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Continuous Improvement
2011 Capgemini. All rights reserved. 2
Agenda 1. Ice breaker
2. Types of Continuous Improvement
3. Basics of Lean thinking
1. Understand 5 principles of Lean
2. Articulate 7 key WASTES
4. Kaizen
5. Poke Yoke
6. 5S
7. Lean Tools
1. SIPOC
2. VSM
8. Lean Foundations
Operations Meeting Frame work
Visual Management
A3 Thinking
A3 Breakout Session
3 2011 Capgemini. All rights reserved.
Why Continuous Improvement ?
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Co
nti
nu
ou
s im
pro
vem
ent
Rome
BMW
Ipad 4
Rome was not build in a day and so do the vehicles and the computers we use.
4 2011 Capgemini. All rights reserved.
Different tools used for continuous improvement
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Kaizen
JIT
Quality
Circle PDCA
Total
Quality
Manage
ment
Poka-
Yoke
5S
Pull
system
Automat
ion
Pull
system
5 whys
Fish
bone
Kanban
Eliminati
on of
Mudas
Go look
and see
Over the next 2 days we would focus our attention on lean and six sigma.
FMA Best Quality
Lowest cost
Shortest lead time
High Morale
Lean
2011 Capgemini. All rights reserved. 6
Post World War II Toyota had few resources compared to the USA
Mass production could never be replicated as they could not buy or access the machinery, materials or the skilled
workforce
Ohno realised that they had to:
o Produce in small batches
o Produce good quality and when errors occur correct them and
prevent them from reoccurring
o Flow production
Definition and origins of lean
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The term lean is a generalisation of the Toyota Production System methodology developed by Taiichi Ohno
Definition
Origins
2011 Capgemini. All rights reserved. 7
Lean focuses on delivering maximum value to the customer by eliminating waste
Lean Thinking has successfully transformed many companies, giving them a greater focus on performance and customer requirements
C. R. Allen, 1919C. R. Allen, 1919C. R. Allen, 1919C. R. Allen, 1919
T. OhnoT. OhnoT. OhnoT. Ohno
TWI, 1940TWI, 1940TWI, 1940TWI, 1940
S. ShingoS. ShingoS. ShingoS. Shingo
MMthodesthodes
japonaisesjaponaisesMMthodesthodes
japonaisesjaponaisesTPS HouseTPS House, Cho, 70, Cho, 70ssTPS HouseTPS House, Cho, 70, Cho, 70ss
S. Toyoda, 1890S. Toyoda, 1890 ssS. Toyoda, 1890S. Toyoda, 1890 ss
E. DemingE. DemingE. DemingE. Deming
J. JuranJ. JuranJ. JuranJ. Juran
K. Ishikawa, 60K. Ishikawa, 60ssK. Ishikawa, 60K. Ishikawa, 60ss
J. Womack & D. JonesJ. Womack & D. JonesJ. Womack & D. JonesJ. Womack & D. Jones
LeanLean
Jido
ka
Jido
ka
Qualit
Qualit
JITJITKaizenKaizen
C. R. Allen, 1919C. R. Allen, 1919C. R. Allen, 1919C. R. Allen, 1919
T. OhnoT. OhnoT. OhnoT. Ohno
TWI, 1940TWI, 1940TWI, 1940TWI, 1940
S. ShingoS. ShingoS. ShingoS. Shingo
MMthodesthodes
japonaisesjaponaisesMMthodesthodes
japonaisesjaponaisesTPS HouseTPS House, Cho, 70, Cho, 70ssTPS HouseTPS House, Cho, 70, Cho, 70ss
S. Toyoda, 1890S. Toyoda, 1890 ssS. Toyoda, 1890S. Toyoda, 1890 ss
E. DemingE. DemingE. DemingE. Deming
J. JuranJ. JuranJ. JuranJ. Juran
K. Ishikawa, 60K. Ishikawa, 60ssK. Ishikawa, 60K. Ishikawa, 60ss
J. Womack & D. JonesJ. Womack & D. JonesJ. Womack & D. JonesJ. Womack & D. Jones
LeanLean
Jido
ka
Jido
ka
Qualit
Qualit
JITJITKaizenKaizen
The five principles of Lean
1. Define what is of value to the customer
2. Create a continuous flow of value to the customer,
eliminate waste and complexity
3. Link the flow of value directly to customer
demand
4. Empower employees to manage the process,
and make them accountable for improvement
5. Maintain a strong focus on continuous
improvement
Waste is anything that consumes time & resources, but does not contribute to satisfying customer needs, or something that the customer will not pay for
2011 Capgemini. All rights reserved. 8
Toyota identified 7 wastes, which are relevant to most business environments
Activities Wastes
Company
Value Added
Customer
Value Added
The 7 wastes
1.Waiting Unassigned capacity between projects
2.Over production Development exceeding contract scope
3.Rework Code being revised
4.Motion Resources switched between tasks
5.Over processing Non-actionable supporting tools
6.Inventory Large backlog of tickets
7.Transportation Multiple handoffs in ticket management
8.Intellect People at wrong place in the orga.
Definition
1. Waste adds no value to the
customer and no value to the
organization.
2. Company Value added is
required to enable key
business processes,
governance, security and
integrity.
3. Customer Value Added is the
work that is done that gives
the customer the service
required.
7 types of waste or 7 Mudas
Lean provides a way of doing more with less and less while coming closer and closer to the customers needs
2011 Capgemini. All rights reserved. 9
Categories of Wastes in Business environments
Toyota Examples Service Examples
Waiting Waiting for previous processes to finish.
Waiting for materials to arrive
Waiting for Computer Systems to Load
Waiting for Responses from other teams
Over Production Production of parts without a customer order Reports that no-one reads
Making extra copies of documents
Rework Time spent making defective products that
can not be accepted by the customer
Data entry errors
Missing customer information
Motion Excessive human / equipment effort poor layout and process design
Searching for files
Extra key strokes
Over Processing Adding to a part something that is not
required by the customer
Repeated entry of the same data
Giving more info. than the customer needs
Inventory Raw Material / WIP / Finished goods tied up capital
Queues of paperwork
Unopened customer applications
Transportation Moving parts from one location to another
without adding value Posting paperwork between departments
The identification and elimination of waste is fundamental to Lean reducing costs and increasing profit. Other benefits are derived from waste elimination
Intellect Mismatch between skill and job requirement Ineffective staffing , Ineffective Induction
10 2011 Capgemini. All rights reserved.
Lean breaks down barriers and leads to effective end-to-end team working
Department 4
Department 1
Department 2
Department 3
Current Scenario
Department 4
Department 1
Department 2
Departments 3
Future Scenario
2011 Capgemini. All rights reserved. 11
Kaizen Thinking
The Kaizen philosophy is drawn from the Japanese word
kai which means continuous and zen mean in improvement or wisdom.
The Kaizen management philosophy, therefore, is defined as making continuous improvementslow, incremental but constant
Kaizen Kai + zen
CURRENT THINKING
WASTE
WASTE NOT DEFINED
REACT TO LARGE EXAMPLES
REACTIVE IMPROVEMENT
TYPES OF
WASTE
Correction
Processing
Motion
Waiting
Inventory
Transpor-
-tation
Over- Production
REQUIRED THINKING
WASTE IS "TANGIBLE
IDENTIFY MANY SMALL OPPORTUNITIES
LEADS TO LARGE OVERALL CHAGE
CONTINUOUS IMPROVEMENT
2011 Capgemini. All rights reserved. 12
Promote Safety
Improve Work Flow
Better Product Quality
Reduce Inventory Waste
Give People Control of Their Workplace
5 S
5S : A systematic
approach to organize
and standardize the
workplace
Sort (Seiri) - Clear
Set In Order (Seiton) - orderliness
Shine (Seiso) Clean and make it dust free
Standardize (Seiketsu) Define & Refine
Sustain (shitsuke) -
Adherence
Clearly distinguishing between what is necessary and
what is unnecessary and disposing of the unnecessary
Organizing the necessary items so that they can be used
and returned easily
Cleaning floors, equipment, and furniture in all areas of
the workplace
Maintaining and improving the standards of the first three
Ss
Achieving the discipline or habit of properly maintaining
the correct 5S procedures
Objectives
2011 Capgemini. All rights reserved. 13
5S in Software
Keep only relevant information and update it regularly e.g. if the version of Windows in a server is changed from 2000 to 2003, the same should be updated
Sort (Seiri)
Configuration
Management
Database
Server
Information
Server Name CPU Speed Disk Space Memory Size
Application
Inventory
Application Name Technology Used Current Version No of versions released
User Information
User Name Applications owned Privileges/Rights Tenure
Keep the organized so that they can be located easily. Use proper naming conventions
Set (Seiton) Keep the information current and remove all redundant content e.g. if a particular user id is not does not exist, the same should be deleted from CMDB database
Shine (Seiso)
Standard naming conventions should be used and proper guidelines followed to organize the information
Standardize (Seiketsu)
Review the content regularly to ensure there are no violations to rules or guidelines
Sustain (Shitsuke)
5S is: A systematic approach to organize and standardize the workplace
14 2011 Capgemini. All rights reserved.
Built in Quality(Jidoka)
e.g. Jidoka is sometimes called autonomation, meaning automation with human intelligence
For coding activity , use of Quality Prob is example of Jidoka
Jidoka: A quality control method that involves thorough, automatic
inspection of every product as it moves through the conversion
process. .
Ji self Do movement, motion Ka -ize, to be or become
15 2011 Capgemini. All rights reserved.
Poka- Yoke / Error Proofing
Poka Yoke or error proofing is one key element of a quality system.
A Poka Yoke (from the Japanese poka (mistakes), yokeru (avoid)) is any
mechanism/system in a Lean environment that draws attention to, prevents or
eliminates errors as they occur.
There are three levels of error proofing:
Elimination
Prevention
Detection
To eliminate errors first they must be detected and prevented
2011 Capgemini. All rights reserved. 16
Error proofing is present in everyday life
Are these detection or prevention?
Beep
beep!
Detection Prevention
You can still oversleep!
It doesnt prevent you from running out of petrol
Nothing actually stops you
Its impossible to put the plug in the wrong way round
You dont get your cash until you remove your card
Its impossible to drop the cover down the hole
SIPOC & VSM Lean Tools
18 2011 Capgemini. All rights reserved.
The SIPOC enables to have a shared overview on a process
19 2011 Capgemini. All rights reserved.
KT Management (IS) - SIPOC example
20 2011 Capgemini. All rights reserved.
What does a SIPOC Workshop look like ?
Identify Suppliers, Inputs / Outputs and Clients connected to the process
1 Establish the boundaries of a business process by showing its start and end
points
2
Design high-level steps of the process
3 Identify wastes on the process
4
Do we have all
macro-
steps ?
Suppliers, Input,
Output, Customers
Process Steps
Wastes
21 2011 Capgemini. All rights reserved.
Value Stream Mapping (VSM) is a method used to understand and visualise the production, material and
information flow of a process
Cycle time ,
individual TAT,
holding time, Delay
time etc has to
derived from real
lifecycle / system
data
22 2011 Capgemini. All rights reserved.
What does a VSM Workshop look like ?
Position the client of the process (internal or external) and if possible list
its requirements
1
Identify process steps : activities being performed in that process
2
For each step of the process collect data on required delivery time, delivery delay
and inventory
4
1 day 2 days
1 hour 2 hours
Delay time
Cycle time
For each step, identify who is doing the activity and how many people are
involved
3
Identify best practices and waste, and calculate value-add ratio
Use the 7+1 Waste
5
Process step
description
Stakeholder
10
Inventory
Waste
23 2011 Capgemini. All rights reserved.
Example of data box
Time lines
Process
Process
Process
Green: Customer value added
Orange: Non value added for customer Needed for Business
Red: Non value added - Waste
Process
Assoc.
CT
(min/secs)
RFT
(min/secs)
VA
(min/secs)
Batch size
Process/ Activity name
/description
Number of people
working at the process
Cycle Time
Right First Time
Estimate of value added
time
Batch size
Other information
(delays, distance
travelled etc).
1 day 2 days 4 hrs
4 hrs 83 s 1 hr Delay times
Cycle times
1 day
Cycle time , individual
TAT, holding time, Delay
time etc has to derived
from real lifecycle / system
data
24 2011 Capgemini. All rights reserved.
SOME IMPORTANT DEFINITIONS
Cycle time The total time taken from the start of the production of a product or service to its completion. Cycle time
includes processing time, move time, wait time, and inspection time, etc..
Period required to complete one cycle of an operation; or to complete a function, job, or task from start to
finish.
Delay or Non Value added time Time spent on Non-value added work, also called waste, refers to work that doesn't add value to or is
unnecessary for the overall project.
Takt Time Takt is a German word which refers to the beat of music or meter
Takt Time-- the desired time for units of production output, synchronized to customer demand.
Takt time is the time given by customer to complete a single unit
Example1 :
In a retail store that is open 8 hours a day including weekends there are 30 billing tills and during peak
season there are 30000 customers buying goods in 30 days. What is the TAKT time per till assuming that
arrival rate of customers is even in all the billing tills and how many customers are serviced in one day?
Answer
Takt time/customer = 30*30*8/30000= 0.24 hours
Number of customers serviced in a day = 30*8/0.24 = 1000
25 2011 Capgemini. All rights reserved.
Takt Time Example
Request
Type
Weight age No Equivalent
Simple Requests
Complex 4 12 12*4 = 48
Medium 2 20 20*2 = 40
Simple 1 40 40
Total 128
A release is planned for 12 complex , 20 Medium and 40 simple tickets in 10 days
Total Available time = 10*8*8 = 640 hours
Takt time = 640/128 = 5 hours/simple ticket
Resource Skill Level No Equivalent
Simple Resources
P1 Highly Skilled 1 1*2 = 2
P2 Medium Skilled 2 2*1.5 = 3
P3 Low Skilled 3 3
Total 6 8
A release is planned for 50 tickets in 5 days and they work on 24/7 support, Calculate Takt time if 8 resources are working in
the team.
Answer
Takt time/Ticket= 5*24*8/50= 19.2
hrs
Takt time Exercise
Process Step --------
Estimation and planning (One piece flow) Tracking - Track current progress of project and stabilizing the production Load Levelling - Check whether each employee has a full job, passed to Takt Time
2011 Capgemini. All rights reserved. 26
Some examples where VSM can be applied
Software Execution processes:
o TS : Concept thru design and implementation to release in new development
o OS services: Bug reproduction, analysis to bug fixing, testing and build in defect fix cycle
o Testing: Developing test plans and testing the product to releasing the final product in case of
validation
Information Management Processes:
o Project Management : Allocation of work, monitoring of progress, updating stake holders on the
progress, issues and risks till releasing the final product to Customer or validation group
Physical transformation Processes
Recruitment, training them and allocating them to the projects as per requirement
Organizational level Processes
Finance, Invoicing and MIS reporting etc
27 2011 Capgemini. All rights reserved.
TO-BE VS AS-IS
The future state map is created from the current state map
To draw a future state map and create the conditions for change, you need to consider:
Flow
Where can you use continuous flow
How you level production to support improvements
What process improvements are necessary (e.g. reliability, quality etc.)
Conclusion
VSM is at the core of Lean Process Improvement Activity
VSM is a powerful, flexible, visual tool, which enables everybody to interpret the steps of a process, and highlight the lead time and the waste contained within
the process
The map if kept dynamic will help prioritise opportunities for improvement
28 2011 Capgemini. All rights reserved.
Symbols
FIFO First In-First Out Sequence
% Rework (% of total
# items)
# Inventory
Manual
Information Flow
Electronic
Information Flow
Operator
Material movement push :
material moved based on a schedule
or within regard for receiving
process
would continue if proceeding process
was stopped
use with transport symbols
Material movement pull :
demand from proceeding process
would stop if proceeding process was
stopped
use with transport symbols
CUSTOMER
Process stakeholders:
Top of map for parties effecting many
areas shows communication put and
requirements
Data Box Process stakeholders:
Top of map for parties effecting many
areas shows communication put and
requirements
29 2011 Capgemini. All rights reserved.
Symbols
Rework (% of total
# items)
# Inventory
Manual
Information Flow
Electronic
Information Flow
Operator
Material movement push :
material moved based on a schedule
or within regard for receiving
process
would continue if proceeding process
was stopped
use with transport symbols
Material movement pull :
demand from proceeding process
would stop if proceeding process was
stopped
use with transport symbols
CUSTOMER
Process stakeholders:
Top of map for parties effecting many
areas shows communication put and
requirements
Data Box Process stakeholders:
Top of map for parties effecting many
areas shows communication put and
requirements
Inventory:
shows where inventory is present within the process flow actual quantity
of inventory is shown within the
triangle
2011 Capgemini. All rights reserved. 30
Value Stream Mapping Example (before Lean)
Customer sent
Bugfix to FO
team
Process Cycle Efficiency = 135/340 = 40%
Request
Assignment
Implementation
Regression
Testing
Release and
acceptance
Close Defect
CT=90 VT=45 CT=140 VT=40 CT=55 VT=20 CT=55 VT=30
Ticket has been
logged in tool
Offshore PM picks up ticket
from tool and assign to analyst
Analyst sent fo PM
for clarification
PM sent fo FO team
for clarification
FO team sent details
after clarifying with client
CT=10 VT=10 CT=10 VT=5 CT=20 VT=20 CT=30 VT=5 CT=20 VT=5
Analysis of Bug
Reproduction of Bug
Coding
Code Review
Request was
on Hold
Fixing of
errors
CT=5 VT=5 CT=60 VT=0 CT=5 VT=5 CT=20 VT=20 CT=10 VT=5 CT=40 VT=15
D D
D I
2011 Capgemini. All rights reserved. 31
Value Stream Mapping Example (After Lean)
Customer sent
Bugfix to FO
team
Request
Assignment
Implementation
Regression
Testing
Release and
acceptance
Close Defect
CT=40 VT=35 CT=60 VT=40 CT=55 VT=20 CT=55 VT=30
Ticket has been
logged in tool
Offshore PM picks up ticket
from tool and assign to analyst
Analyst sent fo PM
for clarification
PM sent fo FO team
for clarification
FO team sent details
after clarifying with client
CT=10 VT=10 CT=10 VT=5 CT=20 VT=20 CT=30 VT=5 CT=20 VT=5
Analysis of Bug
Reproduction of Bug
Coding
Code Review
Request was
on Hold
Fixing of
errors
CT=5 VT=5 CT=60 VT=0 CT=5 VT=5 CT=20 VT=10 CT=10 VT=5 CT=20 VT=15
D D
I
Process Cycle Efficiency = 125/210 = 60%
Capgemini Lean Foundations
33 2011 Capgemini. All rights reserved.
Since 2009 experience in deploying Lean in Capgemini has helped us define a set of Foundations that are changing Capgeminis delivery
model
2011 Capgemini. All rights reserved. 34
Capgemini Lean Foundations : Release 2.0 March 2012
Deep dive into 3 of the Lean Foundations
2011 Capgemini. All rights reserved. 36
OPERATIONS MEETING FRAMEWORK
2011 Capgemini. All rights reserved. 37
OPERATIONS MEETING FRAMEWORK
2011 Capgemini. All rights reserved. 38
Operations Meeting Framework for Distributed Teams
2011 Capgemini. All rights reserved. 39
Terms of reference for the Daily Stand Up Meeting (d-STUM)
2011 Capgemini. All rights reserved. 40
Terms of reference for d-Debrief
2011 Capgemini. All rights reserved. 41
Terms of reference for the Weekly Operations Meeting (WOM)
2011 Capgemini. All rights reserved. 42
Terms of reference for the Monthly Information Meeting
2011 Capgemini. All rights reserved. 43
The basics to have an efficient meeting
44 2011 Capgemini. All rights reserved.
Lean Foundations - Visual Management
45 2011 Capgemini. All rights reserved.
Key benefits of Visual Management
46 2011 Capgemini. All rights reserved.
Key components of Visual Management linked to other CLF
2011 Capgemini. All rights reserved. 47
d-STUM board
48 2011 Capgemini. All rights reserved.
Visual Management & Daily Stand-up Meetings on the France Telecom CRM Factory project (Paris/Mumbai)
2011 Capgemini. All rights reserved. 49
WOM board
2011 Capgemini. All rights reserved. 50
MIM board
51 2011 Capgemini. All rights reserved.
2011 Capgemini. All rights reserved. 52
Lean Foundations- Continuous Improvement
2011 Capgemini. All rights reserved. 53
A3 Thinking is a 12 step process to develop Continuous Improvement capability in the organisation
2011 Capgemini. All rights reserved. 54
A3 Thinking is a 12 step process to develop Continuous Improvement capability in the organisation
2011 Capgemini. All rights reserved. 55
Step 1 : : Name the Project
2011 Capgemini. All rights reserved. 56
Step 2 : Identify the leader and specify the launch date
2011 Capgemini. All rights reserved. 57
Step 3 : Describe the problem
2011 Capgemini. All rights reserved. 58
Step 4 : Define the Scope
2011 Capgemini. All rights reserved. 59
Step 5 : List the Objectives
2011 Capgemini. All rights reserved. 60
Step 6 : Set a target with a measurable KPI
2011 Capgemini. All rights reserved. 61
Step 7 & 8 : Name the Sponsor & name the team members
2011 Capgemini. All rights reserved. 62
Step 9 : Understand the current situation
2011 Capgemini. All rights reserved. 63
Erase and rewrite the A3 !
2011 Capgemini. All rights reserved. 64
Step 10 : Define the target situation
2011 Capgemini. All rights reserved. 65
Step 11 : Define an implementation plan
2011 Capgemini. All rights reserved. 66
Step 12 : Track benefits achieved vs. planned
2011 Capgemini. All rights reserved. 67
Use the Accountability Board in the Obeya Room to review progress on the implementation of the A3
2011 Capgemini. All rights reserved. 68
The A3 Meeting system ensures that stakeholders are aligned
2011 Capgemini. All rights reserved. 69
Breakout Session : A3 Thinking
Based on what you have learnt today, in your groups, select one of the below problem theme and develop an A3.
1.Poor road conditions in Mumbai during monsoon.
2.Communication gaps between onshore, offshore teams
3.High backlog of incidents
4.Too many defects / rework
Task
60 minutes to design 5 min to present the
A3
2011 Capgemini. All rights reserved. 70
Implementation approaches Lean & Six Sigma
71 2011 Capgemini. All rights reserved.
Implementation approaches Lean & Six Sigma
DFSS / DMADOV
Design for Six Sigma
DMAIC
Define, Measure, Analyze,
Improve, Control
CLF warm up for
small accounts
Lean from start
(Transition)
16 week
cycle
Engagement in
crisis approach
Flow
approach
A3
Practice
Upgrade existing
account with new
lean foundation
Six Sigma Capgeminis approaches on Lean
A3 will be the standard way of representing Continuous Improvement in Capgemini.
Different approaches are used in Capgemini as per the requirement of the account management and/
or the Client request.
Basic 7-
Statistics
9 week
cycle