Kaizen Team Primer

Meeting DateTeam Members

2

Team Launch

1) Get team together for the first time to Launch project

2) Use suggested agenda for a Kaizen project– Utilize the ‘SPACER’ Technique

• Establish code of conduct, roles, expectations

3

It’s Not About the “Tools”

• The responsibility lies, not with black belt (Lean leader) specialists, but with the leadership hierarchy that runs the operation and they are teachers and coaches.

• It’s a process …

4

Safety

• Safety is our first priority• Let’s start every meeting with a Safety Contact• Discuss any safety concerns associated with the

project.

5

Purpose

• Provide a simple overview of the meeting, what will be the focus…

6

Agenda

• Identified start and stop times of the meeting• Specific agenda items with predetermined time

allotment for each– Action items from the last meeting – Identify which phase the project is in

• What tools will be used

7

Code Of Conduct

• Simple rules that will support a productive meeting, developed by the team– Respect the clock– Don’t speak over people, one person speaks at a time– Be on time– No speeches allowed, No one speaks longer than 60 seconds– Leave rank at the door– Come prepared– Every team member has the right and responsibility to enforce the code of

conduct– Team should agree on techniques used to call attention to code violations

8

Expectations

• Brief description of the expected outcome of the meeting, specific goals, milestones

• Discuss expectations of each team member

9

Roles And Responsibilities

• Roles of each member during the meeting– Time keeper: Ensures deadlines are met – Scribe: Makes ideas visible– Facilitator: Keeps team focused– Spokesperson: Reports to other groups– Recorder: Takes notes and captures action items– Process Monitor: Assures code of conduct is

followed

10

Team Launch; Project Kickoff (continued)

1) Get team together for the first time and Launch your project

2) Use suggested agenda for a Kaizen project– Explain “Process Excellence” – Why is this different?

11

What is Process?

• Process is everywhere…everything is a process• Process = a series of actions or steps taken in order

to achieve a particular end

12

So What is Process Excellence?

Improving the way that we create and deliver value

It’s about what we do for the customers, not to them

13

Why Does Process Excellence Matter?

• In our industry what we provide is not the differentiator

• It’s what we do and how we do it

• We must understand and deliver what our customers need better than our competitors

• Process Excellence can help you achieve that

How Does It Help Us?

• Process Excellence isn’t just about lower operating costs, it’s about aligning our organization to achieve success

• That means…– Less Complexity– More Time– Improved Service– Lower Costs

– Increased Revenue– Better Lives– And Happier Customers

Process = The work we doExcellence = The way we do it

15

What is the Tool / Application Flow?

Review Charter Walk the Process(backwards)

High Level MapSIPOC/VSM

Detail MapBrown Paper Baseline Data

Value Analysis Waste Walk Root CauseFishbone

Select ImprovementsBrainstorm & PICK Future State Map

Risk AssessmentSxOxD Pilot & Implement Demonstrate

Improvements Mistake Proof Control Plans

MEASUREDEFINE

ANALYZE IMPROVE

IMPROVE CONTROL

16

Project Kickoff (continued)

1) Use suggested agenda for a Kaizen project– What is Kaizen?

What is the Purpose of Kaizen?

• Kaizen is a way of unlocking the talents and abilities of workers and allow decisions to be made– at the operating level in the organization, – in the quickest time, – by the people that know the situation the best

What is a Kaizen Event?

• A Kaizen event follows the DMAIC road map

• Kaizen event(s) are a three to five day event of intense improvement activities directed at a specific area of a business

• It is a process based on improving Safety, Quality, and Delivery, by the elimination of waste in its many forms

Define Measure Analyze Improve Control

What is the Focus of a Kaizen Event?

• Kaizen events are a way of accelerating business process improvements– to enhance Safety and improve productivity – helping management to find new ways to gain savings in

time, space, and labor output – to reduce cycle times– to reduce work-in-process– to reduce scrap and defects while minimizing the need

for capital

• Commits support to the team• Sets prioritiesExecutive

• High level leader (Director / VP)• Clears obstacles for the teamSponsor

• Manages the project• Runs the teamFacilitator

• Lean expert (mentor/coach/MBB)• Supports facilitator on methods and usageMBB/BB Mentor

What are Supporting Roles in a Kaizen Event?

• 100% of time committed to team• 5-10 people; 2-3 from work areaTeam Member

• Have skills that may be needed• On-call for kaizen (priority)Support Team

• Vested interest in results• Processes affect MANY peopleStakeholders

• Specific type of stakeholder• Internal or externalCustomers

Supporting Roles in a Kaizen Event (continued)

22

What is the Define phase about?

In the Define Phase emphasis is on the current state:– Where the problem is occurring– Duration of the problem– What the problem is (in numbers)– What is the KPI / financial impact of the problem– What is the scope and who are the key stakeholders

• Tool application in the Define Phase– Review Charter (Understand scope, issue and benefit)– Prep for Kaizen Event (Identification of Identity flow)– Walk the Process (backwards)

What Concerns Does a Project Charter Address?

• Using a simplified form of the Charter that your project is based on …

• Describe ideas in terms of a problem statement• Situation – What is the current opportunity?• Objective – How do we measure success?• Benefits – What value does it provide?• Team Members – Who should be involved?

23

What are the Sections of a Charter?

24

Objective:

Benefits:

Team Members:

Reduce/optimize/increase __________________________________________________________ (project y)from _________________________________________________________________________(current level)to ____________________________________________________________________________ (target level)for __________________________________________________________________________ (specific area) while reducing/increasing/holding constant______________________________________( constraining Y’s)

Current Situation:

Problem Statement

‘S.M.A.R.T.’

What Value Does It Provide?

Who Should Be Involved?

25

How Can I Prepare for a Kaizen Event?

1) Review situation and gain a solid understanding of the problem at hand to address the following concerns:

• What is Current Situation / Opportunity?

• How Do we Measure Success?

• What are the Right Metrics / Measures?

• How Do We Calculate and Capture Business Impact? (Financial Gain)

26

Situation – Opportunity Statement

What is the current opportunity?

• In a few brief sentences explain:– What the opportunity is– How long it’s been occurring– Any specifics that narrow the scope

• Specific service• Specific shift• etc…

27

Objective Statement

How do we measure success?

• Gain insight into our current processes– How good is it (Baseline)?– How good could it be if perfect (Entitlement)?– What is limiting it from getting better?– How can it be improved

(Closing the Gap)?– How much of the gap do

we want to close during this project (Goal)?

Reduce/optimize/increase: (project Y) from (current value) to (goal level) for (specific area) while holding constant (constraints)

Financial Assessment Statement

How do we document benefits?• This needs to be objectively defined, mathematical

description (if possible) of how to calculate the business impact ($$$$)

• This must be accepted and supported by the Controller / CFO

• If this is not defined well in the beginning of the project, you will struggling at the end to determine the financial impact

28

Team Member Statement

Who should be involved in this improvement effort?• Carefully consider the Makeup of the Team

– Core (Full-Time) team members are those who will stick with the project from start to finish

– Identify experts or other specialized people you’ll need for the project as extended team members

– Ideal team size is 3-5 people– Do not forget the Process Owner and any other

Key Stakeholders!

29

30

What Are Some Project Review Considerations?

• Does charter state what the project is trying to accomplish, in measurable terms?

• Is the project worth doing? • What happens if the project fails?• Does it fit within Ports Americas business initiatives?• Is this a customer-oriented project?• Is it properly scoped? Boiling the ocean or right sized?• What are the specific goals of the project?• Who owns the process? • What’s the probability of success?• Can we get benchmark information? If so, where?• What resources are available in the team?• What is the actual process we are working to improve?

How is a Process really a “System”?

• What is a Process?– A series of actions, having a beginning and an end, that

are directed towards achieving an outcome– A simple model of a process

• The process changes the inputs to produce an output(s)

ProcessInputs Outputs

31

What are some Elements of a Process System?

Below is a list of major elements of a process system:

When the system fails, it is usually the result of one or more of these elements

• Purpose• Entities• Tasks or Activities• Sequence or Flow• Materials• Resources• Decisions• Queues• Arrivals• Duration

• Feedback• Communication• Information• Schedules

32

How do Processes Exist to Fulfill Needs?

• Questions to be Answered About Needs– What are the needs which are addressed by this

process?– Who or what created those needs?– Is this a need of the Customer or of the Business?– What constitutes successful “fulfillment”?– How do I know if my process is working right?– If you can’t define the purpose, why are you doing it?

33

Steps to Garner Facts (Walk the Process)

1) Interview those who work in the process to help document the various needs / process issuesS - Enter conversation at a Social levelO - Explain the Objective of documenting the processL - Listen to what they have to sayA - Advise and AskR - Record

2) Validate the input / data3) Verify information with several sources

– Allows any oversights to be corrected

34

Steps to Garner Facts (Walk the Process)

4) Starting at end (back) of the actual process, the team follows a typical flow (or tracks a service) from end to the beginning to understand need(s).

5) Map major steps in Pencil. (Don’t be too detailed)6) Start with a quick walk, to get a feel for the flow

and sequence. Then, go back and talk to the right people at each step and explore the “fulfillment” of need(s).

NOTE: Don’t map the organization, document theneeds within the organization. Address the

need(s).35

36

What is the Measure phase about?

The Measure phase is about understanding the current state and collecting data to establish a baseline:

– Key inputs or outputs that have a heavy influence on the process or are the result of the process

– Consideration is taken into account on how accurate and reliable the data is

• Tool application in the Measure Phase– SIPOC (scope)– Detailed Map (something flowing through process)– Data (determine overall health of a process)

General Purpose of Mapping

• Everything we do is a process… some processes are straightforward… other processes can be chaotic

• Process Mapping – Allows people to illustrate what happens in a process– Demonstrates scope of a project– Is an excellent visual aide for identifying the “hidden

process” or waste– Identifies all the potential inputs that may affect the

output– Identifies all the decision points that may impact a

transactional process

37

38

Suppliers Inputs Process Outputs Customers

Customers

Returned product

Request for credit

Customer returns product; requests credit

Receiving initiates credit

process

Cust. Service and Tech

Service evaluate request

Accounting approves and registers credit

Customer service

processes credit and closes files

Credited amount on customer’s

account

Accurate computer records

Customers

Cust. Service

Tech Service

Accounting

SIPOC Analysis for Credit Voucher Process

High-level Flowcharting (Vertical format)

Entity Flow

39

Steps to Create a SIPOC

1) Name the process (Use verbs/adjectives)2) Indicate the start/stop, or the scope of the process

(What are the triggers that initiate and end the process?)

3) Indicate the five to seven highest-level steps in the process as they exist today (Use verb/adjectives – how does this process operate?)

4) Indicate the output(s) of the process (Use nouns – what is it this process does?)

40

Steps to Create a SIPOC (continued)

5) Indicate the customer(s) of the process (Whom does this process affect/benefit?)

6) Indicate the input(s) of the process (Use nouns - what is needed to execute this process and deliver the outputs?)

7) Indicate the supplier(s) of the process (Which individuals/teams provide inputs into this process?)

What are some Process Mapping Pointers?

• Go to the place where the process is performed• Talk to people involved in the process and get the real facts• Observe and chart the actual process

– Reality is invariably different from perception; Few processes work the way we think they do

– The purpose of process mapping is to identify waste, not to develop the perfect process map

• Process map what is, not what you would like the process to be

• Process Mapping is dynamic, so use Post-it notes, dry erase markers, pencils, etc…

• All Process Maps must have start and stop points

42

What does Detailed Process Mapping Provide?

• A detail process map is a pictorial representation of the flow or sequence of actions that comprise a process

• It differs from the High Level Process Map previously created, in that it’s a lower level map actually detailing how the work gets done

43

What are the Different Views with Process Maps?

There are usually three views of a process:

What you THINK it is..

1What it ACTUALLY is..

2 3What it SHOULD be..

What are the Symbols Used to Process Map?

• Start & End: An oval is used to show the materials, information or action (inputs) to start the process or to show the results at the end (output) of the process

• Activity: A box or rectangle is used to show a task or activity performed in the process. Although multiple arrows may come into each box, usually only one arrow leaves each box

• Decision: A diamond shows those points in the process where a yes/no question is being asked or a decision is required

• Break: A small circle with either a letter or a number identifies a break in the process map and is continued elsewhere on the same page or another page / or map

44

45

What is Purpose of ‘Brown Paper’ Process Map?

• Describes in detail the process as it works today• This is the “as-is” model• Shows the big picture but, with all the details• Is high touch, low tech• Identifies strengths and opportunities• Captures the complexity and disconnects of key

operational issues• Identifies outside areas involved in the process

It’s called Brown Paper because of the color of the paper that is typically used, you can use any color paper… flip chart paper is also commonly used

46

Why use Brown Paper (Kraft paper) Mapping?

• Provoke thought for improvement opportunities• Promote common understanding• Increase cross-functional learning• Train new employees• Use as a presentation

47

Brown Paper Versus Flowcharts

• Brown Paper (Kraft) Mapping– Capture formal, informal and emotional processes

• Are self-explanatory• Include “live” or operational documents / forms/ procedures• Capture important data

– Quality levels– Volumes (Inputs, throughputs, outputs, backlog)– Labor hours

– Elicit high employee involvement and ownership– Highlight opportunities for improvement

• Key difference is the level of detail and the ability to add documents and data directly on the map itself

48

Steps to Create a Brown (Kraft) Paper

1) Use the post-it as simple flow chart symbols2) Hang as rectangle for a Process Step and turn 45

degrees to act as a Process Decision point

3) Draw lines showing the flow4) Decision points should always have at least 2 lines coming from it

Process Step (Verb)

Process Decision?

(Ask a Question)

49

Steps to Create a Brown (Kraft) Paper

5) Use different color post-its to represent different aspects such as, value added and non-value addedNOTE: If you don’t have different colors, use a colored marker and draw a box around the post-it

– examples:

Non-Value Added Step

Step Needing Follow-up I.T. System

50

Flow versus Performance (Data Usage)

• Process mapping helps us understand process flow• Now we must collect data to more objectively evaluate

and measure process performance (metrics)• To be successful, we must meet both Customer and

Business requirements– Customer (VOC) - effectiveness measures– Business (VOB) - efficiency measures

• A good measurement system incorporates both

51

What are some (VOC) Effectiveness Measures?

• Unacceptable product or service• Customer complaints (by number / by type etc)• High warranty costs• Decreased market share• Backlog• Redoing completed work (cost)• Late output• Incomplete output (yield)

52

What are some (VOB) Efficiency Measures?

• Outputs• Highest level• Look for:

– Quality• Defects, Yield, Rework (Overall and by process step)

– Cycle Time• Lead time (Overall and by process step)

– Bottlenecks / Cost (Overall and by process step)

53

Steps for Data Collection (Metrics) Usage

1) Walk and document (know) your process steps2) Develop an “operational definition” of a metric3) Gather current data or recent historical data4) Chart the data (Pareto/ bar chart, run chart, etc)5) Analyze for trends or patterns6) See how trends project into the future7) Analyze what’s right and wrong with your process8) Improve using the systematic DMAIC methodology 9) Monitor the process, using your metric

Collection

Usage

Data Collection

Plan

Data Collection

• Data collection is the process of gathering the information you need to be able to make a decision

54

55

Steps to Manage a Data Collection Plan – Operational Procedures

1) Decide what you are trying to evaluate2) Decide how you will attach a value to what you

are trying to measure3) Decide if you need to collect new (fresh) data4) If so, decide how you will collect the data5) Decide how you will record the data6) Determine the period of time you will study7) Estimate how many observations you will need

• Entered as part of workflow• Mined with queries and reportsDatabase

• Sheets that move with product or fileTravelers

• Every item vs. selected ones• Links data to specific recordLogs

• Easy to use• Aggregates dataChecksheets

What are some Data Collection Methods?

56

57

Steps to Manage a Data Collection Plan – Consistency and Stability

1) Determine factors that could cause the measurement of an item to vary

2) Find ways to reduce the impact of those factors3) Test your data collection forms

58

Steps to Manage a Data Collection Plan – Collecting the Data

1) Communicate the what and why to the data collectors and process participants

2) Train everyone who will be collecting data3) Make data collection procedures error-proof4) Be there in the beginning to oversee data

collection5) Confirm understanding of operational definitions

59

Steps to Manage a Data Collection Plan – Is Measure consistent?

1) Check to make sure data measurements are stable2) Check to make sure data measurements

procedures remain consistent3) Check to see if the data look reasonable

60

What is the Analyze phase about?

The Analyze phase is where the team does a deep dive on the data collected in order to determine the root cause of the problem:

– Analyze the process maps and data looking for waste an/or anything that does not add value

– Determine where the gaps are to provide biggest impact

• Tool application in the Analyze Phase– Perform Value Analysis– Complete Waste Walk– Identify Root Causes

What is Value?

• Definitions:– “Relative worth, merit,

or importance” – “Estimated or assigned

worth”– “The worth of

something in terms of the amount of other things for which it can be exchanged…”

Definitions from Dictionary.reference.com

61

What is the Definition of Value-added Work?

• Value Added– Any activity or operation performed that helps transform

a product or service– Completed right the first time– Any activity customer is prepared to pay for or activities

required to ensure that a product or service is delivered in conformance to specification

62

What is the Definition of Non-value Added Work?

• Non-Value Added– Any activity that doesn’t help to transform a product or

service into its final form– Activity not performed right– Activity customer’s not willing to pay for:

• Storage between operations, batching inventory• Unnecessary process steps• Movement of inventory, paperwork, etc.• Re-work, corrections, etc.• Wait times, delay times, idle times

63

Non-Value Added

Unnecessary

ContinueDoing

Challenge Assumptions

EliminateImmediately

Work to ReduceChallenge Need

Value Added

Necessary

What actions for Necessary or Unnecessary exist?

64

65

Steps to Determine Value-Add / Non-Value Add

1. Using your process map, identify Lead times for process steps– Work Time– Wait Time– Transportation Time

2. Classify each step as Customer VA, Business VA (not value-added, but necessary) or NVA

3. Calculate the total VA to NVA Ratio– Total Customer and Business Value Added Steps– Divide by Total Time– Get % Value Add

66

What is the Next Improvement Priority?

• Next step is to improve !• Work to:

1. Eliminate Non-Value Add work content (waste)2. Reduce Business Value Add (NVA, but necessary)3. Keep Customer Value Add

What are common Causes of Waste?

Motion

Waiting time

Overproduction

Excess Processing

Defects

Inspection

Transportation

Problems / CausesIncorrect layoutsLack of proximity of machinesOff-line resources

Waiting workers, machines, materialsLong set-ups and lead times

Large batches, raw material stocksHigh WIP, finished goods stocksMaking for the sake of itIgnoring customer demands

Long cycle times- process, itselfReduced efficiency- over processingHigh overall lead times

Long delays for rectificationCostly reworkDissatisfied customers

Approvals of approvalsHigh number of verification stepsReliance- Mass inspection techniques

Unnecessary movementExtra handling

Types of Waste

Peop

lePr

oces

sPr

oduc

t

67

What are common Types of Waste?

Value Added Definition:• The customer is willing to pay for it• It changes the product in a desired manner• Done right the first time

Non-Value Added (8 common types of waste)• Defects• Over production• Waiting• Non-utilized resources

• Transportation• Inventory• Motion• Excess processing

68

What are some Examples of Waste?

• Layout (distance)• Insufficient maintenance• Poor work methods• Ineffective scheduling• Incorrect final point of rest• Counting inventory

• Multiple Signoffs• No back-up/cross-training• Excessive UTR’s• Lack of workplace organization• Too many outside trucks in the yard

The longer waste occurs, the more accepting you become!

69

70

What is a Waste Walk?

• A planned visit to where the work is being performed to observe what’s happening and to note the waste

• Objective – Validate the problems pointed out in the development of

the current-state map– Provide a format to continue to socialize the redesign

effort.– Provide an initial opportunity to gather staff ideas about

the current-state problems.

71

Steps to Conduct a Waste Walk

1) Huddle with your team members– Describe the purpose,– Describe the various forms of wastes and examples,– Pass out copies of the current-state map and identified

problems, and– Assign areas to walk to you team. It’s usually better to

have a pair of people for each assignment.

2) As a group walk the whole value stream depicted on your map to confirm the areas of the individual/pair assignments.

72

Steps to Conduct a Waste Walk (continued)

3) Explain to the people in the area of observation what you are doing.

4) Share the map and waste examples and describe the objectives of the observation activity.

5) Move to areas for individual assignments, and study the areas for 30–45 minutes.

6) As you see work that appears to be waste, jot down the example you see.

7) Return to the team and discuss what you have seen.

73

8) As a team, match the wastes you see to problems previously identified in the current-state map.

9) If other significant problems are identified during the walk, place them on the map.

10)Put the results of the waste walk next to the current-state map being shared in the area and use the examples to continue to socialize the current state and the system-level problems that frustrate the people and process.

Steps to Conduct a Waste Walk (continued)

74

What is the ‘5 Why’ Analysis technique ?

• Question asking technique used to explore the cause and effect relationships underlying a particular problem or situation

• Five iterations of asking why is generally sufficient to get to a root cause, but it may go as far as six or seven

75

Is there an Example of 5 Why’s ?

• The vehicle will not start. (problem statement)– Why? – The battery is dead– Why? – The alternator is not working– Why? – The alternator belt is broken– Why? – The belt was beyond its useful life – Why? – The vehicle was not maintained per the

recommended schedule

• Root cause appears to be the lack of scheduled maintenance… this is a process that can be improved.

76

Tips For Successfully Using 5 Why Analysis

• You know when you have gotten to the root cause when answer points to a process that is not working or does not exist.

• The root cause generally is not time, money, or manpower.

• Processes fail, not people or money, so ask the question “why did the process fail?”.

77

What is a Fishbone Diagram?

• The Fishbone diagram (or Ishikawa) is used to identify possible causes for an effect.

• Causes are grouped into major categories to identify the sources of variation through the 6M’s:– Manpower– Machines– Materials– Methods– Measurements– Mother nature [environment]

78

Why Use a Fishbone?

• Groups potential causes for defects into logical categories

• Team works together to get to root cause• Highlights where additional data gathering needs to

occur

79

Step 1: Determine the Problem/Issue

• To construct a fishbone:– Start with stating the problem in the form of a question,

such as “Why is crane production low?” .– Agree on the problem and place it in a box at the “head”

of the fishbone.

Why is Crane production low?

80

Step 2: Establish the Categories

• Determine which categories you will use to find causes and draw the bones.

• Feel free to modify the categories for your project and subject matter.

• Category Examples:– 6M’s

• Manpower• Machines• Materials

• Methods• Measurements• Mother nature

[environment]

81

Step 3: Brainstorm Causes

• For each category brainstorm possible causes of the problem that may be related to the problem/issue.

• For each cause identified, continue to ask “why does that happen?” and attach that information as another bone of the category branch.

82

Step 4: Review Diagram

• The diagram should now show all of the possible causes of the problem that you can think of.

• Prioritize the key causes identified on the fishbone.• Agree on which of these possible causes are

actually contributing to the problem and begin to investigate those further.

83

What is the Improve phase about?

The focus of the Improve phase is to implement improvements that were brainstormed and agreed to in the analyze phase.The improve phase typically involves ideas being piloted with the results being validated to ensure that no adjustments need to be made.

• Tool application in the Improve Phase– Select Improvements– Indentify Future State– Perform Risk Analysis– Pilot and Implement Solution

What is Brainstorming?

• A group creativity tool used to generate a large number of ideas to solve a problem

• There are many techniques:– Round Robin: move around group in turn– Shout Out: as it comes to you– Silent: write down ideas on slip of paper– Post Up: Pin ideas / suggestions on board so all can see

and add to – good for getting inputs from different departments, the weekend crew or multi-shifts

84

What are some Idea Generation Tips?

Ideas and inspiration come from association – build on words, themes, topics:

• Use reverse thinking: how can we make this worse? then turn it around

• Ask why, then ask why again• Avoid idea assassins, eliminate the “can’t” word

from your group• Watch out for the “expertise” trap, challenge every

assumption

85

What are some Rules for Effective Brainstorming?

• DO– Understand the focus– Allow individuals to complete their thoughts– Record all ideas– Build on existing ideas, this is the power of

brainstorming– Strive for quantity– Organize, categorize, and evaluate LATER!

86

Rules for Effective Brainstorming (continued)

• DON’T– Criticize ideas (consolidation and evaluation

come later)– Use idea assassins, clarify LATER– Make judgments, verbal or visual, as ideas are

being offered– Allow any one person to dominate the session– Stop when the page is full, keep pushing for

more ideas

87

What are some Helpful Hints in Brainstorming?

• Save an idea or two for the session. When things slow sown, throw these ideas out to get the process going again.

• Read back ideas from the list to rekindle team energy.

• Take a Break, encourage team members to stand up and walk around or think about something else, then resume the session.

• Determine how many ideas you want to generate during the session, encourage the team to persist through lulls to reach this goal.

88

What are Techniques to Stimulate Insight?

• Changing patterns—unexpected juxtaposition• Looking at things in different ways—making the strange

familiar and the familiar strange• Adaptation—changing the context• Imagining—asking “What if?”• Reversal—looking for the opposite• Connection—joining two unrelated ideas• Comparison—building a metaphor• Elimination—subtracting something or breaking rules• Parody—making fun, looking for the humor

89

What is the Purpose of a ‘PICK’ Chart?

The purpose of the PICK Chart analysis/ activity is to decide which improvement ideas are most worthwhile (impact), based on expected benefits and ease of implementation (effort).

90

91

What does a ‘P.I.C.K.’ Chart Look Like?

• Quick prioritization to identify which ideas to continue to pursue (sorted by quadrant).

Impa

ct

Effort

ChallengeImplement

low high

high

KillPossible

low

Steps to Use a ‘PICK’ Chart

1) Write each idea on a sticky note and place in one of the four PICK Chart boxes.

2) Decide whether each idea is hard or easy to achieve. Think in terms of hours, manpower, expertise, and other factors that make the implementation easy or difficult.

3) Choose a payoff category.– Determine if the improvement idea will result in a high or low

payoff

92

Steps to Use a ‘PICK’ Chart (continued)

4) Place the sticky note with the idea written on it into the most suitable PICK Chart quadrant.– Don’t put an idea on a line between two quadrants – this only

encourages the team to avoid making a decision about the idea

5) Choose improvement ideas based on their placement on the Chart.– Possible - ideas that are easy to implement but have a low payoff– Implement - ideas that are easy to implement and a high payoff– Challenge - ideas that are hard to implement and difficult to

determine payoff– Kill - ideas that are hard to implement and have low payoff

93

94

What is a Future State Map About?

• Future State Map is next increment of performance improvement

• Helps define specific activities for Kaizen effort• Marries together mapping efforts, process

analyses, and the vision of an ideal state• Improvements you select become foundation for

your planning and improvement activities

95

Steps to Develop a Future State Map

Future State begins as a markup of Current State:1) Don’t start with clean sheet, make changes directly

on the Current-State map.2) Identify where and what type of improvements you

intend to make.3) Draw “burst” at areas or steps you wish to improve.4) Identify how many / how much NVA steps will be

reduced (Red/ Yellow/ Green), and how much process time reduced – estimate improvement goal. (quantify waste reduction effort, if possible)

96

Heat Treat

Heat Treat AtAcmeSam

Yes

Purchase OrderGenerated

Dick

No

Casting Sent ToHeat Treat Vendor

Sam

Finish GrindSam

Receive CastingFrom HT Vendor

Sam

Machine

Heat Treat AtAcme

Yes

No

Machine AtAcme

Yes

MachineSam

Purchase OrderGenerated

Dick

Casting Sent ToMachining Vendor

Sam

Yes

No

Mag, LPI,X-Ray

Purchase OrderGenerated

Dick

Casting Sent ToNDT Vendor

Sam

Yes

Receive CastingFrom NDT Vendor

Sam

PackagingSam

No

ShippingPaperw orkGenerated

Gloria

Shipping CompanyCalled For Pick-up

Gloria

CastingShipped ToCustomer

A

Acme Casting Detailed Process Map

Receive CastingFrom Machining

VendorSam

No CastingPassed NDT

Weld RepairSam

No

Yes

Is there Example of Map with (Improvement) Burst?

97

Steps to Develop a Future State Map (continued)

5) As soon as you have identified the changes, create a new Process Map / VSM draft.

6) Picture what the Process Map / VSM will look like after implementing the improvements.

7) Leave the Bursts for reference on the new map.

98

What are some Qualifying Questions to Consider?

Indicate answers directly on the future-state map:– What is the Customer demand? (takt time)– Where is the bottleneck operations?– Where can flow happen?– Where will you utilize a ‘pull’ signal? (kanban signal)– Where do supermarkets need to be located? (stores)– What is the right lot size between processes?– What are the current set-up / change over times?– How can schedule be smoothed?– How is time being utilized?

99

How Does the Kaizen Team Plan Improvements?

• Take actions identified on the Future-State Map and establish an implementation plan

• Plan should be concise• Scope individual improvement activity

– Include timing and responsibilities

• Maintain scope and focus– Address minimum number of key metrics– Don’t try to solve everything at once– Prioritize the changes– Follow through!

100

What is Risk?

• Risk is the potential that a chosen action or activity (including the choice of inaction) will lead to an undesirable outcome.

• Common risk categories– People– Process– Cultural– Environmental– Systemic– Legal & Regulatory

What is Risk Mitigation?

Risk Mitigation is about proactively eliminating sources of variation that cause defects – process based failure prevention.

• What does it do?– Helps to evaluate how a process or design can fail – Helps to quantify risk factors assisting in prioritizing

current or future changes– Can act as a forum for process or design improvements

and preventative actions– Assists in identifying weaknesses in current control plans

101

When Do We consider Risk Assessment?

Risk Priority Number (RPN)• The ‘RPN’ calculation is a dynamic process:

– They can begin as soon as a project is selected for a certain process, system or design.

– First one usually started no later than Measure Phase, or beginning of the Analysis Phase.

– Should be revised as improvements or changes are made to a process to assess risk.

102

What are factors of a Risk Assessment Team?

• This is a team process, members should be familiar with the process.

• Team sizes may vary, but recommended size is approximately 3 - 5 members.

• Depending upon the type of analysis being done, members may come from:

• Labor• Engineering• Supervision• Customer Support• Planning / Sales / Marketing• Human Resources• Maintenance

103

Steps for Risk Calculation and Mitigation

104

1) Identify inputs to the process2) Determine effects of a failure3) Identify potential causes of each4) List the current detection controls5) Identify the potential loss - Severity6) List how often it happens - Occurrence 7) Identify how the failure is caught - Detection

Risk Calculation and Mitigation Steps (continued)

8) Assign Severity, Occurrence and Detection ratings to each step / cause

9) Calculate RPN10) Prioritize recommended actions to reduce high

RPN’s11) Take appropriate actions to reduce risk and

document12) Update the document as appropriate &

recalculate

105

Focus on Prevention of Errors / Defects

The Risk Priority Number (RPN) --- allows the team to quantify various failure modes to assist in prioritizing the team’s improvement efforts

The RPN is the product of: Severity x Occurrence x Detection

The higher the RPN, the higher priority the potential failure mode becomes, prevention becomes the focus of the team

NOTE: The value of each of these characteristics is determined by the team, guidelines are provided on following pages

106

Guideline Severity Ranking

Significant damage, multiple deaths, and fines Deadly 10

High likelihood of death or LTI, fines, and damage Very Hazardous 9

LTI, Injury or near miss, fines and damage Very High 8

Work stoppage, fines, and damage High 7

Work stoppage, and damage Moderate 6

Work stoppage Low 5

Rework and loss of cargo Very Low 4

Rework with delays Minor 3

Rework without delays Very Minor 2

No impact None 1

What are some Severity (S) Guidelines?

107

What are some Occurrence (O) Guidelines?

108

Guideline Occurrence Ranking

Every opportunity Inevitable 10

50% Out of Control

71% Very High

Every Batch High

Selective Batches Moderate

5Hourly Low

Daily Very Low

Weekly Minor3

Monthly Very Minor

Annually None 1

What are some Detection (D) Guidelines?

109

Guideline Detection Ranking

Undetectable Undetectable 10

Multiple failure detection Random

7Data Based Detection Remote

End User Detection Very Low

Audit Detection Low

5Sample Detection Moderate

Manual Test Detection Moderately high

SPC Post Process Detection High3

Automated In Process Detection Very High

Preventative Detection Always 1

Example: We get an RPN = 4 x 4 x 1 = 16

Is there an Example of RPN Calculation?

110

What can go wrong? Severity Occurrence Detection RPN PlanClerks arrive late 4 4 1 16

Wheeled loads incorrectly spotted 4 6 2 48

Shuttle bus delays arrival 2 1 1 2

111

What is Risk Assessment Need During Kaizen?

• Our main need for risk assessment is to evaluate the risk of our proposed process improvements before we put them in place.

• Risk assessment [w/ associated RPN] helps us:– Analyze new processes– Identify weaknesses in the control plan– Establish the priority of actions– Evaluate the risk of the process changes– Identify other potential areas to consider for process

improvement

112

What are the Characteristics of a Pilot Test?

• A pilot is a test of a selected solution• Has following properties:

– Performed on a small scale (limited in scope, budget and time)

– Used to evaluate both the solution and the implementation of the solution

– Used to make the full-scale implementation more effective

– Provides data about expected result– Exposes issues in the Implementation Plan

113

Steps for a Pilot

1) Plan– What needs to be piloted– Where will the pilots be conducted– Who will be involved– When and for How long– How will the pilots be conducted

114

Steps for a Pilot

2) Review Solution Sets– Make sure all elements are complete– Integrate elements and interfaces– Identify possible failure points– Evaluate predicted performance (capability)

• Tips– Establish review objectives in advance– Complete all pre-work– Keep documentation clear and consistent– Distribute documentation prior to meeting– Set follow-up meetings to complete action items

115

Steps for a Pilot

2) Review Solution Sets (continued)• Continue to Detail Plan / Outcomes

– List of key issues raised, identifying who raised them– List of proposed actions for modifying the Pilot, including

who is responsible for making changes– List of modifications / changes needed– Schedule of future meetings to complete actions– Schedule of future design review meetings

116

Steps for a Pilot

3) Finalize Solution Design and Implement– Implement any remaining changes from pilot (2)– Move to Pilot Testing / Solution Validation

• Tips– Carefully observe all activities, effects and interactions

during the pilot run– Actively manage the pilot run / plan– Continue pilot long enough to establish reliable baseline

performance data– Check for ripple effects and unintended consequences

117

Steps for a Pilot

4) Evaluate the Pilot Test / Run and Verify– Use applicable statistical techniques– Improve on the Solution Set / design if the Pilot

Test / Run demonstrates any weakness– Prepare for WIDE-SPREAD Change

• Celebrate Success!– Communicate small victories

118

Complete Full Scale Implementation (last step)

5) Close out critical elements of successful launch:– Implementation Plan

• What / Who / When– Documentation

• What’s the new process?– Implementation Troubleshooting

• Who has responsibilities when trouble arises?– Training

• New approaches need to be taught, old ways broken– Performance Management

• Update Position Descriptions, Job Duties etc.

119

What is the Control phase about?

The focus of the Control phase is to establish how the results are going to be sustained and monitored.The control phase typically involves the creation of metrics and plans to be executed when the performance measures indicate the process is not behaving as expected.

• Tool application in the Control Phase– Demonstrate Improvement– Mistake Proof– Implement Control Plan

120

What is Baseline Data?

• Initial collection of data which serves as a basis for comparison with the subsequently acquired data– Captured during the Measure Phase– Used to identify improvement opportunities during the

Analyze phase– Consists of inputs and outputs of the process

• Compare Before and After (Collect same way)

= Baseline vs. Final

121

What is Purpose of Displaying Improvement?

• Final data must be compared against the baseline data… before and after comparison– Demonstrates improvement or change within the

process in a manner that is easily understood by all– Generally done using tables and graphs that show side-

by-side the change that has taken place as a result of the project

122

Visually Displaying Data (Improvement)

• Side by Side comparison of baseline data to demonstrate difference in service– Simple table built in MS Excel (KEY: more is better, i.e. MPH)

123

• SPC chart showing base line data compared to final data, demonstrating improvement– Built in Minitab with the help of your Master Black Belt

Graphically Displaying Data (Improvement)

464136312621161161

2.1

2.0

1.9

1.8

1.7

Observation

Indiv

idual Valu

e

_X=1.7977

UCL=1.9067

LCL=1.6887

Before After

1.88

Chart of Top Handler per gang by week

124

Why is Mistake-Proofing Important?

• Sustain the Gain!• Lean Thinking / Practice does not allow extra

inventory to compensate for scrap.• Lean ideology focuses on speed ...

And, speed cannot exist when defects and rework prevail.

• Cost pressures don’t tolerate continued mistakes: for example - scrap, rework, lateness.

“Our Customers rightfully expect defect free services / products and … traditional 100% inspection won’t provide 100% defect-free output.”

125

A ‘poka-yoke’ or mistake proofing device eliminates defects by preventing errors.

• poka – error (foolish action); yoke – to avoid• Replaces earlier version baka yoke (fool proofing) – a more negative

connotation

What does it mean?

What is a Mistake-proofing Device? (Definition)

126

• Following process produces defects

• Change process, defects go away• Generally, easiest to change

Incorrect Process

• Process hard to follow consistently

• Process problem, not people problem

Process Not Followed

What States exist for Errors? (Process Condition)

127

What are the Top 10 Causes of Errors?

• Processing omissions: leaving out one or more process steps

• Processing errors: process operation not performed according to the standard

• Error in setting up: using wrong tooling or incorrect setting/ adjustment

• Missing parts: not all parts are included in assembly/ process

• Improper part/ item: wrong part installed in assembly

128

Top 10 Causes of Errors (continued …)

• Processing wrong work piece: wrong part machined/ processed

• Operations errors: incorrect revision or specification sheet• Errors in equipment, maintenance or repair: Defects caused

by incorrect repairs or component replacement• Error in preparation of inspection equipment, fixtures or

tools: Damaged inspection tooling; poorly designed fixtures or wrong tools; mis-measurement

129

What are common “Red Flag” Conditions?

1. Adjustments

2. Unclear or no instructions

3. Undefined process

4. Many units/mixed units

5. Multiple steps

6. Infrequent production

7. Ineffective or lack of standards

8. Multiple handoffs

9. Hand processing

10. Rapid repetition

11. High volume demand or deadline pressures

12. Environmental conditions

130

Steps for Mistake-proofing

1) Identify and Describe the defect/ red flag condition

2) Determine root cause (where the defect is discovered or where it is made)

3) Detail the sequence of events in the standard procedure

4) Review the steps that differ from the standard (deviations) (identify contributing conditions or potential failure modes)

5) Identify the mistake-proof device type required (S,C,W)

6) Create device(s) and test for effectiveness (incorporate into Standard Work)

131

Why the Need For Control Plans?

• Control Plans are about sustainability• Control Plans exist to ensure the process maintains

the gains seen from the project• Control Plans provide predictive information, such

that adjustments can be made before the output deviates from the plan

• Good control plans, ensure improvements stay in place

• All too often this is where the fun ceases, the real work starts

132

What are some Control Plan Elements?

In preparing a control plan, concentrate on:• What needs to be monitored?• Who is going to be keeping the process functioning

properly?• How are they going to monitor?• Where will the monitoring be conducted?• Where should the plan reside?• What will be done if the monitoring detects a

condition outside of the Customer’s specifications?

133

Why an Improvement Hierarchy?

So you don’t have to “fix” the problem again!Full

Automation

Awareness

Fail-Proof

Simplification

Training

Behavior typically reverts back

The process is changed to be less dependent upon people

Most Desired

Least Desired

• No Manual Intervention

• Impossible to Fail

• Eliminate Activity

• Certification and Audits

• Notification

134

Are there Tips for a ‘Reaction’ Plan?

• Be pragmatic!• Actions should be the responsibility of people

closest to the process• Secure process owner’s approval• Document in detail, and identify the person

responsible for, reacting to unacceptable variation• Incorporate procedures by reference in the control

plan• Build control plans from the updated Risk

Assessments

135

What is the Hierarchy for Reaction Planning?

Some reactions are better than others

PREVENT Root cause identified and permanently correctedCORRECT Root cause is identified

and corrected temporarily COMPENSATE Making adjustments – without identifying root cause

BE

TT

ER

BE

TT

ER

Compensating actions are usually less successful. Preventative actions will last longer.

136

Are there examples of Weekly Dashboards?

Defective Invoices

0.00%

2.00%

4.00%

6.00%

8.00%

10.00%

12.00%

14.00%

16.00%

18.00%

20.00%

6/12

/200

4

6/26

/200

4

7/10

/200

4

7/24

/200

4

8/7/

2004

8/21

/200

4

9/4/

2004

9/18

/200

4

10/2

/200

4

10/1

6/20

04

10/3

0/20

04

11/1

3/20

04

11/2

7/20

04

12/1

1/20

04

Defective Invoices

System Uptime %

88.0%

90.0%

92.0%

94.0%

96.0%

98.0%

100.0%

102.0%6/

12/2

004

6/26

/200

4

7/10

/200

4

7/24

/200

4

8/7/

2004

8/21

/200

4

9/4/

2004

9/18

/200

4

10/2

/200

4

10/1

6/20

04

10/3

0/20

04

11/1

3/20

04

11/2

7/20

04

12/1

1/20

04

Invoice Sys Uptime

Order DB Uptime

System Data Audit Accuracy

92.00%

93.00%

94.00%

95.00%

96.00%

97.00%

98.00%

99.00%

100.00%

101.00%

6/12

/200

4

6/26

/200

4

7/10

/200

4

7/24

/200

4

8/7/

2004

8/21

/200

4

9/4/

2004

9/18

/200

4

10/2

/200

4

10/1

6/20

04

10/3

0/20

04

11/1

3/20

04

11/2

7/20

04

12/1

1/20

04

Invoice Sys Accuracy

Order DB Sys Accuracy

Department Cost

$-

$2,000

$4,000

$6,000

$8,000

$10,000

$12,000

$14,000

6/12

/200

4

6/26

/200

4

7/10

/200

4

7/24

/200

4

8/7/

2004

8/21

/200

4

9/4/

2004

9/18

/200

4

10/2

/200

4

10/1

6/20

04

10/3

0/20

04

11/1

3/20

04

11/2

7/20

04

12/1

1/20

04

Department Cost

DSO

40

42

44

46

48

50

52

54

56

58

60

DSO

Avg. Cycle Time

0

10

20

30

40

50

60

70

6/12

/200

4

6/26

/200

4

7/10

/200

4

7/24

/200

4

8/7/

2004

8/21

/200

4

9/4/

2004

9/18

/200

4

10/2

/200

4

10/1

6/20

04

10/3

0/20

04

11/1

3/20

04

11/2

7/20

04

12/1

1/20

04

Avg. Cycle Time

Weekly dashboards were used to report Data Accuracy and report weekly Performance summaries (Sustaining the gains.)

137

What is Purpose of Process Documentation?

• General purpose:– Ensure compliance with relevant standards and procedures– A means for implementing a company’s objectives and policies

• General rules:– Compliance is easy to check– Employees can:

• Understand them• Understand their individual responsibilities• Respond to all situations that might arise

– Are practical and economical

138

What are Attributes of Good Documentation?

• Clarity and Comprehension - Suitable for the Reader– Provides information to be used– Is not meant for enjoyment or mere learning– Read only to be able to carry out the instructions they

contain or to check that someone else is carrying them out correctly

139

Attributes of Good Documentation (continued)

• Clarity and Comprehension - Suitable for the Reader– Questions to ask:

• Do they have sufficient background information to absorb the information at this point of the procedure?

• Will they retain sufficient interest at this point to keep up the required concentration?

• Is there superfluous information• Can information be found and extracted quickly?

140

Attributes of Good Documentation (continued)

• Correctness– Is the information accurate and consistent?– If the documents are inaccurate, resulting in mistakes or

distrust by the employees, the basis of quality crumbles

• Structure of the Documentation Set– Structure (hierarchy, classification and sequence) is

essential for making documentation accessible– EXAMPLE: The procedures for filling a Purchase Order

can extend across Purchasing, Contracts, Accounting, Invoicing, Transport, and so on. . .

141

Attributes of Good Documentation (continued)

• Compliance with Standards and Regulations– Must be able to demonstrate that the best available

practice was followed and that applicable regulations were complied with

• Suitability for Audit– Must be visible and straightforward– Auditing addresses accountability– The objectives of the procedure must be stated clearly so

that an audit can determine if they are being achieved

142

What are Process Documentation concerns?

• Process Map or Flow Chart– Consider at what level to map - High, Detailed– What type of map will you use?

• Traditional Process Map, Swim Lane, VSM

• Procedures / Instructions / Planning Documents– Develop a sequence of steps and other instructions

• Who, What, Where …– Be specific, clear, realistic– Highlight potential pitfalls to performance– Note any common exceptions

• Note how to obtain or find the document

143

What are some Improvement Documentation Tips?

• Use your team and / or affected individuals• Test the procedure exactly as it is documented• Be complete, but concise

– Do not assume prior knowledge

• Place the procedure where it is readily available• Outline a method for updating procedures for

continuous improvement• Date your new procedures• Removed obsolete procedures

144

What are methods for Checking Procedures?

• Directly– By Observation

• Are people actually doing what the procedure says?• Are all the steps being followed?• Are people referring to the procedure?

– By asking those using the procedure• “Is each step in the procedure clear?”• “Are you having difficulty in following the

procedure?”• “Could we improve the procedure and still get

results?”

145

Checking Procedures (continued)

• Indirectly– By Observation

• When was the last time the instruction was revised?• Is the Control Chart being used as a signal for

investigation?

146

What are Common Pitfalls with New Procedures?

• Not involving affected employees in creating the new procedure

• Not testing the procedure• Omitting information - results needed or how to do

a step• Lowering the importance of procedures - either by

not having them or by management ignoring need• Putting procedures on the shelf - not tracking actual

use, regular maintenance, destroying obsolete procedures

147

Summary: Kaizen (3-5 Day) Roadmap

Define1. Review Charter2. Prep Kaizen Event3. Walk the ProcessMeasure4. Create High Level Map5. Create Detailed Map6. Collect Baseline DataAnalyze7. Perform Value Analysis8. Complete Waste Walk9. Identify Root Causes

Improve10. Select Improvements11. Identify Future State12. Perform Risk Assessment13. Pilot & ImplementControl14. Demonstrate Improvement15. Mistake Proof16. Implement Control Plan

Your Master Black Belt mentor will be there through the entire

process to support you!