LEAN Project Guide

Prepared by:

Ben Mauk and Renee Smith Nyberg

Last Updated: 8/9/2011

An Organizational Effectiveness Program Resource

Welcome to the LEAN Project Guide!These slides are intended to be a simple map to guide the work of a new LEAN Team. Each basic step is laid out here to follow. I would suggest looking through all the slides to orient to their contents. If you have questions, please contact me and I’ll do what I can to help and answer questions. And if you can suggest improvements to the slides, please let me know!

Use your common sense and flexibility in approaching these steps. If something makes sense to do out of the order presented in these slides, then do what makes sense. There are no rules; just guidance and options. Adapt and make this your own.

Remember though, PLAN, PLAN, PLAN! And hold off on rushing to solutions before you fully understand the problem! Involve representatives of all those who touch the process.

This work is exciting as you begin to see tangible results for your customers and your own work experience.

Have fun and enjoy the process, Renee Smith Nyberg, Organizational Effectiveness Program Managerrsnyberg@uw.edu or 253.692.5874

A LEAN Approach: Plan - Do - Check - Act Improvement Cycle

Slide 3

Well begun is half done. - Aristotle

PlanAct

DoCheck

Form a LEAN Team

Criteria:• Stakeholders who

touch the problem.• About 5-8 people is a

good number.• Try to include a

customer or user if you can.

Slide 4

Initial Brainstorming: What are some of the problems of concern?

Materials:– Flip chart, markers, sticky notesDirections:– Select a scribe– Brainstorm: Considering what you

know so far, from a customer’s perspective, what problems are occurring?

– Write one idea per sticky note.– Put sticky notes on flip chart.

Slide 5

1. Look at what you’ve brainstormed.2. Sort related ideas into clusters.3. Name the clusters. 4. Look at the clustered problems and

pain points.5. Use the criteria on the next slide to

decide if this should be a LEAN project.

Slide 6

Clustering and LEAN Decision

Just Do It or LEAN?

Do you have a LEAN project?If yes, proceed to the next slide. If no, determine if you have a “Just Do It” and proceed with those improvements.

7

Just Do It Improvements Lean Improvements

Are quick to implement Requires cross-functional teams to implement

Affects something simple and easy to change

Affects or needs a process

No cross-functional impact Potential for cross-functional impact

Limited cost or complexity May be more complex or costly

Can be accomplished with little or no customer input

Benefits from customer representation on improvement team

Impact is clearly understood and agreed upon

Impact is unclear

If YES for LEAN, begin Part 1: Plan!

Slide 8

Step 1 Form a team, write a problem statement, set a goal.

Step 2 Map the current process

Step 3 Collect & analyze baseline data

Step 4 Determine root causes

PlanAct

DoCheck

Start to fill out your Scope Document. Add to and refine it as you proceed.

Problem Statement / Background:

Goals / Objectives:

Process Description:

Process Metrics:

Slide 9

What is the problem and why is it important?

.What are the overall goals / objectives you want to achieve?

A high level overview of the process. (Big buckets)Identify where the process begins and ends so the team knows what to focus on.

LEAN Meeting Dates:

Sponsor:

Project Leader:

Team Members:

Consultant/Facilitator:

What metrics or indicators will be used to track improvements?

When will the team meet?

Name and title

Name and title

Name and title

Name and title

Describe the problem and why is it important This statement will guide the creation and work of

the Lean Team.

• Effective Problem Statements…– Focus on describing “the pain”

– State effects, not causes

– Describe gap(s) between current and desired state(s)

– May refer to accepted standards and existing data

– What’s happening now and why is it not desirable?Slide 10

Write a problem statement.

Based on this problem statement, who else should be on the LEAN TEAM?

1. 6-8 Team members.2. Reps of those who touch the problem.

(stakeholders)3. Do a stakeholder analysis and determine

who to invite to be on the LEAN team. (Use the bubble chart on the next page as a guide.)

Slide 11

Slide 12

Put the Process here.

Project SponsorsExecutive Sponsor

A Bubble Chart can be used for a stakeholder analysis.

Communication Planning 1. Use your bubble chart to begin your

Communication Plan. (See next slide for Communication Plan Template.)

2. As you get into your LEAN project complete and follow this communication plan.

Slide 13

• Write a goal statement for your LEAN project. Tips are on the next slide.

• It should address the problem statement your team identified.

• Include it in the LEAN scope document.

Slide 15

Draft a Goal Statement for your LEAN Project

Creating Measurable Goals

Effective LEAN goals…– Build on defined strategic goals & objectives.– Are specific.– Define objective measures.– Are achievable and realistic but BOLD.– Can be reached in 90 days.

Examples: • Reduce time to pay manual invoices from 12 days to 6 days• Increase percent of staff satisfied with training from 50% to

90% • Reduce errors by 50% from the current performance level

Slide 16

Part 1: Plan

Slide 17

PlanAct

DoCheckStep 1 Identify a problem, form a

team, set a goal.Step 2 Map the current process Step 3 Collect & analyze

baseline dataStep 4 Determine root causes

Identify beginning and end points for process. Consider customer expectations for

boundaries when you choose your boundaries.

Consider up- and down-stream implications of process boundaries when you choose your boundaries.

Identify 5-8 high level process steps.

Slide 18

Plan - Step 2: Map the Current Process

Example of a Top-Down Process Map

Slide 19

Major Step 1

• Detail step• Detail step• Detail step• Detail step

Major Step 2

• Detail step• Detail step• Detail step

Major Step 3

• Detail step• Detail step

Major Step 4

• Detail step• Detail step• Detail step

Phase 1 Phase 2 Phase 3 Phase 4

Step 1: Create a High-Level Process Map for the CURRENT process.

• What are the big chunks in the CURRENT process?

• Where does the process start and stop?• Identify about 5-8 high-level steps.• Put each step on sticky notes.• Put steps in order on flip chart or wall.

Slide 20

• Use your high level process map as a beginning.• Create a detailed process map of the CURRENT process. • Drill down into the details of the process for each high

level category.• Use 1 post-it note for each step of detail.• Put them on the flip chart under the high level category.

Slide 21

Step 2: Expand the Process Map with Details

If possible, validate the Current Process Map

Can you do the Three ‘Actuals’ • Go to the actual place?• Talk to the actual people?• Walk the actual process?

If this is doable, then arrange to do this step.

Slide 22

23

Identifying Wasted Time

1. Go back to your process map and label each step with the estimated amount of time it takes.

2. Label each step as either Touch Time or Wait Time.3. Calculate the Total Time for the process. May want to

calculate a high and low for total time. What are the variables?

Remember the definitions: Touch Time: The actual time spent doing the work within a process stepWait Time: The time between process steps Total Time: The total amount of time the entire process takes.

Can you identify any waste in the process?

1. Is there any waste in how the work flows?2. Do any steps NOT add value?3. Is the process too complex? Where?4. Does the process vary from person to

person or in some other way?5. How long does the process take?6. How long does each step take?

Slide 24

Is there evidence of any of these types of waste in the process? Label them.

25

Overproduction Waiting Transport Over-Processing

Excess Inventory Motion Complexity Underutilizedpeople

Step 3: Collect and Analyze Baseline Data

Slide 26

PlanAct

DoCheck

Step 1 Identify a problem, form a team, set a goal.

Step 2 Map the current process

Step 3 Collect & analyze baseline data

Step 4 Determine root causes

What additional data do you need?

Considering the possible wastes, complexity, variation or lack of added value in the process, what other data do you need to better understand these?

What else do you need to know to better understand the issues?

Slide 27

What additional data do you need?

Review your data sources – what already exists?Review your data gathering tools (page 2 of your

Toolkit) Will these be useful to you?• Affinity Diagram• Check Sheets• Surveys• Benefit and Practicability Analysis• Comparison MatrixDevelop a strategy for gathering the needed data

and go gather it!

Slide 28

Cautions and reminders for data collection…

1. Collect the right data to analyze the situation.2. Don’t combine the data from different sources.3. Data collectors use the same procedures and are

uniformly trained in data collection.4. Use consistent methods in data collection.

Slide 29

Slide 30

Displaying and Analyzing the Data to better understand the issues…

Now that you have your data…

Display your Data:1. Prepare the data you’ve gathered for analysis by putting it in a usable

format. Refer to Page 2 of the Toolkit (Affinity Diagram, Control Charts, Flowcharts, Histograms, Pareto Charts, Run Charts or Trend Charts.)

2. Select the display methods that fit your data and put data into a useful format for analysis.

3. Do you need to convert your data to percentages? Do you need data over time?

Analyze your data…4. What does the data tell you?5. Look back at your earlier questions and possible areas of waste,

complexity, variation, etc. What is clearer now?

Sample Run Chart

Complaints about Coffee

0246810121416

4/1/2001

4/2/2001

4/3/2001

4/4/2001

4/5/2001

4/6/2001

4/7/2001

4/8/2001

4/9/2001

4/10/2001

4/11/2001

4/12/2001

4/13/2001

4/14/2001

4/15/2001

4/16/2001

4/17/2001

4/18/2001

# of

com

plai

nts

bitter

weak

cold

Slide 31

Customer Complaints

Slide 32

4535

10 9 7

42%

75%

85%

93%100%

0

20

40

60

80

100

Wait Time IncorrectInformation

ReschedulingAppts

Incorrect Item Late Invoice0%

20%

40%

60%

80%

100%

Number of Complaints Cumulative % Complaints 80% Complaints

Sample Pareto Graph

Plan - Step 4: Determine Root Causes

Slide 33

PlanAct

DoCheck

Step 1 Identify a problem, form a team, set a goal.

Step 2 Map the current processStep 3 Collect & analyze

baseline dataStep 4 Determine root causes

Getting Ready for Root Cause Analysis

• This data analysis should further illuminate and point you to focus on certain issues in the process.

• When looking at root causes in the next step, explore those issues in particular.

• For example, if the problem statement says that the process is taking too long in Phase 3, and we learn from the data that Phase 3 has a lot of complexity and wait time in it, explore the issues of complexity and wait time in the next phase of root cause analysis.

Go through the “5 Whys” multiple times until you’ve fully explored the possible causes.

Slide 35

2. Why is that problem occurring?

4. Why is that problem occurring?

3. Why is that problem occurring?

5. Why is that problem occurring?

1. Why is this problem occurring?

ROOT CAUSE!

Problem Statement:

Answer:

Answer:

Answer:

Answer:

Answer:

Sample of the “5 Whys” – Take 1

Slide 36

2. Why is that problem occurring?

4. Why is that problem occurring?

3. Why is that problem occurring?

5. Why is that problem occurring?

1. Why is this problem occurring?

ROOT CAUSE!

Problem Statement: The process takes too long in phase 3.

Answer: We have to wait for a form to be completed.

Answer: The forms back up with the verification step.

Answer: We only have one person to verify.

Answer: Others have not been trained.

Answer: No one else knows how.

Sample of the “5 Whys” – Take 2

Slide 37

2. Why is that problem occurring?

4. Why is that problem occurring?

3. Why is that problem occurring?

5. Why is that problem occurring?

1. Why is this problem occurring?

ROOT CAUSE!

Problem Statement: Phase 3 is overly complex.

Answer: After verification, several approvals are needed.

Answer: Approvals were put in place over time.

Answer: No one knew what was happening.

Answer: Approvals have not change to reflect systems in place.

Answer: No systems were in place, but now are.

Try using a Fishbone Diagram to determine Root Causes

“Why is this problem occurring?”

Slide 38

Category 1 Category 2

Problem:

Category 3 Category 4

What are the Root Causes?

• Now look at all your 5 Whys and Fishbone Diagram(s) and any other analyses.

• What appear to be the Root Causes?• Come to consensus as a Team about Root Causes

before you move forward.

Part 2: DODevelop and Implement Solutions!

Slide 40

PlanAct

DoCheck

Step 5 Generate potential solutions

Step 6 Select Potential Solutions

Step 7 Implement the Solutions

Generate Potential SolutionsWhat are some sources of potential solutions you can tap to generate solutions for each identified Root Cause? Tap these sources and gather list of possible solutions.

Internal Experts:• LEAN Team Members• Supervisors, Workmates• Customers

External Experts:• Recognized expert• UW Seattle or UW Bothell peers• People in your network• Customers• Consultants

Best Practices:• Published studies or journals• Benchmarking• Professional organizations or • Professional Networks • Listservs

Now brainstorm possible solutions.

43

Other Solution Tools:Would 5S, Workflow Analysis or Visual Control be

useful to add to your list?

Choose the BEST Solutions

Now that you’ve brainstormed a list of possible solutions, it’s time to choose a solution(s).

You could use one or a combination of the following (samples to follow in the next slides):

Prioritization Grids Multi-Voting Force Field AnalysisAlso… Delphi Technique (page 19) Decision-Solution Matrix (page 18)

Sample Prioritization Grid

Slide 45

Low High

Hard

Benefit

Implementation

Easy

Low value Low hanging fruit

Not worth it Investment

Instructions for Multi-Voting• Appropriate for making simpler decisions

Round 1: Vote for as many as you want. Eliminate the lowest.

Round 2: Vote for up to half the ideas. Eliminate lowest, keeping 5 or 6.

Round 3: Vote for up to half the ideas. Eliminate the lowest votes.

Keep 2-3 final ideas for further investigation.

Slide 46

Force Field Analysis Template

A tool to identify forces that will help or hinder a solution from going forward. Weigh them to determine how easy it would be to implement a solution.

Slide 47

List forces that will support a solution:• • • • • •

List forces that will make it hard to implement a solution:• • • • • •

48

Once you’ve chosen a solution(s), it’s time to select measurements:

• Decide how you will measure the success of each solution and of the LEAN Project.

• You may come up with multiple metrics, but don’t overload your team.

• How will these metrics be collected? Specify a “recipe” for the metric so it will be collected correctly to produce the data needed.For example: We will compare number of complaints before and after the solution is implemented. Number of complaints will be recorded by the Office Assistant on a check sheet on ___ day and ___ time for ___ days – weeks – months by (whom). (Who) will tally and compile the data and report back to the team.

Prepare a Presentation to Sponsor

What to put in your PowerPoint :(include pictures, charts, graphs of your work and analysis) Finalized problem and goal statements Team Members (add a photo!) Process Boundaries (begin/end identified) Current Process Map Data analysis results Root Causes identified Propose Solution(s) and suggested time to implement

(Full or pilot?) Metrics: How will impact of solution(s) be measured and

when will this be reported? Slide 49

Once you have approval for your solutions…

Implement your solutions – pilot or full. Deploy your communication plan to reach all

stakeholders as needed. Collect data on your metrics as planned. Display and analyze your metrics. Report back on outcomes to sponsor (30-60-90 days). Discussion:

Should the solutions continue? Should they be tweaked? Should they be scrapped and try another solution?

Take action based on this discussion. Share your LEAN Project with campus – post it on the

Organizational Effectiveness LEAN Website! Slide 50

Congratulations on completing your LEAN Project! Time to celebrate!

Slide 51

PlanAct

DoCheck