Continuous improvement is about removing stuff that get in the way of your things working well.

1. Lean Thinking Continuous improvement is about removing stuff that get in the way of your things working well.

2. What is Lean? Visit in a small group for a few min. Share what you know. Share experience/expertise

3. What is LEAN • Maximize customer value • Minimizing waste. • More value – fewer resources. • Understands customer value • Focuses key processes to continuously increase value.

4. LEAN Approach Optimize flow • Across Value Stream vs. Departments • respond to changing customer desires • simpler information management becomes much simpler and more accurate. • Eliminating waste • Along entire value streams vs. Each Step • less human effort - less space - less capital - less time - much fewer defects – more accurate

5. Lean Goal is to provide perfect value by • improve process flow, • eliminate waste, • deliver value to customers faster.

6. Misconceptions • NOT just for manufacturing. • Lean applies in every business and every process. • It is not a tactic or a cost reduction program Lean is a way of thinking and acting for an entire organization.

7. Best Resource • The characteristics of a lean organization are best described in: Lean Thinking by Womack and Dan Jones

8. Lean Method

9. Lean Method There is no end to the process of reducing effort, time, space, cost, mistakes, rework, and back stepping Return to the process & service over and over again Let the customer pull products and services as needed Give them access to draw on services as needed Create value by continuously adding value and remove obstacles that don’t add value or clog the value stream Identify the value stream – Identify and categorize waste in the current state, and eliminate it in the future state Express value in terms of a specific product or service, which meets the customer's needs

10. Lean Method Express value in terms of a specific product or service, which meets the customer's needs

11. Specify Value • Define value from the perspective of the final customer • Express value in terms of a specific product/service, which meets the customer's needs

12. Customer and Supplier • Customer = • any person who receives the product/service • anyone who directly touches or uses the output of a process/service • Supplier = • someone who provides the inputs or supplies for a process

13. Customer Supplier Relationship Caller orders a pizza Register person takes order Pizza makers make pizza Delivery person delivers pizza Supplier? Customer? Customer Need? Supplier? Customer? Customer Need? Supplier? Customer? Customer Need?

14. Customer Needs Analysis • What do you do? (key services you provide) • Who do you do it for? (Customers) • What do they need? (quality requirements) • How do you know? • How are you doing? (± feedback) • How do you know?

15. Customer Supplier Exercise • Form groups of 4-5 people • Consider:You are coaching a change leader – They are trying to start a change project but aren’t clear on a lot of things (i.e. aim, current facts, project value) and lack support of leaders -they are not sure why or what to do – they come to your for coaching – • Answer the following Questions • Who are the customers? • What are the customer expectations? • What are the customer needs? • What are the suppliers capable of doing? • What can the suppliers realistically provide?

16. Lean Method Identify the value stream – Identify and categorize waste in the current state, and eliminate it in the future state

17. Value Stream • All specific actions required to bring a value to the customer • Create a map of the Current State and the Future State • Identify and categorize waste in the Current State, and eliminate it!

18. All Work is Part of a Process “If you can't describe what you are doing as a process, you don't know what you're doing.” - W. Edwards Deming

19. Top Three Reasons Processes StruggleE. Deming • No, unclear or differing purpose/intention No, unclear, differing and inconsistent methods No or unclear determination of performance

20. What is a Process? An orderly series of steps, activities or operations where inputs are modified to achieve value PROCESS INPUTS OUTPUTS • Process Thinking vs. Activity Thinking NOT – Ad-hoc, ill defined or personality dependent

21. Process Flow What things flow along? • People • Information • Material • Combination of 1, 2 & 3

22. What Could Go Wrong? Problems/Obstacles in hand-offs between steps Problems/Obstacles in execution within steps

23. Lean Process Current Process Ideal Process Our vision of this process delivering VALUE With every things going as planned Simple for customer with no wasted resources

24. Lean Process Ideal Process Current Process • What is the Ideal Coaching Process? • When everything goes as planned • The Coaching processes as you originally envisioned it • Service delivers VALUE with limited use of time and resources

25. Consider: The Change Leader who came to you for coaching – what were the steps required to access your coaching services – get needed information – and provide them with your coaching services - VALUE!

26. Process Steps Value Analysis • Value Added (VA) Any activity that increases the form or function of the product or service. (These are things the customer would be willing to pay for.) • Non-Value Added (NVA) Any activity that does not add form or function or is not necessary. (These activities should be eliminated, simplified, reduced, or integrated.) • Non-Value Added Required (NVAR) Any activity that does not add form or function but is mandated by law or regulation to happen. (Can be simplified, reduced and integrated so long as mandates are met.)

27. Circle: VA steps – Estimate time difference { All steps – (NVA + NVAR) }– What if you could reduce NVA + NVAR by ½?

28. Lean Method Create value by continuously adding value and remove obstacles that don’t add value or clog the value stream

29. Smooth Flow • Make the remaining steps in the value stream flow. • Eliminate functional barriers to delivering products or service. • Eliminate waste.

30. Lean Process Current Process Ideal Process What is the Problem – Obstacles – Waist – etc. that could be eliminated or how could the steps be rearranged to flow? How can we achieve the Ideal Process? Our vision of this process if every things goes as planned

31. Lean and Waste • Lean focuses on removing waste because waste increases effort, time, space, cost, and mistakes. • Reduces Value to customer • Waste is the enemy of Lean – because waste dishonors the provider of products and services

32. 7 types of Service Waste • Delay – Customers waiting for service, for delivery, in queues, for response, not arriving as promised. • Duplication – Having to re-enter data, repeat details on forms, copy information across, answer queries from several sources within the same organization. • Unnecessary Movement– Queuing several times, lack of one-stop, poor ergonomics in the service encounter.

33. Unclear communication – Seeking clarification, confusion over service use, time finding a location – result in misuse or duplication. • Incorrect inventory – Being out-of-stock, unable to get exactly what was required, substitute products or services. • An opportunity lost to retain or win customers – a failure to establish rapport, ignoring customers, unfriendliness, and rudeness. • Errors in the service transaction – Defects in providing the service. Not knowing what the customer actually needs.

34. Where is the waste in the coaching process? For 2-3 of the different kinds of waste – Identify a specific waste in the coaching process that should be eliminated. Share examples in the services you are supporting.

35. Lean Method Let the customer pull products and services as needed Give them access to draw on services as needed

36. Pull Inputs • Let the customer pull products and service as needed • Initiate work only to actual demand, and only to the specific specifications of the customer • Services delivered as needed • Just-In-Time services • Eliminate barriers/controls to accessing services • Customers always have access

37. Achieving PULL How could we better achieve PULL in the coaching process?

38. Lean Method There is no end to the process of reducing effort, time, space, cost, mistakes, rework, and back stepping Return to the process & service over and over again

39. Perfection • There is no end to the process of reducing waste, effort, time, space, cost, and mistakes – improving flow • Return to the first step and begin perfecting the process of delivering value. • Perfection is the destination – achieved by continuously defining a new start point.

40. Lean Tools • Value Stream Mapping • 5S • Standard Work • Leveled Scheduling • FMEA • Stakeholder analysis

41. 5S • Put things in order [Sort] • Proper arrangement [Straighten] • Clean [Shine] • Purity [Standardize] • Commitment [Sustain]

42. Improve Quality Eliminate Waste Reduce Time Reduce Costs LEAN Goals Understand its customers' wants and needs and design processes to meet their expectations and requirements Eliminate any activity that consumes time, resources, or space but does not add any value to the product or service Reducing the time it takes to finish an activity from start to finish is one of the most effective ways to eliminate waste and lower costs To minimize cost, a company must produce only to customer demand 7 types of Waste Value Stream Quick Changeover Error Proof One-Piece flow Work Cells 5S S.O.P

43. 4 LEAN Standardized Service Principles • All service provided shall specify content, sequence, timing, and outcome • Every customer-supplier connection must be direct, and unambiguous (how to send requests and receive responses) • The pathway for every service must be simple and direct. • Improvements in service use a change model with the guidance of a teacher/coach

44. Using Lean What have you learned? Will this support your service? How?