Lean Times Require Lean Thinking
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Transcript of Lean Times Require Lean Thinking
Quarterly Technology Briefing
“Lean Times Require Lean Thinking”
presented in partnership with
Lean Times Require Lean Thinking
Jason Yip
ThoughtWorks
Paul Heaton
KM&T
Image from http://www.bluefountainmedia.com/blog/?p=38
“As the Japanese economy entered a steep recession in
that year, the Toyota Motor Company ran out of cash, which was tied up in inventory for products customers no longer wanted. The company fell under the control of bankers who chopped the company in two, creating separate firms to divide the marketing and sale functions from the product development and production functions. (These firms were only recombined in 1982 to create the current Toyota Motor Corporation.)
Founding president Kiichiro Toyoda (new president Akio
Toyoda’s grandfather) was driven out in the process. The pursuit of what became the Toyota Production System, along with the product development, supplier management, and customer support systems, was the
creative response to this crisis.”
James Womack, Respect Science Especially in a Crisis, http://www.manufacturingnews.com/news/09/0309/womack.html
Lean was born from hardship and survival
• Free up scarce cash• Reduce costs while
enhancing quality• And very little time to
do this
http://www.flickr.com/photos/jtcatbagan/2420624616/
What happened since then?
In 2008, Toyota surpasses GM as the world’s largest auto maker
Toyota and Honda lead in J.D Power quality ratings
“Our recurring losses from operations, stockholders' deficit and inability to generate sufficient cash flow to meet our obligations and sustain our operations raise substantial doubt about our ability to continue as a going concern”
General Motors SEC filing, 2009
Who would you rather be?
Is this really relevant to us?
Toyota success with the Prius• Developed within 18
months.
• Toyota used 150 engineers during development.
• A typical competitor will take 4 years
• A typical competitor will use 600 engineers.
Source - National Center for Manufacturing Sciences report
Note: this includes designingthe Plant to produce it!!
What message do I want to give?
• Lean Thinking is now becoming a recognised world wide business model in multiple sectors.
• It is not just all about Toyota Cars..!
Agile
Toyota
Honda New product development
Scrum
XP
Lean
Lean Software Development
Iterative and Incrementaldevelopment
Kanban
So, what is Lean?
Just-in-Time (not Just-in-Case)
The right material
At the right time
At the right place
In the exact amount
Stop The Line
“stop and fix problems as they occur rather than pushing them down the line to be resolved later”
Jeffrey Liker and David Meier, Toyota Way Fieldbook
The essence of Lean is engaging everyone in identifying and solving
problems
Waste
Un-Evenness
Overburden
Activities that do not add value
workload that is not balanced
work that creates burden for the team members or processes
Picture Source – Toyota Motor Company Australia
8 WASTES
Over-production
Waiting
Transport or Conveyance
Rework
Motion
Stock &Materials
Over- processing
In LEAN 8 types of waste have been identified These classifications have been adopted globally - for any process.They apply equally to any process.
All of these 8 can be either
“Necessary Waste” or “Un-necessary Waste”
Depending on circumstance
Not usingPeopleResource
Waiting
Waiting
Waiting is where people or materials are not being utilised because they are waiting for another person or process to complete before work can resume.
Examples:
Waiting for patient records
Waiting for medical staff
Waiting for test results
Overproduction
Overproduction is where an excess of processes, or services are being created, without there being any real requirement for them.
Examples:
Sending the same letter to the patient more than once
Re-writing notes or forms because of their illegibility
Over-production
Transport or Conveyance
Unnecessary transportation of patients, stock, patient records and equipment which is not reaching its end goal, adds no value. Too much transportation should be avoided and is often the result of departments spaced far apart, or resources not being closely linked.
Examples:
Moving patients unnecessarily from ward-to-ward
Moving documents/patient records from one department to another
Transport or
Conveyance
Over-processing
Over-processing is where a process or person works hard, but not necessarily smart, creating a waste which is not always easy to see, and can often be mistaken as part of the process.
Examples:
Producing documents/charts/notes which are never to be seen or used
Performing more tests then are necessary for a patient
Over- processing
Rework
Rework is where a process or procedure is not completed correctly the first time and therefore needs to be re-done, or adjusted before it is deemed completed.
Rework
Examples:
Producing multiple documents due to incorrect information or errors
Multiple tests or clinic dates for a patient as correct information was not collected or noted upon initial visit or test
Stock
Stock = Materials in Stores (Medical equipment, Work-In-Process (WIP) & Finished Work)
Excess Stock = Cost (Cash)
Examples:
Too many drugs at ward
Uncontrolled material ordering
Stock
Motion
Motion is related to human movement. Good work area layout and process design minimises the amount of movement and saves time & effort when finding or fetching material or documents.
Example:
Poor work area design, causing unnecessary:
• Walking• Bending• Stretching
Motion
ResourceResource is the most valuable asset in any business, without it, no business can function or succeed successfully. The trick is to use the resource as they are the local experts.
Examples:
• Not Listening
• Not Asking
• Not Empowering
• Not doing anything with generated / suggested ideas
Resource
How does this fit with IT?
Understanding of problem space
Understanding of solution space
Focus
Business as Usual
+++
(specification as input)
+++
(focus on task efficiency)
Cycle time + cost reduction
Typical projects
+
(iterative specification)
++
(control what needs to be learned)
Earlier ROI
New Product Development
?
(specification as output)
?
(focus on learning efficiency)
Acquire and exploit knowledge faster than competitors
“Put yourself in the position of the customer and ask if you would pay less for the product or be less satisfied with it if a given step and its necessary time were left out.”
Mike Rother and John Shook, Learning to See
1. Extra features (overproduction)2. Delays (waiting)3. Hand-offs (source of delays and defects, loss
of information)4. Re-learning5. Partially done work (obsolescence, not JIT)6. Task switching (reduces throughput)7. Defects (unnecessary rework)8. Unused employee creativity
Software development waste
Non Value Add “unnecessary wastes”Waste to Eliminate!
Non Value Add “necessary waste” Waste to Reduce!
Value AddIncrease!
RENAL patients going through a Hospital Process
What is added value to the Customer
Look at End to End Value Chain
Pictures provided courtesy of Agility Healthcare Solutions
Mapping the Process…
Source – NHS Centre for Innovation
1 2 3 4 5 6 7 8 9
28 29 30 31 32 33 34 35 36
19 20 21 22 23 24 25 26 27
10 11 12 13 14 15 16 17 18
36 process steps
7 value add
29 process steps were non-value add or waste
Who thinks that of the 36 steps:
100% - 75% was added value activity?
75% - 50% was added value activity?
50% - 25% was added value activity?
Less than 25% was added value?
• Drive Cultural Change• People Engagement• Raise Problems in the moment • Cross Functional Team• Tracking Problems• Regular Disciplined Meetings• Responsibilities assigned
P – PlanD – DoC – CheckA - Act
Improvement
to patient care
& experience
Improvement
to patient care
& experience
Continuous
Improvement
Value
Waste
Flow
Perfection
Hospital Result…
ISSUE
Renal patients taking
FIFTEEN days to get
through process
ACTIVITY
Process Map
Team Work
Waste ID
Problem Solving
Project Mgt
Committed Leader
RESULT
Waste reduction allowed
sustainable reduction to EIGHT days
Set-based Concurrent Engineering
No problem is a problem
Authority-focus• “Whose job is this?”• “Not my problem”
Responsibility-focus• “What is the right thing to do?”• “How can I help?”
“Managing to Learn” by John Shook
Daily standup meetings
Heartbeat retrospectives
• What did we do well, that if we don’t discuss we might forget?
• What did we learn?
• What should we do differently next time?
• What still puzzles us?
http://www.retrospectives.com/pages/RetrospectiveKeyQuestions.html
Technique Time to detect problem
Pairing Seconds
Test Driven Development
Seconds to minutes
Co-location Seconds to minutes
Continuous Integration ~20 minutes to a couple hours
User Stories A couple days
Timeboxed development 1 – 4 weeks
Small releases 1 – 3 months
Just-in-Time is a response to the problem of overproduction
Stop The Line is a response to the problem of unnecessary rework
due to defects
The essence of Lean is engaging everyone in identifying and solving
problems
What type of results are we talking about?
“In our experience, applying the principles of lean manufacturing to [application development and maintenance] can increase productivity by 20 to 40 percent while improving the quality and speed of execution.”
N. Kindler, V. Krishnakanthan, R. Tinaikar, “Applying lean to application development and maintenance”, McKinsey on IT, Spring 2007
McKinsey on Lean IT
Forrester Research on ThoughtWorks Agile/Lean
Category Improvement
Total defects 63% less
Critical defects 79% less
Effort 62% less
Duration 69% less
So…what is required?
• A Clear Customer Focused Vision• Sustained Leadership Commitment • People Engagement / Role Clarity / Skills Developed• Structure Process & Project Management• Change Champions• A Sense of Urgency• Appropriate Activity Monitoring• Appropriate HR Policies
What’s next?
• Start where you are
• Don’t shy away from your problems
• Go and see
• Think
• And ask for help
For Further Information please contact:
ThoughtWorks – Jason Yip
Email [email protected] www.thoughtworks.com.au
KM&T – Paul Heatonmail [email protected] www.kmandt.com.au