LeanSigma® Facilitator Training

Module 7 – Kaizen

Topics

• Lean event preparation

• Event facilitation

• Event follow-up

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Lean Sigma has six steps to optimize processes.

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Waste can be removed from processes in many different venues.

• Simple improvements every day (just do it!)

• Projects

• Kaizens & point kaizens

• New process design studies

• Capacity studies

• Opportunity assessments

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One of the most common Lean venues is a kaizen.

• Collaborative problem solving leveraging front-line employees to determine how to improve their own work

• Designed to be scalable and flexible (3 – 5 day events common, 1 – 2 day point kaizens possible)

• Most changes implemented in 90 days.

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Target Process

Current Process

Sample Metrics

Current Target

Process Steps 47 24

Handoffs 11 5

Rework Loops 5 2

Value Add Steps

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Kaizen

Front-line employees hold the secrets to improving the work.

“The secret [of a perfect swing] is in the dirt.”

-Ben Hogan

The answers are there, you just need to look for them.

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There are three key components to kaizens.1. Event preparation

− Identify and prioritize events

− Create solid charters

− Select and train participants

− Collect pre-work

2. Event facilitation

− Break the ice &

manage team dynamics

− Work the agenda

− Apply the Lean tools

3. Event follow-up

− Conduct 30 / 60 / 90 day reviews

− Ensure implementation and sustainment are happening

− Identify when processes should be revisited7

The rule of 1/3s:

Expect to spend equal amounts of time doing each component.

We follow standard work to execute the kaizens.

• Lean stresses standardization.

• We need to “walk the talk” when running kaizens!

• Standard templates are available on the ARC web site to help you organize and run events. Click here for Lean Templates and Guidelines Folder

− Charters

− Training materials

− Event agendas

− 30 / 60 / 90 day review guidelines

• But, expect that each kaizen event will be a bit different and you’ll need to think on your feet!

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There are very detailed instructions for you on every aspect of the lean event.

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Click here for Lean Kaizen Prep Instructions

Identifying and prioritizing the kaizen begins the planning process.

• Lean event ideas may come from many different sources:

− Front-line employees

− Process owners

− Senior management

− Lean leaders

− You!

• Make sure that the kaizen is the right tool for the business challenge.

• After you have identified some potential kaizens, work together with your lean leader and sponsor to prioritize the work.

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Some warning signs tell you process improvement is needed.

− Labor-intensive (labor cost and effort is high)

− High number of errors or defects; excessive rework

− High DAP

− Peaks and valleys in the workload

− Use of non-standard procedures, forms, outputs, etc.

− Excessive administrative tasks, including approvals

− Multiple delays

− A mismatch between resource skills and assigned work (e.g. overqualified resources used)

− The need for more automation

− Duplicate verification steps

− Frequent miscommunication

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Not every issue should be addressed with a kaizen.

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Kaizens are best for:

•fixing existing processes•when you don’t know the solution•when you need buy-in to the solution

Click here for LEAN Tools Decision Tree

Our prioritization tool ranks ideas based on feasibility, impact and likelihood of success.

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Click here for Lean event prioritization tool

The facilitator will build a charter for every Lean event.

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What will you address and why is it important to IMS to address this issue?

Quantify what you want to achieve and the financial impact if you don’t.

What is the problem? How often does it happen? Why does it matter?

What will you include and not include in your analysis?

1/3 of participants do the process, 1/3 are customers or suppliers, 1/3 are outsiders

Be specific! Quantify! Engage your sponsor!

Click here for Charter Template

Store information about your kaizen event in our central information repository (the Lean PMO).

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Click here for Lean Project Roadmap

Invite kaizen participants and give basic Lean training.• Stress key messages in the Talking Points for Kaizen

participants document

− Explain what is a kaizen

− This does not mean you’ve been targeted for reduction

− Front-line employee input is valuable

• Just before or at the start of the event, provide the training for participants new to the kaizen experience in person or via Live Meeting. The training will take just over one hour. Click here for link to participant training

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Collect relevant data prior to the event to help with decision-making.

Examples:

−Historical performance – quality, productivity, costs

−Current standard work

−Errors – by type/frequency

−Product/service breakdown by revenue/contribution/vol.

−Cycle times

−Macro map of process

−Where data is not available/measured, implement a means to capture the required data

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Kaizen events have three segments.

Kai = Change Zen = for the good

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You can rely on the standard kaizen agenda but be prepared to adapt.

Day before kaizen

Day 1 Day 2 Day 3

Delivery 1 hour of training to kaizen participants

Introductions & welcome by sponsor

Day 1 recap / lessons learned

Day 2 recap / lessons learned

Review charter, build SIPOC

Review day 2 agenda Review day 3 agenda

Map Current state process

Brainstorm ideas (ask 3 – 4 probing questions to generate ideas, post on the process map and remove dupes)

Identify future state process measures (VA/NVA, cycle time, etc.)

Collect process measures (VA / NVA, cycle time, lead time, # delays, # decisions, etc.)

Prioritize ideas according to impact & difficulty

Assign tasks and due dates & begin implementation

Begin brainstorming (if time permits)

Map future state (using improvement ideas)

Create & practice “Report out deck”

Team lead / sponsor meeting

Team lead / sponsor meeting

Deliver “report out” to stakeholders

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Each kaizen goes through the steps in the Lean roadmap.

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Kaizens use team work to map the processes and estimate times.

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• An important benefit of kaizens is that they motivate employees.

• The vast majority of their suggestions are implemented.

• Facilitators enable the discussion, they don’t dictate the decisions! You are the Lean tools expert, not the process SME.

We’ll discuss team dynamics & additional lean tools you could leverage during kaizens in the next modules.

• 5S

• Routing Standardization

• Smoothing

• Capacity management

• Brainstorming

• Mistake-proofing

• Root cause analysis

• Risk analysis

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Participants brainstorm opportunities and assess their impact and difficulty.

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• Some opportunities will naturally come up as you map the current state – capture these on the side!

• Most kaizens result in 20 – 40 unique ideas for process improvement.

• High impact / low difficulty ideas are the most appealing for kaizens, since they can make a big difference within 90 days.

Kaizen Newspapers or implementation plans show owners & timing of kaizen action items.

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Frequently, some action items are completed before you leave the kaizen.

Click here for Implementation Plan Template

Document a sustainment plan to start continuous improvement.

• Identify the end-to-end process owner responsible for maintaining the process and associated documentation

• Identify next steps required for effective process deployment

− Establish KPI tracking process and responsibilities

− Conduct the pilot study(s)

− Change management efforts (communication, training)

− Begin planning the next kaizen

• Identify on-going tasks and responsibilities

− Monitor KPIs

− Incorporate lessons learned into the process

− Solicit ideas for additional process improvements for the process and/or related processes

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Every kaizen ends with a report out of the results.

• The final presentation (report out) allows the team to document and publicize its accomplishments.

• Sponsors and other important stakeholders are invited.

• The final presentation should be limited to 15-20 minutes.

• Every participant presents one to two slides.

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Key changes

Issues Notes

Sustainment measures

Expected improvement Show NL

Report out

Before and after process measures are a focal point of the report out.

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MeasureCurrent State

Future State%

Improvement/ Comments

VA 1 1 -

NVA 50 40 20%

Handoffs 15 10 33%

Loopbacks 3 2 33%

Delays 12 8 33%

Decision Points 8 6 25%

Cycle Time 5 – 33 HRS 3 – 25 HRS 24 – 40%

Delay Time 7 – 45 DAYS 7 – 37 DAYS 0 – 18%

RTY 19% 42% 121%

Click here for Report-Out Template

After the event, stay engaged to ensure implementation.

• Document the future state map in VISIO

• Create a one page executive summary of your event

• Hold the 30 / 60 / 90 day reviews to assess progress

• Work with the sponsor to remove any barriers

• Update the PMO with results of your kaizen

• Measure actual cycle time post-implementation

Click here for a timeline of typical post-event activities

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National Order Fulfillment KaizenKaizen Team

March 2011

Sponsor: Manny TriggianoProcess Owner: Brenda CapobiancoLean Process Lead: Carissa BlairTeam: Kevin Downing, Debbie Clark, Joy Cross, Michele Gulla, Shelley Shollenberger, Lucy Ridge, Bonnie Puzio, Lisa CooneyFacilitator: David Pate (TBM)

Objective

Metrics

Goal

Optimize process & resources to achieve / exceed our financial targets.

Total Lead time, % reruns due to order fulfillment errors, Number of ad hoc reports by client and by complexity.

Results

Key Kaizen Breakthroughs

Issues Noted Process Changes It requires multiple loopbacks to collect client requirements.

There are variations in the process based on complexity of the request and CSA experience.

Delays and hand-offs occur when CSAs request discount approval.

There were unnecessary hand-offs to TCS and Finance.

Validating price and budget with clients resulted in loopbacks.

Create a standard requirements gathering checklist.

Create a best practice document for how our most successful CSAs gather requirements.

Give CSAs request discount approval up to a specified amount.

Give Finance direct access to proof of delivery. Give back history form directly to TCS.

Create ballpark price early in process and standardize pre-qualification of client budgets.

Reduce number of hours required, staff, and costs

Approximately 17% of total time to fulfill orders was eliminated29

Topics for the 30 / 60 / 90 day review

• Implementation progress and mitigation for tasks at risk

• KPIs and sustainment measures

• Cost-benefit analysis (cost savings, time reduction)

• Additional opportunities for continuous improvement

Click here for Guidelines for 30-60-90 Day Reviews

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