Lean Flavour of the Month? Or Major Contributor to Success

Transcription

1 Lean Flavour of the Month? Or Major Contributor to Success After 15 years, does Lean live up to its hype? Larry D. Cote 1

2 Lean Advisors, Inc. Approx. 15 years Successfully adapting and applying Lean to wide variety of industries/organization healthcare, education, service, manufacturing, government, designer/architects All consultants have both theoretical expertise as well as hands-on experience in their own organizations Personally since the 1980s using Deming, JIT, quality circles, CI. plus Lean Enterprise Institute in Boston 2

3 Some Organizations Algonquin College, Fleming College, Carleton University, Fanshawe College, University of Victoria, Gorton s Seafood, National Seafood, Nestle, Starbucks, Barilla Foods, Blount Seafood, City of Ottawa, Ministry of Finance, Ministry of Justice, Canadian Hearing Society, Breconridge, Northrop Grumman, Lockheed, Edson Machinery, Canadian Tool and Die, Michigan Rubber, J.D. Irving, OCM Manufacturing, Keata Pharma, Mylan Pharma, Microsoft, B2B Trust, Hydro Ottawa, Kott Lumber, Brigil Construction, Atomic Energy, Westcast Industries, Physician Recruitment, Piedmont College, Polk Services, Cadex Industries, Abbott Pharma, Enterprise Saskatchewan, Zodiac, SAMA (Municipal Assessment), Ottawa Airport, Gate Gourmet, Accreditation Canada, Marlin Investment, City of Oshawa, Industry Canada, Foreign Affairs, House of Commons. 3

4 Some Organizations Mayo, Cypress RH, Campbell Memorial Hospital, Mariette Memorial Hospital, Brockville General Hospital, Toronto Sick Kids, BC Bio Medical, Quinte Hospital, Canadian Hearing Society, Ottawa General Hospital, Five Hills RHA, Heartland RHA, Keewatin Yatthe RHA, Kelsey Trail RHA, EORLA, Mamawetan Churchill River, Prairie North, Prince Albert Parkland, Regina-Qu Appelle, Kingston General, Saskatoon Health, Sun Country RHA, Sunrise RHA, Providence Manor, Cancer Agency, Athabasca RHA, SAHO, Health Canada, Ministry of Health 4

5 All Agree - We cannot solve our problems with the same thinking we used when we created them. Albert Einstein One option for new thinking was Lean (introduced 1996 and HC almost 10 years ago). But what is Lean??? 5

6 What is Lean? Confusion - The term Lean is probably one of the most misused terms, being used when describing a majority of business process Improvement' activities in the last years. Lean is simply a way of thinking - it is about creating the opportunity to provide more value for customers/clients by eliminating activities that are considered waste. Any activity or process that consumes resources, adds cost or time without creating value becomes the target for elimination. Implemented properly, the thinking behind Lean will work for any process or organization that is looking to do more with what they have, and add value by improving quality, speed of delivery and reducing cost. 6

7 Lean Does it Live Up to It s Hype? 15 Years later Lead Time Cost Labor Required Space Inventory Defects/Errors Client Responsiveness Capacity Employee Satisfaction Flexibility Demand Flux Safety 7

8 If Not Why? 8

9 1st - Ask Yourself Do you have a) Passion/Courage b) Right Knowledge d) Execution of Plan c) Proper Plan Plus - A Standardize Change Process 9

10 Success Factors - Imperative Measurement System Thinking not Projects Lean is a Cultural Transformation not a Tool Year has 12 Months not 5 ½ Management Capacity - Resources, Focused, Standard Work and Clear Vision/Priorities, Manageable Stress Leadership Expertise 10

11 Measurement Silo Measures pit one department against the other over-the-wall thinking point improvement Need all 3 Quality, Speed and Cost i.e. wait times Client focused not individual or department Reward/Motivation drive proper behaviour/thinking not just results 11

12 Success Factors - Imperative Measurement System Thinking not Projects Lean is a Cultural Transformation not a Tool Year has 12 Months not 5 ½ Management Capacity - Resources, Focused, Standard Work and Clear Vision/Priorities, Manageable Stress Leadership Expertise 12

13 System Thinking vs Project/Point 13

14 Success System vs Point Not a surprise! Most companies are organized in silos - by function and department. Value Stream (patient and information flows) crosses organizational/silo boundaries. Surprise! No one person is responsible for the entire patient experience i.e. multiple handoffs of both patient and information in the Value Stream. Patient s timeline (queue) starts when they first are diagnosed. They don t look at each node separately. Point improvements cause Exciting Chaos 14

15 Success Factors - Imperative Measurement System Thinking not Projects Lean is a Cultural Transformation not a Tool Year has 12 Months not 5 ½ Management Capacity - Resources, Focused, Standard Work and Clear Vision/Priorities, Manageable Stress Leadership Expertise 15

16 Lean - Not a Project/Tool Lean is a solid directional principle for your organization (culture change and decision-making guidance) corporate focus. Many organizations think they are implementing Lean when applying tools: Cells TPM Pull scheduling QCO/SMED Process Mapping ISO 9000/ QS Sigma ERP 5 S Kaizen Krazy Kaizen Blitz LeanSigma ISO Result Exciting Chaos 16

17 Success Factors - Imperative Measurement System Thinking not Projects Lean is a Cultural Transformation not a Tool Year has 12 Months not 5 ½ Management Capacity - Resources, Focused, Standard Work and Clear Vision/Priorities, Manageable Stress Leadership Expertise 17

18 What Impedes Success No Time January February March April May June July August September October November December 18

19 What Impedes Success No Time Legend : Red Not available Black Possibly Available January February March April May June July August September October November December Continuous Improvement??? 19

20 Success Factors - Imperative Measurement System Thinking not Projects Lean is a Cultural Transformation not a Tool Year has 12 Months not 5 ½ Management Capacity - Resources, Focused, Standard Work and Clear Vision/Priorities, Manageable Stress Leadership Expertise 20

21 Management Capacity Recognize - all staff working at 100% - processes are broken not them heroes - new priorities constantly - much of what they have to do is non-value - may need to reduce non-value prior to getting involved in transformation 21

22 Success Factors - Imperative Measurement System Thinking not Projects Lean is a Cultural Transformation not a Tool Year has 12 Months not 5 ½ Management Capacity - Resources, Focused, Standard Work and Clear Vision/Priorities, Manageable Stress Leadership, Leadership, Leadership Expertise 22

23 Leadership The leader is the dynamic life-giving element in every organization. Drucker Peter Mandate hasn t changed Deliver exactly what your Customer/Client wants + when they want it + at the price and the expected quality they are willing to pay for it + be flexible to their ever-changing demands! + Continuously improve your business (service, product, innovation) every day. 23

24 Leadership Must. Have courage/passion Understand Lean is not a tool but way of thinking (cultural transformation) Find the right Knowledge - do not have to be Lean experts need to be able to ask the right questions and provide on-going support Set clear and constant direction/vision - Communicate the why change is necessary crisis - Think Long-Term Execute the Plan stay with it constancy of purpose Apply proper measures to assess changes/progress plus reward behaviour not results Support Management team and staff training, apply Lean to free up Management/Staff Capacity Plus 24

25 Leadership - have Strategic/Hoshin Focus Avoid the exciting chaos syndrome. Achieving improvements in one area at the expense of another area isn t acceptable. Organizations deploy Value Stream Mapping to provide a documented plan for improvement within an end to end process. Some organizations deploy Hoshin Planning at Strategic level - documented plan to support Vision, Mission and achieve KPI s. Both VSM System thinking and Hoshin strategies must be linked to properly utilize resources and optimize results. 25

26 Success Factors - Imperative Measurement System Thinking not Projects Lean is a Cultural Transformation not a Tool Year has 12 Months not 5 ½ Management Capacity - Resources, Focused, Standard Work and Clear Vision/Priorities, Manageable Stress Leadership Expertise 26

27 Expertise be selective Knowledgeable highest quality Experts in the field ongoing learning adapt to any environment Years of practical experience preferable Able (and willing) to truly transfer the knowledge Goal minimize interruption to the organization (not max days) Creates Sustainable Transformation (not Fireman/Arsonist impact) Creates Real Change both Culturally and Technically (not quick hits and no cultural change) 27

28 Expertise warning flags - be aware Lists of Project no Current State analysis and Future State Plans/Vision with measureable impact on the system with focus on the patient & must include quality, cost and speed Matrix Project Selection hi/lo effort and hi/lo impact Process Maps not Value Stream Maps Bottlenecks or low-hanging fruit exciting chaos Hi Effort Lo Impact Lo Effort Lo Impact Hi Effort Hi Impact Lo Effort Hi Impact Experience in limited environments with Lean transformations Measures success with one or two of quality, speed and cost Solution- need more equipment, space or people Kaizen Offices, Project Mgt Office, Lean Certification BB,GB, YB, WB, MBB, Senseis Use of Tools Lean is cultural and technical sustainable results Plan should include several tools used properly/sequenced. 28

29 What Does It Take To Succeed 29

30 Summary What It Takes To Succeed Measurement proper drive the right behaviours System Thinking Not Projects (VS Mapping not Process Mapping) Lean is Not Tool Yearly Calendar - Make Time 12 months Not 5 ½ Increase Management Capacity - Lack of Resources, Scattered and Constant Changing Priorities, Stress Leadership lead with a vision, have passion, support, right knowledge Expertise find those with the right knowledge 30

31 Maximum Success Basic Need Passion/Courage Right Knowledge Execution of Plan Proper Plan Standardize Change Process 31

32 Lean Does Work! YES! Many ways to Implement Lean only a couple ways to do it right. The challenge is ensuring we select the right way. 32

33 Success If you think you can, or you think you can t. You are right. Henry Ford 33