Simple Lean and VSM Training

Simple Lean andValue Stream Mapping

By: Romains Bos

• Introduction – Simple Lean• Classic Action Workout• A New Approach…Simple Lean• The Concept• Facilitating a Simple Lean Event• Logistics• Sample Agenda• Ground Rules• Value and Waste

• Value Stream Mapping (VSM)

• What is a VSM?• VSM• Question To Ask…• Step 1 – Identify VSM• NPS Team Example• Helpful Hints• Step 2 through to Step 5• Step 6 - After The Event• Foundations of Project Success

Agenda

Focused

Simple Lean

4 Hours

Connecting Customer Values

Brainstorming

Affinitize

Identifying Waste

Prioritize

FocusedTake Action NOW!

Affinitize

Take Action NOW!

Brainstorming

Simplification

Simplification

Connecting Customers

Focused

Connecting Customer Values

Classic Action Workout

4 - 6 weeks of prep

4 - 5 teams of 6 - 8 people

1 week AWO

109 page report-out

The math doesn’t get us there…

4 Hours

A New Approach…Simple Lean

Highly focused session driving simplification and customer alignment

Engage small workgroups (8 - 10 people) for 4 hours• 30 minute training on value, waste

• 2 hour group exercise – identifying how the group delivers value to the customer…and the waste / complexity that gets in the way

• 45 minutes prioritizing actions to address identified waste and complexity

• 45 minutes developing plan to complete top 3 - 5 actions within the next 30 days (Team owns)

Brainstorming Affinitize IdentifyWaste

PrioritizeConnect

CustomerValues

Focused

Comparing TraditionalLean with Simple Lean

Traditional Simple

Scope Wing-to-Wing Value Stream

Focused area within the Wing-to-Wing

Value Stream

Pre-work 4-6 weeks 3-6 hours

Timing of Event 3-5 consecutive days

4 hours

# Participants 3-4 teams w/6-8 people on each

team

8-10 people(1 team)

# Actions 20 – 30 1 – 3

Post Activities 6 months or more 1 – 30 days

The ConceptLeverage transactional lean methods…focus on customer value, and using post-it notes to quickly capture issues

Employees identify and fix their own issues

Limit actions to 30 days or less…small, quick improvements

Parking lot for longer high-priority issues

Events facilitated by MBBs, BBs, LLs… others

It’s value if the customer is willing to pay for it Solutions provided at the right place and time So…activities that add no value are waste (muda)

Value

Unnecessarywaste

Necessarywaste

Rework Missing information Lack of / Poor

communication Information that does

not (from the viewpoint of the customer) add value to a good or service

Reviewing the business rules

Quality checks Building the metrics Resources consumed by

inefficient or non-essential activities

Designing the organizational tools Transforming the information Assembling the part Creating the drawing

Value

WaitingWaiting

Excess InventoryExcess Inventory

TransportationTransportation

Over ProductionOver Production

Excess MotionExcess Motion

Over ProcessingOver Processing

DefectsDefects

Seven Types of Waste IT examples

• Performance and Availability Issues

• Poor technical designs

• Unused HW, SW and / or licenses

• Multiple versions of the same reports or objects

• Required fields not really needed

• Not enough Poka-yoke• Buggy code

• Too many screens• Manually moving data from

one system to another

• Poor integration design• Utilizing non-standard

integration tools

• Over-solutioning (unused features)

• Duplicate functionality• Table scans of complete

databases

• More than one screen / system for the same transaction

• Input fields not organized

• Credit application awaiting approval

• Invoices waiting to be paid

• Missed customer due dates

• Data entry errors

• Duplicate entries

• Shipping hard copies that requiring signatures

• Running a credit check for every customer inquiry

• Looking / Searching for data and info

• Printing material for personal use

Transaction examples Product examples• Expensive machine running

at 30% capacity

• Material between operations and process steps

• Buffer & safety stock inventory

• Poor quality or fit of materials

• Handwork…polishing, deburring

• Conveyance of any materialsand tooling

• Conveyance systems

• Sub-assemblies and components between feeder and main line

• Operators bending, twisting, turning and reaching

• Machines “cutting air”• Robotic motion getting home

• It’s a 4 hour event• Leverages basic lean methods…focus

on customer value, and post-it notes to quickly capture issues

• Employees ID and fix their own issues• Actions limited to 30 days or less…

small, quick improvements• Parking lot for longer high-priority

issues

Simple Lean…what makes it work?

Use of Simple Lean in Transactional

HR Offer ProcessScope: Recruiting

Actions: • Add checklist / banner to form • Plan / schedule recruiting process LEAN Future Action:

• Schedule Lexus Nexus Lean Event

# of Participants: 17VSM and Issue Identification

Issue Prioritization Improvement Plans

Facilitating a Simple Lean Event

Lets get started!

Logistics

• Reserve Conference Room (1 week prior to event)

• Invitation to employees that will participate in the event

• Confirmed responses from invite (Lock in participants)

• Supplies for the event: Flip Charts Markers Yellow , Pink and Green Post-It notes Video Overhead Telephone (Virtual session) WebEx connection (Virtual session) Presentation material

Sample Agenda (include breaks as needed)

8:00 – 8:30 Training on value and waste

10:30 – 11:15 Prioritizing actions to address identified waste and complexity11:15 – 12:00 Developing plan to complete top 1-3 actions within the next 30 days (Team owns)

8:30 – 10:30 Group exercise: identifying how the group delivers value to the customer…and the

waste / complexity that gets in the way

· No Laptops / Blackberries or any other type of fruit device during group sessions

· Be on-time

· One conversation at a time

Everyone Engaged

One Team

Respect

Creativity· Be open to ideas from everyone

· Take some big swings

· One person - one voice - no position or rank

· The only dumb question is the one that’s not asked

· No silent disagreements

· Focus on the customer, not the function

· No blaming / finger pointing

Ground Rules

Value and Waste

Training Material included in a separate file

30 minutes

Value Stream Mapping (VSM)

TOTAL VALUE STREAM

YOUR PROCESSCUSTOMERRECEIVES

What is a VSM?

All of the actions, both value-added and waste, currently

required to deliver value to the customer.

CUSTOMERDEMAND

Purpose: VSM

Facilitator / Participants:• Helps visualize the entire process

• Identifies how value flows to the customer

• Shows where flow stops and inventory builds

• Helps us understand and improve big business processes…NPI, ITO, and OTR - MAKES WASTE VISIBLE

• Identify issues, problems and ideas as the value stream map is constructedTool to Identify Opportunities for Improvement

Pre-R0R0

Opportunity

R2Approval

to Bid

R3Approval to Sign

Contract

Contract Signed!

R1Approval

for Resources

Questions To Ask…

• Who is the customer (Internal or external?)• What is the value (Product, service,

transaction) that your group delivers to the customer?

• How do you actually bring this value to the customer?

• Does the work always follow a defined pathway?

• Does it always happen this way?• Does the work get stuck anywhere?• How do people know what to do?• What would the customer think if they

worked here?

60 minutes

Step 1 – Identify VSM

Facilitator:• constructs VSM with

participant input

Participants (w/guidance):• Participants identify

issues, waste, problems, ideas by attaching pink sticky notes to the wall (no discussion…just write it on a sticky note!)

Process Step 1

Process Step 2

Process Step 4

Process Step 5

Process Step 6

Process Step 3

Start Stop

Level 1 Detail

Time / effort = 20%

Idea

Issue

Issue

Idea

Issue

Issue

Issue

Idea

Issue

Issue

IdeaIdea

Idea

Issue

Issue Issue

Time / effort = 80%1 Hour

NPS (Net Promoter Score) Team Example

Request for New Survey

Rational meeting on new survey

request

Create Survey

Definition Guide

Review Guide with

Business

Finalize the

Design Doc

Translate Survey

Questions(Language

IM Builds the new Survey

Schedule Survey

Request

Quality HQ Approval

Business Approval

Survey Created

Upload File from

Business Segment

No formal process in

place

Reactive as

opposed to

Proactive

Scheduling survey request with IM

Difficult to understand

Segment Responsib

ilities Unclear

Surveys are Set up

for new segments

but not existing

ones

Poke Yoke Definition

Guide

Unable to validate

languages

Rework – Redundant

testing

Send Survey to Customer

Leverage Existing Survey

Designs

IM Impact testing

Quality HQ user

testing

Business user

testing

EXTERNAL CUSTOMER

INTERNAL CUSTOMER

Product = New NPS Survey

Info supplied

is not complete

No mandatory conditions,

total manual process

No Instructions on how to

fill out Guide

No Training Doc

Quality Issues

related to language mistakes

Inconsistency between segment

questions

Centralized shared

services for Translations

Consolidate Testing

requirements eliminate

redundancy

Rework

Rework

Helpful Hints

• Don’t let participants argue about issues…just have them write them down on pink sticky notes

• Don’t try to map re-work loops on a VSM…just identify the rework as an issue

• Keep the VSM high level…the point is to help the group expose issues

• In general, VSM steps represent chunks of work separated by potential delays (Approvals, meetings, handovers, waiting for info, etc.)

• Think in terms of Relevancy…not Pinpoint Accuracy

Supporting Doc’s

driven by Customer Approvals

Customer signs but docs not given to

biller

Step 2Rationalize / affinitize pink sticky notesMake them actionable

Delay in Contract

handoff to Biller

Driven by Customer Approvals

Delay in

BOL

Delay in getting SignedCerts

Entitlement

Calendarvs.

Business Days

Late delivery of

signed documentsVariation

order signed but Delay in original docs

Delay inEX-WORKS

Delay in Tradespher invoice to

Biller

Baseload not yet

achieved

Late delivery of

signed documents

Incorrect Freight Billing

Material Shipped Early or

Cancelled

Incorrect Tax used

Waiting for Invoice

Approval

Invoice doe not meet letter of credit

Late delivery of

productCustomer negotiating

with customer

Facilitator / Participants:• Convert problems/issues into action statements

• “Responsibilities unclear” becomes “Clarify responsibilities”• “Redundant inputs on form C” becomes “Eliminate redundant inputs on

form C”• “Lots of rework” becomes “Eliminate or reduce rework”• Replace the “issue /problem” sticky with “action” sticky• Don’t argue about issues…just convert to actions

60 minutes

Variation order

signed but Delay in original docs

Supporting Doc’s

driven by Customer Approvals

Delay in Contract

handoff to Biller

Customer signs but docs not given to

biller

Delay in

BOL

Entitlement

Late delivery of

signed documents

Baseload not yet

achieved

Late delivery of

signed documents

Incorrect Freight Billing

Material Shipped Early or

Cancelled

Invoice does not

meet letter of credit

Late delivery of

product

Negotiating with

customer

Delay inEX-WORKS

Delay in Tradespher invoice to

Biller

Delay in getting SignedCerts

Driven by Customer Approvals

Waiting for Invoice

Approval

Incorrect Tax used

Theme 1 Theme 2 Theme 3 Theme 4 Theme 5

Step 2 – Cont’dFacilitator / Participants:• Sort actions into common themes by asking:

• What actions are similar?• Is this action connected to any of the others?• Keep moving the Sticky’s around until consensus is reached

Variation order

signed but Delay in original docs

Customer signs but docs not given to

biller

Step 2 – Cont’d

Delay in

BOL

Entitlement

Late delivery of

signed documents

Baseload not yet

achieved

Late delivery of

signed documents

Late delivery of

product

Negotiating with

customer

Delay inEX-WORKS

Delay in Tradespher invoice to

Biller

Delay in Contract

handoff to Biller

Incorrect Tax used

Theme 1 Theme 2 Theme 3 Theme 4 Theme 5

Facilitator / Participants:• Eliminate redundant actions…”thin the herd”

• Combine similar actions into a single action • Eliminate duplicates• Regroup themes if needed• Result should be a relative few actions organized by themes

ALL of Step 2 = 1 Hour

Very quick fast paced exercise!

Step 3Transfer actions to impact vs. effort chart (Use flip chart)

45 minutes

Easy (30 days or less)

Hard

Low Impact

High Impact

Step 4Create action plan for top 1 - 3 High impact / low effort actions (Use flip chart)

Action Owner Due Date

Action 1 Participant 1

April 16

Action 2 Participant 2

May 1

Action 3 Participant 3

May 6

• Achieve group consensus on top 1 - 3 actions • A participant in the room must own the action, but can certainly complete it

with the help of others • Due dates no more than 30 days out• Also identify 1 - 2 critical actions beyond the scope of the event, if

applicable

Critical actions needed – beyond scope of Simple Lean

Relocate test facility…

Simplify T&L system…

30 minutes

Step 5Obtain manager approval / support on actionsImmediate yes or no at the end of the session

Action Owner Due Date

Action 1 Participant 1

April 16

Action 2 Participant 2

May 1

Action 3 Participant 3

May 6T

RR

15 minutes

Step 6 - After The EventRecord session

Capture 30 day actions, plus out-of-scope actions

Return to close-out 30 day actions when complete

Foundations of Project Success

Scope and Requirements

Sch

ed

ul

eProject Success

Qualit

y

Cost

Integrity and Safety

The End

Questions?

Comments?