Lean for Service Overview

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1 Lean for Service Overview Elizabeth M. Keim Past President ASQ

2 Learning Objectives Introduction to lean Introduction to waste Application to service processes

3 Role Of Lean Efficient way to reduce waste Eliminate preventable demand Stop doing wrong things righter 3

4 Lean Principles Define value from customers perspective Document value stream Reduce waste Improve flow Drive for pull Continuously improve 4

5 Lean Goals Best quality Lowest cost Shortest lead time Best safety Highest morale 5

6 Lean Is and Is Not Lean is not telling people how to do their jobs more effectively Lean is empowering people to plan how they will implement changes that simplify satisfying customers 6

7 Purpose of Value Stream Map Customers/transaction perspective Single view Complete Fact-based Time-based Common view for analysis Information triggers and flows Time and value for activities 7

8 Total Value Stream All actions currently required to bring service/transaction through organization Big picture Cross-functional Suppliers Organization Process Customer End User Consumer Put requirements on these Improve this Determines value 8

9 Waste Categories People Process Information Asset Value-add 95% 5% Over-processing Transportation, storage Over-production Waiting, delays Rework, defects Unclear communication Work-in-process Unnecessary movement Value-add 9

10 Value Three categories of tasks in process: Value-add (essential) tasks Cause actual change Customer notices and wants change Done right first time Waste Business value-add (BVA) - currently necessary Non-value-add (NVA) - not necessary 10

11 Toyota Production System Operational stability & Cultural alignment Just-in-time Built-in quality Continuous improvement People and teamwork Waste reduction Justin- Time Continuous Improvement Operational Stability Cultural Alignment Built-in Quality 11

12 Cultural Alignment & Operational Stability 12

13 Liker Model of Culture Problem Solving People and Partners Genchi Genbutsu Respect and Teamwork Kaizen Process Philosophy Challenge 13

14 Process and Problem Solving Flow Pull Workload balance Error reduction Standardization Visual controls Mistake proofing Going to problem, getting hands dirty Decisions based on facts Continual learning 14

15 Operational Stability Leveled production Standard times for different services Standardized work Countermeasure to problems Visual management 5S Transparency and ability to see what is going on Tools to facilitate teamwork 15

16 5 S Tool to facilitate teamwork Create and maintain organized, clean, safe, and high-performance workplace 16

17 Sort Distinguish between what is essential and what isn t Discuss value of items in work area Understand more about work and how to work differently 17

18 Straighten Put things where best meet functional purpose rather than neat workplace Improve flow, putting everything at point of use 18

19 Shine Identify and eliminate root causes of waste, dirt, and damage Gather data for root cause analysis (uncovering) 19

20 Standardize Visually maintain agreed-upon conditions rather than writing work instructions Employees value doing right things right way every time Provides means to speak same language and road map 20

21 Sustain Do what is required even if difficult Constant vigilance Management deploys ways for teams to more easily follow standards 21

22 Just-in-Time 22

23 Just-in-Time Takt time Continuous flow Preceding process must always do what subsequent process says Quick setup Pull system Kanban ticket or signal 23

24 Built-in Quality 24

25 Built-in Quality Stop the process Automatic stops Signal for assistance Mistake proofing In-station quality control 5 Whys 25

26 Continuous Improvement 26

27 Future State Map Identify utopia Identify more grounded future state Develop plan to achieve future state 27

28 Eliminate Obstacles to Flow Functional organization Inadequate resources Unnecessary documents, approvals, waits Excessive work-in-process Batch processes 28

29 Pilot Test solution on small scale Test solution in small part of organization Find possible failure points Validate/refine cost/benefit estimates Evaluate process measures Increase buy-in 29

30 Criteria for Pilot Two areas to test Implementation Solution Success criteria established for both 30

31 Principles to achieve High performance Lean Add value to customers and society Focus on Value-adding processes No interruptions Customer pull Continuous improvement 31

32 Lean for Service Overview Elizabeth M. Keim Past President ASQ Integrated Quality Resources, LLC 32

33 References 5S for Service Organizations and Offices, Debashis Sarkar, 2006, ASQ Quality Press. (office processes) Kaizen Event Fieldbook, Mark R. Hamel, 2010, Society of Manufacturing Engineers. (planning Kaizen events) Lean for Dummies, Natalie J. Sayer and Bruce Williams, 2007, Wiley Publishing Inc. The Lean Office, 2005, Productivity Press. (implementation) Lean Thinking, James P. Womack and Daniel T. Jones, 2003, Free Press. (philosophy) 33

34 References Mapping Work Processes, Dianne Galloway, 1994, ASQ Quality Press. (basic process mapping) Office Kaizen 2, William Lareau, 2011, ASQ Quality Press. (waste categories) Metrics-Based Process Mapping, Karen Martin and Mike Osterling, 2008, Productivity Press. (value stream mapping) The Toyota Way, Jeffrey K. Liker, 2003, McGraw-Hill. (culture) Value Stream Management, Don Tapping, Tom Luyster, and Tom Shuker, 2002, Productivity Press. (people side) 34