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Continuous Improvement

2011 Capgemini. All rights reserved. 2

Agenda 1. Ice breaker

2. Types of Continuous Improvement

3. Basics of Lean thinking

1. Understand 5 principles of Lean

2. Articulate 7 key WASTES

4. Kaizen

5. Poke Yoke

6. 5S

7. Lean Tools

1. SIPOC

2. VSM

8. Lean Foundations

Operations Meeting Frame work

Visual Management

A3 Thinking

A3 Breakout Session

3 2011 Capgemini. All rights reserved.

Why Continuous Improvement ?

YB_Training_Content_with_CLF_2013_V1.

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Co

nti

nu

ou

s im

pro

vem

ent

Rome

BMW

Ipad 4

Rome was not build in a day and so do the vehicles and the computers we use.


Different tools used for continuous improvement


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Kaizen

JIT

Quality

Circle PDCA

Total

Quality

Manage

ment

Poka-

Yoke

5S

Pull

system

Automat

ion

Pull

system

5 whys

Fish

bone

Kanban

Eliminati

on of

Mudas

Go look

and see

Over the next 2 days we would focus our attention on lean and six sigma.

FMA Best Quality

Lowest cost

Shortest lead time

High Morale


Post World War II Toyota had few resources compared to the USA

Mass production could never be replicated as they could not buy or access the machinery, materials or the skilled

workforce

Ohno realised that they had to:

o Produce in small batches

o Produce good quality and when errors occur correct them and

prevent them from reoccurring

o Flow production

Definition and origins of lean


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The term lean is a generalisation of the Toyota Production System methodology developed by Taiichi Ohno

Definition

Origins


Lean focuses on delivering maximum value to the customer by eliminating waste

Lean Thinking has successfully transformed many companies, giving them a greater focus on performance and customer requirements

C. R. Allen, 1919C. R. Allen, 1919C. R. Allen, 1919C. R. Allen, 1919

T. OhnoT. OhnoT. OhnoT. Ohno

TWI, 1940TWI, 1940TWI, 1940TWI, 1940

S. ShingoS. ShingoS. ShingoS. Shingo

MMthodesthodes

japonaisesjaponaisesMMthodesthodes

japonaisesjaponaisesTPS HouseTPS House, Cho, 70, Cho, 70ssTPS HouseTPS House, Cho, 70, Cho, 70ss

S. Toyoda, 1890S. Toyoda, 1890 ssS. Toyoda, 1890S. Toyoda, 1890 ss

E. DemingE. DemingE. DemingE. Deming

J. JuranJ. JuranJ. JuranJ. Juran

K. Ishikawa, 60K. Ishikawa, 60ssK. Ishikawa, 60K. Ishikawa, 60ss

J. Womack & D. JonesJ. Womack & D. JonesJ. Womack & D. JonesJ. Womack & D. Jones

LeanLean

Jido

ka

Jido

ka

Qualit

Qualit

JITJITKaizenKaizen

C. R. Allen, 1919C. R. Allen, 1919C. R. Allen, 1919C. R. Allen, 1919

T. OhnoT. OhnoT. OhnoT. Ohno

TWI, 1940TWI, 1940TWI, 1940TWI, 1940

S. ShingoS. ShingoS. ShingoS. Shingo

MMthodesthodes

japonaisesjaponaisesMMthodesthodes

japonaisesjaponaisesTPS HouseTPS House, Cho, 70, Cho, 70ssTPS HouseTPS House, Cho, 70, Cho, 70ss

S. Toyoda, 1890S. Toyoda, 1890 ssS. Toyoda, 1890S. Toyoda, 1890 ss

E. DemingE. DemingE. DemingE. Deming

J. JuranJ. JuranJ. JuranJ. Juran

K. Ishikawa, 60K. Ishikawa, 60ssK. Ishikawa, 60K. Ishikawa, 60ss

J. Womack & D. JonesJ. Womack & D. JonesJ. Womack & D. JonesJ. Womack & D. Jones

LeanLean

Jido

ka

Jido

ka

Qualit

Qualit

JITJITKaizenKaizen

The five principles of Lean

1. Define what is of value to the customer

2. Create a continuous flow of value to the customer,

eliminate waste and complexity

3. Link the flow of value directly to customer

demand

4. Empower employees to manage the process,

and make them accountable for improvement

5. Maintain a strong focus on continuous

improvement

Waste is anything that consumes time & resources, but does not contribute to satisfying customer needs, or something that the customer will not pay for


Toyota identified 7 wastes, which are relevant to most business environments

Activities Wastes

Company

Value Added

Customer

Value Added

The 7 wastes

1.Waiting Unassigned capacity between projects

2.Over production Development exceeding contract scope

3.Rework Code being revised

4.Motion Resources switched between tasks

5.Over processing Non-actionable supporting tools

6.Inventory Large backlog of tickets

7.Transportation Multiple handoffs in ticket management

8.Intellect People at wrong place in the orga.

Definition

1. Waste adds no value to the

customer and no value to the

organization.

2. Company Value added is

required to enable key

business processes,

governance, security and

integrity.

3. Customer Value Added is the

work that is done that gives

the customer the service

required.

7 types of waste or 7 Mudas

Lean provides a way of doing more with less and less while coming closer and closer to the customers needs


Categories of Wastes in Business environments

Toyota Examples Service Examples

Waiting Waiting for previous processes to finish.

Waiting for materials to arrive

Waiting for Computer Systems to Load

Waiting for Responses from other teams

Over Production Production of parts without a customer order Reports that no-one reads

Making extra copies of documents

Rework Time spent making defective products that

can not be accepted by the customer

Data entry errors

Missing customer information

Motion Excessive human / equipment effort poor layout and process design

Searching for files

Extra key strokes

Over Processing Adding to a part something that is not

required by the customer

Repeated entry of the same data

Giving more info. than the customer needs

Inventory Raw Material / WIP / Finished goods tied up capital

Queues of paperwork

Unopened customer applications

Transportation Moving parts from one location to another

without adding value Posting paperwork between departments

The identification and elimination of waste is fundamental to Lean reducing costs and increasing profit. Other benefits are derived from waste elimination

Intellect Mismatch between skill and job requirement Ineffective staffing , Ineffective Induction


Lean breaks down barriers and leads to effective end-to-end team working

Department 4

Department 1

Department 2

Department 3

Current Scenario

Department 4

Department 1

Department 2

Departments 3

Future Scenario


Kaizen Thinking

The Kaizen philosophy is drawn from the Japanese word

kai which means continuous and zen mean in improvement or wisdom.

The Kaizen management philosophy, therefore, is defined as making continuous improvementslow, incremental but constant

Kaizen Kai + zen

CURRENT THINKING

WASTE

WASTE NOT DEFINED

REACT TO LARGE EXAMPLES

REACTIVE IMPROVEMENT

TYPES OF

WASTE

Correction

Processing

Motion

Waiting

Inventory

Transpor-

-tation

Over- Production

REQUIRED THINKING

WASTE IS "TANGIBLE

IDENTIFY MANY SMALL OPPORTUNITIES

LEADS TO LARGE OVERALL CHAGE

CONTINUOUS IMPROVEMENT


Promote Safety

Improve Work Flow

Better Product Quality

Reduce Inventory Waste

Give People Control of Their Workplace

5 S

5S : A systematic

approach to organize

and standardize the

workplace

Sort (Seiri) - Clear

Set In Order (Seiton) - orderliness

Shine (Seiso) Clean and make it dust free

Standardize (Seiketsu) Define & Refine

Sustain (shitsuke) -

Adherence

Clearly distinguishing between what is necessary and

what is unnecessary and disposing of the unnecessary

Organizing the necessary items so that they can be used

and returned easily

Cleaning floors, equipment, and furniture in all areas of

the workplace

Maintaining and improving the standards of the first three

Ss

Achieving the discipline or habit of properly maintaining

the correct 5S procedures

Objectives


5S in Software

Keep only relevant information and update it regularly e.g. if the version of Windows in a server is changed from 2000 to 2003, the same should be updated

Sort (Seiri)

Configuration

Management

Database

Server

Information

Server Name CPU Speed Disk Space Memory Size

Application

Inventory

Application Name Technology Used Current Version No of versions released

User Information

User Name Applications owned Privileges/Rights Tenure

Keep the organized so that they can be located easily. Use proper naming conventions

Set (Seiton) Keep the information current and remove all redundant content e.g. if a particular user id is not does not exist, the same should be deleted from CMDB database

Shine (Seiso)

Standard naming conventions should be used and proper guidelines followed to organize the information

Standardize (Seiketsu)

Review the content regularly to ensure there are no violations to rules or guidelines

Sustain (Shitsuke)

5S is: A systematic approach to organize and standardize the workplace


Built in Quality(Jidoka)

e.g. Jidoka is sometimes called autonomation, meaning automation with human intelligence

For coding activity , use of Quality Prob is example of Jidoka

Jidoka: A quality control method that involves thorough, automatic

inspection of every product as it moves through the conversion

process. .

Ji self Do movement, motion Ka -ize, to be or become


Poka- Yoke / Error Proofing

Poka Yoke or error proofing is one key element of a quality system.

A Poka Yoke (from the Japanese poka (mistakes), yokeru (avoid)) is any

mechanism/system in a Lean environment that draws attention to, prevents or

eliminates errors as they occur.

There are three levels of error proofing:

Elimination

Prevention

Detection

To eliminate errors first they must be detected and prevented


Error proofing is present in everyday life

Are these detection or prevention?

Beep

beep!

Detection Prevention

You can still oversleep!

It doesnt prevent you from running out of petrol

Nothing actually stops you

Its impossible to put the plug in the wrong way round

You dont get your cash until you remove your card

Its impossible to drop the cover down the hole

SIPOC & VSM Lean Tools


The SIPOC enables to have a shared overview on a process


KT Management (IS) - SIPOC example


What does a SIPOC Workshop look like ?

Identify Suppliers, Inputs / Outputs and Clients connected to the process

1 Establish the boundaries of a business process by showing its start and end

points

2

Design high-level steps of the process

3 Identify wastes on the process

4

Do we have all

macro-

steps ?

Suppliers, Input,

Output, Customers

Process Steps

Wastes


Value Stream Mapping (VSM) is a method used to understand and visualise the production, material and

information flow of a process

Cycle time ,

individual TAT,

holding time, Delay

time etc has to

derived from real

lifecycle / system

data


What does a VSM Workshop look like ?

Position the client of the process (internal or external) and if possible list

its requirements

1

Identify process steps : activities being performed in that process

2

For each step of the process collect data on required delivery time, delivery delay

and inventory

4

1 day 2 days

1 hour 2 hours

Delay time

Cycle time

For each step, identify who is doing the activity and how many people are

involved

3

Identify best practices and waste, and calculate value-add ratio

Use the 7+1 Waste

5

Process step

description

Stakeholder

10

Inventory

Waste


Example of data box

Time lines

Process

Process

Process

Green: Customer value added

Orange: Non value added for customer Needed for Business

Red: Non value added - Waste

Process

Assoc.

CT

(min/secs)

RFT

(min/secs)

VA

(min/secs)

Batch size

Process/ Activity name

/description

Number of people

working at the process

Cycle Time

Right First Time

Estimate of value added

time

Batch size

Other information

(delays, distance

travelled etc).

1 day 2 days 4 hrs

4 hrs 83 s 1 hr Delay times

Cycle times

1 day

Cycle time , individual

TAT, holding time, Delay

time etc has to derived

from real lifecycle / system

data


SOME IMPORTANT DEFINITIONS

Cycle time The total time taken from the start of the production of a product or service to its completion. Cycle time

includes processing time, move time, wait time, and inspection time, etc..

Period required to complete one cycle of an operation; or to complete a function, job, or task from start to

finish.

Delay or Non Value added time Time spent on Non-value added work, also called waste, refers to work that doesn't add value to or is

unnecessary for the overall project.

Takt Time Takt is a German word which refers to the beat of music or meter

Takt Time-- the desired time for units of production output, synchronized to customer demand.

Takt time is the time given by customer to complete a single unit

Example1 :

In a retail store that is open 8 hours a day including weekends there are 30 billing tills and during peak

season there are 30000 customers buying goods in 30 days. What is the TAKT time per till assuming that

arrival rate of customers is even in all the billing tills and how many customers are serviced in one day?

Answer

Takt time/customer = 30*30*8/30000= 0.24 hours

Number of customers serviced in a day = 30*8/0.24 = 1000


Takt Time Example

Request

Type

Weight age No Equivalent

Simple Requests

Complex 4 12 12*4 = 48

Medium 2 20 20*2 = 40

Simple 1 40 40

Total 128

A release is planned for 12 complex , 20 Medium and 40 simple tickets in 10 days

Total Available time = 10*8*8 = 640 hours

Takt time = 640/128 = 5 hours/simple ticket

Resource Skill Level No Equivalent

Simple Resources

P1 Highly Skilled 1 1*2 = 2

P2 Medium Skilled 2 2*1.5 = 3

P3 Low Skilled 3 3

Total 6 8

A release is planned for 50 tickets in 5 days and they work on 24/7 support, Calculate Takt time if 8 resources are working in

the team.

Answer

Takt time/Ticket= 5*24*8/50= 19.2

hrs

Takt time Exercise

Process Step --------

Estimation and planning (One piece flow) Tracking - Track current progress of project and stabilizing the production Load Levelling - Check whether each employee has a full job, passed to Takt Time


Some examples where VSM can be applied

Software Execution processes:

o TS : Concept thru design and implementation to release in new development

o OS services: Bug reproduction, analysis to bug fixing, testing and build in defect fix cycle

o Testing: Developing test plans and testing the product to releasing the final product in case of

validation

Information Management Processes:

o Project Management : Allocation of work, monitoring of progress, updating stake holders on the

progress, issues and risks till releasing the final product to Customer or validation group

Physical transformation Processes

Recruitment, training them and allocating them to the projects as per requirement

Organizational level Processes

Finance, Invoicing and MIS reporting etc


TO-BE VS AS-IS

The future state map is created from the current state map

To draw a future state map and create the conditions for change, you need to consider:

Flow

Where can you use continuous flow

How you level production to support improvements

What process improvements are necessary (e.g. reliability, quality etc.)

Conclusion

VSM is at the core of Lean Process Improvement Activity

VSM is a powerful, flexible, visual tool, which enables everybody to interpret the steps of a process, and highlight the lead time and the waste contained within

the process

The map if kept dynamic will help prioritise opportunities for improvement


Symbols

FIFO First In-First Out Sequence

% Rework (% of total

# items)

# Inventory

Manual

Information Flow

Electronic

Information Flow

Operator

Material movement push :

material moved based on a schedule

or within regard for receiving

process

would continue if proceeding process

was stopped

use with transport symbols

Material movement pull :

demand from proceeding process

would stop if proceeding process was

stopped


CUSTOMER

Process stakeholders:

Top of map for parties effecting many

areas shows communication put and

requirements

Data Box Process stakeholders:



requirements


Symbols

Rework (% of total

# items)

# Inventory

Manual

Information Flow

Electronic

Information Flow

Operator

Material movement push :

material moved based on a schedule

or within regard for receiving

process

would continue if proceeding process

was stopped


Material movement pull :

demand from proceeding process

would stop if proceeding process was

stopped


CUSTOMER

Process stakeholders:



requirements

Data Box Process stakeholders:



requirements

Inventory:

shows where inventory is present within the process flow actual quantity

of inventory is shown within the

triangle


Value Stream Mapping Example (before Lean)

Customer sent

Bugfix to FO

team

Process Cycle Efficiency = 135/340 = 40%

Request

Assignment

Implementation

Regression

Testing

Release and

acceptance

Close Defect

CT=90 VT=45 CT=140 VT=40 CT=55 VT=20 CT=55 VT=30

Ticket has been

logged in tool

Offshore PM picks up ticket

from tool and assign to analyst

Analyst sent fo PM

for clarification

PM sent fo FO team

for clarification

FO team sent details

after clarifying with client

CT=10 VT=10 CT=10 VT=5 CT=20 VT=20 CT=30 VT=5 CT=20 VT=5

Analysis of Bug

Reproduction of Bug

Coding

Code Review

Request was

on Hold

Fixing of

errors

CT=5 VT=5 CT=60 VT=0 CT=5 VT=5 CT=20 VT=20 CT=10 VT=5 CT=40 VT=15

D D

D I


Value Stream Mapping Example (After Lean)

Customer sent

Bugfix to FO

team

Request

Assignment

Implementation

Regression

Testing

Release and

acceptance

Close Defect

CT=40 VT=35 CT=60 VT=40 CT=55 VT=20 CT=55 VT=30

Ticket has been

logged in tool

Offshore PM picks up ticket

from tool and assign to analyst

Analyst sent fo PM

for clarification

PM sent fo FO team

for clarification

FO team sent details

after clarifying with client

CT=10 VT=10 CT=10 VT=5 CT=20 VT=20 CT=30 VT=5 CT=20 VT=5

Analysis of Bug

Reproduction of Bug

Coding

Code Review

Request was

on Hold

Fixing of

errors

CT=5 VT=5 CT=60 VT=0 CT=5 VT=5 CT=20 VT=10 CT=10 VT=5 CT=20 VT=15

D D

I

Process Cycle Efficiency = 125/210 = 60%

Capgemini Lean Foundations


Since 2009 experience in deploying Lean in Capgemini has helped us define a set of Foundations that are changing Capgeminis delivery

model


Capgemini Lean Foundations : Release 2.0 March 2012

Deep dive into 3 of the Lean Foundations


OPERATIONS MEETING FRAMEWORK


Operations Meeting Framework for Distributed Teams


Terms of reference for the Daily Stand Up Meeting (d-STUM)


Terms of reference for d-Debrief


Terms of reference for the Weekly Operations Meeting (WOM)


Terms of reference for the Monthly Information Meeting


The basics to have an efficient meeting


Lean Foundations - Visual Management


Key benefits of Visual Management


Key components of Visual Management linked to other CLF


d-STUM board


Visual Management & Daily Stand-up Meetings on the France Telecom CRM Factory project (Paris/Mumbai)


WOM board


MIM board


Lean Foundations- Continuous Improvement


A3 Thinking is a 12 step process to develop Continuous Improvement capability in the organisation


Step 1 : : Name the Project


Step 2 : Identify the leader and specify the launch date


Step 3 : Describe the problem


Step 4 : Define the Scope


Step 5 : List the Objectives


Step 6 : Set a target with a measurable KPI


Step 7 & 8 : Name the Sponsor & name the team members


Step 9 : Understand the current situation


Erase and rewrite the A3 !


Step 10 : Define the target situation


Step 11 : Define an implementation plan


Step 12 : Track benefits achieved vs. planned


Use the Accountability Board in the Obeya Room to review progress on the implementation of the A3


The A3 Meeting system ensures that stakeholders are aligned


Breakout Session : A3 Thinking

Based on what you have learnt today, in your groups, select one of the below problem theme and develop an A3.

1.Poor road conditions in Mumbai during monsoon.

2.Communication gaps between onshore, offshore teams

3.High backlog of incidents

4.Too many defects / rework

Task

60 minutes to design 5 min to present the

A3


Implementation approaches Lean & Six Sigma


Implementation approaches Lean & Six Sigma

DFSS / DMADOV

Design for Six Sigma

DMAIC

Define, Measure, Analyze,

Improve, Control

CLF warm up for

small accounts

Lean from start

(Transition)

16 week

cycle

Engagement in

crisis approach

Flow

approach

A3

Practice

Upgrade existing

account with new

lean foundation

Six Sigma Capgeminis approaches on Lean

A3 will be the standard way of representing Continuous Improvement in Capgemini.

Different approaches are used in Capgemini as per the requirement of the account management and/

or the Client request.

Basic 7-

Statistics

9 week

cycle

yb training content with clf 2013 v1.0

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