LEAN

I N T E G R AT I N G WAY S O F B U S I N E S S

I M P R OV E M E N T

T O O L S

T H I N K I N G

Consultant: John Macrow Melbourne +61 4 99147125 john.d.macrow@gmail.com

HOUSE OF LEAN = 5 YEAR MATURITY PLAN

<Source: Current State Workshop>

Category Issues / Observations raised by Voice Of Business

Culture 1. Change fatigue

2. People un-empowered to carry out tasks, more reactive in approach

Silo mentality 1. Little cross sharing

2. No E2E process owner -do not consider the e2e picture when considering the problem / implementing the change

3. Introduce change without considering the impacts to operational efficiency and to other areas

4. No project management / no central tracking of where all improvements are at

5. Not all improvements require funding and so these can not be tracked via system – Enterprise PMO System limitation of PIR recording

Knowledge 1. Lack of understanding/ knowledge of how to go about making improvements

2. People are not trained in methodology of business improvement/ continuous improvement

3. Management may not know what tools to use for different situations

Level of

Flexibility

1. Business is not responsive, not able to manage real time , sometimes focusing on the wrong metrics

2. No standard way of defining the problem and what we are trying to achieve

• no root cause

• no investigation of the impacts of the change

3. Defined methodology in use does not allow for flexibility

4. A Standard process/ improvement methodology could limit success

5. Processes/ culture/ funding do not cater for experimentation

6. Processes often developed to cater for systems

7. Process to suggest and implement new ideas is very complex and difficult

8. Insufficient funding to fully implement changes

Others 1. Multiple methodologies but no clear integration across them 2. Insufficient checks within some methodologies to check if the improvements are working

3. Multiple control points, signoffs which are not all preventive = Downfall of Six Sigma methodology is wrong projects & stifle others

CURRENT STATE ISSUES WITH IMPROVEMENT WAYS

Idea Development

Initiate Discover Evolve Operate

Continuous ImprovementLocal Teams trained in Lean & problem solving

Business Improvement

InvestigateUnderstand & validate root causes

Issues/Idea Pipeline

The Right issue to Right person

Customer & Business

Issues

Dashboard KPI’s

AGILE METHODOLOGYACT NOW FRAMEWORK LEAN STEP UP

Audit Think New Observe WinCollect

Lean ‘agile’

Kanban

SIX SIGMA METHODOLOGY

Define Measure Analyse Improve Control

BUSINESS IMPROVEMENT INTEGRATION OVERVIEW

Performance Evaluation

ISO 9001:2015

LEAN TOOL KIT (25+ tools chosen in no set order challenging teams, building mutual trust and providing personal & professional growth creating different levels of Lean maturity)

VOC VOB 7 Wastes

5S+1/ Gemba PDCA Continuous Improvement CycleVSM A3

diagnosticKaizen Kaizen

newspaperObeya Room

Idea Development

Initiate Discover Evolve Operate

Continuous ImprovementLocal Teams trained in Lean & problem solving

Business Improvement

InvestigateUnderstand & validate root causes

Issues/Idea Pipeline

The Right issue to Right person

Customer & Business

Issues

Dashboard KPI’s

AGILE METHODOLOGYACT NOW FRAMEWORK LEAN STEP UP

Audit Think New Observe WinCollect

Lean ‘agile’

Kanban

SIX SIGMA METHODOLOGY

Define Measure Analyse Improve Control

BUSINESS IMPROVEMENT INTEGRATION OVERVIEW

The overarching goals:

They are a way of working that enable a Company to pick the right project, build the right tailored solutions and realise benefits as promised for your Customers to deliver continuous improvement.

The differentiating factors:

Business improvement has a focus on investigating and validating the root causes prior to a case for change, allocating money and forming a project team.

Agile has a focus on behaviours and individuals, less on processes and documentation. It does this through an iterative fixed cost approach to evolve designs and solutions.

CxO Lean StepUp reinforces the ‘gotta get’ Lean - the way to blend and embed tools before advancing.

Performance Evaluation

ISO 9001:2015

LEAN TOOL KIT (25+ tools chosen in no set order challenging teams, building mutual trust and providing personal & professional growth creating different levels of Lean maturity)

VOC VOB 7 Wastes

5S+1/ Gemba PDCA Continuous Improvement CycleVSM A3

diagnosticKaizen Kaizen

newspaperObeya Room

CREATING A LEAN / CONTINUOUS IMPROVEMENT MODEL

LOGIC CREATIVITY

CREATING A LEAN / CONTINUOUS IMPROVEMENT MODEL

ANALYSE FIX / RepairNon Value-Add

CREATING A LEAN / CONTINUOUS IMPROVEMENT MODEL

ANALYSE IMPROVE / InnovateThe Value-Add

Reference : The Foundations of Lean Thinking

Toyota Production System father Taiichi Ohno is also known for his "Ten Precepts" to think and act to win;

1.You are a cost. First reduce waste.

2.First say, "I can do it." And try before everything.

3.The workplace is a teacher. You can find answers only in the workplace.

4.Do anything immediately. Starting something right now is the only way to win.

5.Once you start something, persevere with it. Do not give up until you finish it.

6.Explain difficult things in an easy-to-understand manner. Repeat easy to understand things.

7.Waste is hidden. Do not hide it. Make problems visible to observe them.

8.Valueless motions are equal to shortening one's life.

9.Re-improve what was improved for further improvement.

10.Wisdom is given equally to everybody. The point is whether one can exercise it.

goodness俊英

Reference : Toyota Production System

横展開yoko ten kai

sideways developkai kaku

innovative change

改革hansei

self-reflection

反省

heijun kareduce unevenness

平準化

naikenintrospection

內觀

houshin kanrimanagement of methodology

方針管理

genchi genbutsugo - look -see

現地現物

respect尊重

muraunevenness

ムラmuri

overburden

kenkyohumility

mudawastes

mottainaiwastefulness

kai Zentake apart make better

Lean Wastes Revalue Destroy

Human Effort Restructure Detachment

Inventory Restock Decision

Waiting Ready Define

Motion Reposition Delay

Over-processing Refine Detail

Overproduction Residual Defer

Defects Rework Deviate

Transportation Relocate Detour

Lean Kaizen Record Develop

Gather Regroup Derive

Organise Rearrange Determine

Decide Reprioritise Demand

5Why Rethink Detail

Brainstorm Recreate Describe

Improve Renovate Delight

Plan Resources Design

Do Reiterate Develop

Check Results Delta

Act Readjustment Despatch

Toyota Lean 5S Lean 5S Renew Deliver

Seiri 整理 Sort Remove Decide

Seiton 整頓 Set Rearrange Determine

Seiso 清掃 Shine Relook Detect

Seiketsu 清潔 Standardise Repeat Depend-on

Shitsuke 躾 Sustain Respect Deploy

A C T N O W L E A N

time line:

PAST

PRESENT

FUTURE

A C T

N O W

L E A N T H I N K I N GVSM Tools

Case for Change

PDCA Delivery

Reflect

Creative Spark (2 Heart Beats)

Observe & Publish

Create a sense of urgency

Renew&DelightLean

StepUp

L E A N S T E P U P

Macrow Lean StepUp Framework Renovate Delight

Audit set questions / tools Record Dedicate

Collect visible evidence Respect Decide

Think causes ask why & why-else Reach-out Detail

New ways of working Reconnect Devise

Observe interactions Results Deliver

Win hearts & minds Recognition Deploy

Renovate Your Business& Delight Customers

Lean

StepUp

Lean StepUp – D e c o n s t r u c t L e a n To o l s a n d R e a s s e m b l e a s To o l S t r i n g / To o l C h a i n

Lean 5S+1 / Gemba

Lean Kaizen

Lean Wastes

Quality ‘A3’ Diagnostics

Process Engagement

Audit - set questions / tools Collect - visible evidence Think - causes ask why & why-else

New - ways of working (mistake proofing) Observe - pilot interactions Win - hearts & minds

Audit Collect Think

New Observe Win

Team Meeting

THINK Causes

Team Meeting

BrainstormNEW Ways of

Working

Audit Collect Think

New Observe Win

T-[way] Day2Day

30minute Kaizen

Retail Stores CI

Audit Collect Think

New Observe Win

Apply Lean VSM tool

Single points of failure – 1 Person

Hard to extract data

Delays for Cx decisions

Too many touch points

Competing resources

…

..

Future State with Kanban

Audit Collect Think

New Observe Win

What were the outcomes

• $100k savings from reduction 1.5 EFT (vacancies not filled)

• Bringing Allied Health disciplines together has enabled a shared service

model to improve what the customer sees.

• Core processes mapped showing variation between the disciplines,

enabling cross skilling, more flexibility to cover for leave, and easy rotation

of admin.

• Standardisation of information and processes. Examples:

• Uniform position descriptions for admin $$

• Staff induction material for processes

• Way-finding maps introduced for patients

• The IBA appointment letter ‘5S’d’

• Standard info at all reception for easy access

• Kanban for ordering supplies and forms

Audit Collect Think

New Observe Win

Coding VBA Modelling ‘Hidden Factory’

Audit Collect Think

New Observe Win

Lean Project

Macrow Six Sigma

Black Belt

udit ollect hink

ew bserve in

udit ollect hink

ew bserve in

1999 Sports Analytics Study

Invented Snooker Set Shot Jig for

repeatable high precision practice

udit ollect hink

ew bserve in

udit ollect hink

ew bserve in

T-[way] Day2Day

30minute Kaizen

Retail Stores CI

udit ollect hink

ew bserve inRenovate layout - respect the

health workers allow them to

easily reach out & connect

Hypothesis: Environments lack real-

time visibility so Health workers

waste time with files and supplies and

spend less contact time with the

patients who then stay longer = $$$

Patient journey is complex across the health

system. A Hospital is just a centralised place

– a commons for the people in need – a

place for expensive equipment – # of beds

Why Lean Healthcare? Why now?

T h e p ro p o r t i o n o f

A u s t r a l i a n s a g e d 6 5 y e a r s

a n d o v e r i s e x p e c t e d t o

i n c r e a s e t o 2 7 . 1 % o f t h e

A u s t r a l i a n p o p u l a t i o n i n

2 0 5 1 u p f ro m 1 2 . 7 % i n 2 0 0 2

IBM Watson System helps

decide treatment delighting

staff and keeping Patients safe

Visual

Control

8. (87) Hospital & Health Care

Made Up

Example

udit ollect hink

ew in

How many Twitter followers

do Betting Sites have – what

is the rank & ratio follows/followed?

Rank Site Followers

A

Followed

B

Ratio

A/B

1 Paddy Power (Top WW) 596,300 3,211 186

2 Sportsbet.com.au 116,900 3,244 36.0

3 Tab 34,400 8,848 3.9

4 Racing Victoria 29,500 1,197 24.6

5 William Hill Aus 26,700 5,007 5.3

6 William Hill In-Play 25,000 2,023 12.4

7 Melbourne Racing Club 15,500 1,188 13.0

8 Ladbrokes 14,000 5,199 2.7

9 Crown Bet 12,900 2,456 5.3

10 Betfair Australia 12,900 1,742 7.4

11 The Wolf 12,600 6,703 1.9

12 Luxbet 12,000 2,381 5.0

13 William Hill Media 9,813 2,742 3.6

14 Palmerbet 7,368 2,080 3.5

15 Unibet Australia 7,160 664 10.8

16 Ubet Media 6,270 1,574 4.0

17 Responsible Gambling 1,749 1,011 1.7

18 TopSport 1,617 2,018 0.8

Twitter market share is tied to

marketing, advertising (TV SportsBet

ocker voice), popularity, tweet content.

What tweets have tips – content?

Do groups of mates use same Site?

Is one person more likely to win and

does this lead to Brand advocates?

Luck more likely for one person to win

but the group of Mates shares win!

How can group share a win –

traditional buy round of drinks at Track.

Mobile devices = groups not together.

Auto allocate winnings to a group token

for anyone to buy drink even though

not together. Trigger from high win>$$

Twitter market share increases as

more mates use same Betting Ap and

link this to the Twitter Bet site.

Get users to upload Congrats Pics and

thank you notes.

Monitor growth in market share and

repeat ACT NOW CI process…..

Lean

VoC

Note: Followback influence not checked

Other punters in registered groups of

Mates share in small slice of individual

‘large’ wins in real time and receive a

notification for instant gratifications.

What comes around goes around so

App feature encourages weekly

participation = more bets.

Responsible: If have nominated driver

they ‘bank’ token later – self regulated.

bserve

Reference : De c onst ruc t ing L e an Tools

ACT

NOW

< Audit

< Collect

< Think

< New

< Observe

< Win

Team finds causes of problems

Team / Individual finds

new ways of working

Lean Wastes with prompts: Revalue Destroy

Human Effort Restructure as per strategy Detachment of people will impact morale

Inventory Restock what inputs you need Decisions based on demand pull

Waiting Ready to start work??? Define when & where & whom

Motion Reposition for convenience Delays are time lost and unhappy Cx

Over-processing Refine effort Detail up to set precision & accuracy

Overproduction Residual work! Defer temptation to just keep going

Defects Rework to what Cx expects Deviate from standards & quality lost

Transportation Relocate output of work Detours to go looking annoy everyone (#clicks)

Revalue&Destroy WASTESTOP! - Reflect on what you each do & Decide to make +ve personal changes to your daily habits

Lean

StepUp

Toyota Lean 5S Lean 5S +1 Renew Deliver

Seiri 整理 Sort Remove what is not needed Decide by keep/giveaway/dump

Seiton 整頓 Set Rearrange workspaces Determine a place for everything

Seiso 清掃 Shine Relook at what others can see Detect extra items using Labels

Seiketsu 清潔 Standardise Repeat across all workspaces Depend-on each other to call-out

Shitsuke 躾 Sustain Respect co-workers & visitors Deploy Lean Visual Management

Renew Workspaces &Deliver Effectiveness

Lean

StepUp

Lean Kaizen Record Develop

Gather Regroup to inspire team to listen & see Derive systems to capture observations

Organise Rearrange by categories Determine importance with analysis

Decide Reprioritise pain points by needs Demand pull system triggers ‘Pow Wow’

5Why Rethink what you believe are causes Detail logic used to chase root cause(s)

Brainstorm Recreate how you will work big & small Describe the new ways to your teams

Record Unusual Observations &

Develop Process EngagementLean

StepUp

Improvement Renovate Delight

Plan Resources to align to the value stream Design the proposed solution(s)

Do Reiterate in an Agile way Develop a more innovative solution

Check Results after every Cx impact Delta - identify the performance gaps

Act Readjustment as agreed in sequence Despatch early to fail early /Quick Win

Renovate Your Business& Delight Customers

Lean

StepUp

udit ollect hink

ew bserve in

Regroup

Rearrange

Reprioritise

Rethink

Recreate

Remove

Rearrange

Relook

Repeat

Respect

Resources

Reiterate

Results

Readjustment

Derive

Determine

Demand

Detail

Describe

Decide

Determine

Detect

Depend-on

Deploy

Design

Develop

Delta

Despatch

Renovate

Record

Respect

Reach-out

Reconnect

Results

Recognition

Delight

Dedicate

Decide

Detail

Devise

Deliver

Deployw i n h e a r t s & m i n d s

Conclusion:

What is main Root Cause to Global Failures

Basically Lean = Mean. (treated as Joke by CEO’s)

Why: Lean Language is very negative

Destroy

Detachment

Decision

Define

Delay

Detail

Defer

Deviate

Detour

Revalue

Restructure

Restock

Ready

Reposition

Refine

Residual

Rework

Relocate

CI Problem Solving - Affinity Group PrinciplesEnhance customer experience

Audit Situation Outline 1 DaySituational

Clarify

Hypothesis

Fact driven

Not a to do list for later (Inventory waste)

Investigative

Collect Case For Change 1 Week

Check

Workflow

Complexity

Evidence based

Data driven

Consistent

Decision making

Autonomy

Resist quick fixes

Timely

Think Root Cause Study 15 - 30 minutes

Team based

Support values

Collaborative

Simple to learn

Causal

Symptoms

Root causes

Tool practice

Staff engagement

Validate root cause

Innovative creative sparkDelay Solution

Till Next Day

8 hours to

1 weekAdd value

New Ways of Working 15 - 30 minutes

Make Visual

Brainstorming

Commitment

Sense of urgency

Prioritisation

Ability to deliver

Delegation

Ownership

Accountability

Time

Bias for Action

Action

Observe

Observe Workplace Audit 1 WeekEnvironment

Results

Repeatable

Feedback

Adjust

Identify & eliminate any new waste

Small wins

Win Before/After 1 DaySuccess

Progress

Scalable

R&R

Motivation intrinsic

Sustainable

Building Networks : Social Media – add blogs

Medical

Lasers Ltd.

LinkedIn KABB Owner 2009

Creating a Legacy

Black Belt Industry Migration83 Industries 5 Self Employed

41 Management Consultants(42)Chemicals (3)Mining & Metals

(41)Management Consulting (3)Semiconductors

(38)Medical Devices (3)Environmental Services

(31)Consumer Goods (3)Transportation/Trucking/Railroad

(29)Mechanical or Industrial Engineering (2)Program Development

(26)Electrical/Electronic Manufacturing (2)Nanotechnology

(26)Printing (2)Facilities Services

(19)Hospital & Health Care (2)Business Supplies and Equipment

(17)Information Technology and Services (2)Hospitality

(15)Photography (2)Design

(11)Financial Services (1)Nonprofit Organization Management

(10)Research (1)Writing and Editing

(9)Consumer Electronics (1)Staffing and Recruiting

(8)Pharmaceuticals (1)Events Services

(8)Banking (1)Outsourcing/Offshoring

(7)Defense & Space (1)Health, Wellness and Fitness

(7)Food & Beverages (1)Media Production

(7)Utilities (1)Commercial Real Estate

(6)Logistics and Supply Chain (1)Philanthropy

(6)Motion Pictures and Film (1)E-Learning

(6)Automotive (1)Wholesale

(6)Machinery (1)Mental Health Care

(6)Consumer Services (1)International Trade and Development

(5)Human Resources (1)Glass, Ceramics & Concrete

(5)Packaging and Containers (1)Government Relations

(5)Computer Hardware (1)Furniture

(5)Computer Software (1)Entertainment

(5)Oil & Energy (1)Leisure, Travel & Tourism

(5)Executive Office (1)Sports

(4)Professional Training & Coaching (1)Building Materials

(4)Plastics (1)Computer Networking

(4)Renewables & Environment (1)Textiles

(4)Industrial Automation (1)Paper & Forest Products

(4)Real Estate (1)Railroad Manufacture

(4)Aviation & Aerospace (1)Primary/Secondary Education

(4)Education Management (1)Higher Education

(4)Telecommunications (1)Military

(4)Marketing and Advertising (1)Government Administration

(3)Biotechnology (1)Information Services

(3)Food Production (1)Individual & Family Services

(3)Retail (1)Market Research

(3)Insurance (103)Other - Not in Work??

LinkedIn Groups Owner: Networks for Jobs

twitter/Macrow Lean Services twitter/AWatch1stOwners twitter/gapyear2016inc

Twitter Accounts:

M a c r o w C a r e e r : U n l o c k i n g H i d d e n I n d u s t r i e s ( 1 4 7 )

Medical

Lasers Ltd.

Functions(540) Operations(507) Consulting(396) Entrepreneurship(278) Human Resources(271) Education(250) Business Development(248) Program / Project Mgt(211) Media and Comms(202) Sales(195) IT

Seniority(1,351) Senior(735) Manager(592) Director(408) CXO(380) Owner(330) VP(271) Entry(228) Partner

Size of Company(71) Self-employed(501) 1-10(476) 11-50(316) 51-200(177) 201-500(142) 501-1,000(391) 1,001-5,000(155) 5,001-10,000(646) 10,000+

.

LinkedIn 1st Contacts(2,779) All(1,731) Australia(1,176 ) Melbourne(516) United States(347) Sydney(180) UK(55) NYC(52) India(45) London(44) Rochester (Kodak)(37) Canada(36) Adelaide(24) Singapore(22) Perth(379) Other

Industries (76% 112 0f 147)

1.(601) Management Consulting2.(349) IT & Services3.(146) Telecommunications4.(130) Prof Training & Coaching5.(125) Staffing and Recruiting6.(120) Financial Services7.(101) Human Resources8.(87) Hospital & Health Care9.(70) Computer Software10.(70) Banking11.(63) Higher Education12.(58) Marketing and Advertising13.(48) Education Management14.(43) Internet15.(37) Automotive16.(34) Mechanical/Industrial Eng.17.(29) Electrical/Electronic Mfg.18.(29) Retail19.(27) Logistics & Supply Chain20.(26) Medical Devices21.(26) Consumer Goods22.(26) Research23.(23) Executive Office24.(19) Online Media25.(19) Utilities26.(17) Oil & Energy27.(15) Pharmaceuticals28.(14) Insurance29.(14) Consumer Services30.(13) Food & Beverages31.(13) Construction32.(13) Government Admin33.(12) Health, Wellness & Fitness34.(12) Industrial Automation35.(12) Food Production36.(12) Information Services

Experience in 20 Industries37.(11) Non-profit Org. Mgt.38.(11) Writing and Editing39.(11) Mining & Metals40.(10) Outsourcing/Offshoring41.(10) Aviation & Aerospace42.(10) Airlines/Aviation43.(9) Business Supplies & Equip44.(9) International Trade & Dev45.(9) Packaging and Containers46.(9) Chemicals47.(9) Transport/Trucking/Railroad48.(8) Program Development49.(8) Think Tanks50.(8) Hospitality51.(7) Sports52.(7) Real Estate53.(7) Market Research54.(6) Defense & Space55.(6) Facilities Services56.(6) E-Learning57.(6) Design58.(5) Events Services59.(5) Biotechnology60.(5) Media Production61.(5) Medical Practice62.(5) Renewables & Environ63.(5) Entertainment64.(5) Broadcast Media65.(5) Building Materials66.(5) Public Relations & Comms67.(4) Venture Cap&Private Equity68.(4) Comp & Network Security69.(4) Photography70.(4) Consumer Electronics71.(4) Printing72.(76) Other

Valuing LinkedIn Network Diversity & Alumni

Past Company(207) Telstra(110) National Aust Bank(132) Eastman Kodak(82) IBM(44) GE(31) Siemens

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