract process time

    Sponsors/Decision Panel: Alan Nygaard, Brad Spencer

    Team Members: Jeff Angeley, Kristine Erickson, Randy Everett, Judy Giniger, Vina Lorenzo, Tim Lucas, Cindy Magruder

    Project Managers: Susan Smith, Kelly Casey


    3/9 -11/10 3 Day Workshop

    6/3/10 30 Day Review

    7/14/10 60 Day Review

    8/25/10 90 Day Review

    Closeout lean project

    Sponsors/Decision Panel:

    Hannah Eulenberg

    Jon Lebo

    Eric Smith

    Sponsors/Decision Panel:

    Hannah Eulenberg

    Jon Lebo

    Eric Smith

    Hannah Eulenberg

    Jon Lebo

    Eric Smith

    “Close as you go!!”

    Sponsors: Hannah Eulenberg, Jon Lebo, Eric Smith

    Closeout LEAN Project

    Team: Aaron Cheuvront, Nancy Cooke, Ann Cronin, Mike Fernandes, Sandy McCrae, Troy Stahlecker, Linda Wang, Olivia Yang

    Project Managers: Susan Smith

    Kelly Casey

    Goal is to reduce the time it takes to close projects so we can more quickly return unused funds to our clients.

    Cpo process wall

    CPO Process Wall

    Watch the wall develop!

    Goal is to map the entire project process. Tie our LEAN projects back to the overall process.

    Cpo testimonials
    CPO Testimonials

    • “I have seen a lot of positive progress in the Special Projects Group with the implementation of LEAN processes.”

    • “The weekly pace checks, with the project managers and contracts people, are particularly valuable in pointing out how our procedures are working and how we want them to change. “

    What is just do it
    What Is Just Do It?

    Just Do It…

    Improvements that:

    • are quick to implement

    • you have direct control over

    • the impact is clearly understood and agreed upon

    • will be measured.


  • Make revisions to one of your reports

  • Create contract definition sheet – Alterations Event

  • Reduce Time in Meetings – Strategy Management

  • 5S within your work area

  • How does lean impact f2
    How Does LEAN Impact F2?

    LEAN dependsmoreon people, not less.

    More than tools and techniques, it’s a culture and mindset that respects and depends on staff to:

    • identify and fix issues to get quality right the first time

    • work with a sense of urgency, purpose and teamwork

    • think, learn, be creative and grow

    • share lessons learned with others

    • own the entire process – beyond your own work

    Lean is a journey not a destination
    “LEAN is a Journey, not a Destination…”

    LEAN starts you on a journey to

    discovering new ways of seeing things

    that need continuous improvement.

    View the LEAN web site for updates, resources, etc.


    • Organizational Effectiveness Initiative (OEI) at:

    • https://depts.washington.edu/oei/