OPERATIONAL EXCELLENCE IN YOUR OFFICE: HOW TO ACHIEVE AUTONOMOUS VALUE STREAM FLOW

Transcription

1 OPERATIONAL EXCELLENCE IN YOUR OFFICE: HOW TO ACHIEVE AUTONOMOUS VALUE STREAM FLOW Kevin Duggan, Author Founder, Institute for Operational Excellence

2 KEVIN J. DUGGAN Renowned expert in applying advanced lean techniques to achieve Operational Excellence Author of four books on the subject Kevin has guided many major corporations worldwide, including FMC Technologies, Chromalloy, Aetna, SpaceX, Caterpillar, Pratt & Whitney, Singapore Airlines, Sikorsky, IDEX Corporation and Parker Hannifin Featured on CNN and the Fox Business Network Frequent keynote speaker, master of ceremonies, and panelist at international conferences

3 KEVIN J. DUGGAN Kevin has assisted many major corporations worldwide including FMC Technologies, Chromalloy, Aetna, SpaceX, Caterpillar, Pratt & Whitney, Singapore Airlines, Sikorsky, IDEX Corporation and Parker Hannifin Frequent keynote speaker, master of ceremonies, and panelist at international conferences, and has appeared on CNN and the Fox Business Network.

4 IMPROVING FLOW IN OFFICES

5 CONTINUOUS IMPROVEMENT

6 THE NORMAL PATH TO BETTER Improve Improve Improve Sustain Sustain Sustain

7 OPERATIONAL EXCELLENCE LEVEL OF IMPROVEMENT Mature lean company TIME IN YEARS

8 OPERATIONAL EXCELLENCE OPERATIONAL EXCELLENCE LEVEL OF IMPROVEMENT TIME IN YEARS

9 THE JUMP TO OPERATIONAL EXCELLENCE Answering the Tough Questions

10 Why do you do continuous improvement?

11 What is the best way to do continuous improvement?

12 How do you know where to improve next?

13 Why do you strive to create continuous flow?

14 What causes the death of flow?

15 What would your office look like if you applied every continuous improvement tool?

16 Where will your improvement journey will take you?

17 NINE QUESTIONS FOR OPERATIONAL EXCELLENCE 1. Why do you do continuous improvement? 2. What is the best way to do continuous improvement? 3. How do you know where to improve next? 4. Why do you strive to create flow? 5. What causes the death of flow? 6. What would your shop floor look like if you applied every continuous improvement tool? 7. What would your office look like if you applied every continuous improvement tool? 8. What would your supply chain look like if you applied every continuous improvement tool? 9. Where will your improvement journey will take you?

18 WHAT IS OPERATIONAL EXCELLENCE? You have 30 seconds GO!

19 DEFINING OPERATIONAL EXCELLENCE When each and every employee can see the flow of value to the customer, and fix that flow before it breaks down. SM Kevin J. Duggan

20 THE EIGHT PRINCIPLES OF OPERATIONAL EXCELLENCE 1. Design lean value streams. 2. Make lean value streams flow. 3. Make flow visual. 4. Create standard work for flow. 5. Make abnormal flow visual. 6. Create standard work for abnormal flow. 7. Have employees in the flow improve the flow. 8. Perform offense activities.

21 DESIGN LEAN VALUE STREAMS: OFFICE FLOW Eight guidelines for end-to-end value stream design. Ten guidelines for the mixed model pacemaker. Six guidelines for shared resource flow. Nine guidelines for office flow. Seven guidelines for supply chain flow.

22 SERVICE FAMILY DEFINITION A service family is a group of activities or services that follow similar processing steps. It is a critical first step in determining which services can follow the same flow.

23 SERVICE FAMILY MATRIX A service family matrix containing many services and activities

24 I 0 Req. RAPID PARTS, INC. CURRENT STATE MAP - QUOTING/ESTIMATING PROCESS Customer P/T=15 min. (Clarify) 6 Req. 1 Day (Clarify) 75% P/T= 5 min. Create File 8 Files Sales Database Design Pkg. P/T=45 min. P/T=90 min. 0 Days Days 2 Days Days 1 Day 0.5 Days 15 Min. 5 Min. 45 Min. 90 min. 30 min. 20 Min Days min 205 Minutes P/T=30 min. L/T P/T Customer (Clarify) Request Form Cust. File Validate Estimate Verify L&M Prep Quote P/T=20 min. 1 CSR 1 Sales Rep 1 Designer 1 Estimator 1 Planner 1 Sales Assist. 75% Rework 60% Rework Log File I D I I W I I I 60% 3 Files 2 Days 1 File 4 Files 2 Files 80 quotes/mo. 4 quotes/day Mail Truck

25 THE 9 GUIDELINES FOR THE OFFICE Takt capability Continuous flow FIFO Workflow cycles Integration events Standard work Single-point initialization Pitch (visual management timeframe) Changes in demand

26 TAKT CAPABILITIES

27 2) CONTINUOUS FLOW Continuous Flow Make One Move One

28 3) FIFO FIRST IN FIRST OUT FIFO is similar to ping pong balls going through a pipe. They always come out in the same order, and the pipe is only so big. Once you fill it, the supplying process stops.

29 4) WORKFLOW CYCLES Establish intervals at which information will flow.

30 5) INTEGRATION EVENTS Integration events pull work forward when information comes from several different areas. Integration events have matching outputs and inputs. Knowledge is captured and retained at integration events. Integration events are not status meetings, and no decisions are made.

31 INTEGRATION EVENT

32 6) STANDARD WORK Activity or process level Flow level

33 7) SINGLE-POINT INITIALIZATION How do each of the processes along the value stream know what to work on next? Who sets the priority? Is the priority based on supporting the value stream flow? If everything flowed through at a guaranteed time, would there be a need for priorities?

34 SINGLE-POINT INITIALIZATION

35 9) CHANGES IN DEMAND What happens when the customer demand exceeds the capability of the lean value stream?

36 CHANGES IN DEMAND Go To Plan B Inbox

37 THE 9 GUIDELINES FOR THE OFFICE Takt capability Continuous flow FIFO Workflow cycles Integration events Standard work Single-point initialization Pitch (visual management timeframe) Changes in demand

38 RAPID PARTS, INC. FUTURE STATE MAP QUOTING / ESTIMATING PROCESS Customers Eliminate Searching Waste Sales 5S Needed Sign-Off Error-Proof Searching Waste & 5S Needed Standardize Form Request Form P/T=15 min. 1 CSR Create File Sales Database FIFO Design Pkg. Cross- Training Searching Waste 5S Needed Max = 1.5 days days Standard Work Searching Waste 5S Needed Log File 4 Hrs. Estimating Cell Takt = 60 min. P/T=170 min. PC/T=55 min. Op = 3 15 Min. 170 Min. Takt=60 min.* Pitch =60 min. 4-Hr Work- Flow Cycle Searching Waste 5S Needed Post Office Work Searching Waste Content 5S Needed <= 170 min Customers 4 Estimates per Day 1.5 Days min 185 min. L/T P/T

39 THE EIGHT PRINCIPLES OF OPERATIONAL EXCELLENCE Design lean value streams. Make lean value streams flow. Make flow visual. Create standard work for flow. Make abnormal flow visual. Create standard work for abnormal flow. Have employees in the flow improve the flow. Perform offense activities.

40 LIVE TRAINING EVENTS Each year the Institute for Operational Excellence produces training events throughout the U.S. and Europe. Orlando, FL February 13-15, 2017 Orlando, FL February 16, 2017 For more information, including a complete list of 2017 locations and dates for these events, please visit