Process Improvement with Lean and Kaizen (PowerPoint)

Create a CULTURE (core values + behaviours), that builds a LEARNING ORGANIZATION which
drives CONTINUS IMPROVEMENT FOREVER
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Types of Kaizen
Daily
Improvement
Small incremental
changes
Done internally, with-in
organization
Ongoing
Projects
Traditional Project
Management
Usually part time effort
Kaizen
Event
Many names (CIW, Blitz)
3-5 days
100% commitment (time)
An intensive burst of
process improvements

Hold Kaizen event if
Rapid change is desired
Resource requirement are supported
Team problem solving is necessary or desired
There is desire to teach the tools through application
Its important to get people ( and the organization)
thinking differently

Kaizen event process
About 4
Weeks Prior
to Event
Day 1-2 Day 2-3 Day 3-5 After
Event
Plan and
Create Charter
Root Cause
Analysis&
Future State
Plan
Train (if
needed)&
Process Walk
Improve
Process
Sustain
Process, Report
Out, & Follow-
Up

10 Commandments of Continuous Improvement
Open your mind to change
Think “Yes we can, if … “
Always attack the process, not people
Seek simple solutions
If it’s broken, stop and fix
Use creativity, not capital
Problems are opportunities in disguise
Fix the root cause; ask “why” five times instead of “who”
Wisdom of many is better than the knowledge of one
There is no final destination on the improvement journey

What to do with NVA steps ?
Shorten the time lost in meeting
Eliminate obsolete beaurocratic processes
Reduce re-work
Reduce delays
Reduce reporting
Reduce movement
Reduce defects
Reduce inspections
Reduce decisions
Reduce transportations
After all they
are not
adding value
to customer

The 7 Wastes
Motion
• Elimination of waste is a goal.
• Always think about broader concept of word waste.

Some time we are surrounded by waste
for so long , we become desensitized to it
Seeing with new eye
Goal is identify and eliminate non value added steps so
people spend more time on activities that add and
create value
People aren't waste but their time might be focused
wasteful activities
With 7 waste you recognize “muda” that was previously
unnoticed
Coworker saying there is too much to do, but many of
activities they are engaged in are probably not adding
value

Defects – Think about
Missing information, missed
specifications, or lost records
Poor process controls
Managing subcontractors to
correct mistakes
Incorrect schedules and
information
Inadequate trials before full
implementation
Lost or damaged goods
Returning forms/applications
due to incomplete data
Having discrepancies in data
content because they are
stored in different systems
Submitting wrong/inaccurate
data
Creating a document that
requires extensive correction by
the colleagues
Handling a report numerous
times
Missing information, missed
specifications, or lost records

Non-utilized talent
Use them
Experience
& Skills
Creativity
KnowledgeLack of
empowerment
Non utilizing
employees
brains
Lack of
suggestions
That’s not
my job
attitude
Lack of cross
training
At a company, an example of non utilized talent
would be only allowing few employees to learn
to operate new CRM system

Inventory
Filing unfinished service
requests never to be used
again
Keeping multiple copies of
reports
Keeping unused 'required fields'
in eports/documents/templates
that will not be used in
company reports
Having (and not using)
excessive icons on the Desktop
Creating excessive document
revisions rather than
overwriting previous copy
Keeping excessive 'un-read'
email in your email Inbox

Minimize
amount of
waste in a
process
Eliminate
causes of
waste
Simplify if
process or
step that is
creating
waste
Streamline –
especially
with complex
processes
Working with team to identify and reduce waste can be a way to build confidence
with quick wins for improving process

5S Concept
• Applicable to physical and virtual aspects of our
work
• A environment where employees have information
at their fingertips. Also it includes the correct
procedures (i.e., SOP, standards) so that when
someone is not there, the information can still be
accessed without delay.
• Make sure informational areas (i.e., databases,
network drives and email folders) are systematically
kept organized to ensure the most efficient access
to that information and/or data when it is needed
THINKING TO IMPROVE

5S activity
• In groups, brainstorm list of issues that you have
encountered in workplace
Processes/Systems
Materials and information
Common areas and
equipment
Communication
Office layout
Mindsets and behaviors
5S can
help us
☺

Where should sorted items go ?
Store in designation central location
Things used once per week
Things used daily
High degree of need
Things used hour
Store near the work site
Store in red tag area
Available for others to use
Red tag area must be managed
Not in use but have value
Things you’ve used between
1-6 months
Store at distance
Sell or Scrap
Things that have been in past
Things you’ve used between
1-6 months
Not in use and no value

Set-in-Order
• Process of finding permanent locations for items
• Make it easy to get to
• Include your PC files
• May require changes to your work area
Organize based on usage Most used items closest Process steps matching
Avoid cabinets and drawers Arrange needed items in order for easy access

Set-in-Order examples
Filing with labels
Cabinet filing with labels 5S on desk top drawer

Shine – Decide yourself
A 2004 study by Dr. Charles Gerba of the
Univeristy of Arizona found keyboards
have on average 3,295 germs per square
inch versus a toilet seat which has 49
germs per square inch. Gerba say, “Desks
are really bacteria cafeterias.”
Researchers recommend that you should
give your keyboard a good “spring
cleaning” by dusting off crumbs and
cleaning with an appropriate disinfectant

Standardize Tips
Increase the lighting in the work area
Makebestpracticethecommonpractice
Create templates for all forms
Review and update SOPs and job instructions systematically
Set in place the rules and policies to embed first three steps e.g. designated area, proper marking of
areas, a log of what goes where etc.
Schedule 5S activities, make it a part of work routine
Daily schedule: At the end of each work day, employees should take 10 minutes to perform mini
version of the Sort, Set in Order, and Shine steps
Standardize for safety
Train new staff on 5S system
Develop training documentation and presentation
Reward innovation and improvements to increase interest in program

E-standardize
• How to use the search function;
• Standard naming conventions;
• Sharing/restricting file access;
• Archive/Delete function;
• Micro-improvements such as 'quick
launch' capability for frequently used
programs/applications;
• Drop box use
Desktop / Laptop Outlook
• How to create rules/filters for incoming
emails;
• Correct naming conventions for email
folders on personal Outlook directories;
• How to use the search function;
• Using colored flags for different urgency
level;
• Disabling email "pop-ups";
• Blocking unwanted emails;
• Archive/Delete function;
• Auditing Outlook;
• Recall a sent message;
• Automatically close the message after
replying; Direct replies to; Quick steps; Out of
office

Sustain Tips
CEO should conduct regular Gemba walks to inspect the offices and point out the positive and
negative conditions
CEO should help to point out specific improvement items and propose improvement themes at 5S
promotional meetings
Gemba walks can be held individually or as a group to study and report on improvement methods
taken in response to improvements suggested by the CEO
Gemba walk by CEO

Electronic Sustain 5S
Involves education, communication, and audits to ensure that everyone uses the applicable
standards
Involve a regular once-a-week 2 - 5 minute self-assessment and a more comprehensive monthly or
quarterly assessment by an independent internally appointed auditor
Maintain the gain and forget the blame
From its modest beginnings as a housekeeping tool, the 5S system has evolved into a method for
initiating Lean/Six Sigma projects, reducing costs, improving workflow, and engaging all employees to
participate in reducing waste

Re-work Loops
Situation where a step in a
process is repeated in order to
correct a defect; also known as
backtracking
Employees often know where
these loops are but become
addicted to this waste
Added cost
Their analysis give clues to
understanding root cause of
problem
Look for place where large
amount of work move back in
the process to be fixed
Many such steps can become
an accepted part of process
Process 2
INSPECT IT
DO IT
AGAIN
Process 1 Process 3Look for place
where large
amount of work
move back in
the process to
be fixed
Process working at its best is
identical to as staying on happy
path
Often after analysis we are
surprised as how often we deviate
from happy path
Rework loops indicate both an
Increase in cycle time and defects
Adds time to the process as well
as potential for defective products
and services

We tend to wonder
why that person is not
keeping up ?
Finding bottlenecks
• Observe who does what in a process ?
• We often create specialists to increase efficiency, but if specialist
becomes a bottleneck, its time to rethink why that person or that
role is the only capable or allowed to conduct the task
• Time to think out side the box !
• Swim lanes are best ways to uncover bottlenecks
Long standing job descriptions which were never updated
Number of licenses available for a specific software
May be
result of
As a result of
unevenness, create
burden thus creating
waste

Handoff
• Occur all the time because organizations tend to manage people by functions
and not by process
• Process with more handoffs generally create opportunities for waste
• Create opportunities for missed communication around requirements that can
lead to additional inefficiency
• Review your process to make sure there are no unnecessary handoffs that could
contribute to problemsThis document is a partial preview. Full document download can be found on Flevy:

FLOW AND
PULL
TOOLS

Visual
Kanban
• A Kanban System : JIT pull system where items are replenished just as the rate
they are consumed
• A low technology highly visible pull system for inventory management
• Method of indicating when its time to move to the next step in process
• Coordination of material, information and actions
• Help to implement pull system
Posters / Cards
Door Plates
LCD linked with ERP
Can take
many forms
kan
Card or Board
ban

Kanban benefits
Reduces stock outs and
minimizes expenses for
expediting products or parts
Forces stock rotation which
minimizes obsolesce, and the
risk for damage
Reduces space needed for
holding inventory
Reduces amount of inventory
needed
Simplified management system,
require less resources and effort
once established
Reduces the wait time between
process steps

What is Flow ?
• Flow is about item we are dealing with in a process move from one step to the last
• Intention of lean flow is to move item or product as quick as possible, without any risk to quality
and customer satisfaction
• Process flow should not slow because of how the process is designed
• Customer should be able to move through the process and not get stuck.
• Where are bottle-necks? trying to remove those things so that customer can make it down in a
streamlined fashion
Lean flow increase your profits
and competitive advantage
Its about increasing throughput
of work undertaken in the
process
“When everything seems to be
going against you, remember
that the airplane takes off
against the wind, not with it.”
Henry Ford

Batching increase cycle-time
Seems efficient but sub optimize entire process
Increase delays in process
Batching impedes
flow of the process
and increase overall
cycle-time of the
customer
Imagine, that the batch of 5 items in this process do not
move until all operations for that one step have been
completed. In this case, person one processes the 5 items
in 5 minutes.
She passes the batch on to the next person in the process
who takes 5 minutes to complete the batch at operation 2.
This carries on down the process until the fifth and final
person completes their operations on all 5 items in 5
minutes.
It took 25 minutes to complete entire process for 5 items.

Setup reduction Single-Minute Exchange of Dies (SMED)
Quick Change-over (QCO)
• A technique to analyze and reduce resources
needed for equipment setup, including
exchange of tools and dies
• Refers to switching from one process to
another
• Switching interrupt flow of the process and
add cycle time
• Our goal is to reduce change over time
• SMED approach reduce output and quality
losses
• Key part of JIT program
Also known as

Tools to shorten change-over
Clearly list the step for a quick
changeover
Checklists
Set presets for settings on machine
or software
Function Check
Ensure parts, tools, or information are
readily available at the site of the
process prior to changeover
Remove parts and tools from earlier
runs after changeover, or turn off
unnecessary software or systems
Improved placement of
tools and parts

Work cell design
• Process of reducing distance between or co-location of resources or people
to ensure product or service is delivered to the customer with minimal or no
waste.
• Having all items (i.e., printers, faxes, documents, etc.) available to ensure the
job is completed on time.
Motion
Transportation
Delays
Three
addressed
waste are
Reduced cycle time and
Reduced complexity in processResults in

Cell design and Functional work
Work cells ensure continues flow and minimizes
queues and improves cycle time
Inventory reduction & counteract the results of
organizational silos
Processing in isolated islands creates
queues and increased cycle timeThis document is a partial preview. Full document download can be found on Flevy:

Cross Training
“An organization’s ability
to learn, and translate
that learning into action
rapidly, is the ultimate
competitive advantage.”
Jack Welch

Remember
…there are four levels of training for every member of the company
Job description
responsibility
level
Improvement and
problem solving
tools training level
Next level
job growth
preparation
level

Cross training matrix - example
Benefits that can be obtained by
implementing a cross-training
program:
• Break up the dullness of the
week
• Create teamwork to understand
how the total process or value
stream works
• Allow manager to discover
which workers are well suited for
different positions
• Allow for easier filling-in for
emergencies and vacations
• Improve process/departments
capacity
• Allow organizational knowledge
to be shared

Quick Wins
A change or
solution
Involve 1 or 2
people for
implementation
Can be
implemented in
less than 2
weeks
Does not
involve multiple
area’s or
departments
Has buy in from
leadership and
process
participants
Challenges
Solution may be more complex than
originally thought
Proposed change may unintentionally
impact more area’s than expected
Unplanned resistance
Quick wins may use resources and
cause delays in original project
Make sure the win is truly a quick oneThis document is a partial preview. Full document download can be found on Flevy:

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Process Improvement with Lean and Kaizen (PowerPoint)

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Process Improvement with Lean and Kaizen (PowerPoint)