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Stories from My Sensei: Two Decades of Lessons Learned
Implementing Toyota -Style Systems
Steve Hoeft , Altarum Institute
Lean Six Sigma and Process Improvement in Healthcare Summit
March 14, 2010
Steve Hoeft: Brief Bio
Lean!
� 26 years of experience: Lean enterprise, quality, continuous improvement efforts; plus facility design, simulation and scheduling
� Delta (Kogyo) USA – lean supplier to Mazda (Sensei: Joe Shimada)� Johnson Controls – developed internal Lean Office:
• Studied lean principles directly from Toyota in KY (with Sensei)
• Co-authored JCI Manufacturing System (ASTD Award winner)
� Lean Enterprise coach (8 years):• Over 250 Lean events; developed hundreds of successful Lean Facilitators
• Helped establish Value Stream Visions with auto firms, JCI, PPG, Framatome (nuclear fuel),
Landing Gear supply chain
� Altarum Institute (since Feb 2003):• Lean Six Sigma for Healthcare: Scott & White, Memorial Sloan-Kettering Cancer Center,
William Beaumont, Veteran's Health Administration (VHA), University of Michigan Healthcare
System, St. John's (IL) and the entire Hospital Sisters Health System, Blue Cross Blue Shield,
Henry Ford Health System, Univ. Health System-San Antonio, Yale New Haven Health, Ontario
Health Quality Council, Vancouver Coastal, Kaiser Permanente, Tri-City Medical Center, Lakewood Health System, hospitals in Singapore, and others
• Major Government transformation projects:
Military: OSD, Air Force-wide, Repair & Base Ops, Lean Purchasing- PSCM
Healthcare: AF SG, VHA
** Principal Instructor for the University of Michigan’s Lean Manufacturing, New Product Design and Healthcare Certificate programs
3
“The Big Lie”, Story #6 (pg. 35)
“…automation applied to an inefficient operation will magnify the inefficiency.” Bill Gates
“Work expands so as to fill the time available for its completion.” C. Northcote Parkinson, 1958
“Everything expands to fill all available time, space, etc. (Just look at your garage.) So, don’t allow it.” Steve
“Put a good person in a bad system and the bad system wins, no contest.” W. Edwards Deming (also in Stories from My Sensei)
4
Leadership Lessons ( Hansei)
• Communication ! (7x)
• Find teachers whose learning curve we can borrow (avoid the bear traps)
• …
5
Typical Results▲25-55% Cost Reduction▲60-90% Throughput Increase▲50-90% Less Errors▲60-90% Inventory Reduction▲35-50% Space Reduction▲50-90% Lead Time Reduction▲45-75% Direct Labor/Productivity �▲Greatly Improved MoraleNOTE: Requires full implementation. Actual results vary by process
and situation.
Going Lean in Health Care, Jim Womack et al, Inst. for Healthcare Improvement, 2005
6
is a process improvement philosophy which shortens the time between start and end by eliminating sources of waste.
Lean Production
Business as Usual
END PROCESSEND PROCESSSTART PROCESSSTART PROCESS
Time
Waste
END PROCESSEND PROCESSSTART PROCESSSTART PROCESS
Time (Shorter)
Waste
Lean Production
7
Lead Time & Value Added
� Value Added Time is only a very small percentage of the Leadtime
� Traditional Cost Saving efforts focused only on Value Added Items
� LEAN THINKING FOCUSES ON NON-VALUE ADDING ITEMS
TimeStart Finish
= ValueAdded Time
= Non-ValueAdded Time(WASTE)
WaitingWaitMove Wait Move &
Out-process
Diagnose Test
TreatTriage
Move
8
Time
Time
Focused on Non-Value Adding Items
Large Amount of Time Eliminated
Time
Time
Traditional Improvement Results
Small Amount of Time Eliminated
Lean Results
Traditional vs. Lean Results
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Exploitation vs. Better Way to Work
1. Exploitation
2. Better Wayto Work
We ChooseOption 2
Value AddedWork
© 1995 S. Hoeft
Flexible, Capable,Highly Motivated
People
Just in Time“right part, time, amount”
* Flow where you can* Pull where you must
• Cells• Kanban• Quick Setup• Level Production• Takt Time
Built-in Quality
“Never pass bad parts to the next process”
* Make problems visible* Andon-Stop the Line
Authority
• Problem Solving• Error Proofing• Visual Controls• Person-Machine
Separation (Jidoka)
Highest Quality, Lowest Cost, Best DeliveryGuaranteed through shortening lead time by eliminating waste
UnwaveringPrinciples
TailorableTools
Foundation of Operational StabilityStandardized Work Robust Products & Processes
Preventive Maintenance* Kaizen Early Supplier InvolvementVisual ManagementWaste EliminationPDCA-Scientific Method
UnwaveringPrinciples
Respect for Workers
The Toyota House Model:Timeless, Unchanging Principles vs. Tools
You Will Fail, Story #26
11
“Don’t Just DO Something, Stand There!” Get perspective and reflect rather than just continuing to do the same thing.”
~Dr. Scott Simmerman (www.squarewheels.com)
“Stand in Circle ”, Story #9 (pg. 44)
12
"Managers will try anything easy that doesn’t work before they will try anything hard that doeswork." ~Jim Womack
“Where is Factory? ”, Story #33 (pg. 70)
13
"I have been impressed with the urgency of doing. Knowing is not enough; we must apply. Being willing is not enough; we must do." ~Leonardo da Vinci
“Must Cut Inventory in Half? ”, Story #34 (pg. 74)
A Bias for Action!
14
A Bias for Action!
“Door Here!”, Story #35 (pg. 76)
15
Leadership Lessons
• x
• …
16
“These Always Lie ”, Story #10 (pg. 49)
“A desk is a dangerous place from which to view the world.” ~Adapted from John Le Carre
"We are what we repeatedly do. Excellence, then, is not an act, but habit." ~Aristotle
17
Leadership Lessons• Try this next time someone says they need more resources (e.g., no
room). Say, “Let’s go and see!”• For those that actually did this, what did you learn?
• How many of your managers and leaders could survive a “point test”? If you asked them to point to the value-adding persons that they directly support, could they do it? If you then asked these workers how many hours per day (if any) this manager or leader visibly supports them, what would they say? Can they survive the point test? Can you?
• Where should the offices of managers who directly support production be located?
• In the eyes of your supervisors and leaders, how can you increase the priority of the gemba—the place where work occurs?
From: Stories from My Sensei, pg. 51
18
Bonus Story: “What You Measure is What You Get – So Be Careful What You Measure!”
• Related to “Body Audits and Layered Audits”, Story #40 (pg. 139)
In Process Project “Results Board” ( Huddle Spot)
Tracking Chart for Goal #1
Tracking Chart for Goal #2
Tracking Chart for Goal #3
Tracking Chart for Goal #4
Action Plan to Achieve
Goal #1
Action Plan to Achieve
Goal #2
Action Plan to Achieve
Goal #3
Action Plan to Achieve
Goal #4
Owner!
Last Update: May 2009 Results Board Owner: {Sponsor}
20
Leadership Lessons
• x
• …
21
A Few Next Steps (Use Lean Principles)
▲ Find Sensei’s (teachers whose learning curve you can borrow)
▲ Establish training schedule for leaders
– Develop Common language; Ask “What’s the Plan, Stan?” (Goals)
▲ Identify 2010 goals for performance improvement:
– Access, Quality, Productivity, Floorspace, Idea Generation (Plan?)
▲ Assemble your Lean Leadership Council (eVSM)
▲ Prioritize 2010 Lean Projects (~2 in every major Value Stream)
▲ Establish embedded Lean experts/facilitators in major department
▲Develop Problem Solving expertise (A3 tool) for front line “spot”improvements, and also to develop Lean Thinking leaders