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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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  • 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!


LEAN Supports Our F2 Strategy Map


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

What Is Unique About LEAN?

  • “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%)

Where Is F2 Practicing LEAN Now?

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












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.


LEAN Website

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


  • Organizational Effectiveness Initiative (OEI) at:
  • https://depts.washington.edu/oei/