The Lean Office - CBIA · The Lean Office (and the Role of Leadership) CBIA Human Resources Conference March 19, 2015 2 The Role of Leadership

© 2004 Resource Systems Group 1

(C) 2015 R.E.V.V. International

The Lean Office (and the Role of Leadership)

CBIA Human Resources Conference

March 19, 2015

2

The Role of Leadership…

• Organizational spirit is real

• It lives in the collective energy

of its members

• This energy is often, diffused, ethereal,

unfocused, but there

• This energy needs to be tangible, focused

toward becoming … spirited

• This focusing is the role of Leadership

… That would be us.



3

What’s Different in the Office?

Less tangible, can’t see ‘product’, or ‘machine’

Historically behind production in application of

management science

Belief that knowledge work is ‘different’

“You can’t schedule creativity”


4

Knowledge Value – What is Knowledge?

Data = Facts, bits & bytes

Information = Data + Context

Knowledge = Information + Judgment



5

What is a Knowledge Worker?

One who gathers data or information

Adds value (context and judgment) to that data or

information

Shares that value-added knowledge with others,

exactly when needed


6

Manual vs. Knowledge Work

CHARACTERISTICS MANUAL WORK KNOWLEDGE WORK

Work-base Materials-based Information-based

Working Overt Behaviors Covert Behaviors

Visibility High Low

Linkages to Results Direct & Immediate Indirect & Delayed

Knowledge Concentrated Distributed

Balance of Power Position & Politics Politics & Profession

Nature of Work Linear Non-linear

Responses Prefigured Configured

Source of Standards Others Worker

Focus of Control Worker Work

Locus of Control Management Worker

Measure of Performance Compliance Contribution

Role of the Worker Instrument Agent



7

Defining Knowledge Value

Value Added Activity Non-Value Added Activity

Activity that changes data

into information, or

information into

knowledge (for first time)

to meet customer

requirements

Those activities that take

time or resources, but don’t

transform data; something

customer wouldn’t be willing

to pay for


8

Lean Knowledge Work Key Principles

Knowledge jobs involve expertise and judgment.

They can be made lean if organizations draw on six principles:

1. Continually root out all waste

2. Strive to make tacit knowledge explicit

3. Specify how workers should communicate

4. Use the scientific method to solve problems quickly

5. Recognize that a lean system is a work in progress

6. Have leaders blaze the trail



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Root Out Waste and Drive Problem Solving

Knowledge workers often underestimate the amount of waste

in their processes

Focus on value and eliminate the Eight Wastes The 5 Why’s

Solve the same problem over and over again

Sweat the small stuff

Instill structured and consistent problem solving methods Clear, consistent methods based on data

Standard work

Audits and After Action Reviews


10

Muda

Muda is a Japanese word for Waste

Muda prevents the flow of value to our customers

Internal and External

There are 8 Forms of Muda:

Defects

Overproduction

Transportation

Misuse (of human capability)

Waiting

Inventory

Motion

Processing



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Design Muda

Over production – designing but not making (never launch)

Defects – miscommunication, drawing errors

Transportation – data/information hand-offs

Misuse – Principal engineers reviewing/approving drawing details

Waiting – for other functions or disciplines

Inventory – too many projects, design data not fully utilized

Motion – unnecessary analysis or testing

Processing – redesign, poorly run team meetings, sending design files without request


12

Administration Muda

Over production – preparing extra reports, copies made that are never read

Defects – data entry errors

Transportation – extra steps in process, distance traveled, walking to fax machine

Misuse – HR professionals sitting in NVA meetings

Waiting – batch processing (e.g., financial closings, billings, collections)

Inventory – work waiting to be processed

Motion – extra steps, extra data entry

Processing – multiple sign-off’s



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Specify the Work

Make tacit knowledge explicit

• Write it down - Define the substance, order timing and desired result

4 Steps Look for repeatable parts of the process and codify them

Set standards

Automate where ever possible

Don’t specify everything

Seek the critical few vs. the urgent many

Make decisions with data – Use it to get buy-in

Vs. with your gut, or how you feel

Do we think it’s true?

Or do we know it’s true?

Study the work designated as tacit


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Lean Office Analysis

In knowledge based processes, movement of

information is essential.

Information, who talks to whom, information types and

frequency and systems of exchange are all investigated.

The Eight Wastes are relentlessly tracked down and

eliminated.


“Move the Needle”


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Measure

Obtain map or floor plan of work area and record movement of work and information

Record who talks to whom, information type and frequency of exchange

Measure:

Travel distance of documentation or product

Work-in-process and in-basket time

Number of inspections or approvals

Yield or rejection rate at each inspection

or approval

Determine required customer delivery rate


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Functional Process Flow (FPF) (Conditions, Constraints, Variations, and Wastes)

Customer

Order Entry

Purchasing

Scheduling

Manufacturing

Shipping

Send

P.O.

Receive/

Enter Rework

Order

Materials

Manufact.

Order

Rework/

Repair

OK

?

On

Time

Schedule

Order

OK

?

Ship

Order

Verify

Change

Re-

schedule

Pay

Invoice

OK

?

Y

N

Y

N

Y

N

Y

N

80% 99%

99%

65%

L.T.

2 Weeks

Condition: Variable Demand

Constraint: Lathe Dept.

Variation: Lead Times V. Promise



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118 minutes

value add

To

tal acti

vit

y t

ime =

235 d

ays

Day

1 Day

235

QUEUE

QUEUE

QUEUE

value add

non-value add

15%

1. Determine total cycle time

2. Determine queue times between steps

3. Create step segments proportional to task times

4. Place steps, queue’s along line segment in

order

5. Place value adding steps above line

6. Place non-value adding steps below line

7. Draw in feedback loops & label yield

percentages

8. Sum activity / non-activity times

9. Sum value / non-value times

Time Value Map


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Office Standard Work

Is the process documented?

Is it simple (no waste)?

Is it effective (works reliably)?

Was it developed (and understood) by a cross

functional team?

Has everyone agreed to follow it? Are they?

What keeps each process repetition from being the

same?



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Structure Communications

Email is killing our business

• People live in their inbox

• They are constantly interrupted

• Waste is all around your email communications

Structure your communications

• Stakeholder Management

• Structure it – Who, what, when

• Create a shared understanding - Stakeholder management!

• Too many knowledge workers start task and perform work without understanding the task or the end state

Address problems quickly and directly

• Ownership

• Accountability

• Closure


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Knowledge Flow

Often knowledge is created in one place, needed in

another, and is late, incomplete, or incorrect

Many large organizations lack knowledge circulation

both in vertical and horizontal directions

Timely dissemination of relevant pieces of

information and knowledge is crucial

Useful internal customer questions:

What do you need from me? When?

What are you getting that you don’t need?

What do you need that you aren’t getting?

What are you going to do with information I’m giving you?

How are we creating customer value with this exchange?



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Hand Offs Paper ProductsGroup

Systems

Engineering

Planning

Machine

Configuration

Material

Planner

(PGF)

Mfg

Engineering

(PGF)

Mfg Ops

(PGF)

Material

Handler

(PGF)

Testing Ops

(Vibe-PGE)

Mfg

Engineer

(FRP)

Material

Planner

(FRP)

Quality

(FRP)Releaser

(FRP)Outside

Contractor

Mfg

Quality

Mfg Ops

(GB)

Material

Handler

(OKC)

Transportation

Mfg Ops

(OKC)

Mfg

Engineer

(OKC)

Mfg

Engineer

(GB)

Material

Planner

(OKC)

Material

Planner

(GB)

Division

Quality

Wilmington

Organizational Hand-off Statistics

Production Centers 7

Support Orgs 31

Subcontractors 2

Total 40

Organizational

view:

Complex process

& supporting cast


22

Process Simplification PaperProducts

Division

Systems

Engineering

Planning

MachineConfiguration

Vendor Interface

(Paper Machines)

Mfg Engineering

Paper Machines

Mfg

Ops (Paper Machines)

Transportation

Wilmington

Reductions in

needed

resources,

sustained by

physical &

organizational

change

Organizational Hand-off Statistics

Production Centers 3

Support Orgs 8

Subcontractors 0

Total 11



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Champion the Effort

• There is no magic • Time

• Training

• Commitment

• Follow thru

• Persistence

• Perseverance

• The system must be kept vibrant, focused • It’s a never ending journey

• Engage your managers

• Build momentum relentlessly

• Integrate Lean into your culture

• Communicate successes

• Document your learnings and standardize them

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Example - The Lean Leader’s Role

How Leaders are Supporting Lean:

Leaders are focused on long term improvement plans, sound processes, and constant people development

We organize and manage the business by value stream and effectively match qualified staffing with workload

Leaders are present, and engaged, on the floor, available to help, teach, coach, and motivate

We adhere to standard work at all levels, driving chaos and variation out of the business. We adhere to standard work seamlessly across all shifts

We challenge the status quo and are always looking at how to improve internally and how to adapt externally. We make timely improvements.

Leaders look for waste and help associates apply the right tools to eliminate it

When problems arise, we identify root causes and kill them

We use appropriate visual controls to enable timely decision making at the right organization level

We recognize and celebrate accomplishments in lean


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Example – Leader Elevator Pitch

IF we do not make this change…

• Our customer base will decline therefore reducing our market share.

• Our organization will not influence or control it’s own future and we will actively lose our talent base

“Lean is our normal” our workforce understands the business, long term goals and how their contributions drive results. Our people are recognized for their successes and accomplishments

Lean Leaders drive out waste by focusing on long term improvement plans, people development and continuous process improvement

We feel proud to work here making important contributions, and are committed to driving continuous improvement.

We are confident and knowledgeable professionals continuing to grow, becoming more valuable contributors to customers and ourselves

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R.E.V.V. International, 2013


From the Patron Saint of Change Agents

“For a (wo)man to attain to an eminent

degree in learning costs him time,

watching, hunger, nakedness, dizziness in

the head, weakness in the stomach, and

other inconveniences.”

“In order to attain the impossible, one

must attempt the absurd.”

“Good actions ennoble us, and we are the

sons (and Daughters)

of our deeds.”

Miguel de Cervantes

page- 28

There’s a Lean Future to build, so let’s get to it! Thank you for your time and interest:

Ken Branco, Principal

R.E.V.V. International

&

The Lean Sigma Institute

860.428.6386

[email protected]

http://www.brainyquote.com/quotes/quotes/m/migueldece135034.html

Documents

The Lean Office - CBIA · The Lean Office (and the Role of Leadership) CBIA Human Resources Conference March 19, 2015 2 The Role of Leadership