Welcome to

Lean Principals

Todays Topics – For Individual Contributors

Duration: 1/2 DAY (From 9 AM – 12 Noon: Location: Learn IT)

The class will be presented our IT DPH Lean RoadMap and we will have a Q&A.

Who can take this class? Anyone can take this course, but IT Service Operations Professional

with the aim of learning the language and culture of Lean will benefit most.

Course Description

Where does Lean come from?

What is Lean?

What does Lean have to do with IT?

Who decides value?

Respect & Humility at work

Class Discussion on :

the principle of "just-in-time" and “continuous flow”

why Lean embrace technology to improve processes

why Lean focuses on systemic improvement

45 Mins

15 Mins

Todays Topics

Course Description

The Eight Types of Waste and Hardships

You will learn critical question that will help you in your problem solving, initiatives,

projects and communication

Q1 What is the target?

Q2 Where are we now (Current Condition)?

Q3 What are the barriers (Gaps) preventing progress?

Q4 Where can we go and see (The Gemba)?

Q5 What is your next step?

In our next class we will be learning about DMAIC and PDCA

When I leave class, what will I take with me? A better understanding of what IT DPH

is doing and why. Understand a bit more about our customers language, practices and

principals.

60 Mins

30 Mins

We begin our Lean

Transformation

What a Lean Transformation looks like?

WE ARE HERE AT THE

FOUNDATION STAGE

What is Lean? A culture of respect and

humility.

Where does Lean come from? Lean cultural roots come from Taiichi Ohno who codified

the Lean Philosophy, Practices and the Toyota Production System, which became Lean, a

culture of respect and humility. With Strong Executive Support from Eiji Toyoda, Taiichi

Ohno helped establish the Toyota Production System, and built the foundation for the

Toyota “Spirit of Making Things / Toyota Way" and “Just in Time”.

What do we practice daily? We practice a philosophy of "Daily Improvements" and the

“Elimination of Waste and Hardship”.

What does Lean have to do with Information Technology? Lean key practices are very

transferable to IT. One of our primary goals in Information Technology is to deliver IT

services in predictable processes. Lean teaches us how standard work produces

predictable results and outcomes.

Next Slide will show

IT DPH Lean Transformation

3 Year Roadmap

We call this our Lean Journey.

IT DPH Transformation - 3 Year Roadmap

• Gain a predictable

communication

and business

cadence

• Collaborative

Conversations

• Coaching

Phase 0 - 2018

STABILITY

• Add workforce

capabilities

• Foster Lean

Learning

• Focus on Value

• Adopt Lean

Principals

Phase 1 - 2018

LEARNING

• Plan that addresses

implementation

strategy and

workforce changes

• Define customer

value.

• Consistent direction

and communication.

• Goals and Metrics

Phase 2 - 2018

HOSHIN / KPO

Phase 3 - 2019

Lean Pilot

• Conduct pilot to

capture the

current situation.

• Apply 5S,

Conduct VSM, A3,

process / work

flow.

• Visual Controls

• Establish

Standards

• Lessons

Learned from

Pilot

• Refine Plan

Phase 4 - 2020

Roll Out Lean to Org

• Monitor & Nurture

• Continue Training

• Sustainable

Improvement

Capability, in all

people at all levels

Phase 5 - 2020

Cultural change Kaizen Continuous Improvement

Team Development 5S Enterprise Wide Continuous Evaluation v. Metrics Succession Planning

Measure Benefits Realization Ongoing Kaizen Events Ongoing review of Ops & Strategy

Standardize

Level and Balance Continuous Flow

Strive for Perfection

Entry Point

Plan DO Check / Act / Adjust

Who decides value?

At DPH the customer decides value.

How does the customer communicate value to us?

Value

Everyone that works at DPH also has an important voice.

How can everyone communicate value?

Respect & Humility

Respect: We work at fostering a culture that enhances individual

creativity and teamwork value, while honoring mutual trust and

respect between labor and management.

A "Lean" culture is characterized by two learning elements: Humility

and Respect. Learning begins with humility.

How do I practice humility at work?

I don’t pretend - I know - I don't know.

I coach only 1 step ahead of the other person.

Waste & Hardship

In Lean you will here a lot about Waste and sometimes you may hear and

read about hardship… what is this all about? In Japan the word MUDA

means Waste. Taiichi Ohno who codified the Lean Philosophy, Practices

taught a culture of respect, humility, and the philosophy of "Daily

Improvements" and the “Elimination of Waste”.

In the USA we remember Waste using the acronym T-I-M-W-O-O-D-S

Transportation: In hospital's moving patient’s unnecessarily causes waste in

human resources, the nurse could be doing more important work, also

causes hardship for the patient being moved around while they are just laying

there. In IT Operations moving equipment, data, people around unnecessarily

is a waste of time, effort, and increases the likelihood that equip may be

damaged or a person could get hurt…

In Japan the word is MUDA = Waste

There are many types of waste and some are called Hardship

In the USA we can remember T-I-M-W-O-O-D

Inventory: In hospital’s we need stock but sometimes we have unused old materials just

sitting around for one day… one day we might need it. In the meantime, its right in front

of me, just taking up space in my mind, and in my work space. The same could be said

for IT.

Motion: The “wear and tear” on the body going up and down the same isle, “wear and

tear” on the equipment or the people involved in the process. In a pharmacy, reaching

across a counter or shelve to get the right medicine is waste, do it 10,000 times a year

and it becomes hardship. In IT, shuffling through equipment or materials to get the right

component, file or part is waste as well.

In Japan the word is MUDA = Waste

Here is a another type of Waste, its called Hardship

In the USA we can remember T-I-M-W-O-O-D-S

Waiting: Time that ‘stuff” is just sitting there – not being transported or processed.

• Waiting to be told what to do next.

• Waiting for a previous process to complete a batch.

• Waiting for a decision to be made or information to be transferred.

Over-processing: Doing more than is necessary.

Over-production: Making more than is necessary, adding work that is not required.

Defects: Anything that has to be re-done, defects in production. MANAGERs, we can

expect defects when we don’t provide training to our people; we throw them straight

into the deep end.

Skills - Under utilizing capabilities, delegating tasks with inadequate training

Why does Lean embrace technology?

We embrace and utilize technology that is useful now. We also

acknowledge the difficulty faced when it comes to change, because risks exist

in change. Resistance to change stops you from exposing yourself to new

things, then change becomes an impediment to the elimination of hardships

and waste and no one wants that.

Explain to me what is meant by systemic improvement in lean

organizations? Lean focuses on identifying a target, understanding the current

condition, identifying the gaps and conducting root causes analysis of problems, then we

scientific method of proposing a change. This is systemic scientific method.

Plan, Do, Check, Act (PDCA) -and- Plan, Do, Study, Act (PDSA)

When we propose a change in a process, implement change, measure the results or

outcomes, and taking appropriate action. While Shewhart created PDCA in 1925, Deming

later adapted it for Japan and the Deming Cycle is known as PDSA (S for Study).

Both are Iterative

BELOW, example of questions you can use when tackling projects, issues, initiatives etc.

1. What is the target (goal)? For example, we need to improve our current

order intake and inventory process.

2. Where are we now (current condition)? Today, the process begins when we receive

an order from a customer and proceeds to check stock levels. If there is enough stock we

fulfill the order, but usually we end up ordering equipment. Equipment takes a long time to

in because orders are customized, customers have long wait times.

3. Manager - THINK ABOUT THE LAST STEP TAKEN

1. What did you plan or do to address the issue systemically?

2. What did you expect would happen?

3. What actually happen?

4. What did you learn?

4. SME and IC – We have identify (GAPS) preventing progress? For starters, we

do not have an E2E inventory tracking system, improve cross department communication,

supplier provides inconsistent deliver schedules (no forecast), need further data analysis...

5. TEAM - Go and See the problem firsthand (The Gemba)? What did you learn?

6. TEAM – What’s the next step?

Intro to DMAIC

Intro to PDCA

PDCA (Plan Do Check Act)

Plan, set clear expectation, why they need

this, and try to understand how much they

know about the current situation already.

Do, means to run the propose or new

process

Check, means to compare expected vs.

actual, and analyze results.

Adjust, the process in order to set a new

expectation.

Follow up all work with a Gemba walk.

Go out to the area and see for yourself.

We can see PDCA in many places

Group Coach SME Student

PLAN

DO

CHECK

Adjust

Managers – When to use PDCA

Intro to Check Sheet

Check Sheet

Intro to Cause and Effect

Ishikawa

Fishbone Diagram

Ishikawa or Fishbone Diagram

Intro to Pareto Chart

Pareto Chart

Welcome to

Lean – Back Up Slides

What is Lean? The core principal of Lean is

respect for the individual, provide value for

the customer while minimizing waste. Who

defines value? The customer. We help guide

and execute.

At the heart of Lean

is a focus on the

customer and a

spirit of continuous

improvement.

What the customer thinks is happening.

What is actually happening.

Without a target, its hard to get anywhere.

1. Set a direction

1. Set a goal

2. What is the challenge

1. Be SMART about goals and decisions

2. Understand the Current Condition

1. Where are we?

2. Can we do this?

3. What are the gaps?

3. Establish the Next Target Condition

4. Conduct Experiments until you get there (PDCA)

Strong set of tools, practices and principles

Lean provides a strong set of implementation tools, practices and most important

principles. We see (the current situation – as-is state) in a realistic (data driven) point of

view, instead of listening to (or) speaking in opinions. Lean is also about creating a vision

for the (future state - the to-be), all the while eliminating waste continuously.

Waste can be easily recalled using the acronym DOWNTIME:

• Defects

• Over-Production

• Waiting

• Non or Under Utilized Talent

• Transportation

• Inventory

• Motion

• Extra-Processing

BEFORE

AFTER

What constitutes Value

from a Lean context?

Key Lean Concepts: Lean Enterprise

Institute: Source: Lean Lexicon.

Continuous Flow

Producing and moving one item at a time (or a small and consistent batch of items)

through a series of processing steps as continuously as possible, with each step making

just what is requested by the next step. It is also called one-piece flow, single-piece flow,

and make one, move one.

Cycle Time

How often a part or product is completed by a process, as timed by observation. This

time includes operating time plus the time required to prepare, load, and unload. The

appropriate calculation of cycle time may depend upon context. For example, if a paint

process completes a batch of 22 parts every five minutes, the cycle time for the batch is

five minutes. However, the cycle time for an individual part is 13.6 seconds (5 minutes x

60 seconds = 300 seconds, divided by 22 parts = 13.6 seconds).

At its core, Lean revolves around a

few key concepts.

Jidoka

Providing machines and operators the ability to detect when an abnormal condition has

occurred and immediately stop work. This enables operations to build-in quality at each

process and to separate men and machines for more efficient work. Jidoka is one of the

two pillars of the Toyota Production System along with just-in-time. Jidoka is sometimes

called autonomation, meaning automation with human intelligence.

Just-in-Time (JIT) Production

A system of production that makes and delivers just what is needed, just when it is

needed, and just in the amount needed. JIT and jidoka are the two pillars of the Toyota

Production System.

At its core, Lean revolves around a

few key concepts.

Kaizen

Continuous improvement of an entire value stream or an individual process to create

more value with less waste. There are two levels of kaizen: (1) System or flow kaizen

focuses on the overall value stream and (2) process kaizen focuses on individual

processes.

Kanban

A signaling device that gives authorization and instructions for the production or

withdrawal (conveyance) of items in a pull system. The term is Japanese for sign or

signboard.

At its core, Lean revolves around a

few key concepts.

Lean Thinking

A 5-step thought process proposed by James Womack and Dan Jones in their

1996 book Lean Thinking to guide managers through a lean transformation.

The steps are:

1. Specify value from the standpoint of the end customer.

2. Identify all the steps in the value stream.

3. Make the value creating steps flow toward the customer.

4. Let customers pull value from the next upstream activity.

5. Pursue perfection.

Lean revolves around a few key concepts

Plan, Do, Check, Act (PDCA) -and- Plan, Do, Study, Act (PDSA)

An improvement cycle based on the scientific method of proposing a change in a

process, implementing the change, measuring the results, and taking appropriate action.

It is also known as the Deming Cycle. While Shewhart created PDCA in 1925, Deming

later adapted it for Japan and the Deming Cycle is known as PDSA (S for Study).

At its core, Lean revolves around a

few key concepts.

Production Lead Time (also Throughput Time and Total Product Cycle Time)

The time required for a product to move all the way through a process from start to

finish. At the plant level this is often termed door-to-door time.

The concept can also be applied to the time required for a design to progress from

start to finish in product development or for a product to proceed from raw materials

all the way to the customer.

At its core, Lean revolves around a

few key concepts.

Takt Time

The available production time divided by customer demand. For example, if a widget

factory operates 480 minutes per day and customers demand 240 widgets per day, takt

time is two minutes. Similarly, if customers want two new products per month, takt time is

two weeks. The purpose of takt time is to precisely match production with demand. It

provides the heartbeat of a lean production system.

Value Stream

All of the actions, both value-creating and nonvalue-creating, required to bring a product

from concept to launch and from order to delivery. These include actions to process

information from the customer and actions to transform the product on its way to the

customer.

At its core, Lean revolves around a

few key concepts.

Value Stream Mapping (VSM)

A simple diagram of every step involved in the material and information flows needed to bring a

product from order to delivery. A current-state map follows a product’s path from order to delivery to

determine the current conditions. A future-state map shows the opportunities for improvement

identified in the current-state map to achieve a higher level of performance at some future point.

Waste

Any activity that consumes resources but creates no value for the customer.

At its core, Lean revolves around a

few key concepts.

A Process is a group of steps, tasks, or activities, which take Inputs (People, Material, Information)

and changes them to produce an Output (Service, Product)

Measure of “What is important to Customer”. In DMAIC, projects CTQ stands for a measurable

Critical to Quality attribute. Ex: of CTQ is improving customer waiting time in clinic waiting room.

Defect is nonconformance on one of many possible quality characteristics of a product or service that

causes customer dissatisfaction. Not delivering what the customer wants or needs.

Process Capability: What the process can deliver.

Variation: What the customer sees and feels.

Stable Operations: Ensuring consistent, predictable processes to improve what the customer sees

and feels.

Design : Designing to meet customer needs and process capability.

Customers feel the variance, not the means. Meaning they feel the mistakes not the daily operations.