What do you mean “Lean” – Bandwagon or Benefit?

© 2014 Copyright ISC Ltd.1

What do you mean “Lean” – Bandwagon or Benefit?

A facilitated “Making an Impact” workshop at OR56

Ian J Seath

© 2014 Copyright ISC Ltd.

What you will learn…

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Find out where Lean came from and why it is relevant, not just in the manufacturing sector

Understand key Lean concepts such as Value, Waste and Flow

Have a go at using some Lean tools and techniques (e.g. Value Stream Mapping, 7 Wastes Process Walk-through)

See what tools and techniques are in the Lean toolkit

Understand why Lean is really all about engaging people in improvement (and not about tools)

Be able to spot opportunities to apply Lean Thinking, back at work

Is that an “active banana” or an “inactive banana” on your desk?



In a nutshell…

Lean: Driving out waste by using TIME as a

competitive weapon

Evolution of Lean Thinking


Lean Concepts

Toyota ProductionSystem

Lean Thinking“Lean Enterprise”

5

1991

6

Who’s using Lean?


Some examples of ‘service’ or ‘back office’ programmes that have delivered significant benefits:

Housing Association

Call Centre

30% reduction in “chasing” calls from

customers

Home Office

Claim process capacity increased by 130%

ING

Foreign Exchange Processing

Increased straight- through processing from

70% to 95%

O2

Value Stream Programme

25% reduction in time spent on non-value-

adding activity in stores

Probation

Drug Testing Programme

Capacity increased to 110% of target

Bolton Hospital

Pathology Lab

Sample testing time reduced from 24 to 2

hours

Where are we now?Understand

current performance

Reduce waste

Implement improvement

Improve continuously

Lean improvement approach


Current State VSM VAR Waste/Flow Future State VSM

ELAPSED TIME =

V.A. TIME=

V.A.RATIO= %

Lean: Time as a competitive advantage

8 hrs 24 hrs

ENQUIRIES RECEIVED

.5 hrs 8 hrs 2 hrs 24 hrs .5 hr

ALLOCATION&

PLANNING WRITTENACK

CUSTOMERS

ACTION

SIGN OFF

SIGNOFF

SIGNOFF

MEMO

SORTINGANALYSIS RESPONSE AGREEMENT

16 hrs

16 hrs

.5 hr8 hrs

8hrs

8 © 2014 Copyright ISC Ltd.

ELAPSED TIME =59.5 hrs

V.A. TIME= 3.5

hrsV.A.RATIO

= 6%

Lean: Time as a competitive advantage

8 hrs 24 hrs

ENQUIRIES RECEIVED


ALLOCATION&

PLANNING WRITTENACK

CUSTOMERS

ACTION

SIGN OFF

SIGNOFF

SIGNOFF

MEMO


16 hrs

16 hrs

.5 hr8 hrs

8hrs


ELAPSED TIME =59.5 hrs

V.A. TIME= 3.5

hrsV.A.RATIO

= 6%

What causes delay in a process?

8 hrs 24 hrs

ENQUIRIES RECEIVED


ALLOCATION&

PLANNING WRITTENACK

CUSTOMERS

ACTION

SIGN OFF

SIGNOFF

SIGNOFF

MEMO


16 hrs

16 hrs

.5 hr8 hrs

8hrs


Value Stream Mapping



Value Stream Mapping There's a man called Santa who sleeps most of the year and only

gets up at Christmas. He's got a band of dwarves, fairies and elves who do things for him. The elves take care of the mail that arrives at his grotto all through the year, and the fairies deal with his stock: presents which are made to order by dwarves.

Throughout the year, Santa gets letters (60%) and e-mails (40%) from boys and girls asking for presents.

When an elf gets a letter from a boy or girl who has been good, they send the letter to the dwarves, who make the requested present. Letters from boys and girls who have been bad (5%), get posted back to the sender, with a 'do better' message.

The dwarves send the newly-made presents to the fairies who pack them, taking care to put them in the right sacks so that Santa's very full schedule on Christmas Eve runs without a hitch.


Value Stream Mapping There's a man called Santa who sleeps most

of the year and only gets up at Christmas. He's got a band of dwarves, fairies and elves who do things for him. The elves take care of the mail that arrives at his grotto all through the year, and the fairies deal with his stock: presents which are made to order by dwarves.

Throughout the year, Santa gets letters (60%) and e-mails (40%) from boys and girls asking for presents.

When an elf gets a letter from a boy or girl who has been good, they send the letter to the dwarves, who make the requested present. Letters from boys and girls who have been bad (5%), get posted back to the sender, with a 'do better' message.

The dwarves send the newly-made presents to the fairies who pack them, taking care to put them in the right sacks so that Santa's very full schedule on Christmas Eve runs without a hitch.

www.improvement-skills.co.uk [email protected] M: 07850 728506 @ianjseath

http://www.improvement-skills.co.uk/

mailto:[email protected]

One possible answer…


Value…

Real Value Add Those activities which a

customer would expect you to do for them in producing the output

Ask “Could we invoice the customer for having done this activity?”

Business Value Add Those activities which you

have to do in order to… Stay legal Be compliant Manage the organisation

Challenge: “Would we get locked up, shut down, or fined, if we didn’t do this activity?

© 2014 Copyright ISC Ltd. 15

• Every activity in a process either adds value or cost.• Value Add is determined firstly from the Customer’s perspective.• There may also be Business Value Adding activities.• Everything else is Waste.

Waste Waste is anything that does not add value to

your product or service Eliminating waste gives you more resource to

meet your customers’ requirements Waste will always be present, so there is always

something that you can do to improve your performance

Identifying all the waste in your processes forces you to compare your operation against perfection.....…and this is not a comfortable experience!


The Seven Wastes


Waste ExamplesPeople Waiting Waiting for “stuff to arrive”, Waiting for people to make a decision

Over-production

Producing extra copies “just in case”; Sending two people, when one would be enough

Rework & Failures

Correcting errors in reports, databases, plans, documents , Dealing with complaints, Paying compensation claims, Operating a Helpdesk

People Moving Travelling to and from meetings, incidents, interviews

Over-processing

Doing any steps that are unnecessary; Checking the quality of somebody else’s work; Keying the same information into multiple databases; Gathering the same information from a client/victim/suspect on different Forms

Inventory Cupboards full of stationery in every office; Stores of obsolete brochures, forms, posters; Piles of files on desks (work in progress)

Transport of materials

Moving files around between locations; Moving files to and from archives

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Some Lean tools and techniques


ReducedBatching

5S

Standard-isedWork

Visual Control

KaizenBlitz

Supplier/Customer Relationships

Poka Yoke

Continuous Flow

Setup Reduction(SMED)

SevenWastes

Overall Equipment Effectiveness

PullSystem

Lean is a “people thing”…

Continuously meeting agreed customer requirements

At the lowest cost

By releasing the potential of all employees


Ensuring Success: Force Field Analysis What are all the things that will help us

implement successfully?

Include actions in your Plan to build on these

What are all the things that might hinder successful implementation?

Include actions in your Plan to minimise, or eliminate, these

© 2014 Copyright ISC Ltd. 21

Ian J Seath, DirectorImprovement Skills Consulting Ltd.

www.improvement-skills.co.uk

[email protected]

M: 07850 728506

@ianjseath


http://www.improvement-skills.co.uk/

mailto:[email protected]

What do you mean “Lean” – Bandwagon or Benefit?

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