lean 101: an introduction to lean tools and methodologies

Presenters: Laurie Klupacs, Deputy Director & Toni Smith, Education Director

Association of Minnesota Counties

This workshop will cover: How and Why AMC started a LEAN education effort in Minnesota.

Portions of AMC’s training program we use in Minnesota so you understand basic components of LEAN.

Examples of how counties are approaching LEAN in Minnesota.

Examples of how Kaizen events have saved Minnesota counties time and money.

"LEAN in Minnesota" presented by the Association of Minnesota Counties

This workshop will introduce you to LEAN’s basic concepts to see if it’s a good fit for your county, but will not teach you how to

conduct an actual LEAN event.

1. Welcome – Who is Audience? 2. What is LEAN? 3. Why LEAN now in county government? 4. How is LEAN used in Minnesota

Counties? 5. Question and Answer


Declining budget dollars and a shrinking workforce mean that many counties are being asked

to do more with less.


How do counties continue to provide quality services to citizens as demand grows and resources become more scarce?

Baby-Boomers are retiring and that means institutional memory is walking out the door. How much of their work is standardized and ready for new staff to step right in and keep things moving efficiently?

How often do you believe your county staff have done serious examination as to why county processes are designed the way they are? In many counties the response is, “we don’t have time to do that kind of analysis.”

We say: “You don’t have time to NOT do that analysis and LEAN can help.”

Why Should You Care About LEAN?

Using “person-on-the-street” interviews, we introduce county employees to a cast of characters that not only share how we should deal with change, but encourage them to put their thoughts into action.


What’s Your

Perspective on

Change?

LEAN is a time-tested set of tools, and an organizational desire to improve its operations by engaging employees to reduce waste and defects within processes to increase productivity, reliability, staff

morale, and customer service. LEAN characterizes activities as value-added

or non value-added from the customer’s view.

What are the value-creating elements of your process? Define the Value Stream.

LEAN Emphasizes Efficiency

Reducing Cost and Time Action


What is LEAN?

An Acronym

The Newest “Fix All The County Problems” Program

A Quick Fix

An Org Chart Shuffle Changing Lines On The Org Chart Does Not Improve Process!

Easy It’s Simple, But Easy Does Not Exist!

About Laying Off Staff Staff may need to do different work.


LEAN is NOT…

Most closely associated with Toyota; sometimes referred to as the Toyota Production System (TPS).

Now being applied in office and manufacturing environments; private and public sectors.


Where Did LEAN Come From?

“If I were given one hour to save the world, I would spend 59 minutes defining the problem and one minute solving it.” -Albert Einstein


Why Focus On Examining Processes In Your County?

Nearly every tangible output; service or product, is created as the result of a process or series of processes (a system). It’s been shown that over 85% of the opportunity to improve those outputs, while reducing time and cost lie within the process itself.


Process forms the base of the majority of your county services.

County

Department

Program within that department

Processes that make that program work


“A bad process will beat a good person

every time.”

-W. Edwards Deming


“The work of government is noble.

Government employees

are amazing.

The systems of government are a mess.”

-Ken Miller, “Extreme Government Makeover”


Straighten the Pipes!

Ken Miller’s Ideas Are the pipes crooked in your county?

How did they get that way? What can you do to straighten them?


Customers Judge Services By: SPEED – How quickly do I receive it once I request it? ACCURACY – The information is correct, and relevant to my request. UNDERSTANDABLE – The information is easy to read and understand. CONVENIENT – I can get it when I want it, not when you are willing to give it to me.


We Work To Identify WASTE In Our Systems….. Waste is: Any action, task, process or product that adds time and cost, without adding value as perceived by the customer.


Non-Value Added = Waste


Typical Symptoms of Waste: Excessive Cycle, Lead or Flow Time Excessive costs Poor quality Excessive inventories Dependency on work-around methods Reactive fire-fighting Daily management by exception


Value-Added Activities Transform materials and information into products or services per the needs of the customer. Operations that consume resources (labor and materials), but don’t create value for the customer.


8 Wastes We Focus On… 1. Overproduction 2. Transportation 3. Motion 4. Defects 5. Waiting 6. Inventory 7. Extra processing 8. Underutilized creativity


WASTES DEFINITION WORK AREA APPLICATIONS Overproduction Generating more

information and products than needed

• Creating reports no one reads • Batch production • Unnecessary meetings

Transportation

Movement of products and information that does not add value

• Retrieving or storing files • Carrying documents to and from

shared equipment

Motion Movement of people that does not add value

• Searching for files • Clearing away files on the desk • Gathering information • Looking for tools, parts, and

equipment to perform a job

Waiting Idle time created when material, information, people or equipment is not ready

• Waiting for the system to come back up

• Waiting for inspection • Waiting for paint or seal to dry • Copy machine • A handed-off file to come back


WASTES DEFINITION WORK AREA APPLICATIONS

Processing Efforts that create no value from the end-users viewpoint

• Creating reports • Use of inappropriate software

Inventory More information and/or material on hand than the end-user needs right now

• Files waiting to be worked on • Open projects • Just-in-Case inventory anticipated • E-mails waiting to be read • Unused records in the database

Defects Work that contains errors, rework, mistakes or lacks something necessary

• Missing information • Lost records


Follow the Bouncing Paperwork…


Kaizen Toast Video 1. Watch for examples of

the seven wastes in the following video.

2. Make a note of what you would do differently if you were making the toast.


What is

5S?

Methodology for creating a clean, safe, orderly, high performance work environment


The 5 “Ss” Sort Set In Order Shine Standardize Sustain



Before…

After…


“When in doubt, move it out.”

SORT 1S


Sort: Electronic files

Email Files on: • Hard drive • Personal drive • Shared Drive

Archiving

1S


Shared Drive 1. Develop a file structure to include

projects, meeting minutes, commonly shared files, etc.

2. Develop a consistent file naming scheme for folders.

3. Assign responsibility to clean out on a monthly basis.

1S


SET IN ORDER

“A place for everything, and everything in its place.”

2S


Set in Order – Why? Immediately recognize items out of place,

and an excessive or insufficient amount of items. Eliminate time wasted locating items. Improve customer service.

2S



A communication device that tells, at a glance, how work should be done.

1. Where items belong 2. How many items 3. Standard procedure 4. Work in progress

There is only one place to put each item.

Visual Management 2S

SHINE “The best

cleaning is to not need

cleaning.”

3S


Boost employee morale.

Improve health and safety of employees.

Develop sense of ownership in the office.

Identify and eliminate root causes of cleanliness issues.

3S


Shine

STANDARDIZE “See and recognize what needs to be

done.”

4S


Standardize – What is it? Makes “Sort,” “Set in order” and “Shine”

habitual.

Commitment from team members.

Incorporate 5S into regular work routine.

4S


SUSTAIN Effective, ongoing application of 5S in order

to improve organizational performance.

Maintaining a commitment to 5S.

Sustaining improvements is the most difficult part.

5S


Sustain – Process Steps Keep it fun!

Friendly competition

Teamwork

Before and after photographs

Positive reinforcement

Individual recognition or rewards

5S


Are You Ready To Be A LEAN Leader? Become a skeptic who is

unwilling to accept either the status quo or the newly defined process that materializes from a Kaizen event. Once in place, it becomes another target for improvement.

An optimist who sees opportunity everywhere.

A critical thinker who relies on substantiating data and information, and never assumes anything.

An analyst who is able to dissect a process down to its core elements.

A modest leader who is never overly impressed with success and is not deterred by failure---things can always be done better, and usually are, by someone else.

A team player who doesn’t rely on himself or herself.

A servant who is willing to share knowledge for the most important reason….selfless servitude.


“Gwinnett County’s Department of Financial Services Embraces LEAN” by Richard Reagan, Government Finance Review,

December 2011

“Where there is no standard, there can be no Kaizen.”

-Taiichi Ohno

Vice-President, Toyota Motor Company


STANDARDIZATION “To standardize a method is to choose out of the many methods the best one, and use it.”

“Today’s standardization, instead of being a barricade against improvement, is the necessary foundation on which tomorrow’s improvement will be based.”


Not Everything is a Kaizen Event


FISHBONE CHART FOR ANALYZING COUNTY ISSUE: The Fishbone Diagram takes a burning question and looks for all things

that could possibly contribute to that issue. When trying to determine the root cause of a technical issue, the team needs to think of everything. The

structure of a Fishbone Diagram standardizes your approach to ensure you consider all the possibilities.

The diagram is designed with the "Effect" located at the head of the fish, and each bone or branch containing a family of potential "Causes". There are 6

main bones in the standard Fishbone diagram skeleton. Different terminologies are sometimes used, but they represent the common major influences in

any process.

1. Man - How can a person contribute to the effect (training, mistakes, non-standard work)?

2. Method - How the design of the process can cause the effect (job design, process steps)?

3. Machine - What equipment contributions are there (process settings, machine malfunctions, equipment variability)?

4. Material - Any raw material influences (differences in lots, traceability)?

5. Metrics - How are we measuring this (gauge r&r, capability)?

6. Mother Nature - What environmental impacts are there (weather, air quality, heat)?

On each branch of the fishbone diagram, you begin to write all the specific potential causes that could influence your effect. For example, in the Machine

branch, you might have several causes related to the equipment, such as machine breakdown, start-up, differences between machines. Depending on the

process, you may have a lot of information on one branch and very little on another. It's ok. The purpose of the fishbone diagram is to guide your team,

using a structured approach, not to make a pretty picture.

HEAD of the FISH

EFFECT

OR

PROBLEM

Cause 1? People

Procedures

Cause 2? Process Management? Category

Mandates? Facilities? Category

cause

cause

cause

cause

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cause

cause

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cause

cause

cause

cause

cause

cause

cause

cause

cause

cause

cause

cause

cause

cause

cause

cause

cause

cause

cause

cause

cause

cause

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cause

cause

cause

cause

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cause

Fishbone Diagram

"LEAN in Minnesota" presented by

the Association of Minnesota

Counties

What is Kaizen?

A facilitated, rapid improvement event.

Employee-driven improvements.


“To take it apart, and put it back together in a better way.”

Follows Deming’s cycle of Plan, Do, Check, Act (PDCA)

Define the operation to be improved

Standardize the

operation

Measure the standardized

operation

Gauge measurements

against the requirements

Innovate to meet the

requirements

Standardize the new

operation

Kaizen

1

2

3 4

5

6


When Should You Use Kaizen? A LEAN Kaizen event aims to systematically

improve a process. Pick a process or portion of a process that meets all the following criteria.

Kaizen Criteria: Suffers from chronic customer (internal or external

“customers”) complaints or issues. Involves medium to high volume of workload. Is highly visible to staff or customers. Has obvious potential for dramatic improvement. Has data already available or that can be obtained.


Determine When To Use Kaizen The ideal process should have the potential of

reaching all the following goals after the Kaizen. Kaizen Goals:

Reduce staff workload and/or reduce product/service lead time.

Improve customer (internal or external “customers”) satisfaction.

Simplify the process. Ensure staff and customer safety.


Kaizen Event Select Sponsor Set Goals Determine Team Gather data/metrics Maps a current

process Identifies waste Brainstorms

improvements Maps future process Assigns tasks

3-5 day improvement event:


We Use “Swim Lane Mapping” To Break Down The Process

Three Elements: 1. Time 2. People (job functions) 3. Tasks/Process


Helps us see all components of the process documenting every TASK, DECISION,WAIT,STORAGE, and HANDOFF.

We do that by documenting the CURRENT STATE and the FUTURE STATE with…


Swim Lane Mapping

Swim Lane Icons

DECISION (Y or N)

Task Time to

Complete (in minutes)


Storage / File

Wait / Delay Wait Time

(in days or weeks)


Swim Lane Icons

Handoff

Electronic, phone, or fax

Physical (e.g. passing a

paper item back and

forth)


Swim Lane Icons

Minnesota County Kaizen Event Example of a Kaizen Scope

FOCUS: Improving Septic System Permitting Process

From the point of the first contact by the applicant; whether phone, email, website, in person, etc.

To the point the completed permit, after all inspections, is filed in Land Services Office.


Observations of Current State What they knew about the current septic process.

Key Points Supported Through Data/Metrics: Long process with many tasks. Zone inspectors are performing repetitive required tasks. Very labor intensive. A lot of hand offs in the recording process.



Blue Earth County, MN, Kaizen Event


Mille Lacs County, MN, Kaizen Event

Current & Future Process Swim Lane Metrics

76.2 % reduction in total process time!


Recommendations Issue: The initial application process was lengthy, confusing, and often incomplete Solution(s):

Utilize technology (miracle program) to streamline the application process

Issue: Contractors were waiting for the permit and the Certificate of Compliance for up to one month Solution(s):

Condensed the process to provide services within 10 business days

Issue: Multiple onsite visits for inspectors Solution(s):

Consolidate inspections from 5 to potentially 3 with training and education of contractors and general public

Issue: Recording document was very time consuming, costly, and of little benefit Solution(s):

Eliminate the recording requirement


What are your ideas for Kaizen or 5S Events?

LEAN methods and tools apply to any process where an employee:

Chases information in order to complete a task. Must jump through multiple decision loops. Is constantly interrupted when trying to complete a task. Is engaged in expediting (of reports, purchases, materials, etc.). Does work in batches. Finds work lost in the "white space" between organizational silos. Doesn't know what they don't know.

*From LEAN Six Sigma for Service by Michael L. George

USING LEAN IN YOUR COUNTY


What could be the benefits in your county?

Using LEAN tools an organization can expect to: Eliminate or dramatically reduce backlogs. Reduce lead times by more than 50%. Decrease the complexity of processes. Improve the quality of applications and the consistency of reviews or inspections. Allocate more staff time to "mission critical" work. Improve staff morale and process transparency.

USING LEAN IN YOUR COUNTY


7 Wastes 5S

Strategy

Leadership

Sustainment

Kaizen

Training

Planning

LEAN Transformation

Standard Work Inc

rea

sin

g O

rga

niz

atio

na

l V

alu

e


Building A Successful LEAN

Transformation

LEAN Statewide in Minnesota Collaborative with the State of Minnesota, Department of Administration, Office of Continuous Improvement.

Sponsored multiple three-day “Train the Trainer” sessions. Consisting of one day LEAN 101 training and two day Kaizen facilitator training.

New Kaizen experiential training.

Development of state website.

Increase pool of facilitators and encourage cross county sharing.


Minnesota County LEAN Efforts

Crow Wing County LEAN Video: http://crowwing.us/MediaCenter.aspx?VID=Lean-for-County-Government-16

Winona County LEAN Impact PowerPoint:

http://www.co.winona.mn.us/sites/winonacounty.new.rschooltoday.com/files/LEAN_Update_to_Board_04-09-13.pdf


http://crowwing.us/MediaCenter.aspx?VID=Lean-for-County-Government-16



















Additional Resources Minnesota State LEAN Website: www.lean.state.mn.us/index.htm

King County, Washington (Seattle):

www.kingcounty.gov/employees/Lean/Toolkit.aspx

Brown County, Wisconsin: www.co.brown.wi.us/departments/?department=9828882e1158

General Resources:

www.lean.org www.leangovcenter.com/govweb.htm

www.abcnewspapers.com/2012/03/19/county-taking-lean-approach-to-government/

LOOK FOR AMC’S LEAN WEB SITE COMING SOON! www.mncountylean.org


http://www.lean.state.mn.us/index.htm

http://www.kingcounty.gov/employees/Lean/Toolkit.aspx

http://www.co.brown.wi.us/departments/?department=9828882e1158



http://www.lean.org/

http://leangovcenter.com/govweb.htm

http://abcnewspapers.com/2012/03/19/county-taking-lean-approach-to-government/











http://www.mncountylean.org/

The LEAN Philosophy is Based on Three Simple Tenets:

1. Be humble enough to see the need to improve.

2. Be courageous enough to improve.

3. Be disciplined enough to never stop improving.


Contact Information Laurie Klupacs

AMC Deputy Director [email protected]

651-789-4329

Toni Smith AMC Education Director [email protected]

651-789-4335


Q & A

mailto:[email protected]

mailto:[email protected]

lean 101: an introduction to lean tools and methodologies

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