Supervisory Core Training LEAN Continuous Process Improvement

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1 Supervisory Core Training LEAN Continuous Process Improvement Improving organizational performance in Minnesota state government

2 What is LEAN? LEAN is a time-tested set of tools and methods that identifies and reduces waste and defects within processes while improving productivity, employee morale, and customer service. LEAN engages those people who work in the process, in the effort to improve the process. It is designed to bring measureable, quantifiable improvement to your business processes.

3 Why focus on process? Nearly every tangible output; service or product, is created as the result of a process or series of processes. It s been shown that over 85% of the opportunity to improve those outputs lie within the process itself.

4 Some definitions Quality meeting customers key requirements Cycle time reducing the amount of work needed to perform a task Lead time reducing the amount of time needed to complete one output Cost reducing the amount of resources needed to produce one output

5 Building a Successful Lean Transformation 7 Wastes 5S Lean Transformation Strategy Leadership Sustainment Kaizen Training Planning Standard Work Increasing Organizational Value

6 Fundamentals of Lean The Seven Wastes

7 Value vs. Non-Value Are we adding value, or just doing stuff?

8 In the LEAN world, if it is not value-added, it is considered waste -even if it is essential.

9 Value added vs. non-value added It is an action that a customer would be willing to pay for It transforms a product or service It is done correctly the first time It s an activity that consumes resources without directly creating value for the customer It is an activity that is unpredictable in creating value It s an activity that requires more time, effort, or resource than it has to.

10 Value added vs. non-value added Non-value Added Value Added Typically, less than 1% of a time that we own a product or service is spent adding value.

11 The seven wastes + 1 Defects (poor quality) Transportation Waiting Overproduction Inventory Motion Extra processing Underutilized creativity

12 Can you see the wastes?

13 Defects Any element of a product or service that does not meet or exceed a key customer requirement.

14 Fixing defects usually means: Re-work Re-inspection Re-design More cost, And unhappy customers

15 Transportation The unnecessary movement of people, information or materials between processes.

16 Follow the bouncing paperwork

17 Waiting People, parts, systems, or facilities idly waiting for a work cycle upstream to be completed.

18 Factoid About 95% of the time that is required to produce a product or service is because of waiting.

19 1

20 1 We eliminate the waste so we use our resources to do the work that our customer pays us for.

21 Overproduction Producing products or services faster than your customers are using them requires: more movement more storage more capital tied up in inventory more resources to track inventory

22 Office examples of overproduction We need 54 copies, but we make 60, just in case. We print 5000 brochures because the price per piece is cheaper, we inventory, store and finally recycle 2/3 of them. We print and distribute forms that frequently change.

23 Inventory Storing more materials than you need in the near-term, creating and storing more products than are being demanded by the customer in the near-term

24 Motion Any movement of peoples bodies that does not add value to product or service

25 Frequency of Use Analysis - Physical Files 1 Where should this item be located? How about this one? 50 Frequency of gets and putaways Times/Day Distance Carried (feet)

26 Extra processing Multiple inspections (no quality at the source) Multiple signatures/authorizations Different ways to produce the same product (no standardized work) Batching work

27 Underutilized creativity People who work in the process, know the process best (both the strengths and weaknesses). Do they have the tools, training, and permission to systematically improve their process?

28 Fundamentals of Lean 5 S

29 What Is 5S? Methodology for creating a clean, safe, orderly, high performance work environment Some companies have added 6 th S for a Safety focus.

30 The 5 S s Sort Set In Order Shine Standardize Sustain

31 1S - Sort Catch Phrase: When in doubt, move it out.

32 Sort What Is It? Distinguishing between necessary and unnecessary material, equipment, tools, data, and information Sort is done with initial 5S activities, but should be repeated semi-annually, or as 5S evaluations expose issues Items may have accumulated Needs may have changed

33 Example - Sort

34 Set In Order Catch Phrase: A place for everything, and everything in its place.

35 Set In Order - What is It? Organizing, arranging, and storing material, equipment, and information that is currently being used. Identifying a specific place for everything. Arranging physical and electronic information so that the most commonly used information is quickest to access Establishing procedures that will allow items to be easily found, handled, replenished, and returned to their original location quickly.

36 Set In Order Why? To immediately recognize items that are out of place, recognize excess inventory, and identify the need to order more of a particular item To reduce wasted time spent locating materials and information To improve your level of customer service

37 Set in Order Rule of Thumb Arrange needed items so that they are easy to use and label them so that anyone can find them and put them away. YOU should be able to find ANYTHING in your office in 30 seconds or less. ANYONE should be able to find ANYTHING in YOUR office in 60 seconds or less. Eliminates many kinds of WASTE in our daily activities

38 Is this an efficient work place?

39 Shine Catch Phrase: The best cleaning is to not need cleaning.

40 Shine Why? To boost morale To improve the health and safety of employees To develop a sense of ownership in the equipment and facility To identify and eliminate root causes of cleanliness issues If a workspace is getting dirty faster than it can be cleaned, the root cause of the problem has not been identified.

41 Standardize Catch Phrase: See and recognize what needs to be done.

42 Standardize What Is It? A method in which Sort, Set in Order, and Shine are maintained and made habitual It is important to achieve buy-in and consistency from team members as well as institute the 5S process into a regular work routine, making it systematic

43 Sustain Catch Phrase: The less self-discipline you need, the better.

44 Sustain What Is It? Effective, ongoing application of knowledge, skills, and abilities gained from the 5S process in order to improve organizational wide effectiveness Sustaining also involves motivating and maintaining an ongoing commitment to the 5S process and obtaining discipline in employee s assigned roles and responsibilities Sustain is often the most difficult part of the 5S process

45 Fundamentals of Lean Standard Work

46 Standard work is a foundation of Lean and continuous improvement. To maximize the performance of any process, clear definitions of how the task should be done, and the amount of time provided in the process must be established and maintained.

47 What is Standard Work? A simple, written description of the safest, highest quality, and most efficient way known to perform a particular task. The only acceptable way to do a task. Expected to be continually improved

48 What is Standard Work? 1 Includes the amount of time allotted for the task to be acted on. Focuses on the employee, not the equipment or materials Reduces variation, increases consistency

49 Kaizen - bringing the tools together Kaizen Kai = Change Zen = Good Kaizen = Change for the better A facilitated, concentrated improvement event, involving those that work in the process. The focus is on employee-driven improvements

50 A focus on process can reduce waste

51 Review Swim Lane Maps

52 Swim Lane Mapping Metrics DHS kaizen Invoicing Current Qty. Time Qty. Time Tasks minutes 7 19 minutes Waits 5 52 hours 1 2 hours Handoffs 5 1 File/Store 0 0 Decisions 3 1 Totals - 52 hrs - 44 min - 2 hrs - 19 min 95% Improvement Future Don

53 So what s the supervisor s role in continuous improvement? Help your people understand what it is Be a role model Encourage Support Recognize and reward Repeat

54 Why LEAN won t work in my unit We don t have time for this foolishness Our people won t like it We tried something like this 10 years ago and it didn t work State policy and statute won t allow it

55 Can it make a difference in Minnesota state government? In the Department of Health it s reduced the time for citizens to receive a duplicate birth certificate from 6 days to 1. In the Department of Human Services it reduced by 89% the amount of time to process health care premiums. In the Department of Military Affairs it s reduced the time to process veterans benefits by 50%.

56 You can think you can achieve something, or you can think you can t. And you will be right Henry Ford

57 As of today Seventeen state agencies currently have process improvement efforts planned, or underway. The goal is to have active, sustainable process improvement programs in all state agencies by the end of For the latest on projects, participants and results, visit and bookmark the Enterprise LEAN website at

58 There is help out there! Training Introduction to Lean One day customized to your agency or interagency Strategic direction workshop identifying priorities for improvement efforts Kaizen event participate in a facilitated, rapid improvement event of a specific process or activity. There are currently no costs to the agency for these activities.

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