Introduction to Lean. Tamara Saltman EPA Office of Air and Radiation
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1 Introduction to Lean 1 Tamara Saltman EPA Office of Air and Radiation
2 2 What We ll Cover Today 1. What is Lean? 2. How Does Lean Work? (Concepts, Terminology, and Tools) 3. Preparing for a Lean Event
3 Module 1 3 What is Lean?
4 4 What are Process Improvement Methodologies? Management systems that include tools, methods, and principles focused on providing organizational value by removing waste, inconsistencies, irrational expectations, constraints and variation from our processes
5 5 What is Lean? Lean is a set of principles and methods for identifying and eliminating waste (non-value added activity) in any process. It is also a way for groups of employees to get control of how they do their work
6 6 Key Lean Principles Emphasis on: Workforce empowerment - engage the right people to improve the process (those who actually do the work!) Rapid, real-time change Doing over planning Bring measureable and sustained improvement results by using data and metrics to track progress Helps people learn to see Building and sustaining momentum towards creating a continuous improvement culture
7 7 Lean in a Nutshell Effort & Resources Input This process has happier customers and employees, wastes less time and resources, and produces the same - or better - results in less time. This process is slow, frustrating, and ineffective at providing value equal to or more than the resources invested. Results Results Which pipeline does your organization look like? Which pipeline would you like to emulate?
8 8 Optimize the Overall Goal, Not Just the Local One Global goal: Optimize entire process, not just separate parts Tendency is to optimize parts of the process as individual components (focusing on own section) without considering how it will affect the entire process. This method may not improve overall results and could potentially cause unintended negative side effects. In order to achieve the best results, the team must see, measure, and assess itself on how well it supports the overall goal(s).
9 9 Why Lean? There are multiple improvement methodologies/tools on the market (i.e., lean, six sigma, 5S, etc) just like your toolbox, it s about picking the right tool to address the problem I primarily use Lean, plus a smattering of other methods, because Lean is well-suited to many problems with office-based processes.
10 Improvement Methodologies Comparison Six Sigma Lean (Our Focus) Theory of Constraints Problem Focused Reduce Variation Flow Focused Remove Waste System Constraints Focused Manage Constraints All three methodologies work to achieve the same thing: Creating the Most Efficient and Effective Processes Possible! Nave, Dave. How to Compare Six Sigma, Lean and the Theory of Constraints. Quality Progress. March
11 11 Why Do We Need Lean? Workload Resources Lean can improve EPA operations through multiple routes: Reduced process complexity Enhanced process speed Reduced rework High quality products and services Superior customer service Improved staff morale Increased sense of staff empowerment Finite resources focused on higher value activities Better environmental results
12 12 Leadership Support for Lean at EPA Strong support from Administrator McCarthy Executive Management Council Endorsement Office of Policy leads effort nationally Many HQ and Regional Office projects EPA Lean Leaders Program Lean Community of Practice National Lean Summit (October 22, 2014) See how Lean is working for the EPA: =player_detailpage&v=ll6-2lfvngy
13 13 From the Manager of an EPA Lean Team I know I am repeating myself, but I really think this has the potential to be a transformative change. Before the lean process, [our process] was something thrown over the wall with tons of issues that this team was stuck having to manage. We didn t own the process, we suffered through the process. Post lean process, the team created something new that was their creation, work that they owned. I believe that ownership and self-determination will go a long way to improving how the team approaches its work resulting in a more engaged staff and better results. We will definitely being doing more lean projects.
14 Module 2 14 How Does Lean Work?
15 15 Lean Concepts, Terminology, and Tools PDCA (Plan Do Check Act) Mapping the Process Lean Metrics Value vs. Non-Value Added Activities Process Wastes ( DOWNTIME ) Constraints and Bottlenecks 5 Whys 5S Method
16 16 PDCA: Plan-Do-Check-Act (Problem Solving Method) PLAN what you want to accomplish and what you need to do to get there Clarify the problem Break down the problem Set a target Analyze root causes Develop countermeasures DO what you planned on doing Implement countermeasures CHECK the results of what you did to see if the objective(s) were achieved Evaluate results and processes ACT on the information to standardize and/or plan further improvements Standardize success and learn from failures
17 17 Mapping The Process What We Think It Is. What It Actually Is. What We Would Like It To Be. *Information & materials borrowed with permission from the Lasater Institute
18 18 Value Stream vs. Process Mapping Value stream map takes a high level look at an organization s flow of goods, services, or information Swim lane process map - provides a more detailed look with a deeper dive into individual steps or processes
19 19 Adding Lean Metrics Process Time (PT) time it takes to actually perform the work (includes talking, thinking, doing), if it happens without any interruptions Lead Time (LT) - How long it takes from when the previous step is completed until the following step can begin (sum of PT + wait/delay times) Lead Time work received Process Time work passed to next step % Complete & Accurate (%C&A) - The percentage of the time the next person in the process can complete his/her step without asking for : Correct info or material that was supplied Add info that should have been supplied Clarify info that should or could have been clear Measure of Work Quality & Accuracy * Martin, Karen. Metrics-Based Process Mapping. The Karen Martin Group, Inc.
20 20 Defining Activity Value Value Added (VA): Any operation or activity your external customers value & are (or would be willing) to pay for Non-Value Added (NVA): Any operation or activity that consumes time and/or resources but does not add value to the services/products provided from the customer s perspective Necessary: Regulatory or necessary for the business to function effectively, etc. Unnecessary: Everything else WASTE! * Martin, Karen. Metrics-Based Process Mapping. The Karen Martin Group, Inc.
21 21 Defining Activity Value Activity that is unnecessary in achieving the objective of the operation or process WASTE non-value added, unnecessary work VALUE ADDED WORK NON-VALUE (but necessary) ADDED WORK Approximatel y 5-15% of what we do is value-added work for our customers Non-value added activity that cannot be skipped under the current constraints or system design * Martin, Karen. Metrics-Based Process Mapping. The Karen Martin Group, Inc.
22 22 Mapping: Value Added vs. Non-Value Added Activities Value Added Activities Value- Generating Steps Non-Value Added (but necessary Does NOT today) Generate Value Non-Value Added (and not necessary) Does NOT Generate Value Missing Steps? (that should be added) Would Generate Value or Prevent Waste? KEEP REDUCE ELIMINATE ADD *Information & materials borrowed with permission from the Lasater Institute
23 23 8 Wastes DEFECTS e.g. Missing data; Errors WAITING e.g. Waiting for approval; Waiting for the rest of the info you need; Waiting for someone else to complete their part OVERPRODUCTION e.g. Doing the same thing more than once; Doing work that isn t needed Environmental Waste Non- Utilized Talent e.g. Not seeing the value in resources (people, materials, etc.) you already have
24 24 8 Wastes (continued) EXCESS PROCESSING e.g. Adding steps that aren t adding value (e.g. the 15 th review) TRANSPORTATION e.g. Moving things unnecessarily; Moving people unnecessarily INVENTORY e.g. Holding on to stuff you re likely never going to use; Gumming up the process with info that doesn t need to be there that slows down the whole system MOTION
25 25 Batching: Waiting in Plain Sight Customer Order: 5 Reports (Paper / Post-Its), with evidence that each team member has completed their tasks on each report. Task: Each team member must write the word Flow in one of the empty spaces on the Post-it. Flow must be written with a capital F, can be printed or written in cursive, and must be written within the lines.
26 26 Constraints & Bottlenecks A constraint is that part of the system that has the smallest capacity relative to the demand on it. If a constraint is unable to meet demand, it becomes a bottleneck. If changes are made to improve parts of a system without addressing the constraint, the improvement will do nothing to improve efficiency. Sometimes, overall performance can even be harmed. Example: Capacity of 5 Processes in a Pre-Operative Medical Clinic Total process cycle time/visit Avg. # of visits per day (Demand) Anesthesia Nursing Administrative EKG X-Ray 15 min 18 min 8 min 10 min 9 min 35 visits 27 visits 29 visits 20 visits 14 visits *Information & materials borrowed with permission from the Lasater Institute
27 27 Constraints & Bottlenecks A constraint is that part of the system that has the smallest capacity relative to the demand on it. If a constraint is unable to meet demand, it becomes a bottleneck. Example: Capacity of 5 Processes in a Pre-Operative Medical Clinic Total process cycle time/visit Est. capacity (# of visits per day) w/ breaks, calls, lunch Avg. # of visits per day (Demand) Anesthesia Nursing Administrative EKG X-Ray 15 min 18 min 8 min 10 min 9 min 48 visits 36 visits 58 visits 42 visits On-call 35 visits 27 visits 29 visits 20 visits 14 visits Range of visits per day (Demand) visits visits visits visits 7-21 visits *Information & materials borrowed with permission from the Lasater Institute
28 28 Constraints & Bottlenecks A constraint is that part of the system that has the smallest capacity relative to the demand on it. If a constraint is unable to meet demand, it becomes a bottleneck. Example: Capacity of 5 Processes in a Pre-Operative Medical Clinic Anesthesia Nursing Administrative EKG X-Ray Total process cycle time/visit 15 min 18 min 8 min 10 min 9 min Est. capacity (# of visits per day) w/ breaks, calls, lunch Avg. # of visits per day (Demand) Range of visits per day (Demand) 48 visits 36 visits 58 visits 42 visits On-call 35 visits 27 visits 29 visits 20 visits 14 visits visits visits visits visits 7-21 visits Nursing is the constraint, since 27/36 = 75% = highest capacity utilization. Also can become a bottleneck when demand variations approach 37 (exceeding capacity of 36). *Information & materials borrowed with permission from the Lasater Institute
29 29 What is 5S? Sort When in doubt - move it out Set In Order A place for everything and everything in its place Shine Clean and inspect for through cleaning Standardiz e Develop the rules, follow and enforce them Sustain Part of daily work; becomes a habit
30 30 Problem Solving: Which Issue Should We Solve? Symptom: You see it, people talk about it; it is visible! Root Cause: The one to address. It is often hidden. You need to dig for it! While it may be easier to identify issues on the surface level, the only way to permanently fix problems is to address its root cause(s)! *Information & materials borrowed with permission from the Lasater Institute
31 31 Root Cause Analysis: The 5 Whys? Problem: I was late to work this morning and my boss is really unhappy about it and says it CANNOT happen again Solutions: Get up earlier Lay out clothes the night before Make lunch the night before Get coffee at work Take a different route with less traffic Ask partner to help children get ready for school Have 2 alarm clocks
32 32 Root Cause Analysis: The 5 Whys? Problem: I was late to work this morning Why? because my car stopped
33 33 Root Cause Analysis: The 5 Whys? Problem: I was late to work this morning Why? because my car stopped Why? because it ran out of gas
34 34 Root Cause Analysis: The 5 Whys? Problem: I was late to work this morning Why? because my car stopped Why? because it ran out of gas Why? because I didn t fill it up with gas
35 35 Root Cause Analysis: The 5 Whys? Problem: I was late to work this morning Why? because my car stopped Why? because it ran out of gas Why? because I didn t fill it up with gas Why? because I didn t know it needed gas
36 36 Root Cause Analysis: The 5 Whys? Problem: I was late to work this morning Why? because my car stopped Why? because it ran out of gas Why? because I didn t fill it up with gas Why? because I didn t know it needed gas Why? because the gas gauge is broken
37 37 Root Cause Analysis: The 5 Whys? Problem: I was late to work this morning Why? because my car stopped Why? because it ran out of gas Why? because I didn t fill it up with gas Why? because I didn t know it needed gas Why? because the gas gauge is broken Solutions: Fix the gas gauge; in the meantime, fill it up every time you drive 200 miles
38 38 Where To Go For More Information EPA Lean Government Public Website: Lean in Government Starter Kit Case Studies Lean Event Scoping Guide, Methods Guide, Metrics Guide, Leadership Guide EPA Lean Government Intranet: x.htm Information about past/current EPA Lean projects Manager s Toolkit Free Skillport Training and other training resources Project Selection Factsheet and Tool
39 Module 3 39 Next Steps: Preparing for a Lean Event
40 40 What is a Lean Event? 3-5 day event with cross-functional team Requires strong leader commitment and trained facilitator Training on Lean methods Mapping the current state process Identifying improvement opportunities Mapping an improved future state process Identify key implementation steps and who will be responsible for them Identify key performance indicators to track progress towards reaching goals Develop summary presentation to share team s plan with the world Depending on the scope of the event, actually implement some or all improvements
41 41 Typical Lean Event Agenda [date] Each day starts at X:XX am and runs until X:XX pm; Thursday end at X pm Event Day 1 & 2 (Plan) Event Day 3 (Do, Check) Event Day 4 (Check, Act) List known data about current process Map & analyze current state (CS) Perform root cause analysis Identify and select/prioritize countermeasures Develop future state (FS) transformation plan Interim briefing to leadership (share CS findings and next steps) Design & test improvements Identify clear the path items for leadership Obtain buy-in and commitment Interim briefing as needed (share FS designs) Finalize improvements Communicate plan to staff & stakeholders (or prepare communications plan) Final presentation (share results) Celebrate!
42 42 NATA Lean Project Goals What does better look like to you?
43 43 Opportunities for Improvement Do you recognize any of the wastes in YOUR work? Do you recognize any of these wastes in other parts of the process?
44 44 Event Preparation First, work on a charter (define success, set goals, set boundaries for potential solutions, identify team members, identify when the event should happen, do pre-event work) Pick an event date and work out the logistics (room, calendar invites, etc) Check: do we have the right people involved given the scope of the process we are working on? Check: is the pre-work going well? Team leads, management champions, and facilitator sign the charter before the event
45 45 Thanks for Participating!
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