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Transcript of Just Don't Call it LEAN - cdn.ymaws.com · New York: McGraw-Hill. Liker, J. (2004). The Toyota Way:...
Just Don't Call it LEAN
A Lean Transformation using BPM
Jonathan Candari
Executive Director of Process Improvement & Projects
Tarrant County College District
Fort Worth TX 76177
Objective
To provide answers and solutions to these problems:
1) Why is adoption of LEAN in Higher Education slow?
• Introduced as a process improvement method only.
• Associated heavily with “elimination of non-value added steps”.
2) Why many LEAN implementations are not sustained?
• Lean competes with other initiatives.
• Not aligned with business process automation.
2
Lean Timeline
1913 1940 1945 1990 20001962
Ford Mass
Production
Training
Within
Industry
Toyota
Just in Time
Lean
Manufacturing
Adoption
spreading in
Government,
Healthcare,
Construction
QC Circles Six SigmaLean Six
Sigma
Business
Process
Management
2012
TCC
launched
LEAN
program
3
Start
Dean
reviews request
Faculty decides to
apply for fellowship
funds and
completes request
form located on
Sharepoint
Faculty submits
form to Dept Chair
for review
Yes
No
Faculty Academy
distributes
approved
application to
Faculty Review
Committee
Faculty Review
Committee reviews
and ranks
applications
Faculty Review
Committee enters
ranking into Google
Doc form
Faculty Academy
notifies applicant
of application
status
Approved
Reject
End End
Yes
Dept Chair reviews
request
VPAA
reviews request
Yes
Pres
reviews request
LEAN Project Analysis of an “As Is” ProcessProcess: Faculty Travel Fund Application
Step 2
Identify Value-Add
and Non-Value
Added steps using
the 7 Types of
Waste as a guide.
This process takes forever… and we don’t know the
status until the last minute.
Step 1
Conduct Voice of
the Customer
analysis to know
what’s important
and what’s
causing them
pain?
Yes4
Start
Faculty Academy
sends
communication to
deans, faculty and
adjuncts reminding
them of upcoming
faculty stipend
processing dates
Faculty submits
completed
professional
development courses
to Chair
Chair
reviews
submitted
information
Dean
reviews
submitted
information
Dean accesses
form via
intranet,
populates and
submits to
Faculty
Academy for
review approval
Faculty Academy
reviews, approves
and submits to HR
Benefits & Comp
EndApproved
Reject
LEAN Project ImprovementProcess: Faculty Travel Fund Application
Step 1
If possible,
eliminate the non-
value added steps
Step 2
Automate the
workflow to speed
up the process
We addressed the problem… but… the
new process created a bottleneck
Approved
5
Impact in Time and Resource AvailabilityProcess: Faculty Travel Fund Application
Performance As Is To Be
# Completed 8 17
Wait Time 475 638
Cycle Time 776 742
Work Time 301 104
Resource Utilization (%) As Is To Be
Faculty 99.9 9.7
Dept. Chair 99.3 36
Faculty Academy 97 99.9
Dean 80 11.5
VPAA 65
President 51
Committee 38
Performance was improved and cycle
time was slightly reduced, but...
bottlenecks (a type of muda) were
created and resources were
overburdened (muri) due to
unevenness (mura) of the process.
Petri Net of the “As Is” Process Petri Net of the “To Be” Process
6
Forgotten Lessons
• Six Sigma: Stabilize then optimize
• LEAN: Standardize then improve
• LEAN has two pillars: JIT and Jidoka
• LEAN is not just about improvement projects i.e. making a process lean
• LEAN’s primary intent is to create a culture of Continuous Improvement
• We didn’t get the memo that Womack changed the approach from “Muda, Mura, Muri” to “Mura, Muri, Muda”1
1 Womack. 2006
LEAN is more than just a project or a tool. If you have an improvement project,
just don’t call it LEAN.
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Framework Development
Source: ISO 9001:2015
Source: ISO 9001:20158
Lean BPM Framework
LEAN
Principles
Improvement
BPM
Process
Selection
Process
Inventory
Co
nte
xt o
f th
e O
rga
niz
ati
on
Operations
Pe
rform
an
ce a
nd
Eva
lua
tion
Performance DataVoC
D M A I C
Business Management Model
Six Sigma
Process
Lea
de
rsh
ipP
lan
nin
gS
up
po
rtThis framework is based
from ISO 9001:2015. The
outer loop can be
replaced with the
elements (requirements)
of MBNQA, EFQM, CMMI,
OMG BPMM, AQIP, QEP or
any other quality or
excellence frameworks.
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Creating the Process Inventory
Define
Requirements of
Stakeholders and
Interested Parties
Identify Risks and
Opportunities
Define StrategyDefine Business
Objectives
Create Process
Inventory1
Define the
Organizational
Context
1 Zheltonogov, et. al. 2015. p762 Sweet. 2014
Faculty Academy Macro Map2
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Select Process to Improve
Conduct Voice of
the Customer
Analysis
Evaluate the
Process
Performance and
Importance
9-Box Matrix1
Select
Process
Evaluate
Performance Data
1 Adapted from GE-McKinsey Nine-Box Matrix
Recognize excellence
Travel Funding
TrainingCustomized Training
Coomunicating New Initiative
Strat Plan
Guidelines (SOP)
Customer Process
Data Management
Access to Mgt/Strat Decisions
Committee Participation
Faculty Study Application
Buddget Process
Access to Data
Communication Process
Performance
Imp
ort
an
ce
From the Macro Map,
processes where evaluated in
terms of Performance and
Importance, then the process
to improve was selected.
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Lean BPM Process Improvement
ExampleProvide UI for the
customer to directly enter the order.
DEFINE MEASURE ANALYZE IMPROVE CONTROL
Objective
“As-Is” Process
Problem/ Opportunity
Process Behavior
Current Capability
IdentifiedCauses
LEANPrinciples
Design “To Be”
Model Process
Execute
Monitor
Optimize
Business Process Best
Practices
Dashboard
ExamplePrinciple: Create Continuous Flow
ExampleBPM Best Practice: Focus on improving
contacts with customers. Reduce the number of
contacts with customers.
ExampleCustomer
Service takes order and enters
in the system.
BPM Cycle
12
Using LEAN Principles to Analyze an “As Is” ProcessProcess: Faculty Study ApplicationFaculty Study Program – As Is
Facu
lty
On
line
Syst
emFa
cult
y A
cad
emy
Acc
ou
nti
ng
Reporting PhaseApplication Phase Reimbursement Phase
SubmittedApplication
Process Submitted Application
Receive application
Approved?Review
application
Request for Additional
InformationSend Email
Send EmailAll ok
Provide Required
Information
StartNew
Application
Receive EmailSubmit
Reimbursement Request
Receive Reimbursement Request
Review Reimbursement
Request
Checklist
Approved?
Contact the Employee
NO
Receive request for additional
information
End
Not Pursued
Provide requested for additional information
Receive requested for
additional information
Within 45 Days?
Process the Reimbursement
YESSend Packet (Interoffice
Mail)
Receive Packet
(Interoffice Mail)
Copy
Payment Processing
End
YES
Inform the Student
Yes
Prepare Report
Process within 10 days
TPS Process Principles1
2. Create a continuous process flow to bring problems to the surface.
3. Use ‘pull’ systems to avoid overproduction.
4. Level out the workload (work like the tortoise, not the hare).
5. Build a culture of stopping to fix problems, to get quality right the first time.
6. Standardized tasks and processes are the foundation for continuous improvement and employee empowerment.
7. Use visual controls so no problems are hidden.
8. Use only reliable, thoroughly tested technology that serves your people and process.
Bottleneck point.
Lean Process
principle #, level the
workload
1 Liker, 2004 13
Using BPM Best Practices to Develop the “To Be” ProcessProcess: Faculty Study Application
Faculty Study Program – To Be
Facu
lty
On
line
Syst
emFa
cult
y A
cad
emy
Reporting PhaseApplication Phase Reimbursement Phase
Start
Validate the Application
Eligble?
Send Email
NOT YES
Submit Reimbursement
Request
Receive Reimbursement Request
Review Reimbursement
Request
Checklist
Approved?
Contact the Employee
NO
Receive request for additional
information
End
Not Pursued
Provide requested for additional information
Receive requested for
additional information
YES
Inform the Student
Yes
Prepare Report
EligibilityTables
Notify the Applicant
Archive the Applicantion
Progress Dashboard
Receive Notification of New Application
Need additionalinformation
Review Red Flag of New Application
Provide decision
Notify the Applicant
YES
Send email
Login in an UI
Instruction
BPM Practice“Integration: Consider the integration with a businessprocess of the customer or a supplier. This best practicecan be seen as exploiting the supply-chain conceptknown in production. In general, integrated businessprocesses should render a more efficient execution, bothfrom a time and cost perspective. The drawback ofintegration is that mutual dependence grows and,therefore, flexibility may decrease.”1
Time
Quality
Flexibility
Cost
Control relocation
Contract reduction
Integration
1 Reijersa, 2004. p296 14
Impact in Time and Resource AvailabilityProcess: Faculty Study Application
Performance As Is To Be# Completed 63 147Wait Time (min) 692 658Cycle Time (min) 727 669Work Time (min) 36 11
Resource Utilization (%) As Is To BeFaculty 100 99.9Faculty Academy 99.3 1.4Online System 4.7 9.9
Petri Net of the “As Is” Process
Resources are not over-
burdened. Bottleneck and
potential deadlocks were
addressed.
Petri Net of the “To Be” Process
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Project Focus
Process Improvement Method
Employees
Leadership and Management System
Transformation Journey
BurningPlatform1
ProjectPrioritization
Project PortfolioOptimization
Six Sigma Lean Six Sigma Lean BPM
Awareness Involvement inProjects
ActivelyEngaged
Charter Approval& Toll Gate Review
Project Selection
ProjectGovernance
0-9 Months
Stabilized
3-12 Months
Standardized
9-18 Months
Optimized
1 George, 2009 16
Conclusion
• Transformative improvement starts with value clarification (what problem are we trying to solve?)1.
• Focus on the overall transformation while improving the actual work.
• Develop the capability of the employees to create a culture of improvement.
• Provide project governance and strategic direction to sustain improvements.
1 Adapted from LEI Lean Transformation Framework. Reference. Rapoza, 2014 17
References
George, M. L. (2009). Lean Six Sigma for service how to use lean speed and Six Sigma quality to improve services and transactions. New York: McGraw-Hill.
Liker, J. (2004). The Toyota Way: 14 Management Principles from the World's Greatest Manufacturer. McGraw-Hill.
McKinsey & Company (2008). Enduring Ideas: The GE–McKinsey nine-box matrix. Retrieved June 04, 2017, from http://www.mckinsey.com/business-functions/strategy-and-corporate-finance/our-insights/enduring-ideas-the-ge-and-mckinsey-nine-box-matrix
Rapoza, Joshua. (2014). A Lean Transformation Model Everyone Can Use. Retrieved June 01, 2017, from https://www.lean.org/LeanPost/Posting.cfm?LeanPostId=135
Reijersa, H.A., Mansar, S. L. (2004). Best Practices in Business Process Redesign: An Overview and Qualitative Evaluation of Successful Redesign Heuristics. ScienceDirect.
Sweet, S. (2014). The BPI blueprint: A Step-by-Step Guide to Make Your Business Process Improvement Projects Simple, Structured and Successful. Altadena, CA: Cody-Cassidy Press.
Vyacheslav Zheltonogov, J. Keith Wood, Philipp Schume, Magnus Borgenstrand, Nakul Bharade, Dr. Ali Arsanjani. (2015). Business Process Management Design Guide: Using IBM Business Process Manager. IBM
Womack, Jim. (2006). Mura, Muri, Muda?. Retrieved June 01, 2017, from https://www.lean.org/womack/DisplayObject.cfm?o=743
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