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Quality & Business Excellence Conference 26 – 27 November 2012
Quality & Business Excellence Conference 26 – 27 November 2012
Lean for Service Overview
Elizabeth M. Keim
Past President ASQ
Quality & Business Excellence Conference 26 – 27 November 2012
• Introduction to lean
• Introduction to waste
• Application to service processes
Learning Objectives
Quality & Business Excellence Conference 26 – 27 November 2012
3
Role Of Lean
• Efficient way to reduce waste
• Eliminate preventable demand
• Stop doing wrong things righter
Quality & Business Excellence Conference 26 – 27 November 2012
4
Lean Principles
• Define value from customers’ perspective
• Document value stream
• Reduce waste
• Improve flow
• Drive for pull
• Continuously improve
Quality & Business Excellence Conference 26 – 27 November 2012
5
Lean Goals
• Best quality
• Lowest cost
• Shortest lead time
• Best safety
• Highest morale
Quality & Business Excellence Conference 26 – 27 November 2012
6
Lean Is and Is Not
Lean is not
telling people how to do their jobs more effectively
Lean is
empowering people to plan how they will implement changes that simplify satisfying customers
Quality & Business Excellence Conference 26 – 27 November 2012
7
Purpose of Value Stream Map
• Customers/transaction perspective
• Single view
– Complete
– Fact-based
– Time-based
• Common view for analysis
• Information triggers and flows
• Time and value for activities
Quality & Business Excellence Conference 26 – 27 November 2012
8
Total Value Stream • All actions currently required to bring
service/transaction through organization
– Big picture
– Cross-functional
Suppliers
Put requirements
on these
Organization Process
Improve this
Customer End User Consumer
Determines
value
Quality & Business Excellence Conference 26 – 27 November 2012
9
Waste Categories • People
• Process
• Information
• Asset
• Value-add
• Over-processing
• Transportation, storage
• Over-production
• Waiting, delays
• Rework, defects
• Unclear communication
• Work-in-process
• Unnecessary movement
• Value-add
95%
5%
Quality & Business Excellence Conference 26 – 27 November 2012
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Value
• Three categories of tasks in process:
• Value-add (essential) tasks
– Cause actual change
– Customer notices and wants change
– Done right first time
• Waste
– Business value-add (BVA) - currently necessary
– Non-value-add (NVA) - not necessary
Quality & Business Excellence Conference 26 – 27 November 2012
11
Toyota Production System • Operational stability &
Cultural alignment
• Just-in-time
• Built-in quality
• Continuous improvement
– People and teamwork
– Waste reduction
Continuous Improvement
Just- in-
Time
Built-in Quality
Operational Stability Cultural Alignment
Quality & Business Excellence Conference 26 – 27 November 2012
12
Cultural Alignment & Operational Stability
Quality & Business Excellence Conference 26 – 27 November 2012
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Liker Model of Culture
Philosophy
Problem Solving
Process
People and Partners
Challenge
Genchi Genbutsu
Respect and Teamwork
Kaizen
Quality & Business Excellence Conference 26 – 27 November 2012
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Process and Problem Solving
• Flow • Pull • Workload balance • Error reduction • Standardization • Visual controls • Mistake proofing • Going to problem, getting hands dirty • Decisions based on facts • Continual learning
Quality & Business Excellence Conference 26 – 27 November 2012
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Operational Stability
• Leveled production
– Standard times for different services
• Standardized work
– Countermeasure to problems
• Visual management
– Transparency and ability to see what is going on
• 5S
– Tools to facilitate teamwork
Quality & Business Excellence Conference 26 – 27 November 2012
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5 S
• Tool to facilitate teamwork
• Create and maintain organized, clean, safe, and high-performance workplace
Quality & Business Excellence Conference 26 – 27 November 2012
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Sort
• Distinguish between what is essential and what isn’t
– Discuss value of items in work area
– Understand more about work and how to work differently
Quality & Business Excellence Conference 26 – 27 November 2012
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Straighten
• Put things where best meet functional purpose rather than neat workplace
• Improve flow, putting everything at point of use
Quality & Business Excellence Conference 26 – 27 November 2012
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Shine
• Identify and eliminate root causes of waste, dirt, and damage
• Gather data for root cause analysis (uncovering)
Quality & Business Excellence Conference 26 – 27 November 2012
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Standardize
• Visually maintain agreed-upon conditions rather than writing work instructions
• Employees value doing right things right way every time
• Provides means to speak same language and road map
Quality & Business Excellence Conference 26 – 27 November 2012
21
Sustain
• Do what is required even if difficult
• Constant vigilance
• Management deploys ways for teams to more easily follow standards
Quality & Business Excellence Conference 26 – 27 November 2012
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Just-in-Time
Quality & Business Excellence Conference 26 – 27 November 2012
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Just-in-Time
• Takt time
• Continuous flow
– Preceding process must always do what subsequent process says
• Quick setup
• Pull system
• Kanban – ticket or signal
Quality & Business Excellence Conference 26 – 27 November 2012
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Built-in Quality
Quality & Business Excellence Conference 26 – 27 November 2012
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Built-in Quality
• Stop the process
– Automatic stops
– Signal for assistance
• Mistake proofing
• In-station quality control
• 5 Whys
Quality & Business Excellence Conference 26 – 27 November 2012
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Continuous Improvement
Quality & Business Excellence Conference 26 – 27 November 2012
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Future State Map
• Identify utopia
• Identify more grounded future state
• Develop plan to achieve future state
Quality & Business Excellence Conference 26 – 27 November 2012
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Eliminate Obstacles to Flow
• Functional organization
• Inadequate resources
• Unnecessary documents, approvals, waits
• Excessive work-in-process
• Batch processes
Quality & Business Excellence Conference 26 – 27 November 2012
29
Pilot
Test solution on small scale
• Test solution in small part of organization
• Find possible failure points
• Validate/refine cost/benefit estimates
• Evaluate process measures
• Increase buy-in
Quality & Business Excellence Conference 26 – 27 November 2012
30
Criteria for Pilot
• Two areas to test
– Implementation
– Solution
• Success criteria established for both
Quality & Business Excellence Conference 26 – 27 November 2012
31
Lean
• Principles to achieve
– High performance
– Add value to customers and society
• Focus on
– Value-adding processes
– No interruptions
– Customer pull
– Continuous improvement
Quality & Business Excellence Conference 26 – 27 November 2012
32
Lean for Service Overview
Elizabeth M. Keim
Past President ASQ
Integrated Quality Resources, LLC
Quality & Business Excellence Conference 26 – 27 November 2012
33
References
• 5S for Service Organizations and Offices, Debashis Sarkar, 2006, ASQ Quality Press. (office processes)
• Kaizen Event Fieldbook, Mark R. Hamel, 2010, Society of Manufacturing Engineers. (planning Kaizen events)
• Lean for Dummies, Natalie J. Sayer and Bruce Williams, 2007, Wiley Publishing Inc.
• The Lean Office, 2005, Productivity Press. (implementation)
• Lean Thinking, James P. Womack and Daniel T. Jones, 2003, Free Press. (philosophy)
Quality & Business Excellence Conference 26 – 27 November 2012
34
References • Mapping Work Processes, Dianne Galloway, 1994, ASQ
Quality Press. (basic process mapping)
• Office Kaizen 2, William Lareau, 2011, ASQ Quality Press. (waste categories)
• Metrics-Based Process Mapping, Karen Martin and Mike Osterling, 2008, Productivity Press. (value stream mapping)
• The Toyota Way, Jeffrey K. Liker, 2003, McGraw-Hill. (culture)
• Value Stream Management, Don Tapping, Tom Luyster, and Tom Shuker, 2002, Productivity Press. (people side)