Denver’s Peak AcademyBlack Belt Training

Day 3 – Tools to Eliminate Waste

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AGENDA – DAY 3: TOOLS TO ELIMINATE WASTETopic TimeMorning

• Ignite Prep 8:00am – 8:30am

• Building an A3: Box 4 • Continuous Flow 8:30am – 10:00am

BREAK 10:00am – 10:15am

• Tools to Eliminate Waste: Visual Management Systems and 6-S 10:15am – 11:45am

LUNCH 11:45am – 1:00pm• Tools to Eliminate Waste: Standard Work and Mistake

Proofing• Tools to Eliminate Waste: RIE Examples

1:00pm – 2:15pm

BREAK 2:15pm -2:30pm• Tools to Eliminate Waste: Types of Innovation Events,

Value Streams• A3 Exercise– Boxes 5-9• Close Day 3 (Q’s and Discussion)• Ignite Prep

2:30pm – 5:00pm

Peak AcademyA3 Boxes 4-9

Sus

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Inno

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Inno

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Pla

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THE A3 MODEL

Why Change is Needed1Current State2

Future State3

Gap Analysis / Assumptions4Brainstorming5

Experiments6

Action Plan7Results8

Lessons Learned9

Why Change is Needed

Sample Questions• Why are we doing this?• What is the burning platform?• What is the chief complaint?• What is the impact of this issue?• Intent of the action• Scope – Start & end points

Current State

Future State

Gap Analysis / Assumptions

Brainstorming

Action Plan

Results

Lessons Learned

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2

3

4

5

7

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Describe attributes of the current state – Quantitative & Qualitative

Graphically present picture of Current State

• Describe attributes of the future/goal state – Quantitative & Qualitative

• Graphically present picture of Future State• Are metrics defined and achievable?• METRICS: Hard-$ savings, Soft-$ savings,

Service Level Improvement, and Human Development

• What holds us back from the Future State?

• What are the root causes of these road blocks?

• Use Tools to ID Waste

TITLE:_________________________________ Date Started:_______Current Date:_________

Team:___________________________Executive Sponsor: Process Owner:

If we… Then we…

Action Item Assigned To

Date Completed

CS FS 30d 60d 90d

Went Well / Helped What didn’t go well / Hindered

Experiments6

Innovation / Action Actual Outcome

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Gap Analysis/Assumptions4

BUILDING BOX 4 OF THE A3

What holds us back from the Future State?What are the root causes of these road blocks?

Use Tools to ID Waste

• Building on your A3 from yesterday, complete Box 4 addressing the questions above.

• You will have 15 minutes to work on Box 4 and then we will share as a class.

Peak AcademyContinuous Flow

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PAPERWORK GAME

The objective of your group is to complete all 6 pieces of paperwork as quickly and accurately (# rework) as possible

Groups will be split by batch size:• One group works in batches of 6 (each person completes their step for

all sheets before passing)• Another group does one sheet at a time• Other groups will work in batches of 2 or 3 (each person completes their

step for 2 or 3 sheets before passing)

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3 2 6 2 2 4 2

3 + 2 + 6 + 2 + 2 = 15

15 + 4 + 2 = 21

3 + 2 + 6 + 2 + 2 = 15 √15 + 4 + 2 = 21 √

3 + 2 + 6 + 2 + 2 = 15 √15 + 4 + 2 = 21 √

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BATCHING VS. ONE-PIECE FLOWBatching:• Completing multiple units of work

before moving it on to the next step

One-Piece Flow:• Completing a single unit of work before

moving it on to the next step

Ortho Clinical Diagnostics Jan ‘08

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BATCHING VS. ONE-PIECE FLOW EXAMPLE: DHS

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WIP: WORK IN PROGRESS

• WIP is any work in a process that is waiting to be completed

• WIP requires storage for the material or information, and can have negative impacts on productivity, quality, and customer satisfaction

• Examples:o Piles of applications in inboxeso Clients waiting to be called for the

next stepo Groceries at a checkout counter

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REWORK- THE “HIDDEN FACTORY”

http://nayariniestiningsih.blogspot.com/

ROLLING FIRST-TIME YIELD

• Percent Complete & Accurate:o Percent of occurrences where a process step is completed without

needing corrections or requesting missing information 

• Rolling First-Time Yield:o Percent of occurrences where the entire process is completed

without needing to be fixed or rehandled in some wayo This is the product of the Percent Complete and Accurate for each

process step, expressed as a percentage

• Example: Processing Claims

Receive claim Verify claim Supervisor

review Payment Mail claim

90% 90% 90% 90% 90%

1,000 claims

### claims done with no rework

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BREAK

• Let’s take a short break and jump back in with other Lean tools:

o Visual Management systems

o 6-S

Peak AcademyTools to Eliminate Waste

(A3 – Boxes 5 & 6)

Visual Mgmt Systems & 6-S

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TOOLS TO ELIMINATE WASTE: VISUAL MANAGEMENT SYSTEMSFOR MORE INFORMATION, SEE BMGI COURSE: VISUAL MANAGEMENT

• Visual Management Systemso Production Boards

o Kanban

o Andon

• Some Potential Benefitso Show productivity in “real time”

o Provides Transparency to the Process

o Good for Customer Service Improvement

o Increases “Flow” in a process

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PRODUCTION BOARDS

Budget Board at the BMO

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PRODUCTION BOARDS

Peak Academywork management and Gemba Walk boards

DOF DECC fundraising

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PRODUCTION BOARDS

Production Boards at Denver Water:• Top boards show daily service issues &

status• Bottom right board shows total cost for

eVoucher Invoices

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BILLBOARD• Japanese Term for “billboard” – “kanban”

• Creates PULL in a process flow to reduce Lead Times & Inventory

• Only proceed in a process when Kanban is shown

Kanban – Easy to see when levels are low. Only then re-stock

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LANTERN

• Japanese term for “lantern” – “andon”

• Used to alert team or management about issues (or opportunities)

• Opportunity for experts (those that “do” the process) to make change

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VISUAL MANAGEMENT SYSTEMS: EXERCISE• Individually, create a production board for one of your

innovations. (15 mins)o

Choose a process that occurs in your work-place

o

Create a Production Board that may be applicable to your work

o

Try to only use the materials in the room.

• Present your Production Board to the person next to you. After 5 minutes. Switch and let them tell you about their production board. (10mins)

• Facilitator will ask for a few to discuss with the group. (25 mins)

• Question:

o Could the creation of a Production Board be a “Just Do It” after you’re done with Black Belt training?

The 6S numbers game…

6-S: GAME

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6-S is a Lean tool to eliminate waste that:

• Is used for improving organization of the workplace

• Reduces waste associated with searching for supplies, tools, and information

• Increases morale, safety & quality

• Makes problems more visible

6-S: THE “WHY” OF 6SFOR MORE INFORMATION, SEE BMGI COURSE: 5S

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Sort

Set in Order

ShineStandardize

Sustain

6-S: WHAT IS A 6S?

Safety

• Supports other elements of Lean

• 6S is a ‘basic enabler’ for developing a culture of continuous improvement

See as a Group

Act as a Group

Know as a Group

6-S: A Basic Cornerstone of Lean

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• Separate unnecessary from the necessary

• Remove things not required for the process

• Add things that are missing• Discard junk

• Red Tag items– For follow-up, evaluate and decide

o Item is needed = keep ito Item not needed = discard it!

6-S: SORT

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• Provide the needed tools at each workstation

• Organize everything so it is convenient to complete the work

• Standardize workstations where similar work is done

• Centrally locate shared items so they are convenient for everyone who uses them

• Move items out of drawers and into the open so they easy to retrieve

• Label everything!

6-S: SET IN ORDER

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• Clean all work surfaces, under & behind all equipment

• Label and outline all locations

• Re-paint to make everything look new

• Goal: create a visual workplace

6S: SHINE

• Maintain adherence to the first three S’s

• Develop task sheet for each 6S’d location

• Assign owner to each of task sheet

• Develop 6S scoring method

6-S: STANDARDIZE

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• Schedule periodic audits to score 6-S by area

• Display results – 6-S Scorecard

• Allocate time periodically to continue up-keep:o Sort

o Set in Order

o Shine

o Standardize

o Safety

6-S: SUSTAIN

• Be on lookout for safety issues & resolveo Employee Safetyo Ergonomic Issues

• Ensure safety equipment is operational

• Enter work orders for safety issues that cannot be resolved in the 6-S activity

6-S: SAFETY

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• Scope 6S areas small (workstation or copy room vs dept)– More 6S activities are better than 1 large activity– Have enough time available for a thorough Sort– Do a little pre-work (Create 6S worksheets, etc.)• Size team to match the area• Include people on team from outside the area

• They will ask “Why do you have the space set up this way”?• No need for perfection on 1st 6S pass – plan on multiple passes• Don’t clean up the area before the 6S – the worse the before, the

better the after• Email and/or print-out (display) before and after pics!

6S: TIPS

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6-S Example: Common Areas in an Office

Before 6-S After 6-S

“Out of clutter, find simplicity, from discord, find Harmony. In the middle of difficulty lies opportunity.”

- Albert Einstein -

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LUNCH BREAK

• Let’s take a break and pick back up with other tools to eliminate waste:

o Standard work & mistake-proofing

o Types of innovation events

Tools to Eliminate WasteStandard Work

A3 Boxes 5-6

STANDARD WORK – MAKE A DOG FACE (1ST ROUND)• Make a dog face using the square sheet of paper provided

• Your dog does not have to look like this one:

When you’re done, share it with the class!

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STANDARD WORK – MAKE A DOG FACE (2ND ROUND)• Now – let’s see what the customer really wanted:

o Instructions

• Make the dog face again on a new sheet of paper

o Discussion: How did it go this time?

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STANDARD WORK – MAKE A DOG FACE (3RD ROUND)• Make a dog face using the picture provided on another sheet of

paper AND the instructions

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TOOLS TO ELIMINATE WASTE – STANDARD WORKFOR MORE INFORMATION, SEE BMGI COURSE: STANDARD WORK

Standard Work:• Create standard procedures & documentation that will…

o Mature your process & sustain innovationo Help train team members

• This can be as simple as a “Process/Procedure Document”

Improve Org Service Delivery!

State before Innovation RIE / Innovation

Standard Work

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STANDARD WORK – DISCUSSION

• Lean concepts at work here:

o The customer defines value – always start w/ what they value

o Standard Work eliminates waste and errors

• Deliver value to customers without waste (wasted paper!)

• Make your standard work visual when possible

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STANDARD WORK – EXAMPLES

• Animal Care Control Administrative Citation:

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STANDARD WORK – EXAMPLES

• Animal Care Control Adoption Notice:

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STANDARD WORK – EXAMPLES

• Denver Human Services – Child Support:

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STANDARD WORK IN YOUR WORKPLACE• Form a group of 2-3 people and design Standard Work for one of your work

processes.

• As a team, come up with a visual check list to maintain and adhere to a standard. Use one of your innovations and as a team come up with standard work for that innovation.

• You will have 20 minutes:o Spend about 5 minutes brainstorming ideas with your group o Spend the remaining 15 minutes creating the Standard Work as a group.

• Share your Standard Work with the class

• Is this something you would consider implementing as an innovation after class?

• Were you able to get ideas from your classmates?

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TOOLS TO ELIMINATE WASTE: MISTAKE-PROOFING

• Also known as poka yoke - pronounced “poh-kah yoh-keh”

• Error-proofing

• Some benefits:

o Reduced re-work

o Reduced defects

o Increases safety

o Increase ROI – less re-work!

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MISTAKE-PROOFING EXAMPLES

Drop-down menus prevent incorrect inputs

Required fields prevent missing data

Auto-fill reduces inputting errors

Outlook warns users of a potential oversight

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MISTAKE PROOF EXERCISEHow do you make a process step mistake proof?

Ideas:• Templates—

o Do we ask for a print out only to hand it back to the customer after we read it? Is it possible to read it on an Iphone?

o Carpenters use jigs or patterns—does your process lend itself to a pattern or jig? A jig is a type of custom-made tool used to control the location and/or motion of

another tool. A jig's primary purpose is to provide repeatability, accuracy, and interchangeability in the manufacturing of products.

Spend the next 15 mins work on your A3 Innovations: In box 5 and 6 write what type of steps you can mistake proof on your innovations. Discuss them with your neighbor.

Peak AcademyRIE Example

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RAPID IMPROVEMENT EVENT - EXAMPLE

• Presentation from the Team Leader or Facilitator of a previous RIE

• Peak Academy Videohttp://www.youtube.com/watch?v=ZOjcjpHNL18

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BREAK

• Let’s take a break and pick back up with:

o Value Stream Analyses & types of innovation events

o A3 Exercise

o Ignite Prep – Building an A3 (or A3’s) for your future Innovations

Peak AcademyValue Streams

Innovations:• Just Do Its,

Workshops, Rapid Imprv Events, and Projects

Tools• A3 Thinking• Visual Mgmt• Stand Work

PROCESS INNOVATION PLAYBOOK FOR AN AGENCY/DEPT

Strategic

PlanExec

Training MetricsInnovati

on Planning

Innovate!

Celebrate!

Exec Training from Peak Academy• How to Lead

Innovation• What is

Innovation in your organization

• ID Org’s Value Streams

• Prioritize VS’s to conduct VS Analysis (VSA)

Value Stream Analysis for each High Priority VS• Facilitator-led• VS Mapping• Create

Innovation Plan for each VS

• Charter high priority opportunities

Celebrations!• 30/60/90

Readouts• Feed innovation

results into Peak Performance Qtrly Readouts

• Citywide Impact Statements

• Executive Trainings identify the organization’s Value Streams• Value Stream Analysis identifies opportunities for innovations

(JDIs, Workshops, RIEs, & Projects)

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WHAT IS A VALUE STREAM?FOR MORE INFORMATION, SEE BMGI COURSE: CURRENT STATE VALUE STREAM MAPS

Intake QA Intake

Pass to team 2

Team 2 Processin

g

Pass to team 3

Final review & delivery

Customer Need

Identified

Customer Need

Fulfilled

VALUE STREAM

• Sequence of activities required to design, produce, and deliver a specific good or service to a customer

• Customer defines value, not the individual work-groups that perform processes to deliver that value

• Value add vs. Non-value add steps: Are any of these steps in the example above non-value add? (The diagram above is only an example)

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VALUE STREAM EXAMPLE – DENVER MOTOR VEHICLE

Titles Registrations Renewals

“Legal Documents” “Plates, Placards, Temp Permits”

“Stickers”

Value Stream Map

Peak AcademyTypes of Innovation Events

INNOVATIONS IN DENVER

Small-scoped change

One to a few people

involved

1-3 day facilitated

eventFew to several

participants

Weeklong facilitated event

Several participants

Requires up-front analysis

Large scopeLong-term

Many participants

Customer-focused

Peak AcademyJust Do Its & Projects

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JUST DO ITS (JDIS)

• Foundation for a JDI is the A3

• Characteristics of a JDI

o Customer-focused

o Fairly small in scope

o Can usually be done by an individual

o Doesn’t require analysis to identify the cause of a problem

o Doesn’t require a team of people to propose/implement changes

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JDIs - EXAMPLES

• Move a piece of equipment

• Stop doing a step in a process

• Update your website

• Create a Process/Procedure Document

DISCUSSION

• Can you think of other JDIs you come across every day?

o Let’s document some together

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PROJECTS

• Foundation for a Project is the A3

• Characteristics of a Project

o Customer-focused

o Larger scope that usually takes longer than 4 days to complete

o Requires group of people from multiple areas (e.g. requires technology, City Attorney, etc.)

• Example:

o Contracting process from design of project to awarding of contract; may involve Finance, Public Works, City Attorney, DIA, Parks & Rec, etc.

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PROJECTS – ADVICE FOR BLACK BELT CANDIDATES

• Projects take longer but improvements to City operations could be larger

• Suggest that Black Belt candidates not focus on Projects due to the longer duration and resources required

• Suggest that Black Belt candidates focus on to get initial traction:

o Just Do Its

o Rapid Improvement Events

Peak AcademyA3 Boxes 5-6

Brainstorming5 Brainstorming - EXAMPLE5

If we… Then we…

• Generating a list of solution-oriented if, then statements

• What might have an impact on the gaps we identified?

• What do we expect to or anticipate will happen if certain actions are done?

If we… Then we…Get software reports access for billing…

…can reduce time to manually enter data.

Error-proof data entry into software…

…can eliminate some QA steps and reduce billing defects.

Establish single workflow…

…can minimize defects, increase coordination.

Eliminate redundant QA at prelim review…

…can redeploy that review time.

Experiments6 Experiments- EXAMPLE6

Innovation/Action Actual OutcomeInnovation/Action Actual Outcome

Implement/Test Standard Work

Success! Defects have been reduced and Inbox has been re-purposed for receiving apps

Run monthly billing by dumping software report into Billing database

Test initially failed due to need to modify database to accept report.

• Experiment phase- testing our hypotheses in small-scale, real-world scenarios

• Describe what we intended to happen versus what actually happened when the idea was tested

• This pilot phase allows us to test our ideas, and choose to either adopt, modify, or scrap the ideas in an environment that encourages failure

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BUILDING BOXES 5 AND 6 OF THE A3

• Building on your A3 from this morning, complete Boxes 5-6 of your A3.

• You will have 15 minutes to work on Boxes 5 and 6 and then we will share as a class.

Action item Assigned To Date CompletedStandard Work: Billing & Naming Conventions

Alfred Q. Done 12/15/13

Review Website to make this a one-stop-shop for info

Betty B. To be done by 4/1/14

Unique company identifiers to autopopulate software

Chester Z. & Dotty P.

Done 1/7/14

Completion/Action Plan7 Action Plan - EXAMPLE7

Action Item Assigned To Date Completed

• Based on the experiments & solutions, an action plan is created

• Individuals, not a committee, should be responsible for ensuring the action gets done. This ensures that there is clear accountability.

• Note, and celebrate, when action items are done – that’s one step closer to the goal!

• Box 8 is designed to provide a platform for communicating the status of metrics after an innovation has been implemented

• Can also be qualitative, e.g. “daily website updates/reviews = easily catch mistakes”

Results8

Current State Future State 30days 60days 90days

Results - EXAMPLE8

Current State Future State 30days 60days 90daysTouchtime

19min 50sTouchtime

15min 8s 17min 2 sec 12min 14sec 7min 30secCost per app

$10.92Cost per app

$6.00 $9.35 $7.01 $4.27

Touch points 4 Touch points 2 3 2 2

Several angry callers Few calls overall few angry callersCustomers

understand, less anger

Transparency helping reduce #

calls in total

• Be frank and straightforward. We cannot learn from these experiences without transparency.

9Went Well / Helped What didn’t go well / Hindered

Lessons Learned - EXAMPLE9Went Well / Helped Streamlined Billing; License #s that autopopulate software reduced defects and increased billing accuracyCommon Understanding of Roles of all stakeholders. Stakeholder involvement created greater opportunity for success. Learned from our failures. Generated new ideas for other processes.

What didn’t go well / HinderedSome rigidity from partner agencies when we asked for certain modifications. Communication of new standard work. Tracking actual times. An arbitrary firm date of implementation made some aspects of the change difficult

Lessons Learned

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TOYOTA VIDEO: TYING IT ALL TOGETHER• Toyota in Action: “The Meals Per Hour Documentary”

• After Superstorm Sandy Toyota partnered with the Food Bank For New York City to share TPS (Toyota Production System) and demonstrate how small innovations can work for a community and with a non-profit.

• Discussion:o What wastes did you notice in the video?o What were some of the small innovations in the video?o What did you like/dislike about the video and TPS?o How does this video relate to your agency or the work that you do?

http://mealsperhour.com/the-meals-per-hour-documentary-1-view-1-meal

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DAY 3 WRAP-UP• Let’s do a +/- Exercise:

o What things did you like about today?o What things do you think would make the rest of the days in training

work better?

DAY 3 AGENDA (IN REVIEW)

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Topic TimeMorning

• Ignite Prep 8:00am – 8:30am

• Building an A3: Box 4 • Continuous Flow 8:30am – 10:00am

BREAK 10:00am – 10:15am

• Tools to Eliminate Waste: Visual Management Systems and 6-S 10:15am – 11:45am

LUNCH 11:45am – 1:00pm• Tools to Eliminate Waste: Standard Work and Mistake

Proofing• Tools to Eliminate Waste: RIE Examples

1:00pm – 2:15pm

BREAK 2:15pm -2:30pm• Tools to Eliminate Waste: Types of Innovation Events,

Value Streams• A3 Exercise– Boxes 5-9• Close Day 3 (Q’s and Discussion)• Ignite Prep

2:30pm – 5:00pm