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Download Thinking LEAN - Finance and Resource Management ...oe.  Mini Conf_10-19-2015_web version...Objectives and Expectations • Start “thinking Lean” • Better understand Lean methodology • Utilize Lean concepts to identify and remove ... 3 What is Lean? Creating more value for customer with fewer resources Lean is a philosophy

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  • Thinking LEAN

    1

  • Objectives and Expectations Start thinking Lean Better understand Lean methodology Utilize Lean concepts to identify and remove

    waste and enhance customer value Understand your role in creating a Lean culture

    2

    PresenterPresentation Notes

  • 3

    What is Lean?

    Creating more value for customer with fewer resources

    PresenterPresentation NotesLean is a philosophy for how we do our work everyday. Ask yourself/your teamHow are we including the voice of the customer in the design, delivery and improvement of our services?Are we using data to inform our decisions and validate assumptions?Are we engaging and empowering employees to improve the efficiency and effectiveness of our services?Are we setting SMART goals and measuring our performance?Are we holding ourselves and others responsible for following through on commitments?Are we continuously improving? Are we experimenting and learning from our success and failures?

  • History of Lean

    Continuous improvement methodology originated in 1920s

    Refined by Toyota Motor Corporation in early 1960s

    Today, Lean is successfully adopted across all types of organizations and business sectors including higher education.

    4

    PresenterPresentation NotesCal Poly San Luis ObispoCalifornia State UniversityUniversity of WashingtonUniversity of Notre DameTexas A&M UniversityThe George Washington UniversityThe Ohio State UniversityUniversity of AlabamaUniversity of Central OklahomaMarquette UniversityMichigan State UniversityMissouri Southern StateDuquesne UniversitySaint Louis UniversityAerospaceConsumer ProductsConsultingFinancial & InsuranceIndustrial EquipmentElectronicsProcess IndustriesMedical & PharmaceuticalFood & Food ServiceHealthcareKaiser HospitalUniversity of California, Davis Health System

    Other examples:State of Minnesota, Department of Administration, Office of Continuous Improvement

  • 3 Pillars of Lean

    Increase Value

    Reduce Waste

    Respect People

    5

    PresenterPresentation NotesRespect for PeopleIt starts with self-awareness and personal accountability for our own leadership. Ask yourself, Am Icontinuing to grow, learn, and develop?* building capability with those around me?* coaching and acknowledging others?* using language constructively, listening and communicating effectively?* contributing to the development of a Lean culture?* actively improving processes and solving problems?* being accountable to the results, as well as, the process to achieve them?

  • A Lean culture

    Begins with a committed leadership Encourages team-based problem solving Emphasizes communication and teamwork Leverages staff talent Challenges the status quo

    6

  • A Lean culture

    Standardizes processes Eliminates tasks that do not add value Makes processes as easy as possible for

    customers and staff Focuses on continuous improvement Automates repetitive tasks Requires metrics and goals

    7

    PresenterPresentation Notes

    Benefits of Lean:Reduced product and service cost because you minimize product wasteEnhanced customer satisfaction and reduced customer complaints because customer needs and preferences drive service design and improvementsIncreased staff engagement and morale because staff are involved in making the process better.Increased service quality a)problems are solved at their source b)listen to customers c)use data and best practices in service design d)use creativity to identify no/low cost solutionsIncreased accountability because people are following the Lean methodology

  • The Perfect Process

    Is completed entirely by one person Is completed one at a time (no batching) Is completed as soon as the request is made Is completed without interruption (flow) Is completed with the information provided Is completed correctly (no defects) Never returns

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    PresenterPresentation NotesIdeal process = no wasteCompleted by one person = eliminate/limit the number of hand-offsCompleted one at a time = batching slows over all processing cycle time and creates inventoryCompleted as soon as request is made = no waitingCompleted without interruption = in a perfect world, work would be completed without interruptionsCompleted information provided = accurate and complete data leads to less interruptions, less waiting, less defectsCompleted correctly = goal should always be accurate and correct work moving forwardIt never returns = no errors = no rework

  • Three Types of Process Activities

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  • Value Add Activities In Lean, value is defined from the end user/customer perspective.

    Value add activities: Address the form,

    features or functions that the customer desires Are done right the first

    time (no rework) Directly contribute to

    customer expectations 10

    PresenterPresentation NotesSpecify value by product from the standpoint of the customer. Applies to services as well as goodsMost customers just want a solution to their problem.

    To be effective, we must:Understand what features, benefits, services are most important to our customer (departments/units that we serve)Identify the process activities that deliver those desired outcomesStreamline or eliminate all other non-value-adding activities

    Define value from the customers perspective

  • Value to the Customer

    Quality meets or exceeds expectations

    Delivery reliable and consistent

    Cost right price or resource investment

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  • Non-Value Add Activities Consume resources but create no value for the

    customer Could be stopped and it would be invisible to the

    end-user or customer

    Goal: To ELIMINATE non-value-added activities

    because they are WASTE 12

    PresenterPresentation NotesNon-value added processes:Steps not part of the original scopeDuplicate efforts (costs money wastes time)Unnecessary approvals/sign-offsSteps that leave finished products idle (waiting)Additional processes that arent needed or wanted by customer

  • Example

    Depositing a check into a bank account

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  • Value Add vs. Non-Value Add

    Non-Value Add 25 Minutes 96% of total time

    Value Add 1 Minute 4% of total time

    14

    PresenterPresentation NotesExamplesValue-added activities:Entering ordersTranslating materialsCreating codesPreparing drawings/artworkAssembling goodsShipping to customers

    Non-value-add:CheckingSignaturesAsking approvingReviewing FilingReportingMonitoringReworkTransportationSearching - gathering

  • Value Add 1 Minute 33% of total time

    Non-Value Add 2 Minutes 66% of total time

    Value-Add vs. Non-value-add

    15

  • Essential Non-Value Add Activities

    Activities that dont contribute to customer satisfaction that must be done to comply with regulations, organizational policies, etc.

    Periodically examine these activities to make sure they are necessary. If not, eliminate them.

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  • ACTIVITY

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  • Directions

    The worksheet has a list of value add, non-value add and essential non-value add administrative activities

    In the next five (5) minutes, individually identify the category in which each activity belongs

    When youve completed your individual worksheet, turn it over on the table

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  • Directions

    At each table, identify a facilitator and a scribe In the next ten (10) minutes, discuss the

    individual responses to the worksheet and then, as a group, come to consensus about the correct response for each activity

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  • Value Add Review

    Activity

    1. Maintenance of office equipment 2. Two-year supply of a form in the

    filing cabinet 3. Taking customer orders 4. Re-typing the information

    Type

    1. ENVA 2. NVA 3. VA 4. NVA

    20

  • Value Add Review

    Activity

    5. Hunting for the correct paper for the copy machine

    6. Printing a time sheet, then scanning and mailing

    7. Printing the required number of certificates for class participants

    8. Maintaining HR records

    Type

    5. ENVA

    6. NVA

    7. VA

    8. ENVA

    21

  • Value Add Review

    Activity

    9. Filing a copy of the completed form in two offices

    10. Filling out reports that no one looks at

    11. Ordering business supplies 12. Calling to get missing information

    Type

    9. NVA

    10. NVA

    11. ENVA

    12. NVA

    22

  • Value Add Review

    Activity

    13. Collecting customer feedback 14. Printing paperwork too soon

    15. Face time with clients/customers

    16. Double checking a colleagues work

    Type

    13. VA

    14. NVA

    15. VA

    16. NVA

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  • Value Add Review

    Activity

    17. Electronically collecting meal orders for an event

    18. Preparing compliance reports

    19. Safety inspection of work environment

    20. Backing up computer files for data storage

    Type

    17. VA

    18. ENVA

    19. ENVA

    20. NVA

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  • What is Waste?

    The elements of an activity that do not add value from the customer

    perspective

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    PresenterPresentation Notes

    Acronym DOWNTIME may help you remember the 8 wastes

    Customers define value in a processWaste is typically 90% of a processLean training gives us a lens to see wasteLean also gives us a common vocabulary to describe waste

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  • Waste: