webinar on lean in non manufacturing environments
DESCRIPTION
The set of "lean" methods and tools, based on the Toyota Production System, now so widely applied in manufacturing organizations throughout the world, can also be adapted to non-manufacturing environments. Service, health care, construction, back office, sales, and financial organizations have all successfully used lean methods to streamline their repetitive processes by focusing them on the customer and by systematically eliminating waste. You will learn how to stabilize, standardize, and simplify any set of processes using the power of the Toyota Production System. The presentation will cover: the importance of leadership and team-building to implementing change effectively; defining real value; the categories of waste and how to recognize them; defining work flow to uncover waste; standardizing work; and implementing continuous improvement. You will learn about the major lean techniques and tools such as: 5S, Kaizen events, Standard Work, just-in-time, Value Stream Mapping, and waste audits. You will also learn how to use these methods in concert to "lean up" organizational and cross-functional processes. By the end of this presentation, you will be able to recognize whether the application of these methods could be of benefit to your organization. Challenge yourself to take a fresh look at how you are doing your work.TRANSCRIPT
Seeking Perfection:
Lean Operations in Non-Manufacturing Environments
What You Will Learn
The definition and history of Lean Thinking
The three phases of Lean implementation
Lessons from a case study: Lean in the Health Care industry
How to identify and reduce Waste
How to Value Stream Map any process
To understand change and how to manage people through it
This Is Not the Lean We Are Talking About
Is it cutting corners?
Is it fewer people?
Is it working harder?
Is it making less?
What Does the Boss think Lean Is?
Definition of Lean Thinking or
Lean Management
1. Doing more with less
2. Providing customers with exactly what they want: Every time With no waste
Key Lean Concepts
Value streams
Waste elimination
Flow
Pull
Continuous improvement
Why Apply Lean?Impact of Lean Operations on
Industry
04/10/23 Fertuck Enterprise Directions - 248.881.3244 - [email protected] - www.fertuck.com
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Validated Historical Industry Averages*
% Changes
Direct Labor Productivity Improved 45-75
Cost Reduced 25-55
Throughput Increased 60-90
Defects and Scrap Reduced 50-90
Inventory Reduced 60-90
Space Reduced 35-50
Lead-Time Reduced 50-90
*Source: Virginia Mason Medical Center
History of Lean
Before Lean
After Lean In Modern Auto Assembly Plants
Lean Thinking Applies to Any Company in Any
BusinessWomack and Jones of The Machine
That Changed the World have spread the gospel to other sectors
Health Care industry especially is adopting lean thinking
Many of us are now applying lean methods to the office and other non-manufacturing environments
Why is it spreading? It works!
04/10/23 Fertuck Enterprise Directions - 248.881.3244 - [email protected] - www.fertuck.com
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Scope of Lean Operations Can Vary
Learning how to stabilize, standardize, and simplify
business processes using the power of the Toyota Production System
The Lean System
Stabilize
Stabilize tools are:Understanding WasteLeading ChangeTeaming5S and Visual ControlsCycle TimeTakt TimeData CollectionValue Stream MappingBrainstorming and Problem-solvingMetrics
Standardize
Standardize tools are:• Just-In-Time• Continuous Flow• Pull Systems and Kanbans• Standard Work• Pitch• Space Layout• Work Load Balancing• File System
SimplifyKaizen – the process of improving “Continuous improvement”
Can be a single task or team project
People are the foundation
Virginia Mason Medical Center:
Seeking Perfection in HealthcareFounded in 1920 in Seattle
Now consists of 336 bed hospital, group practice of 480 physicians, network of regional clinics
In 2002, Virginia Mason embarked on an ambitious, system-wide program to improve the way it delivers safe health care.
It adopted the Toyota Production System (TPS), calling it the Virginia Mason Production system (VMPS).
Virginia Mason’s “Strategic Issues”
Quality
Safety
Morale
Cost
Profit
Design the Production System to Optimize the Seven Flows of
Medicine
VMPS Action Tools
Patient Safety Alert System
Value Stream Development
RPIW (Rapid Process Improvement Workshop)
5-S (Sort, simplify, standardize, sweep, self-discipline)
Daily work life –Everyday Lean Idea System (ELI)
Example: Nursing Cells
“Less nursing time provided to patients is associated with higher rates of infection, GI bleeding, pneumonia, cardiac arrest and death.”
Keeping Patients Safe: Transforming the Work Environment of Nurses - Institute of Medicine 2004
Nurses’ Workshop Ideas
Nursing Cells
Organize work of RN and patient care technician (PCT) in a geographic grouping of rooms (cell)
Supplies at point of use
One piece flow of documentation
In room handoff with patients
Standardize work for staff from 7AM –11 AM (First cycle of day)
Increase nursing surveillance of our patients—make care safer
Nursing Cells: 90 day Results
Metric Before After
RN # of steps 5,818 846
PCT # of steps 2,664 1,256
Completion time for AM work cycle
240’ 126’
Patient dissatisfaction 21% 0%
RN time spent in indirect care
68% 10%
PCT time spent in indirect care
30% 16%
Call light on between 7a-11a
5.5% 1%
Selected Results of VMPSSaved $11 million in planned capital investment and freed
an estimated 25,000 square feet of floor space
Reduced the time it takes to report lab test results to the patient by more than 85 percent.
Reduced inventory costs by more than $1 million
Reduced staff walking distance by 60 miles per day
Reduced labor expense in overtime and temporary labor by $500,000 in just one year
VM was named a 2007 Leapfrog Top Hospital , one of 41 hospitals in the nation and the only hospital in Washington state to receive this designation.
Stabilize
Stabilize tools are:Understanding WasteLeading ChangeTeaming5S and Visual ControlsCycle TimeTakt TimeData CollectionValue Stream MappingBrainstorming and Problem-solvingMetrics
Stabilize – Understanding Waste
Waste: Anything that Adds Cost or Time
without Adding Value
What is Value?
Value is what, in its entirety, the product and service does to fulfill the expectations of the customer
Elements of value:PerformancePriceAppearanceReliabilityDeliveryFeaturesEtc., etc.
Understanding Waste: Overproduction
Overproduction – producing work prior to it being required is waste and is the greatest of all the wastes
• Producing reports no one reads or needs• Making extra copies• E-mailing, faxing same document• Entering repetitive information on multiple documents
Understanding Waste: Waiting
Waiting – for people, signatures, supplies, repairs, and information is waste. This is “low hanging fruit” which is easy to reach and ripe for the taking.
• Unnecessary signatures or approvals• Waiting for others to complete tasks (bottlenecks)• Slow computer operations• Cross-departmental resource mismatches
Understanding Waste: Motion
Motion - any movement of people, paper, electronic exchanges that does not add value is waste• Searching for computer files• Searching for documents in file cabinets• Repeatedly reviewing manuals for information• Hand carrying paper to another process• Walking to and searching for supplies or equipment
Understanding Waste: Transport
Transport - the time to deliver any work within an operation• Locating commonly used equipment at a distance• Distributing unnecessary copies• Sending unnecessary attachments• Hand-carrying paper to another process
Understanding Waste: Over-Processing
Over-processing - putting more effort than necessary into the work required by internal or external customers is waste
• Duplicate reports or information• Repetitive data entry• Constantly revising documents• Revisiting agenda items• Specifying incomplete or unclear requirements
Understanding Waste: Inventory
Inventory - work piles, excessive supplies, and excessive signature requirements are waste • Files awaiting signatures or approvals
• Work awaiting task completion by others• Inadequate training of back-ups• Excessive office supplies• Storing obsolete documents or files
Understanding Waste: Defects
Defects (or mistakes) - all processing required creating a defect or mistake and the additional work required to correct them • Data entry errors• Pricing errors• Shipping errors• Forwarding incomplete documentation• Lost files • Incomplete or incorrect customer service
The Eighth Waste: Underutilization of people
Underutilization of People – the result of not placing people where they can (and will) use their knowledge, skills, and abilities to the fullest
• Unbalanced work loads• High absenteeism and turnover• Diminished work capacity• Stunted skills development
Stabilize – 5S
Example of Applying 5S:The Computer Desktop
Action Example Issues
Sort Cluttered desktop; files everywhere
Set in Order Inconsistent folder structure
Shine or Scrub Old and obsolete files retained
StandardizeEach worker has his or her own folder scheme
Sustain No audit system
Stabilize – Value Stream Mapping
Value Stream Mapping – the visual representation of the processes (work units and information) required to meet customer demandThe core starting point for applying lean thinkingIncludes both value-added and non value-added
activitiesAllows for “seeing” areas of waste in current stateCurrent state becomes the basis for improved
future state
Value Stream Mapping:Example of Current State
Elements of Value Stream Mapping
Walk the product’s production path from beginning to end
Identify every sub-process in the material and information flows
Measure time of each operation within a sub-process
Record all waiting times
Draw a visual representation of how the material and information flows connect
Value Stream Mapping:Example of Current State
Creating the Future State of the Value Stream Map
Conduct a waste auditBrainstorm ideasLook for easy flow issuesReview “common sense” remediesUse the basic Lean tools and update the map as
you learn moreKeep going
Value Stream Mapping:Example of Future State
Implementing Lean is a Big Change
Leadership must set the course and commit
Involve all key people
Provide the necessary training and resources
Anticipate resistance and manage it
Communicate, communicate, and deliver
If the “Horse Doesn’t Drink”, You Have Nothing
Three Elements of Success
WaterLead the
HorseDrink
Situation Technique Behavior
Opportunity Process Commitment
Nikes Athletic Skills Just Do it!
Tools Method Action
Thank You!