A Disappearing Act: Using lean principles to develop winning proposals
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1 A Disappearing Act: Using lean principles to develop winning proposals Presenter: Keera Godfrey, MBA, M.S. Naris Communications LLC Sponsored by Georgia, Carolinas, and Florida APMP Chapters
2 Are you certified? Lean Six Sigma Total Productive Maintenance (TPM) Project Management Professional Shingo Continuous Improvement 2
3 Objectives 1. Recognize that Lean Principles and tools can be used to improve proposal development processes 2. Identity the eight types of waste that may be in your current proposal development process 3. Recognize the different types of process mapping tools 4. Complete a Standard Work Combination Sheet for a specific process to improve your proposal development lead time
4 Agenda Introduction Five Lean Principles Eight Wastes and Gemba Mapping tools Practical Application Standard Work Combination Sheets Questions 4
5 Can you relate to this situation? Lucy Chocolate Factory Video Clip
6 Discussion Do you ever feel this way when working on proposals? Does your process feel like there is more and more being pushed at you? Do you make your work look easy and then receive more as a reward Have you ever waited a long time to get something from another person or department and then felt overwhelmed when it s finally received?
7 Lean and Six Sigma OPERATIONAL EXCELLENCE Faster Lean Eliminates Waste Consistent Six Sigma Eliminates Variation TPM Eliminates Equipment Failure Efficient Attains Simplicity Manages Complexity Improves Reliability Improved Safety, Quality, Service and Productivity
8 What is Lean? A business practice that creates more value for customers with efficient use of resources The elimination of waste and non-value added activities from any process (manufacturing or transactional) Lean Execution Roadmap PLAN DO CHECK ACT
9 Why Lean? People do business with people they know and feel know them Proposals are not won because they are completed fast The early bird does not get the worm! Spend more time ensuring all customer needs are addressed Spend more time solutioning, writing, and fine-tuning visuals
10 The Beginning of Lean: The Ford Company The Beginning of Lean
11 Five Lean Principles Sponsored by Georgia, Carolinas, and Florida APMP Chapters
12 Principle 1: Specify value in the eyes of the customer Value is: What the customer is willing to pay for Created by any activity that changes the form, fit, or function of the product or service Don t confuse value with price Value A customer buys because of perceived value!
13 Value Added and Non-Value Added VA = Good Activities that directly contribute to satisfying customer requirements. Changes on fit, form, function. NVA = Bad Activities that do not directly contribute to satisfying customer requirements. BVA = Required Business Value Added: Non value adding activities which are necessary in the current environment. (i.e., legal activities, gate reviews)
14 Principle 2: Identify the value stream and remove wastes A value stream: Includes all activities required to produce a proposal. Is a group of proposals that pass through similar process steps and over common equipment
15 Principle 2: Identify the value stream and remove wastes Removing waste reduces the amount of time needed to complete tasks VA NVA VA VA NVA VA NVA VA VA VA VA CSM OPEX Lean Leader Training: Module 2
16 What is a Value Stream Map? A tool used to visually record process steps, interactions, and relevant information required to create value to the customer. Includes information flow, product flow, and timeline
17 Principle 3: Create flow Steps in the process should happen in a steady and continuous way through the business. Value-creating steps must occur in tight sequence, so the proposal will FLOW smoothly toward the customer. $ $ VA VA VA VA
18 Principle 4: Create pull VS. Produce only in response to customer requirements Produce in anticipation of customer requirements Only produce what is required, when it s required!
19 Principle 5: Pursue Perfection. Lean is a continuous journey of process improvement. We never fully meet perfection, so we need to continuously strive to make our processes better.
20 Activity: Value Instructions: 1. Assume you are a customer about to purchase a television. 2. Make a list of the most important features the television need to have in order for you to finalize the purchase (Value Added). 3. When prompted by the instructor, share your list with the class. Total Time: 5 minutes
21 Activity: Value Practical Example Value Added Non-Value Added Color definition Quality control inspections Size - dimension Warranty HDMI connection Inventory Smart features Packaging Hardware Extended warranty - optional Alarm/Timer Delivery - optional Caller ID??
22 Eight Wastes Sponsored by Georgia, Carolinas, and Florida APMP Chapters
23 Eight Wastes Eight common sources of waste and non-value adding activities Identify waste in the process
24 8 SOURCES OF WASTE Defects Over Production Waiting Non-utilized Talents Transportation Inventory Motion Extra Processing Defects Incorrect data entry (keying error) Missing information Wrong information Lost records Scrap paper Using old solicitation
25 8 SOURCES OF WASTE Defects Over Production Waiting Non-utilized Talents Transportation Inventory Motion Extra Processing Over Production Overfill Preparing extra reports Reports not acted upon Multiple copies in data in storage Producing product to sales forecast/net requirements Writing more than needed Extra copies
26 8 SOURCES OF WASTE Defects Over Production Waiting Non-utilized Talents Transportation Inventory Motion Extra Processing Waiting Processing monthly not as the work comes in (i.e., closings, billings, and collections) Waiting at the printer Waiting for all sections before team reviews Delayed edits or reviews
27 8 SOURCES OF WASTE Defects Over Production Waiting Non-utilized Talents Transportation Inventory Motion Non-utilized Talent Too busy to think Not using skills of all team members No input into problem solving No input into long term continuous improvement Extra Processing
28 8 SOURCES OF WASTE Defects Over Production Waiting Non-utilized Talents Transportation Inventory Motion Extra Processing Transportation Extra steps in the process Distance traveled to the office Travel to meetings Sending documents from one person to another via Moving: excess inventory files to another person product
29 8 SOURCES OF WASTE Defects Over Production Waiting Non-utilized Talents Transportation Inventory Motion Extra Processing Inventory Transactions not processed Unread s in your inbox Anything waiting to be worked on Work in progress (WIP) Unreliable vendors Undelivered proposals
30 8 SOURCES OF WASTE Defects Over Production Waiting Non-utilized Talents Transportation Inventory Motion Extra Processing Motion Extra steps Travel from office to office, desk to desk Extra data entry Stretching or reaching to obtain materials or supplies Travel to supply room
31 8 SOURCES OF WASTE Defects Over Production Waiting Non-utilized Talents Transportation Inventory Motion Extra Processing Extra processing Multiple sign-offs Walking the wall Most meetings Inspection Rework Multiple reviews Gate reviews with all team members
32 Waste Walk / Gemba Walk What is It? An activity based on pure observation that takes management to the front lines to look for waste and opportunities. It is the process of carefully observing to see where things are not happening as they should. Gemba ( 現場 ) is a Japanese term meaning "the real place" where value is created. Purpose To have a basic understanding of the process by direct observation. To identify waste and process improvement opportunities.
33 Waste Walk / Gemba Walk Template Waste Walk Worksheet Date: Observer D O W N Defects Over Production Waiting Neglected Resources T Transportation I M E Inventory Motion Extra Processing How many people did you observe in the aisles not working? How many fork trucks driving with empty forks? How many people performing non-value added
34 Activity: Gemba/Waste Walk Instructions: 1. Think about your office, in your mind walk through your most recent proposal development. 2. Write down your personal observations of waste. 3. What are the problems or opportunities that affect each process step? (This can also include previous conversations you have had with process owners.) 4. Draw diagrams as needed. 5. When prompted by the instructor share your observations with the person next to you. Total Time: 7 minutes
35 Activity: Fun with Instructions: 1. Download Kahoot app on your mobile devices on tablet 2. Enter the following Game PIN: 3. Enter a username 4. Answer questions about the Eight Wastes 5. Winner gets a prize! Total Time: 7 minutes Disclaimer: Presenter reserves the right to abandon activity if technology does not cooperate or if audience has too much fun and start a riot!
36 Mapping Tools Sponsored by Georgia, Carolinas, and Florida APMP Chapters
37 Three Levels of Mapping for Continuous Improvement in Business Process Personal efficiency Focuses on how every person plans and executes their own work Content of work Focuses on value added and non-value added for every operation/task in the process Process Focuses on finding waste and reducing lead time
38 Process Mapping Tools EXAMPLE TOOL WHEN BEST TO USE Swimlane Process Diagram Process Flow Charts To show steps in the process in sequential order categorized by department or process owner. To show the steps of a process, clustering them together in a single flow. SIPOC Diagram To dissect a full business or administrative process at a high level in no more than 6-8 steps.
39 Process Mapping Tools EXAMPLE TOOL WHEN BEST TO USE Value Stream Analysis Standard Work Combination Sheet Handoff Diagram To visually show the flow of products and services from their beginning to their completion. To show a time-lapsed, step by step work flow that clearly depicts walking, waiting, machine time, and operator cycle time. To show the number of times a product or item "changes hands" between individuals or departments.
40 Benefits of Mapping your Proposal Process Enables your team to see the process from the same perspective Decreases errors of procedure Builds understanding between cross-functional areas Helps everyone to see the current state Identifies opportunities for improvement Enables development of metrics Decreases waste by identifying gaps and excess
41 Practical Application of Lean Sponsored by Georgia, Carolinas, and Florida APMP Chapters
42 Example #1: Mapping a Proposal Development Process
43 Example #2: Mapping a Proposal Development Process
44 Example #3: Work Combination Sheet
45 Standard Work Combination Sheet What is It? A detailed visual chart which breaks down the person s movements It shows the combination of manual work time, walk time, and machine /computer processing time for each operation in a process sequence Very helpful to identify the waste of waiting and overburden, and to confirm standard work-in-process
46 Activity: Work Combination Sheet Instructions: 1. Review the Work Combination Sheet for the Pink Team Review Process. 2. In teams of 2 or 3, revise the Pink Team Review Process to less than 2460 minutes (41 hours). 3. Compare your response to the sample provided. Total Time: 10 minutes
47 Activity: Work Combination Sheet -BEFORE
48 Activity: Work Combination Sheet AFTER Possible Answer
49 Continuous Improvement Suggestions for Proposal Development Process *Note: This list contains general ideas and are not company specific. Study your own processes to determine continuous improvement ideas that are best for your organization. Eliminate walking the wall Utilize video conferencing instead of travel to meetings Reframe from writing the technical approach to the previous RFP Stagger team review sessions Provide win strategy and clear information about the customer upfront to avoid rework Split reviewers in two teams, half begin at the front and the other half begin at the last section and move forward Maintain a response database Maintain a list of past performance and references Create a response template with a standard layout and color scheme Maintain a catalog of graphics Outsource printing Assign certain sections of the proposal to particular reviewers rather than entire document
50 The Ultimate Quick Changeover Nascar Ultimate Pitstop
51 Summary Value is defined by the customer. Effective, yet inexpensive improvements can have the biggest impact. Identify and remove forms of waste. Process improvements can lead to improved flexibility, increased capacity, and better quality proposals. Map your current proposal development process using a series of lean tools. Conduct a Value Stream Analysis or Standard Work Combination Sheet to create flow in your proposal development process. Lean is a continuous journey of improvement.
52 Questions? Keera Godfrey MBA, M.S. CEO/ Principal Consultant Naris Communications LLC Ph:
53 Keera Godfrey MBA, M.S. CEO/ Principal Consultant Naris Communications LLC Ph: Thank you!
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