WASTE NOT, WANT NOT: LEAN VALUE CREATION

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1 WASTE NOT, WANT NOT: LEAN VALUE CREATION Presented by Tom Harkenrider Chief of Operations, Soka University Jonas Salk s Three Stages of Change First: It can t be so Second: If it is so, it can t be very important Third: We knew it all along! 1

2 How does Lean fit in with other quality initiatives? Malcolm Baldrige Criteria for Performance Excellence Balanced Scorecard Six Sigma Baldrige can be thought of as the quality tool crib Baldrige Categories: Leadership Strategic Planning Customer Focus Information and Analysis Employee Focus (Learning and Growth) Process Management Results Other quality initiatives are quality tool boxes assembled from the tool crib of Baldrige Categories 2

3 Balanced Scorecard tool box Perspectives Financial Customer Learning and Growth (Employee) Process Aligns with Baldrige Results such as Financial and Market Outcomes, Customer Focused Outcomes Human Resource Outcomes, and Organizational Effectiveness (Process) Outcomes Preferably all in balance as an inter-related system of performance metrics. Six-Sigma tool box : Process Management Leadership Initiative Data Driven Decision Making (Information Analysis) Customer Requirements Strategic Alignment of Improvement Projects Employee Training and development Predominantly used to solve problems and reduce errors through Definition, Measurement, Analysis, Improvement and Control (DMAIC) 3

4 Lean tool box Processes that enhance value by reducing Waste Customer Focused Values Leadership Driven Initiatives Employee Engagement Lean Waste Reduction usually precedes Six-Sigma deeper levels of drill down Some common mistakes; what to do about them Beginning Baldrige all at once; start at an entry level with a few relevant categories Overloading the metrics in a Balanced Scorecard; Limit to a Significant Few instead of a Meaningless Many Using Six-Sigma to solve simple problems (pole-vaulting over a mouse dropping); Use Baldrige Organizational Profile and maturity tools to aid in project selection Believing any one quality initiative Tool is always better than another. It is not so much the tool, but the people and thinking behind the tool, i.e. Lean Thinking 4

5 What is Lean? Lean is the concept of creating greater value by reducing wasteful service or production elements and what the customer does not need or appreciate 8 Wastes of Lean TIM WOODS T- Transport- Moving people, products, and information more then needed I- Inventory- Storing materials and documentation longer than needed M- Motion- Reducing strenuous moves and handling steps W- Waiting- Waiting for parts, equipment, information and instructions. O- Over-Production- Servicing or making more (even quality) than needed O- Over-Processing- Planning or doing more then needed or appreciated D- Defects- Call-backs, pre-mature failures, incorrect trouble-shooting S- Skills- Underutilization of workforce know-how and creativity The Toyota Production System (TPS) 5 S s and Mac MacDonald s LYFECO Human Side of Lean 5

6 1. Seiri 整理 (SORT) Remove unnecessary items and dispose of them properly (discuss and address issues). Make work easier by eliminating obstacles (adjust your attitude). Reduce chance of being disturbed with unnecessary items (don t overload others). Prevent accumulation of unnecessary items (stop holding on to baggage). Evaluate necessary items with regard to debt/cost/other factors (am I taking ownership?). 2. Seiton 整頓 STRAIGHTEN (SET IN ORDER) Arrange all necessary items in order so they can be easily picked for use. Prevent loss and waste of time (my ego does not hate its own funeral I communicate). Make it easy to find and pick up necessary items (know our areas of contention). Ensure first-come-first-serve basis (discuss issues before they become issues). Make workflow smooth and easy (make it easy to broach any subject be open). Can also be translated as "set in order" (always perform a check at the end of the day). 1. Seiri 整理 (SORT) Remove unnecessary items and dispose of them properly ( avoid dwelling on to bad experiences; live in the present!). Make work easier by eliminating obstacles (check and adjust your attitude; avoid company and negativity with nay-sayers some people can brighten a room by leaving it!). Reduce chance of being disturbed with unnecessary items (don t interfere with the performance of others or having the monkey placed on your back ; if a ball is thrown it does not mean you have to chase it!). Prevent accumulation of unnecessary items (stop holding on to negative baggage; count your blessings not your troubles). Evaluate necessary items with regard to debt/cost/other factors ( question if the risk is worth the reward and never lose it ; when you lose it, you lose!). 6

7 .2. Seiton 整頓 STRAIGHTEN (SET IN ORDER) Arrange all necessary items in order so they can be easily picked for use. Prevent loss and waste of time ( learn and keep your mind active; The mind that rests, rusts!) Make it easy to find and pick up necessary items ( know your strengths and work on your weaknesses; look at yourself in the mirror!) Ensure first-come-first-serve basis (either discuss issues in a timely manner ; let it go!) Make workflow smooth and easy (be an open and forthright communicator and active listener; we were born with two ears and one mouth so maybe we should spend twice as much time listening and half as much talking!). 3. Seiko 清掃 (SHINE) Clean your workplace completely (are you coming from a clean, win-win place?). Use cleaning as inspection (examine your attitude, truly are you seeking win win?). Prevent machinery and equipment deterioration (give yourself a maintenance check; take time to stop chopping and sharpen the ax). Keep workplace safe and easy to work (never withhold information for personal gain). Can also be translated as "sweep" (sweep the negative out of your system. Remember the Boy Scout Motto! Leave your campground cleaner than when you found it. This applies to our relationships as well as the workplace.) 7

8 4. Seiketsu 清潔 (STANDARDIZE) Maintain high standards of housekeeping and workplace organization at all times. (maintain a balanced and ethical lifestyle; sound mind and sound body!) Maintain cleanliness and orderliness (be authentic, honest, forthright, and real; to thine own self be true!). Maintain everything in order and according to its standard (avoid clutter and chaos in your life; know your true North!) 5. Shitsuke 躾 (SUSTAIN) Note: The more you practice the first 4S s, this 5 th will become second nature. To keep in working order deploy with discipline. ( avoid procrastination and act with confidence and conviction). Also translates to "does without being told (I grip, and hold high, my own standards for excellence. My Moments Of Truth can be placed on any altar for examination I should never need permission to do the right thing!). 8

9 Case Study University of Pennsylvania Facilities and Real Estate Services 2014 APPA Effective and Innovative Practices Award Recipient Lean Practice Applications Maintenance work order management one-touch visit increase and backlog reduction Solid waste management Increase overall recycling by a third and double diversion rate Housekeeping and Preventive Maintenance (emerging) Identified opportunities for improvement (Baldrige) What Penn management had to say about Lean Lean practice drives behavior change from within (Human side of Lean) Lean practice supports systems thinking (Lean thinking) Lean practice is driven by a focus on the customer (Baldrige based) What Penn staff had to say about Lean We have built alliances and relationships and I want to continue this momentum I liked how everyone was able to challenge one another and find common ground, respectfully I learn a lot every time we do this (type of Lean work) and appreciate everyone being here. It makes it easier to work on things with support from one another 9

10 Conclusion Do Lean Principles apply to any organization including yours? The answer is Yes if there are at least 3 P s People The foundation of Lean thinking is People, the most valuable asset Processes The sequence of events always involved in creating an outcome Purpose The why the organization exists APPA Facility Managers have been Lean practitioners for over 100 years In one form or another. Yes, Jonas, We knew it all along Thanks for attending this session! Tom Harkenrider harkenrider@soka.edu 10