Upload
karen-martin
View
1.764
Download
6
Embed Size (px)
Citation preview
Company
LOGO
Lean Webinar Series:
Advanced Lean for Office &
Service
November 9, 2010
© 2010 Karen Martin & Associates
Webinar Content
How and when to use takt time to balance work.
How to approach the need for load leveling.
How cross-training and co-location is an essential
step in a transformation.
The vital role and responsibilities for process
owners.
How to achieve value stream alignment.
How to translate operational metrics into financial
terms.
2
© 2010 Karen Martin & Associates
Creating a Lean Enterprise
Initial Lean focus Eliminate muda – Waste
Advanced Lean Eliminate muri – Overburden (people or
equipment)
Eliminate mura – Uneveness
3
© 2010 Karen Martin & Associates
Your Instructor
Early career as a scientist; migrated to
quality & operations design and
management in the mid-80’s.
Launched Karen Martin & Associates in
1993.
Specialize in Lean transformations in non-
manufacturing environments.
Co-author of The Kaizen Event Planner;
co-developer of Metrics-Based Process
Mapping: An Excel-Based Solution.
Instructor in University of California, San
Diego’s Lean Enterprise program.
4
Karen Martin,
Principal
Karen Martin &
Associates
© 2010 Karen Martin & Associates
Webinar Participants’ Experience
0
10
20
30
40
50
60
True Beginner BasicUnderstanding
Skilled Highly Skilled
3%
39%
49%
9%
5
© 2010 Karen Martin & Associates
Value Stream Mapping Proficiency
0
10
20
30
40
50
60
Never created one Just learning Skilled Highly skilled
5%
48%
35%
12%
6
© 2010 Karen Martin & Associates
Most Advanced Lean Tool(s)
None
Visual management
A3
Value stream mapping
5S
Kaizen events
Kanban
Layout/cells
Root cause analysis
Metrics-based process
mapping
Takt time
Critical-to-Quality Tree
PDCA and DMAIC
7
Building a Lean Enterprise
Process
Stabilization
Tools
Building a Lean Enterprise
Flow-
Enhancing
Tools
Building a Lean Enterprise
Multi-Functional Workers /
Cross-Training
Eases scheduling / more flexibility
Improves employee value to organization
Greater job satisfaction
Better problem-solving and decision-making
Required for one-piece flow or a pull system to
function properly
If work is segmented, rotate frequently enough
to keep skills and satisfaction up
Based on work volume and complexity
11
Building a Lean Enterprise
Problems with Poor Layout
Internal suppliers and customers are not connected
Difficult to solve problems
Difficulty innovating / sharing best practices
Difficult to find work and track progress
13
Sales
Purchasing Scheduling
Design
Engineer Estimating
Materials
Office Cell
14
Out
Forms
In
Cross-functional
One piece flow
Balanced -- waste removed
Cross-trained team
Standard work
Staffed to meet demand
Shared files
More efficient communication
Single point scheduling
Linking people and processes into the most efficient
combination to maximize value-added content while
minimizing waste.
Account Executive
(AE)
Account Manager
(AM)
Set-Up (SU)
AE
AM
1
2
3 4
4
UW
FD
Under-writer (UW)
Funder (FD)
AM
AE
5
5
1
1
2 2 4 4
6
6
Elevators & Restrooms
Loan Processing Flow (Before)
Legend
Work-In-Process (WIP)
Sequence Number
Loan Processing Flow (After)
Elevators & Restrooms
AE AM Set-Up
UW FD
AM
FD
AE
UW
1 2 1 2 3
Set-Up
3 4 4 5 5 Cu
sto
me
r
Cu
sto
me
r
AE AE
1 1 2 2
AM AM
Customer Customer Shared
Resource
Mortgage Application Process
Improvement Results
17
Metric Before After
Time to process a loan 5 Days 1.5 Days
Customer complaints 4/Loan 1/Loan
WIP 60 Loans 25 Loans
Building a Lean Enterprise
Pull Systems
A method of controlling the flow of work and/or material by replenishing work/material only as it is consumed
Types One-Piece Flow
FIFO lanes (first-in-first-out) Visual system authorizing supplier to send next “order”
Note: FIFO in and of itself is not a pull system
Kanban Visual card system authorizing supplier to replenish
stock/supplies/parts
If flow stops at a single point (no consumption), everything upstream stops as well (no replenishment)
19
© 2008 Karen Martin & Associates
Complete
Quote Completed
Quote RFQ Enter info.
in QEF log Customer
Verify
quote per
QEF
Pull System Flow Diagram
WIP Locations
Document Flow
Information Request
Customer
In
Box
In
Box
Closed loop
© 2008 Karen Martin & Associates
Pull Systems Concepts
If a bottleneck occurs, everything
upstream must stop!
Resource re-allocation must occur.
Cross-trained workers are essential.
Highlights problems and makes corrective
action mandatory.
© 2010 Karen Martin & Associates
Pull System in Admin Processes
Color coded folders or cards quick status of WIP at each process step
Maximum number of visual indicators between each process full queue indicates resources must be re-diverted
Monitor WIP at first process to estimate current throughput time
Step A Step D Step C Step B Step E
Single Bin Kanban System
(1)
Appropriate
Sized Bin
(kanban
quantity fits
into one bin)
(2)
Draw Line Inside
Pan at Order
Point Level
(3)
Insert Cardboard
Divider to Create
Physical Barrier
Kanban
Card
Place card on top of
parts immediately
under divider
Cardboard
Divider
Two-Bin Color-coded System
Tape Kanban
Do not replenish Replenish
26
Before / After
Excessive inventory;
Unclear who is responsible for
management/replenishment
Controlled inventory;
Color-coding identifies who is
responsible for
management/replenishment
Building a Lean Enterprise
Creating a Lean Enterprise
Eliminate muda – Waste
Eliminate muri – Overburden (people or
equipment)
Eliminate mura – Uneveness
28
29
0
2
4
6
8
10
12
14
16
18
20
Pro
cess
Cyc
le T
ime
Order Entry Sales Review Design Estimating
Unbalanced Work
Takt Time
= 15 Min.
Takt Time Application
German word being “pace” or “drumbeat”
Used for balancing work and reducing bottlenecks (especially for high volume work)
Best when workers are dedicated to one type of activity (even if for only a portion of the day) Tough to use when workers are multi-tasked
Will vary based on heavier or lower demand periods
30
Takt Time Example:
Continuous Production
31
Available work time Takt time = Customer demand
480 minutes/day Takt time = = 10.6 mins 45 new accounts
Each process step must have a process time of 10 minutes or less to avoid development of a backlog – OR more people to perform the task.
“Touch down”
Balanced Work
32
0
5
10
15
20
Pro
cess
Cyc
le T
ime
Order Entry &
Review
Standard
Design
Complex
Design
Estimating
Takt Time
= 15 Min.
Work Balancing Considerations
Avoid creating excessively narrow scopes of
responsibility.
“Production line” vs. one-stop-shop
Assess “between work item” mental setup (switching) required –
if redundant mental setup, consider one-stop-shop
Assess “within work item” mental setup (switching) required – if
too much, consider production line
Assess skill requirements – can one person easily do it all?
Who’s job is it?
Be willing to challenge paradigms
Segment the work when necessary
© 2010 Karen Martin & Associates 33
Use Work Segmentation in High
Variation Environments
Segment work based on process time needed to
complete the tasks (e.g. degree of complexity).
Cross-train workers to do all levels of
complexity.
Rotate staff from team to team frequently to
keep interest and skill level high.
Creates organizational flexibility
© 2010 Karen Martin & Associates 34
Task-level FTE Requirements
35
Process Time # FTEs Required = Takt Time
20 mins # FTEs = = 10 mins
2 FTEs required to
meet customer demand
Creating a Lean Enterprise
Eliminate muda – Waste
Eliminate muri – Overburden (people or
equipment)
Eliminate mura – Uneveness
36
37
Load Leveling
Three product types: A, B, C
Weekly customer demand: 12 A’s, 9 B’s, 3 C’s
Traditional Production Model
AAAAAAAAAAAA—BBBBBBBBB—CCC
Better
AAAA-BBB-C-AAAA-BBB-C-AAAA-BBB-C
Best
ACABABAB ACABABAB ACABABAB
© 2008 Karen Martin & Associates
© 2010 Karen Martin & Associates
Production Smoothing
(Heijunka)
Leveling of:
Volume of production
The same quantity is produced each “interval”
for each product family
Variety of production (product mix)
Every (high-volume) model is produced every
“interval”
Load Leveling Tips
First seek the root cause!
When external customers are creating unlevel incoming
load
We have much more influence over external customer behavior
than we think.
Incentives:
Information – e.g. add peak times to ACD phone recordings
Financial – provide discounts, etc. for making requests during certain
time periods – e.g. sunset dinner specials
When sales team creates unlevel incoming load
Change commission period/schedule.
When internal department creates unlevel load, find out
why and apply a countermeasure or incentive that works
for all.
© 2010 Karen Martin & Associates 39
© 2010 Karen Martin & Associates
Prerequisites to
Production Smoothing
1. Connect the processes where possible (cells)
2. Create pull
3. Create flow (balance the work)
4. Achieve predictability (level output produced
daily for the cell or the line)
5. Reduce work type changeover time
6. Increase number of changeovers per day so
can increase the number of each type of work
produced per day
41
42
Heijunka for the Office
43
44
Heijunka
Wheel
Lean Management
© 2010 Karen Martin & Associates 45
Process Ownership & Value
Stream Alignment
Value Stream Champion / Manager
Sole individual responsible for the performance of an entire
value stream across multiple departments or divisions.
Often carry P & L responsibility.
Process Owner
Sole individual responsible for the performance of a process
across many functions, regardless of the org chart.
Ongoing monitoring
Ongoing improvement
Org chart management
Direct reporting lines for day-to-day operation
Dotted lines to subject matter/policy expertise.
© 2010 Karen Martin & Associates 46
Creating Lean Leaders & Culture
The improvement professional’s primary role is
to sell and teach.
Many leaders aren’t improvement savvy.
Help them understand the process, the resources required,
etc. – answer Why? Why? Why?
Many individuals have been “burned” by previous
improvement approaches and are fearful in today’s
economy.
Help them see what’s in it for them.
Most people – from leadership to frontlines – aren’t
proficient problem solvers.
Teach them to fish.
© 2010 Karen Martin & Associates 47
© 2010 Karen Martin & Associates
Looking for Stuff: Time is Money
Organization with 1,500 employees Earn average of $22 per hour
Work 250 days per year
Each employee spends an average of 10 minutes per day looking or waiting for stuff Individual impact
= 41.7 hours wasted time per year
= 0ver a week of frustrating, unfulfilling, nonproductive time
Organizational impact = 62,550 hours of nonproductive time
30 FTEs worth of wasted resources
= $1.4 unnecessary direct expense per year
48
© 2010 Karen Martin & Associates
Translating Office/Service
Improvements into Financial Terms
(aka “Monetizing Results”)
49
© 2010 Karen Martin & Associates
Monetizing Results –
Expense Reduction Possibilities
Payroll
Paid overtime
Attrition (if flat or losing market share)
In-sourcing previously outsourced services
Supplies (one-time gain when implementing kanban)
Software licenses
Shipping expenses
Facility-related
Leases
Utilities
Borrowing expenses (due to improved cash flow)
50
© 2010 Karen Martin & Associates
Monetizing Results –
Cost Avoidance Possibilities
Freed capacity / hiring expenses
Turnover reduction / hiring expenses
Regulatory fines
Not scrapping nonreturnable material/supplies
Not ordering duplicate material/supplies
Not having to borrow money (due to improved
cash flow)
51
© 2010 Karen Martin & Associates
Monetizing Results – Revenue Gains, Revenue
Loss Avoidance, and Profit Gains
Freed capacity
Ability to absorb additional work without additional
labor or equipment
New revenue streams
Revenue gains
Shorter time to market
Sales team fully functional more quickly
Market share gains
Retaining high risk (“jeopardy”) accounts
52
© 2010 Karen Martin & Associates
Monetizing Results –
Revenue Loss Possibilities
Reducing PT in T&M Environments
Overcome by market share gains & new revenue
streams
53
54
7770 Regents Road #635
San Diego, CA 92122
858.677.6799
For Further Questions
Free webinars and monthly newsletter:
www.ksmartin.com/subscribe
Connect with us: