mohawk lean training phase 2: lean project management
TRANSCRIPT
MOHAWK LEAN TRAINING
PHASE 2: LEAN PROJECT MANAGEMENT
INTRODUCTION / AGENDA Welcome and Introductions
What to Expect
Forming a Team
Leading a Project – DMAIC Define
Measure
Exercise – Mapping a Process Analyze
Exercise – Improving a Process Improve
Exercise – Bridging the Gap Control
Managing Change
Determining Savings
Project Timeline
Follow-up Actions
WELCOME AND INTRODUCTIONS Who are you? What do you do? How long have you been doing it? What project have you chosen to work on?
WHAT IS LEAN? A time tested method and set of tools to help us understand:
What adds value to our customers How work gets done currently How we can identify root causes of problems What an “Ideal / No Waste” process looks like How we can improve performance
Lean embodies a way of thinking and acting to continually improve services, eliminate waste, and enhance customer value
Lean engages the people working in the process
WHAT IS LEAN?
Order Cash
All we are doing is looking at the time line, from the moment the customer gives us an order, to the point when we collect the cash, and we are reducing that time line by removing the non-value added wastes.
WASTE ELIMINATION APPROACH
Value Added Activities
Non Value Added Activities
essential non-essential(reduce) (eliminate)
Lean focuses on these areas
FORMING A TEAM
SUPPLIERS CUSTOMERS
Basically anything that you get from
someone else:Reports
Looking up info on computer
PaperEmails
Approvals
Basically anything that you send to
another department:
ReportsSpreadsheets
Emails
PROCESS
You Are
Here
FORMING A TEAM
You have suppliers… Provide constructive feedback to those that
provide you with information
Ensure your feedback is understood
Don’t give up!
…and you have customers too. Ask for feedback on the work you do
Listen to what your customers are saying
Take action to prevent future defects
FORMING A TEAM
Create a Cross Functional Team Suppliers to the Process
The Process Being Evaluated
Customers of the Process
Specialists where necessary
Need “Doers” and not just Managers Team should be minimum of four – five members
DMAIC ROADMAP
Write the problem down
(Project Charter)
Process Mapping(Current State)
Process Mapping(Future State)
Action Item Tracker
Develop metric(s) andreview periodically
PROCESS FLOW Searching for Lean Nirvana
Orienting your work processes Organizing your work place Changing your work tasks so that your
product or service is always in a state of constant value adding
DMAIC ROADMAP - DEFINE
“If I were given one hour to save the
world, I would spend 59 minutes defining
the problem and one minute solving it.”
- Albert Einstein
DMAIC ROADMAP - DEFINE
Project Charter Helps to focus on and define the
process, and the problem being worked
Lists the Specific Objective(s), Team Members, Metrics, Future State, and Savings
DMAIC ROADMAP - DEFINETitle: Pricing Claims Reduction
Description: 8,500 Price claims were filed in 2013, majority of those were with Builder/MultiFamily customers. Goal of the project is twofold - eliminate the majority of the Price Claims by attacking their root causes, and streamline the process used to receive, investigate, document, and disposition these claims.
Business Unit: FlooringDivision/Area: Residential SalesEvent Owner: Linda WoodyLean Leader: Phil Zolan
Event Start Date: 1/24/14
Annual Cost of Process: $3,357,500Once Complete, How Much
Annual Savings are Expected:$1,678,750
How Much Savings Are Expected This Year:
$1,091,188
Team MembersTeam Leader Linda Woody
Team Member Jay HaganTeam Member Jay BakerTeam Member Kelly LaceyTeam Member Kevin HayesTeam Member
Support Required: NoneProcess Owner: Linda Woody (Claims), Kevin Hayes (Credit)
Notes: 2013 Claims amount: $1,700,000; Mohawk time spent on these claims: $1,020,000 (@ $120/claim); Dealer time spent on these claims: $637,500 (@ $75/claim).
Process Improvement Charter
DMAIC ROADMAP - MEASURE
Process Map – Current State Visually display every step of life
cycle of a particular process
Interactions and handoffs between people are highlighted
Often identifies steps not known by everyone involved in the process
Participation by all affected groups is critical
EXERCISE 1 – MAPPING A PROCESS
DMAIC ROADMAP - ANALYZE Process Map – Future State
What would the ideal process look like Identify and eliminate bottlenecks – Which steps in the process
constrain the throughput Condense multiple locations, reduce unnecessary movement Multiple approvals – How many steps involve approval or review
of actions in previous steps Automate wherever practical Question every existing step, approval, and handoff - eliminate
unnecessary steps The 5 Whys
DMAIC ROADMAP - ANALYZE The 5 Whys
5 Whys is a SIMPLE but POWERFUL technique for uncovering the root cause of a problem when you lack data regarding why the problem is occurring
If we don’t correct the root causes of problems, the same problem will resurface again
DMAIC ROADMAP - ANALYZE The 5 Whys Example
Why 1: Why didn’t my car start?
DMAIC ROADMAP - ANALYZE The 5 Whys Example
Why 1: Why didn’t my car start? The battery is dead.
DMAIC ROADMAP - ANALYZE The 5 Whys Example
Why 1: Why didn’t my car start? The battery is dead. Why 2: Why is the battery dead?
DMAIC ROADMAP - ANALYZE The 5 Whys Example
Why 1: Why didn’t my car start? The battery is dead. Why 2: Why is the battery dead? Because the alternator is not
charging it.
DMAIC ROADMAP - ANALYZE The 5 Whys Example
Why 1: Why didn’t my car start? The battery is dead. Why 2: Why is the battery dead? Because the alternator is not
charging it. Why 3: Why isn’t the alternator charging it?
DMAIC ROADMAP - ANALYZE The 5 Whys Example
Why 1: Why didn’t my car start? The battery is dead. Why 2: Why is the battery dead? Because the alternator is not
charging it. Why 3: Why isn’t the alternator charging it? Because the alternator
belt broke.
DMAIC ROADMAP - ANALYZE The 5 Whys Example
Why 1: Why didn’t my car start? The battery is dead. Why 2: Why is the battery dead? Because the alternator is not
charging it. Why 3: Why isn’t the alternator charging it? Because the alternator
belt broke. Why 4: Why did the belt break
DMAIC ROADMAP - ANALYZE The 5 Whys Example
Why 1: Why didn’t my car start? The battery is dead. Why 2: Why is the battery dead? Because the alternator is not
charging it. Why 3: Why isn’t the alternator charging it? Because the alternator
belt broke. Why 4: Why did the belt break? Because it was well beyond its
useful service life and wasn’t replaced per the owners manual.
DMAIC ROADMAP - ANALYZE The 5 Whys Example
Why 1: Why didn’t my car start? The battery is dead. Why 2: Why is the battery dead? Because the alternator is not
charging it. Why 3: Why isn’t the alternator charging it? Because the alternator
belt broke. Why 4: Why did the belt break? Because it was well beyond its
useful service life and wasn’t replaced per the owners manual. Why 5 and Root Cause: Why wasn’t the manual followed?
DMAIC ROADMAP - ANALYZE The 5 Whys Example
Why 1: Why didn’t my car start? The battery is dead. Why 2: Why is the battery dead? Because the alternator is not
charging it. Why 3: Why isn’t the alternator charging it? Because the alternator
belt broke. Why 4: Why did the belt break? Because it was well beyond its
useful service life and wasn’t replaced per the owners manual. Why 5 and Root Cause: Why wasn’t the manual followed? I never
follow the manual, and prefer to take the risk instead.
DMAIC ROADMAP - ANALYZE
5 Min 15 Min End5 Min 5 Min5 Min
BEFORE
5 Min
15 Min
15 Min
15 Min
End5 Min 5 Min
AFTER
Future State Mapping
EXERCISE 2 – IMPROVING A PROCESS
DMAIC ROADMAP - IMPROVE Action Items need to be SMART
DMAIC ROADMAP - IMPROVE Action Item Tracker
Provides visibility of every action
Maintains accountability to get things done
Allows easy follow-up in the Control phase
Total Action Items 0Completed Actions 0
Open Actions 0% Actions Complete
Problem Description Date Action AssignedProjected
CompletionActual
CompletionNotes
Action Item Tracker
DMAIC ROADMAP - IMPROVE
Total Action Items 12Completed Actions 11
Open Actions 1% Actions Complete 92%
Problem Description Date Action AssignedProjected
CompletionActual
CompletionNotes
Phase II Training Powerpoint 11/26/14 Complete Powerpoint ready for training Michael Savini 12/31/14 12/31/14
Weekly Update - Schedule UpdatesReview Charter and how to fill out
form a teamScramble eggs on Process MAP
Phase II Training Powerpoint 11/26/14 Complete Powerpoint ready for training Phil Zolan 01/30/15 02/04/15
Manage DMAIC Milestones See PHOTO for DMAIC StepsChange Management
Follow up Process -Save Money & Follow the processReport to CFO ELT Monthly
report to Jeff Quarterly
Monday Report 11/26/14 Send Monday report to emory - See notes for detailsMichael
Savini/Phil Zolan
01/28/15 02/04/15Jeff and Frank Projects, Roadblocks, How can Emory Help,
Bullet points onlyexamples - Claims, Tax, Web Site
Monthly Metrics Reort (Automation)Current Month Project StatusPrevious Month Project StatusAll Project StatusPotential SavingsOn TimeHopper ReportTrained Metric 40 per Year
11/26/14 Automate Monthly Metrics package Emory 01/28/15 02/01/15 Phil to complete Charter
Action Item Tracker
EXERCISE 3 – IDENTIFYING ACTIONS
DMAIC ROADMAP - CONTROL Maintain the Solution
Document and standardize the improvements
Update the Final State process map
Publish standard metrics Review procedures regularly
(annually) Share learnings across
organization Celebrate your success!
MANAGING CHANGE Just what is Change Management?
Change management is about introducing change successfully
It is managing the people-side of business change to achieve the required business outcome, within the social infrastructure of the workplace.
Formalizes the need for making sure that change within an organization is managed effectively, through:
Competent Managers
Effective Processes
Quality Tools
MANAGING CHANGE Why Do Some Organizations Fail?
Normally because of lack of recognition of the need to change or a sense of urgency.
Managers are often encouraged and trained to maintain the current system.
Focus changes from solving customer’s needs to market share and increasing revenue per customer.
So what is the Solution? Initiate Change early Create a culture of Leadership Involve the whole organization, not just the
managers
MANAGING CHANGEThe Normal Change Cycle
MANAGING CHANGEThe Normal Change Cycle – Step 1: Anxiety and Fear
MANAGING CHANGEThe Normal Change Cycle – Step 1: Anxiety and Fear
Why People Resist Change Disturbs the status quo
Desire not to lose something of value
Fear of the unknown
Fear of loss of control
Fear of losing face
Fear of surprise
MANAGING CHANGEThe Normal Change Cycle – Step 2: Denial
MANAGING CHANGEThe Normal Change Cycle – Step 2: Denial
Dealing with resistance Organizations often underestimate the variety
of ways people react to change and resist it
Engagement of key stakeholders and top management is critical
Employee involvement from the beginning is also critical
MANAGING CHANGEThe Normal Change Cycle – Step 3: Misery
MANAGING CHANGEThe Normal Change Cycle – Step 3: Misery
It takes deliberate action to overcome this step
Early and open communication is the key
Employee involvement and participation helps significantly
Understand who knows what – don’t assume you have all the information
MANAGING CHANGEThe Normal Change Cycle – Step 4: Willingness to Try
MANAGING CHANGEThe Normal Change Cycle – Step 4: Willingness to Try
Show why it is worth trying – explain the benefits
Make sure that everyone affected by the change has the training and resources necessary to function in the “new world”
MANAGING CHANGEThe Normal Change Cycle – Step 5: Challenging the Change
MANAGING CHANGEThe Normal Change Cycle – Step 5: Challenging the Change
Encourage continued refinement of the process
Continue employee involvement Communicate successes
MANAGING CHANGEThe Normal Change Cycle – Step 6: Gradual Acceptance
MANAGING CHANGEThe Normal Change Cycle – Step 6: Gradual Acceptance
Testing before committing Watching others accept the change People find a way to match their
skills and abilities to the new process
MANAGING CHANGEThe Normal Change Cycle – Step 7: Acceptance
MANAGING CHANGESo How Do I Get People to Change Successfully?
Eight Steps (and you must do them all!)
1. Create a Sense of Urgency
2. Form a Team
3. Create a Vision
4. Communicate the Vision
MANAGING CHANGESo How Do I Get People to Change Successfully?
Eight Steps (and you must do them all!)
5. Empower others to Act on the Vision
6. Create Quick Wins
7. Build on the Change
8. Institutionalize the Change
MANAGING CHANGE
DETERMINING SAVINGS
HARD SAVINGS ARE ACTUAL
$ Saved
FTE employee reassigned
Cost Avoidance
SOFT SAVINGS ARE LESS QUANTIFIABLE
Time reduction
Improved efficiency
Customer Satisfaction
Increased Sales
SAVINGS: HARD VS. SOFT
DETERMINING SAVINGSSAVINGS: Hard vs. Soft Example
Task Person Performing TaskBefore
Automation After Automation Savings (min) # Contracts Rate/Hr Savings ($)Find current form and create contract DM/TM/Admin 20 10 10 1,300 $75 16,250$
Accounting 5 0 5 1,300 $606,500$
RVP/Regional Admin 3 0 3 1,300 $1207,800$
SVP/SVP Admin 3 0 3 1,300 $20013,000$
All 20 5 15 1,300 $75 24,375$
Total: 127 57 70 1,300 139,208$
Accounting reducing one headcount: 55,000$
Total annual savings: 194,208$
Avg Time spent per contract (min)
DETERMINING SAVINGSSAVINGS: Hard vs. Soft Example
Task Person Performing TaskBefore
Automation After Automation Savings (min) # Contracts Rate/Hr Savings ($)Find current form and create contract DM/TM/Admin 20 10 10 1,300 $75 16,250$ Scan, fax or email between Admin and DM DM/Admin 10 1 9 1,300 $75 14,625$ Process form and get it to Accounting Admin 5 1 4 1,300 $45 3,900$ Get readable copy and enter in ClearPay Accounting 20 15 5 1,300 $60 6,500$ Print copy and provide to Acct Mgr Accounting 3 0 3 1,300 $60 3,900$ Review/Approve contract Acct Mgr 5 5 0 1,300 - -$ Print ClearPay screens, combine with Contract, and route to Regional Admin
Accounting 5 0 5 1,300 $606,500$
Review contract and ClearPay entries Regional Admin 5 5 0 1,300 - -$ Route hard copy version to RVP Regional Admin 3 0 3 1,300 $60 3,900$ Review/Approve contract and forward hard copy to SVP
RVP/Regional Admin 3 0 3 1,300 $1207,800$
Review/Aprove contract and forward hard copy to Originator
SVP/SVP Admin 3 0 3 1,300 $20013,000$
Reviewing with Dealer DM/TM 15 15 0 1,300 - -$ Providing Dealer copy DM/TM 5 0 5 1,300 $100 10,833$ Routing signed copy to Admin and Acctg DM/TM/Admin 5 0 5 1,300 $75 8,125$ Tracking contract to determine who has it, calling/emailing to get it signed, providing duplicate copies when lost, filing, sending copies when requested, researching etc
All 20 5 15 1,300 $75 24,375$
FedEx, copying, and filing Accounting/Sales 19,500$ Total: 127 57 70 1,300 139,208$
Accounting reducing one headcount: 55,000$
Total annual savings: 194,208$
Avg Time spent per contract (min)
PROJECT TIMELINE
Project Milestones
Select Team and Create Charter (D) 2 Weeks
Process Map the Current State (M) 3 Weeks
Define the Future State (A) 2 Weeks
Recommend and Implement Improvements (I) 4 Weeks
Periodically Reconfirm Actions (C) 3 Weeks
Total: 14 Weeks
LEAN CONTINUOUS IMPROVEMENT
Questions?
Your Mohawk Resources Flooring and Home
Phil Zolan x42062
Corporate and Ceramics Mike Savini x42025