2 breakout session # 205 tim ortel, cpcm, intuitive surgical date 15 april 2008 time 2:10 pm –...
TRANSCRIPT
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Breakout Session # 205
Tim Ortel, CPCM, Intuitive Surgical
Date 15 April 2008
Time 2:10 PM – 3:10 PM
Can Contracting Be “Leaned”?
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What is Lean?
• No “Fat”• Streamline flow• Optimized process• Promotes Value Add• Reduces
– Cost– Lead time
• A philosophy?• A process?• An end result?• Continuous
improvement• “Good enough is not
good enough”
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Lean application
• Typically in manufacturing• Promotes pull versus push• Integrates people, process, tools to avoid
waste• At work in:
– Automotive, electronics, medical– Aerospace, construction
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Lean in non-production?
• Insurance claims
• Invoice payments
• Order management
• Purchase order process
• Is there “lean”ed contracting?– Yes!!
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No more “Muda”
無駄
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Tools that support lean
• Flow charts• Value stream maps• Pareto charts• Failure analysis• Cross training• Fishbone charts• COMMWIP
• 5 Whys• Just In Time• Kanban• Kaizen/Blitz• Force Field Analysis• Single Piece Flow• 5S
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Sample “Fishbone” Ishikawa Chart
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Pareto Chart
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Flow Chart Example
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Flow Chart Example
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Sample Value Stream Map
...
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Sample Value Stream Map (www.sme.org)
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Force Field Analysis
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Why take the lean journey?
• Takes care of customers – adds value• Improves enterprise processes• Develops employees, enhances teamwork• Makes improvement a way of life, not a fad• Reduces lead times, costs, variation• Makes processes simple, repeatable, sustainable• Competitors will go lean if you don’t (and are?)
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Let’s COMMWIP-Proof the process
• Do you want to achieve “lean”ed?
• Why?
• No more “MUDA” – waste
• Build up trust in process
• Improve (& simplify) process
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What is waste (MUDA)
• Why eliminate waste?
– Customers don’t want to pay for it– Employees don’t like it– Suppliers don’t understand it
– “Any element of processing or distribution that adds no value to the final product (service) – waste only adds cost & time” (& frustration)
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COMMWIP – the 7 deadly wastes
• Correction• Overproduction• Motion• Material Movement• Waiting• Inventory• Process
• Overproduction • Waiting • Transportation • Inventory • Motion • Over processing • Defective units
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Sizing up COMMWIP wasters
• How you identify waste– Brainstorming, flow charts, pareto charts
• How you document it– Fishbone (Ishikawa), pareto charts
• How you fix it– Brainstorm, failure mode analysis – Flow chart, force field analysis
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Correction (COMMWIP)
• Doing things over again, rework, repeat• Leads to added waiting, motion?• Types of contract waste
– Wrong specification– Wrong approvals– Wrong metrics, measures– Wrong process design
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Overproduction (COMMWIP)
• Building too many – Poor yields, bad forecast, variation
• Types of contract wasters– Unnecessary, & too many reports– Excessive copies– Process redundancy– Too many drafts before final– Over-specification
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Motion (COMMWIP)
• Unnecessary work movements• Extra steps which don’t add value• Multiple repeat steps in process• Contract wasters
– Excessive, unnecessary approvals– Extra process steps (reviews, emails)– Excessive meetings (or wrong focus)
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Waiting (COMMWIP)
• Lots of handoffs in process
• Queues, buffers
• Reviews, approvals
• Waiting due to meetings, decisions signoffs
• Unnecessary meeting participation
• Lacking a “KISS” perspective
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Processing (COMMWIP)
• Long process flow
• Complex process design
• Serial versus concurrent steps
• Redundant steps and/or approvals
• Extra time to rework, fix
• “We’ve always done it this way”
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Kaizen 改善• 改 ('kai') KAI - “change” “action to correct”• 善 ('zen') ZEN - “good”, “for better”
• A culture of sustained continuous improvement• Eliminate waste in systems and processes• Begins & ends with people • Involved leadership guidance• Continuously improve: quality, low cost, & delivery• Transforms companies to 'Superior Competitors'
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Kaizen – what is this? 改善
• Cross functional improvement team
• A project – to solve a problem, improve
• Evaluate and measure “as is”, “before”
• Brainstorm “could be, should be”
• Prototype solutions, measure “after”
• Cross train, then implement
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Kaizen sequence of events• Define problem• Define root cause: (fishbone)• Research root cause: (brainstorm, paretos)• Define “as is” process – draw it: (flow chart)• Brainstorm fixes, improvements (force field)• Structure “could be” process – draw it (flow chart)• Prototype a “should be” process – cross training• Change process (use force field analysis)• Measure before & after – define metrics!!!
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The PDCA cycle
PLAN
DO
CHECK
ACT/ADJUST
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Value Stream Map Example(www.lean.org)
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From “muda” to “shinrai”
無駄
価値
信頼
Muda “waste”
Kachi “value”
Shinrai “trust”
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No more “Muda”
無駄
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Intuitive Surgical
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Buying a robotics surgery system
Customer Need
Legal Review
SalesContract
ShipInstall
Service
BuildMake To
Stock
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Why “lean”ed
• Lean is a tool: leverages process, projects
• COMMWIP-proofing enhances lean
• Kaizen: a project tool (within lean)
• “Good enough is not good enough”
• It’s not just enough to win –– Better yourself in the process also!
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Checking out “lean”ed contracting
• “Applying Lean Thinking to Govt Contracting”– Dr. Rose M. Smith (On Line Powerpoint)
• Air Force Smart Operations 21 (AFSO21)– http://www.newsblaze.com/story
• DAU – Lean Enterprise Model– http://www.dau.mil/educept
• 754th Electronics Systems Group– http://integrator.hanscom/af.mil/2007
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You can “lean” your contracts
• Use kaizen (“KISS”) to simplify, optimize• Yet comply with legal policy/guidelines
– FAR, State, Local, Sarbanes Oxley
• When processes are “discretionary”– “Think out of the box”– “Draw outside of lines”– No more “That’s the way we always have..”“That’s the way we always have..”
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Remember
• Process should be “value add”
• Process should serve customers
• Do users trust the process?
• Be a change agent (vs. an observer)
• Think from a “clean” whiteboard
• Keep a Plan, Do, Check, Adjust focus
