lean@tieto tips - european lean it summit 2012

Copyright © Institut Lean France 2012

22 & 23 November, 2012 Paris, France

Lean@TIPS

Lean transformation of large

distributed product development


Martin Chmelař,

Lean&Agile Coach

Matěj Kastner,

TIPS PLAN Team Leader

Speakers

Lean@TIPS – Matěj Kastner & Martin Chmelař 2


The leading IT service company in

Northern Europe providing IT and

product engineering services

Tieto


More than 18,000

employees in close to

30 countries


Lean transformation@Tieto


Driven by Mentor Pair work with Internal Coach

New coaches Independent

Team

An individual case

Driven by Internal Coach

Company wide (Year 2015)

Doubled speed

Doubled efficiency

Half of effort Bottom-up

realization

Top-down

support

DMN


Tieto Integrated Paper Solution

TIPS


• A comprehensive sales,

logistics and production

management solution for

the pulp, paper, board

and tissue industries

• Management of the

whole order-to-cash

value chain

The leading manufacturing execution system

for paper mills



CHALLENGES

TIPS Product Development



Geographical setup


250 people in more

than 3 countries

100

100

50

Finland

Czech Republic

Germany


Matrix organization


Profit Utilization

Head count

Disconnected goals


Process organization


Customers

Service 1

Core Product

Development

X

X

X

Y

Z

Heavy overload


Value for customer???


CZ

GER

FIN

Customer Flow Value delivery chain


Disaster


Customers

Employees

Defects

Profit



SOLUTION

STOP! We need to change something



Don’t control – improve!


TIPS product development

Mill execution system – TIPS

Lean@Manufacturing

Paper mill

Complex

• Learn and adapt

“Simple”

• Stabilize and control


Continuous improvement


Lean@Tieto/TIPS


Mill execution system – TIPS

Lean@Manufacturing

Paper mill


Ask for help with

implementation!


Coaching & Mentoring

Lean@Tieto framework

Lean@TIPS continuous improvement




LESSONS LEARNT

From the trenches



Pull people out of their boxes

Lean@TIPS – Matěj Kastner & Martin Chmelař

Lean Awareness Workshops

• Cross countries, units and functions

• Lean tools – practical experience

Kaizen workshop

• Synchronize

• Focus

• Go!

!

!

!

!

!

C C !

!

!


Break the silos


Communication

Carsten Henke

Director, TIPS

6%

(76% mgmt.)

ROI for time

investment

200% Shared targets & Balancing KPIs

(2011->2012)

Truly global organization

with international teams

CZ

GER

FIN


Solve problems together


?




? ?!




? ?! ?!?

@#&!




? ?! ?!?

C C

?

@#&!


Question value of every activity


Code change

Propagation of code changes

limited to 3 versions

(from original 5-8)

~150 k€/year

saved

Example


Slow down to speed up


1. Establish pull concept

2. Prioritize

3. Dedicate capacity for improvement

Service 1

Core Product

Development

P

U

L

L

Available

Improvement Overrun

Capacity

X

X

X

Y

Z

Customers


Make it sustainable


1. Learning

2. Focus

3. Improvement

Behavior AVG DEV Data

We create enough improvement ideas/A3s 4,1 0,38 5 4 4 4 4 4 4

A3s are prioritized by estimated benefit (and complexity) 3,0 0,82 3 4 3 4 2 3 2

We resolve A3s fast enough 1,7 0,76 2 3 2 1 1 1 2

Every A3 has set "good enough goal" (acceptable level) 2,0 1,41 2 2 1 5 2 1 1

There are regular follow-ups on A3s in progress 2,1 0,69 3 3 2 2 1 2 2

Every A3 in progress has an agreed future next step 2,9 0,90 2 4 4 3 3 2 2

1. Regular self-reflection: “How much do you think we do this?” (1-5)

2. Well, it seems we don’t resolve A3s fast enough due to vague goals…

3. Let’s define more concrete A3s’ goals


Grow internal Lean coaches


E E I

I I

External coaches/mentors:

• Experience tools, solutions, shortcuts

• Focus on what is important speed

• Spreading information breaking silos

• Step back let internal coaches drive

? ?

!

E E

E

E

I I

I



RESULTS

Lean@TIPS – Matěj Kastner & Martin Chmelař

27


Results


Profit

2x

* Average monthly profit

in 2012 compared to 2011

Satisfaction

Customers

Employees

-10

0

10

20

30

40

50

Start


Results


Defects

Lead time (from order to closure)

35

45

55

65

75

85

95

105

115

125

135

1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10

2011 2012

0

200

400

600

800

1000

1200

1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10

2011 2012

Start

Start


Feedback


Lean@Tieto significantly contributed by: x

• Cross-functional, cross-country Lean workshops providing brand new perspective on improvements, pulling people out of their boxes. x

• Sharing experience and providing on-job coaching.

Carsten Henke

Director, TIPS


• Break the silos Bring people together – pull them out of their boxes

Align targets – shift them upwards

• Slow down to speed up Reduce incoming work – create space for improvement

Question value of everything you do

• Make it sustainable Grow up internal Lean coaches

Establish regular self-reflection

Key take-aways



Do

Check

Act

Plan

Future work?


Limit improvements WIP

Stabilize and standardize improvements

Help internal coaches grow



QUESTIONS

Thank you




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