THIS IS LEAN - Dataföreningen Kompetens · What is lean? • Way of working • Philosophy •...
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THIS IS LEAN
Niklas Modig Stockholm School of Economics
@LeanOnMyself
www.facebook.com/niklasmodig
@niklas_modig
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What is lean?
• Way of working • Philosophy • Approach to improvement
• Approach
• Systems thinking
• Culture • Quality system
• Way of life
• Method
• Production system
• Strategy
• Eliminating waste
• System for understanding
• Mind-set
• Values
• Management system
• Tool box
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High level of abstraction
Low level of abstraction
Fruit
Pear
Whole Piece
Apple
Green Red
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Three central choices
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Alison thinks she has cancer
Local doctor’s surgery
Mammography & ultrasound
Breast clinic Breast clinic Cytology
WaiCng WaiCng WaiCng WaiCng
42 days
First contact
Diagnosis
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Sarah feels a lump in her breast
One stop breast clinic
2h
Diagnos Diagnosis First contact
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Any difference?
2h 42 days 24h =1008h
500 $mes faster WHY?
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Two different views on efficiency
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42 days
First contact
Diagnosis
Local doctor’s surgery
Mammography & ultrasound
Waiting Waiting Waiting Waiting
Breast clinic Breast clinic Cytology
RESOURCE EFFICIENCY à FOCUS: RESOURCE
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Filming the “source”
RESOURCE EFFICIENCY à FOCUS: RESOURCE
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42 days
First contact
Diagnosis
Local doctor’s surgery
Mammography & ultrasound
Waiting Waiting Waiting Waiting
Breast clinic Breast clinic Cytology
FLOW EFFICIENCY à FOCUS: FLOW UNIT
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Filming the “receiver”
FLOW EFFICIENCY à FOCUS: FLOW UNIT
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Two different strategies
Resource efficiency Flow efficiency
Focus Resources / funcCons Customer / unit
Goal High capacity uClizaCon Fulfil needs
OrganizaCon Parts / ”Islands” System / ”Ocean”
Competence Specialists / “depth” MulC-‐competence / “Width”
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What shall we prioritize first?
RESOURCE EFFICIENCY FLOW EFFICIENCY
HIGH CAPACITY
UTILIZATION
LOW CAPACITY
UTILIZATION
WASTE
LONG THROUGH-PUT TIME SHORT THROUGH-PUT TIME
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Flow efficiency
Resource efficiency
WHY?
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42 days
Local doctor’s surgery
Mammography & ultrasound
Waiting Waiting Waiting Waiting
Breast clinic Breast clinic Cytology
Maximize capacity
utilization
Maximize capacity
utilization
Maximize capacity
utilization
Maximize capacity
utilization
Maximize capacity
utilization
What happens when “a system” is busy? à A diagnose will take long time à We have to handle many patients at the same time à We have to restart the diagnose many times
First contact
Diagnosis
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1 2 3 4
Flow efficiency
THE OPTIMAL PROCESS
Free capacity
Free capacity
Free capacity
Free capacity
100% utilization
100% utilization
100% utilization
100% utilization
What happens when “a system” is busy? à Things will take long time à We have to handle many things at the same time à We have to restart the value adding process many times
Resource efficiency
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Different indirect effects
Resource efficiency Flow efficiency
Through-‐put Cme Long Short
Number of units Many Few
Restarts Many Few
Resource efficiency Flow efficiency
Focus Resources / funcCons Customer / unit
Goal High capacity uClizaCon Fulfil needs
OrganizaCon Parts / ”Islands” System / ”Ocean”
Competence Specialists / “depth” MulC-‐competence / “Width”
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Resource efficiency
Through-‐put Cme Long
Number of units Many
Restarts Many
Resource efficiency drives ”system waste”
Forget, frustraCon, rework, search…
Difficult to handle, Under-‐capacity... Quality problems, no system responsib…
Failure demand
à UnsaCsfied customers à UnsaCsfied personnel à Waste
NegaCve result Resource efficiency
Focus Resources / funcCons
Goal High capacity uClizaCon
OrganizaCon Parts / ”Islands”
Resource efficiency
Focus Resources / funcCons
Goal High capacity uClizaCon
OrganizaCon Parts / ”Islands”
Competence Specialists / “depth”
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Three sources of inefficiency
Many restarts
Long throughput
time
Many flow units
Over-focus on resource efficiency
Secondaryneed
Secondaryneed
Secondaryneed
Secondaryneed
Secondaryneed
Secondaryneed
Secondaryneed
Secondaryneed
Secondaryneed
Secondaryneed
Secondaryneed
Secondaryneed
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The efficiency paradox By NOT focusing on maximizing capacity utilization, MORE capacity will be available
Value-‐added work
(Primary need)
Value-‐added work
(Primary need)
Total capacity (100%)
Superfluous work (Secondary need)
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The efficiency matrix
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The efficiency matrix
Flow efficiency
Resource efficien
cy
Low High
Low
High
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The efficiency matrix
Flow efficiency
Resource efficien
cy
Low High
Low
High
Strategy to
increase re
source efficien
cy
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The efficiency matrix
Flow efficiency
Resource efficien
cy
Low High
Low
High
Strategy to increase flow efficiency
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This is lean = an operations strategy
Flow efficiency
Resource efficien
cy
Low High
Low
High
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Flow efficiency
Resource efficiency
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How to do the “how”?
Flow efficiency
Resource efficien
cy
Low High
Low
High
Current state
Future state
How?
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?
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Just-in-time and Jidoka 89:30
5 1 SCORE
Perfect understanding of: • The process / the system • + / - • Progress
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Welcome to Stockholm School of Economics!
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How can we develop operaCons where everyone “sees” everything and has perfect progress control all the Cme?
ONE CLICK AWAY à ONE LOOK AWAY
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Monitor the progress of the
system
Monitor the outcome from “my island”
Flow efficiency
Resource efficiency
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When is an organisation lean?
Flow efficiency
Resource efficien
cy
Low High
Low
High
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+
time
1 2
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+
time
1 2
How?
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0 6
ACTION REACTIONPROACTION
1 2 3 4 5
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1 2 3 4 5
0 6
ACTION REACTIONPROACTION
NORMAL FLOW
1. SET
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1 2 3 4 5
1 2 3 4 50 6
ACTION REACTIONPROACTION
NORMAL FLOW
2. TEST1. SET
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1 2 3 4 5
1 2 3 4 50
A
6
B
ACTION REACTIONPROACTION
3. EVALUATE
DEVIATION
NORMAL FLOW
2. TEST
DEVIATION
1. SET
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1 2 3 4 5
1 2 3 4 50
A
6
B
ACTION REACTIONPROACTION
3. EVALUATE
DEVIATION
DEVIATION+
NORMAL FLOW
2. TEST
DEVIATION
-
X
1. SET
NORMAL OUTCOME
X
X
DEVIATION
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1 2 3 4 5
1 2 3 4 50
A
6
B
ACTION REACTIONPROACTION
3. EVALUATE4. ANALYZE
DEVIATION
DEVIATION+
NORMAL FLOW
2. TEST
WHY?DEVIATION
WHY?
-
WHY?
X
1. SET
NORMAL OUTCOME
X
X
DEVIATION
WHY?
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1 2 3 4 5
1 2 3 4 50
A
6
B
ACTION REACTIONPROACTION
3. EVALUATE4. ANALYZE5. LEARN
DEVIATION
DEVIATION+
NORMAL FLOW
2. TEST
WHY?DEVIATION
WHY?
-
WHY?
X
1. SET
NORMAL OUTCOME
AHA! AHA!
AHA!
X
X
DEVIATION
WHY?AHA!
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1 2 3 4 5
1 2 3 4 50
A
6
B
ACTION REACTIONPROACTION
3. EVALUATE4. ANALYZE5. LEARN6. IMPROVE
DEVIATION
DEVIATION+
NORMAL FLOW
CHANGE
2. TEST
WHY?DEVIATION
WHY?
-
WHY?
X
1. SET
NORMAL OUTCOME
AHA! AHA!
AHA!
X
X
DEVIATION
WHY?AHA!
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1 2 3 4 5
1 2 3 4 50
A
6
B
ACTION REACTIONPROACTION
3. EVALUATE4. ANALYZE5. LEARN6. IMPROVE
DEVIATION
DEVIATION+
NORMAL FLOW
CHANGE
2. TEST
WHY?DEVIATION
WHY?
-
WHY?
X
1. SET
NORMAL OUTCOME
AHA! AHA!
AHA!
X
X
DEVIATION
WHY?AHA!
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THE LEARNING
LOOP
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Flödese!ektivitet(%)
Utgångspunkt
Utgångspunkt
Tid
Dynamiskt mål(kontinuerlig förbättring)
Dynamiskt mål(utvecklas hela tiden)
The learning organisation
Flow efficiency
Time
Current state
Current state
A dynamic state “con$nuous evolu$on”
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ProacCve learning
ReacCve execuCon
Monitor the progress of the
system
Monitor the outcome from “my island”
Flow efficiency
Resource efficiency
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THANK YOU!