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LEAN IT - LEANING OUT YOUR IT PROCESSES CAN SAVE MONEY, REDUCE TIME TO DELIVER SERVICES AND HELP YOU FOCUS ON THE PROJECTS THAT MATTER TO THE BUSINESS.
Dr. George Royce Ph.D, PMPUniversity of Nebraska at [email protected] or [email protected]: http://roycesite.com/george/index.htmlAlso on LinkedIN and Facebook
Agenda
2Dr. George Royce
Topic Time
Welcome and Introductions 8:30 – 8:40
Discuss Lean Concepts as it applies to Information Technology Processes and concept of customer value and waste in existing processes
8:40 – 9:00
Team Activity 1: Examples of Waste in IT Processes – Your team 5 minutes! 9:00 - 9:10
Kaizen Event Overview and Voice of the Customer 9:10 – 9:40
Team Activity 2: Build a SIPOC for the EFS New Hire Process or your process 9:40 – 9:55
Swim Lane Map and Value Stream Map and Value Add Verses Non Value Add 9:55 – 10:30
Break 10:30 – 10:45
Team Activity 3: Build a Swim Lane Value Stream Map 10:45 – 11:15
Review the Value Stream Maps from each team and discuss Lean Metrics and Methods 11:15 – 11:40
Team Activity 4: Teams Brainstorm analysis, additional data collection and experiments. Teams review/complete the Kaizen Charter
11:40 – 12:10
Teams present the their analysis and recommendations for additional data collection, experiments and improvements.
12:10 – 12:30
Summary and Wrap-up 12:30 – 12:40
Dr. George Royce
Lean Definition of LEAN: A business approach based on the
goal of eliminating waste and maximizing flow in business processes.
Lean began as a methods of driving cost of out of auto manufacturing. Toyota has been a leading user of the lean approach since the 1950’s.
Goals: Henry Ford’s low cost, fast lead time, high Quality with GM’s Variety of product.
Toyota Achieved these goals by the 1980’s. Focuses on the elimination of Waste. Reduction in waste leads to increased speed and reduced
cost. Value in products or processes should be viewed in
the eyes of the customer. What is the customer willing to pay for?
Lean Six Sigma for Service by Michael L. George
Dr. George Royce
What is Lean IT and why should we care? Lean IT is the application of LEAN
principles to all IT processes. – Steve Bell
Why?
“Technology is simply a vehicle for carrying out processes. The power of your company is contained in the processes themselves. The most valuable opportunities for establishing competitive differentiation are in how a product or service is created, sold, delivered, and supported.” – Jack Welch, former CEO of GE
It is involved in all the above processes today in most companies
Mutual of Omaha embraced Lean IT to eliminate wasteful processes and low value or no value software. We wanted to re-invest the savings in strategic business projects for our customers.
What Are the Information Technology Processes? – ask your IT auditor! COBIT 5 Defines each process in detail.
Dr. George Royce Source: COBIT® 5, figure 16. © 2012 ISACA® All rights reserved.
Why focus on Lean IT?
Deliver more strategic projects and spend less time on service and support.
We still want “good enough” service and support that keeps us safe and productive!
IT can and will change our processes but to make this happens the business needs to change as well.
Dr. George Royce
Lean out Project Management and Development – Adopt Agile / SCRUM methods “Agility is the ability to both create and respond to change in
order to profit in a turbulent business environment.”—Jim Highsmith, Agile Software Development Ecosystems
Early indication that Agile/SCRUM provides better results: “In its 2011 CHAOS Manifesto report surveying the success of
software projects between 2002 and 2010, the Standish Group found that projects based on traditional waterfall methodology succeeded 14% of the time, whereas agile-based projects had a success rate of 42%”
IT really liked the collaboration with the business in building a backlog of stories and working from the backlog based on business product owner decisions.
Business also had to change as well: Needed to play a larger role in the form of Product owner
verses a sponsor. The required much more engagement and accountability for projects
Subject Matter Experts on co-located teams.
Dr. George Royce “Developing and Succeeding with Scrum” by George Ogata, Computerworld July 17, 2012.
Leaning out Service and Support processes Move to pull process
Adopt Kanban Kan means "visual" ,ban means "card" or "board” A signaling system to trigger action Uses cards to signal the need for work to be done Toyota Lean lesson focusing on Just in Time
production
Dr. George Royce
Rules of Kanban and a Sample Kanban Board
Dr. George Royce
Strict Queue Limits Pull Value Through Make it Visible Remember – “Value” in the eyes of the customer Big changes for customers: fewer items actively worked on but
completed more quickly
Leaning out Software/Hardware and support – Institute Application Portfolio Management
Dr. George Royce
“Application Portfolio Management (APM) initiative will measure and justify the benefits of all software applications in comparison to their cost. The process will allow the APM team to identify and eliminate unused or unnecessary applications and ultimately save the company money and free up resources that will allow Mutual of Omaha to sustain a competitive advantage.”
How: Class applications as: Invest, Tolerate, Migrate, Eliminate and obtain buy in from customers explaining how much applications really cost using TCO. Set goals in the business to eliminate or migrate applications.
A great time to do this is during a desktop upgrade. A number of companies have reduced their IT software /hardware budgets by
millions as a result of this effort. After the project, make it a part of your process going forward!
Tolerate
Migrate
Invest
Eliminate
158 185 210
374
0 0 0 0 0 0
00
0
100
200
300
400
500
600
700
800
900
1000
Dec 2010
Jan 2011
Feb 2011
Mar 2011
Apr 2011
May 2011
Jun 2011
Jul 2011
Aug 2011
Sep 2011
Oct 2011
Nov 2011
Dec 2011
Retired Applications
$0.0
$0.2
$0.4
$0.6
$0.8
$1.0
$1.2
$1.4
$1.6
$1.8
$2.0
Dec 2010
Jan 2011
Feb 2011
Mar 2011
Apr 2011
May 2011
Jun 2011
Jul 2011
Aug 2011
Sep 2011
Oct 2011
Nov 2011
Dec 2011
Return on Applications Retired- Annual Savings
Mil
lion
s$0.9
$1.0$1.1
$1.4
Time Model
Using Kaizen to help improve all your IT processes
Dr. George Royce
Kaizen means “a change for the good” Kaizen is an approach to continuous process improvement. It
is a way of thinking and behaving. It is about unleashing the creative power of people actually doing the work, in order to design more effective and efficient processes.
Practicing kaizen on a daily basis promotes lean thinking
Problems with IT Processes
Customers complain that the process: Costs too much (they are not willing to pay for it) Takes too long Delivers a “gold plated solution or product when the customer
wanted something simpler, faster and cheaper.
Processes can contain “hidden factories” – costly sub-processes that were put in place due to a problem that occurred years ago that has not re-occurred.
Processes contain waste in the eyes of the customer and need to be leaned out.
Waste is something the customer is not willing to pay for during a process.
What are other problems of processes you have encountered in your company or others?
Dr. George Royce
Lean Concept of Waste – Original 7 + 1
Dr. George Royce
1
2
3
45
7
6
Overproduction – To produce sooner, faster or in greater quantities than customer demand
Inventory – Raw Materials, work in progress or finished goods which is not having value added to it.
Waiting – People or parts that wait for work cycle to be completed
Motion - Unnecessary movement of people parts or machine within a process
Transportation - unnecessary movement of people or parts between processes
Rework – Not done right the first time. Repetition or Correction of a Process
Over-Processing – Processing beyond the standard required by the customer
8Intellect – any failure to fully utilize the time and talent of people
Dr. George Royce
Waiting and Over Production
Waiting – People or parts that wait for work cycle to be completedPeople waiting on systems or machines – applications, copiers, etc…People waiting on others
Sign offs Edit Client input
Overproduction – To produce sooner, faster or in greater quantities than customer demand Extra CopiesUnused storage, CPU CyclesInventory stockpiles
Dr. George Royce
Inventory and Motion
Inventory – Raw materials, work in progress or finished goods is not having value added to itBacklogs of work waiting on resourcesRetaining information not needed – documents, data files, etc…Creating product before there is customer demand
Motion – Unnecessary movement of people, parts or machine within a process Looking to find information or supplies. – Poor search capabilityMouse clicks needed to access informationCustomer suppliers too far apartTraveling verses conference call or Webex
Dr. George Royce
Transportation and Rework
Transportation – unnecessary movement of people, information or parts between processesWrong informationInformation that is relayed up and down the ladderInformation handoffsHand carried documentsComplex information management
Rework – Not done right the first time. Repetition or Correction of a ProcessMissing information and rework to collect itCorrecting errorsExtra manpower to check and redoRequirements not being metReactive organization (firefighting vs prevention)
Dr. George Royce
Over-Processing and Intellect
Over-processing – Processing beyond the standard required by the customerEndless refinementsRedundant ApprovalsReports with too much informationReports never used Excessive distribution
Intellect – any failure to fully utilize the time and talent of peopleFew improvementsDoing “MY” job mentalityLack of employee involvementPoor morale
ACTIVITY 1 : IT Waste Examples
Dr. George Royce
Directions:Work in Teams. List 1-2 forms of Waste in the IT processes.List on Flip Chart PaperYou have 5 minutes. Begin now.
1
2
3
45
7
6
Overproduction – To produce sooner, faster or in greater quantities than customer demand
Inventory – Raw Materials, work in progress or finished goods which is not having value added to it.
Waiting – People or parts that wait for work cycle to be completed
Motion - Unnecessary movement of people parts or machine within a process
Transportation - unnecessary movement of people or parts between processes
Rework – Not done right the first time. Repetition or Correction of a Process
Over-Processing – Processing beyond the standard required by the customer
8Intellect – any failure to fully utilize the time and talent of people
Principles of Kaizen 1. Say no to status quo, implement new methods and assume they will
work 2. If something is wrong, correct it 3. Accept no excuses and make things happen 4. Improve everything continuously 5. Abolish old, traditional concepts 6. Be economical. Save money through small improvements and spend
the saved money on further improvements 7. Empower everyone to take part in problems' solving 8. Before making decisions, ask "why" five times to get to the root cause.
(5 Why Method) 9. Get information and opinions from multiple people 10. Remember that improvement has no limits. Never stop trying
to improve – Continuous improvement
Dr. George Royce
Kaizen Event Are formalized activities that organizations use to achieve
rapid and dramatic improvements and progressively shift their culture.
The kaizen event may be a few days to a few weeks at the most to Determine the current state of a process (baseline) Describe the problems Agree on a future state Conduct experiments to determine the future state can be achieved
by the improvements Define and accomplish the quick wins to gain most of the benefits Add remaining tasks to a backlog to achieve continuous
improvement
Why Do a kaizen Event? – Establish, change and improve a process.
Dr. George Royce
Steps in a Kaizen Event
Dr. George Royce
Define ProcessProblem
Define ProcessProblem
Identify Waste in Current Process
Identify Waste in Current Process
Conduct Gap & Root Cause
Analysis
Conduct Gap & Root Cause
Analysis
Measure Current Performance
Measure Current Performance
Define Should-BeProcess
Define Should-BeProcess
Develop 60 Day Action Plan
Develop 60 Day Action Plan
Improve Current Process
(This may include multiple experiments
before implementing)
Improve Current Process
(This may include multiple experiments
before implementing)
Standardize Operating Procedures
Standardize Operating Procedures
Expose ProblemsExpose Problems
Find theRoot CauseFind the
Root Cause
ImplementChanges
ImplementChanges
StandardizeWork
StandardizeWork
Do
It
Do
It
Source: Wyndham
Develop Measurements
for Success
Define the Process Problems
Listen to the Voice of the Customer: Your competition is offering a similar or better
product or service for less. Customers complain about how long it takes to
deliver a product or service. Your site or code is not secure and customers don’t
trust your service or product. What are other problems customers my point
out???
Dr. George Royce
Dr. George Royce
Define - Voice of the Customer (VOC)
Whenever you define a process, ask these questions about the process:
Who is the customer?
What are their Requirements?
How do we validate the requirements?
How do these impact our process?
Voice of the Customer (VOC) and Defining Value Added Steps in a process
Voice of the Customer (VOC) is listening to the actual customers of the product you deliver and translating the information into the needs of the customer.
Value added Steps in a Process are steps that the customer is willing to pay for.
Dr. George Royce
Dr. George Royce
Define – Listening to the Voice of the Customer (VOC) Interviews
Customer Observation
Surveys
Competitive Benchmarks
“Be A Customer”
Focus Groups?? How does your company collect voice of the customer information?
Value Add verses Non-Value Add Steps in a Process
Dr. George Royce
Our customers can tell us what they are willing to pay for. Process cycle efficiency is a measure of value added verses total time.
Mapping an Information Technology Process
How do we define a process that we find is broken or in need of improvement?
You need to understand the Internal and External customers in any process.
For example the Process is : PC Helpdesk Support
Dr. George Royce
Internal External
1. Clients/Customers 1. Field Clients/Customers
2. Internal Developers
What are the inputs and outputs of this process?
Defining a Process - SIPOC
Dr. George Royce
Mapping a high level process - Use a SIPOC
Suppliers The suppliers of work May be internal or external
Inputs Products, information or other material needed for process.
Process The steps used to go from the inputs to the outputs. Includes value add work and non-value add work.
Outputs The outcome such as the service provided or product
provided. Ensure you meet the Critical to Quality (CTQ) measures.
Customers Customers of the process
Defining a Process - SIPOC
Dr. George Royce
Examples of a SIPOC for a PC Helpdesk Process
Suppliers Inputs/CTQ Process Outputs/CTQ Customers
Client Telephone Call
Webform
Vendors
Incident Tickets
Service Requests
Client places Call on Problem
Service Desk opens
incident/request
Connects to client
desktop
Issue Resolved or Completed
• Answer call within 45 seconds.• First Call resolution is 65%
Customers
• Problem resolved and email sent within 5 minutes or phone contact is made
• Meets expectations / needs of customer
SIPOC
Internal Developers
Incident /Service Request is Closed
Internal Developers
ACTIVITY 2 – Create a SIPOC for Sample Problem Team should read the sample problem. From the sample determine the:
Suppliers• The suppliers of work• May be internal or external
Inputs• Products, information or other material needed for process.
Process• The steps used to go from the inputs to the outputs.• Includes value add work and non-value add work.
Outputs• The outcome such as the service provided or product provided.• Ensure you meet the Critical to Quality (CTQ) measures.
Customers• Customers of the process
Create a SIPOC for this process on a sheet of easel paper. Your Team has 10 minutes.
Dr. George Royce
Traditional Value Stream Map Value stream mapping is a lean manufacturing technique used to
analyze and design the flow of materials and information required to bring a product or service to a consumer. At Toyota, where the technique originated, it is known as "material and information flow mapping".
Dr. George Royce Rother, Mike; Shook, John (2003). Learning to See: value-stream mapping to create value and eliminate muda.
Why Create a Value Stream Map?
Helps everyone understand the current process.
When preparing for a Kaizen event it helps determine what additional metrics are needed to determine the value /cost of each step in a process
Helps create a vision for process improvement
As more data for each task is identified, it can be easily added to the Value Stream Map.
Dr. George Royce
Standard Swimlane Diagram Swimlane is a convenient way to show tasks as they move
from one department to another and can also illustrate the current and future state.
Dr. George Royce
Books Online: Order Fulfillment Process
Web
Por
tal
Web
Por
tal
Cre
dit C
ard
App
rova
l
Cre
dit C
ard
App
rova
lS
hipp
ing
Shi
ppin
gP
acka
ging
Pac
kagi
ngC
usto
mer
Cus
tom
erO
rder
S
yste
m
Ord
er
Sys
tem
Exc
eptio
ns
Cle
rk
Exc
eptio
ns
Cle
rk
(order rejected)Receive Order
Order Process
Review Approve Charge
Close Order
Review Order
Credit Card Approval
Revise Order
Re-Review Order
Fill Order
Ship Order
Receive Books
(order incomplete ask customer for more information)
(order accepted; send work order
to shipping)
Books Confirmations
Sys
tem
sO
rder
Fu
lfill
men
ts
Swimlane Value Stream Map Add key metrics such as lead times and value added times for each
task. Add this on each task. Save room for costs of each task.
Dr. George Royce
Swimlane Value Stream Map Add key metrics such as lead times and value added times for each
task. Add this on each task. Save room for costs of each task.
Dr. George Royce
Swimlane / Value Stream Map created with Sticky Notes
Dr. George Royce Task
Decision
Description
Cost VAT
VA/NVA/RNVA
ACTIVITY 3 Create a Swimlane / Value Stream Map of the Sample Problem using Sticky Notes
Dr. George Royce Task
Decision
Description
Cost Time
Using the task descriptions in the sample problem, create a swimlane value stream map using Easel pad paper (you may need more than one sheet and sticky notes). Use the approach shown below to document task costs and value added time. Leave room at the bottom of the chart show a line indicating value added time and lead time. Total these at the end of the line.
Use an additional sheet of easel paper to document the current problems with the process, opportunities for improvement, any additional metrics you need to collect to ensure you are changing for the better.
You have 25 minutes
VA/NVA/RNVA
Dr. George Royce
Lean – Work in Process
Work in process sound like manufacturing, but we should think of them as things in process (TIP). This includes the phone call you have to return, checks waiting to be processed, applications for loans or insurance that need to be processed.
Delays/ Queue Time: If you have WIP, you have work that is waiting to be worked on. Any time that work sits in a queue you can consider that a “delay.”
Lean Six Sigma for Service by Michael L. George
?? What are examples of items you have or had in your jobs that had a work in process queue? For example in insurance an important WIP queue is the policy underwriting/issue queue.
Dr. George Royce
Lean – Value Add / Process Efficiency
Value –Added activities are those that add value in the eyes of the customer.
Non Value-Add activities are everything else. Process Cycle Efficiency (PCE) relates the amount of
value-add time to the total lead time of a process.
PCE = ___Value-Add Time____ Total Lead Time
Lean Six Sigma for Service by Michael L. George
?? In registering for a class what do you as a customer think is a value added activity? What is a non-value added activity??? Give another example of value add and non value add in bank or where you work.
Dr. George Royce
Calculate process cycle efficiency of your process Most processes are “un-lean.” 50% or more of work is non-
value add. Process Cycle Efficiency (PCE) is usually less than 10%.
PCE = ___Value-Add Time____ Total Lead Time To improve this:
Look for non value added work and eliminate whenever possible.
Reduce the lead time
DIRECTIONS: using your data calculate the PCE for your process and discuss ways to improve this.
Lean Six Sigma for Service by Michael L. George
Dr. George Royce
Lead Time
Lead time is how long it takes for you to deliver your service or product once the order is triggered.
Little’s Law
Lead Time = ____Amount of Work-In Process____ Average Completion Rate
The idea is that you don’t have to track an item to know lead time, so long as you know how many items you are working on and how often you finish one of them.
Lean Six Sigma for Service by Michael L. George
Dr. George Royce
Lean Lesson #2: Reduce Work In Process
A primary goal should be to reduce Work In Process
Lead Time = ____Amount of Work-In Process____ Average Completion Rate
In any operation that doesn’t deal directly with customers – that is, where WIP is orders or calls or emails or reports, not people – controlling WIP is much easier than improving completion rate.
Sample problem: A graduate admission office has 30 applications awaiting review. The reviewer has been able to complete 5 files per day. What is the average lead time for the graduate admission process?
Lean Six Sigma for Service by Michael L. George
Dr. George Royce
Lean Lesson #3: Creating a Pull System
In non customer-facing processes, WIP can be reduced by using a Pull system.
In any operation that doesn’t deal directly with customers – that is, where WIP is orders or calls or emails or reports, not people – controlling WIP is much easier than improving completion rate.
Whenever, and wherever possible, limit how much work goes into a process queue at a given time.
Work released into pull systems in a service environment means making deliberate decisions about timing of work released into a process For example, you may want to triage bid opportunities based on Difficulty of bid Gross Profit dollars Competitive advantage
Lean Six Sigma for Service by Michael L. George
Dr. George Royce
Pull System For Sales Quotes
5
4 3
2
3
11
11 3
5
4
1
5
4
2
22
Pull SystemModerate complexity quotation work cell
WIP Limit = 48 Units of Work
5
1
24
3
1 Input/prioritizationUsed to manage staffing requirements
5
2
1
3
1
4
23
4
Production
Exits = 20 Units/Day
Average Cycle Time = “Quote WIP” /Exit Rate= 48 units/20 units per day = 2.4 days
?? How are work queues managed in your company? How is it prioritized?
Dr. George Royce
Create Your Own Pull System
Identify/confirm the service level you want to achieve (ask your customers about this)
Determine your work group’s completion rate. Use Little’s law to determine WIP. Cap active work in the process to the maximum WIP. Put all work in the incoming buffer Develop a triage system for determining which incoming
work should be released into the process. Continue with other process improvements so you can
improve completion rates and further reduce lead time. Use a Kanban board with WIP limits to limit work in
process.
Lean Six Sigma for Service by Michael L. George
What Is Kanban?
Kan means "visual" ban means "card" or "board” A signaling system to trigger action Uses cards to signal the need for work to be done Toyota Lean lesson focusing on Just in Time
production Example: 20 car doors, 5 left = “time to make more
doors” Doors are requirements, requirements are inventory
Dr. George Royce
3 Rules of Kanban
Strict Queue Limits
Pull Value Through
Make it Visible
Remember – “Value” in the eyes of the customer
Dr. George Royce
Dr. George Royce
Lean Lesson #4: Quantify the Opportunity
A Lean Process is one in which the value-added time is more than 20% of the total cycle time of that process.
Lean Six Sigma for Service by Michael L. George
Application Typical Cycle Efficiency
World Class Cycle Efficiency
Continuous Manufacturing 5% 30%Business Processes (Service) 10% 50%Buisness Processes (Creative/Cognitive) 5% 25%
Dr. George Royce
20% of the activities cause 80% of the delays.
The 20% activities are called “Time Traps”
Use Value Stream Mapping to highlight the wasted time that usually isn’t apparent to people in the middle of the process.
Lean Lesson #5: Lean 20/80 Rule
Lean Six Sigma for Service by Michael L. George
?? What are examples of time traps in your company for the work you do or others do in your company?
Dr. George Royce
Q
SaraFinanceManager
50 minC/T 6 min
Q
SueSecretary
184 min5 min
Supplier
Sales Order
PocketPonyInc.
Q
10 minC/T 0 min
10 min
Customers
Fancy Carriage Company
Prod.Depts. 240 min
FileAway
Mail Room
Q
92 min
Filing Dept.
Q
1440 min
BOBContracts Manager
CT 15 minQ
125 min
C/T 20 min
20 min
Q
120 min
JudySecretary
60
120
15
JerryProgram Admin.
Q
195 minCT 17 min
CarlSecretary
Q
53 min5 min
845
10 min
Q 155 min
C/T 22 min
145 10
22 min
C/T 8 min
Q
103 min
6835
C/T 2 min
163 min
Q
945 min
195480270
25 min
Q 90 min
C/T 53 min
4050
5 min
Q 35 min Q 50 min
5 min
1040
How do we know if a process is wasteful? Value Stream Mapping and Process Cycle Efficiency
LeadTime Total
timeAdd ValueEfficiency Cycle Process
Lean Six Sigma for Service by Michael L. George
ACTIVITY 4A: Analyzing the Value Stream Map – Suggest Improvements Your team should now determine what additional data is needed before you
can conduct an effective kaizen event? Collect that before you begin the event.
What non value added steps can be eliminated? What can we stop doing? Which steps can be streamlined or combined if they need to be done. Where does inventory build up? Why? What can we do to avoid this backlog. When is lead time longer than the time you promise your customer? Why is
that? Use tools a like a Pareto chart to determine items to go after as quick wins.
Your team should take 10 minutes and complete the analysis of the value stream map and determine next steps and proposed experiments to test your ideas before implementing in production.
Dr. George Royce
ACTIVITY 4B: Time to create your Kaizen Event Charter!!!
Create a problem statement: Explain what is wrong Where and when does it happen Explain how you know this
Write the objective of the Kaizen event: Improve X metric from the current levels to Y by Z time.
Team should complete in 15 minutes
Dr. George Royce
Filename: Kaizen Event Charter
Steps we have developed in preparation for a Kaizen Event
Dr. George Royce
Define ProcessProblem
Define ProcessProblem
Identify Waste in Current Process
Identify Waste in Current Process
Conduct Gap & Root Cause
Analysis
Conduct Gap & Root Cause
Analysis
Measure Current Performance
Measure Current Performance
Define Should-BeProcess
Define Should-BeProcess
Develop 60 Day Action Plan
Develop 60 Day Action Plan
Improve Current Process
(This may include multiple experiments
before implementing)
Improve Current Process
(This may include multiple experiments
before implementing)
Standardize Operating Procedures
Standardize Operating Procedures
Expose ProblemsExpose Problems
Find theRoot CauseFind the
Root Cause
ImplementChanges
ImplementChanges
StandardizeWork
StandardizeWork
Do
It
Do
It
Source: Wyndham
Develop Measurements
for Success
Dr. George Royce
Automating a bad business process just adds to cost without improving the process.
Lean is: More of a mindset, a cultural framework focusing on the customer and
eliminating waste. Lean applies to all types of work (knowledge work)
Even though it became popular in manufacturing (Toyota Production System) Lean principles can be applied to virtually any process Lean project management is the use of Agile and Kanban for software Kaizen is an approach to continuous process improvement. It is a way
of thinking and behaving. It is about unleashing the creative power of people actually doing the work, in order to design more effective and efficient processes.
Value added and non- value added processes are determined by the customer.
Consider PCE (process cycle efficiency) in reviewing a value stream. Try to eliminate as many non value added steps in a process.
Use a Pull System where new work is released into the process only when work has exited to the next process.
Summarizing Lean Thinking
Lean Six Sigma for Service by Michael L. George