kaizen events in office & service environments (part 2 of 2)

Company

LOGO

Kaizen Events in Office &

Service Environments: A Two-Part Webinar

Part II - December 10, 2009

© 2009 Karen Martin & Associates

Learning Objectives (both webinars)

Participants will learn:

The difference between Kaizen and Kaizen Events.

When to use Kaizen Events.

Step-by-step approach to planning and executing office

and service-based Kaizen Events.

The “Kaizen Commandments” that reduce common

pitfalls.

How to create a Sustainability Plan with teeth.

How to navigate the common obstacles to success.

2


Kaizen Event Phases

Execution 2-5 Days

Follow

Up 4-8 Weeks Post

Planning 4-6 Weeks Prior

3


5-Day Kaizen: Sample Structure

Day 1 & 2

(Plan)

Day 3 & 4

(Do, Check)

Day 5

(Check, Act)

4

Kick-off (executive presence)

Analyze current state

Perform root cause analysis

Design future state

Interim briefing

Design & test improvements

Obtain buy-in

Interim briefing

Finalize improvements

Train process workers & stakeholders

Present results

CELEBRATE!


Kick-Off

Recommended Order

Executive Sponsor

Value Stream Champion (if relevant)

Improvement Leader (if dedicated staff)

Facilitator

Ice Breaker (if helpful)

Lean Overview (if necessary)

If tied to a VSM, review the current & future states

Charter Review (always), Expectations &

“Notional” Schedule.

6


Kaizen Commandments

The team starts and ends the day together.

Being on time is critical.

The team stays 100% committed and 100% focused.

No interruptions.

All wireless devices on silent mode or off. No vibration.

Rank has no privilege.

Finger-pointing has no place.

No veto power from outside the team.

No silent objectors. Don’t leave in silent disagreement.

Seek the wisdom of ten, rather than the knowledge of one.

The current process isn’t “broken”; it needs improvement.

It’s okay and encouraged to disagree; it’s not okay to be disagreeable.

7


Agenda

Tuesday, December 1

PLAN

Wednesday, December 2

PLAN – DO (Design)

Interim Briefing

Thursday, December 3

DO – CHECK (Test & Finalize)

Interim Briefing

Friday, December 4

ACT (Train)

Final Presentation

8


Team Dynamics

9

Forming

Storming

Norming

Performing

Tuckman Model

Bruce Tuckman, 1965

Adjourning

The Improvement Cycle

Identify & Prioritize

Macro Opportunities

Analyze

Current State

(Micro)

Brainstorm &

Prioritize

Opportunities

Design, Test

& Refine

Improvements

Implement

Improvements

Monitor,

Refine &

Sustain

Plan for

improvement

P

D

A

C

1

3

5 4

6

2

7

P

DC

A


Current State Documentation

Options

Go to the gemba! – OBSERVE

Review Performance data

Draw Spaghetti diagrams

Documentation / job aid review

Videotape / photos

Worker interviews

Work samples

Metrics-Based Process

Mapping (MBPM)

11

Metrics-Based Process Mapping

MBPM Post-it Conventions

# Staff

(if relevant)

Barriers to flow

(if relevant)

PT (process time)

LT (Lead time) % Complete &

Accurate

Step #

Activity

(Verb / Noun)

Function that

performs the

task

Step 9: Label the value-adding (VA) and

necessary non-value adding (N) activities

14

Metric

Current State

Projected

Future State

Projected %

Improvement

Total Process

Time (timeline)

Total Lead Time

% Activity

Rolled First

Pass Yield

Total PT

(all steps)

Labor

requirements

Freed capacity

Metrics-Based Process Mapping

Summary Metrics

© 2009 Karen Martin & Associates © 2008 Karen Martin &

Associates

Desk

Table

Desk

Desk

Desk

Desk

Table

Desk

Table

Desk Desk

Table Table Staging Area

6, 7

, 8, 9

6

, 7, 8

, 9

Desk

6, 7

, 8, 9

6

, 7, 8

, 9

6, 7

, 8, 9

6

, 7, 8

, 9

Desk Desk

Table

Table

Start

Table Table

1

12

4c

4a

3

2

11 10

cart

4b

Mail Room

Spaghetti Diagram (Shows people and product travel)


ECN Process – Document Travel

Finance

Operations

Management Conference

Room Sales Engineering

Quality

Assurance Safety Marketing

Training

Room

Human

Resources

Supervisor

© 2009 Karen Martin & Associates 18

Impact of Shared Equipment

Distance traveled to printer

Dept A = 92 ft. per trip

Dept B = 696 ft. per trip

120 occurrences / day = 4656 miles/year

Walk pace = 1 mile per hour

= 582 days/year of unproductive, non-value-adding

time

= 4,656 hours

= 2.4 FTEs


Root Cause Analysis

19

Do you THINK or do you KNOW?


Root Cause Analysis (RCA)

RCA is necessary to:

Avoid jumping to conclusions

Avoid creating “band-aid” fixes (addressing only the symptoms)

Select proper countermeasures

Design and implement lasting solutions that truly eliminate the problem

20


Root Cause Analysis Tools

Simple problems

Five Why’s

Problem Analysis Tree

More complex problems

Brainstorm causes (fishbone)

Tally frequency of most likely causes

(check sheet)

Identify relevant few (Pareto analysis)

for countermeasure development

21

If

necessary


Future State Design

Goals Reduce total Lead Time (LT) & Process Time (PT)

Improve overall process quality (increase Rolled First Pass Yield – RFPY = %C&A x %C&A…)

Increase % Activity (PT/LT x 100)

Reduce LT, PT, and increase %C&A at individual steps

Reduce workforce stress, frustration, etc.

How? Eliminate non-value-adding activities

Reduce handoffs

Improve quality of output

Eliminate rework

Eliminate inspections, audits, reviews, approvals

Reduce batching, WIP (work-in-process) & queuing

Reduce transportation and motion

22

Building a Lean Enterprise

Process

Stabilization

Tools

Building a Lean Enterprise

Flow-Enabling

Tools



Macro Opportunities

Analyze

Current State

(Micro)

Brainstorm &

Prioritize

Opportunities

Design, Test

& Refine

Improvements

Implement

Improvements

Monitor,

Refine &

Sustain

Plan for

improvement

P

D

A

C

1

3

5 4

6

2

7

P

DC

A


Brainstorm Solutions

1. Classic brainstorming – no holds barred

2. Merge similar ideas.

3. Eliminate “unwise” ideas.

4. Number & Prioritize solutions.

5. Select those that can be accomplished in

the Kaizen Event.

Keep scope and objectives in mind

Don’t try to boil the ocean in one event

26

PACE Prioritization Matrix

High Low Anticipated Benefit

Ease o

f Im

ple

men

tati

on

Dif

fic

ult

E

as

y

20

7

5 13

4 23

1

22 8 9

2

10

16

11

6

12

14 19

15

17

3 21

18

29

Owner Owner's ManagerDue

Date

4 1

3 2

4 1

3 2

4 1

3 2

4 1

3 2

4 1

3 2

4 1

3 2

4 1

3 2

4 1

3 2

4 1

3 2

4 1

3 2

4 1

3 2

4 1

3 2

4 1

3 2

4 1

3 2

4 1

3 2

5

4

3

2

6

7

8

11

14

15

13

12

9

10

Value Stream Champion

Facilitator

Progress

Event Dates

Team Lead

Action Item

1

Comments

Kaizen Event

30-Day ListEvent NameExecutive Sponsor

Spell-check Sheet

4 1

3 2

4

3 2

4

3

4

100% Complete

Progress Key

0% Complete

25% Complete

50% Complete

75% Complete

30

Event Name

Event Dates

Owner

1

2

3

4

5

6

7

8

9

10

11

12

Parking Lot Issues

Issue / Discovery

Executive Sponsor

Facilitator

Team Lead


Team Recommendation



Macro Opportunities

Analyze

Current State

(Micro)

Brainstorm &

Prioritize

Opportunities

Design, Test

& Refine

Improvements

Implement

Improvements

Monitor,

Refine &

Sustain

Plan for

improvement

P

D

A

C

1

3

5 4

6

2

7

P

DC

A


Documentation of New Process

Minimal use of traditional SOPs (standard

operating procedures)

Heavy use of job aids

MUST TEST WITH PARTIES OUTSIDE THE

TEAM

Test with real-time process, if possible

Standard Work Job Aid Criteria

• Simple

• Visual

• Physical

• Posted at

point of use

• Created by

people who

do the work

and tested

by others

34

Creating Job

Aids to Promote

Standard Work

• Use color-

coding when

possible

• Keep it simple

Checklists

assure all

critical tasks

are done

within defined

timeframes



Standardize



Macro Opportunities

Analyze

Current State

(Micro)

Brainstorm &

Prioritize

Opportunities

Design, Test

& Refine

Improvements

Implement

Improvements

Monitor,

Refine &

Sustain

Plan for

improvement

P

D

A

C

1

3

5 4

6

2

7

P

DC

A


Common Obstacles to Success

Kaizen Events not tied to a strategic plan.

Scope too broad.

Teams too narrow (functions).

Key leadership not at interim briefings.

Lack of communication and upfront

consensus building.

Inadequate training on new process.

Inadequate structure for sustaining the

improvement. 38


Implementation = Training

Why training

Communicate new process

Distribute new procedures, aids, tools, etc.

Create confidence & competence among workers

Build sustainability

Potential training audience

Workers and their supervisors / managers

Downstream customers (if impacted by change)

Upstream providers (if input they provide will be

changed)

Workforce

Training

1

2 1

3 2

4 3

5 4

5

1 6

2 7

3 8

4 9

5 10

1

2 1

3 2

4 3

5 4

1

2

3

4 Date:Date: Date:

Contact Information

Signature: Signature:

Name

FacilitatorValue Stream Champion

Name

Dates

Start & End

TimesSpecific Conditions

Value Stream

Champion

FacilitatorProcess Trigger

Kaizen Event CharterEvent Scope Leadership Schedule

Last Step

First Step

Executive SponsorEvent Name

Team LeadInterim

Briefings

Location

Value Stream

Event Drivers / Current State Issues Team Members

Final

Presentation

Event Boundaries &

LimitationsEvent Coordinator

Function

Event Goals and Objectives

Potential Deliverables On-Call Support

Function Contact Information

Possible Obstacles Approvals

Signature:

Executive Sponsor


Workforce Training

Facilitation – Just-in-time, just-the-facts

Must be mandatory & interactive Face-to-face if possible

May require multiple sessions

If geographically dispersed, person-to-person with support of: Conference calls

Webinars

Voice mail

Email (instructions, procedures, etc.)

Designated mentors for on-going support

Channel for post-training feedback, Q&A, etc


Workforce Training

Content – everything that is required in order to

perform the new process tomorrow

Purpose of event

Quality, Cost, Delivery, Safety, Morale

Business needs

Instruction on new process

Handouts for everyone

New procedure, process map, checklists, visual aids, etc.

Demonstrate new process (if possible)

Discuss on-going support/monitoring, sustainability

plan, audit plan

Who should they contact for help and/or additional

improvement suggestions?


Kaizen Event Final Phase

While training is occurring

Calculate projected results (actual, if possible)

In financial terms, when possible

Complete Event Report

Create Sustainability Plan

Finalize 30-Day List

Finalize Parking Lot

Plan for Team Presentation

43

MetricUnit of

Measure

Before

Measurement

Projected

After

Measurement

Projected

Change

1 Lead Time Days 8.3 2.3 -72.3%

2 Process Time Min 55.0 25.0 -54.5%

3Rolled First

Pass Yield% 4.0 72.0 1700.0%

4 Handoffs Each 6.0 2.0 -66.7%

5

6

7

8

9

10 Michael Prichard

Mary TownsendSean Michaels

Sam Parks

Event NameAllen Ward

Sally McKinsey

Facilitator

Team Lead

- Reduced equipment downtime due to waiting for

parts; trickle-down effect re: stress on maintenance

department and inter-departmental conflicts

- Less frustration with the purchasing process

- Reduced lost-time,and improved productivity, due to

walking requisitions through the approval process

- Should see less premium freight costs due to

expediting of purchased parts and customer orders.

Event Objectives

Engineers and maintence given access to ERP and

trained how to create requisitions

Reduced lead time from time requistion is received until it is input from

approx 11 days to 2 days.1

Key Improvements Implemented

Dianne O'Shea Ryan Austin

Paul Dampier

Kaizen Event ReportOrder Fulfillment Process

11/26 - 11/28/2008Event Dates

Executive Sponsor


5

3

Team Members

Before Photos, Graphs and/or Data

ERP coding changed only department manager

authorization is required if total spend is less than

$5000

Department managers trained on approval process

including need to engage IT group if purchasing

application programs

Dave Parks

Sean Michaels

After Photos, Graphs and/or DataCollateral Benefits

2 Reduce number of approvals form 5 to no more than 2

Measurable Results

4


Common Obstacles to Success

Kaizen Events not tied to a strategic plan.

Scope too broad.

Teams too narrow (functions).

Key leadership not at interim briefings.

Lack of communication and upfront

consensus building.

Inadequate training on new process.

Inadequate structure for sustaining the

improvement. 45

Who identifies relevant documentation? Who updates it? By when?

Who communicates? How? To whom? Where posted?

Who communicates? Via what medium?

How is process performance going to be communicated to workers? Are

additional visuals needed? Who owns this activity?

Which value stream map(s) need to updated, who will do it and when?

Who maintains training records?

Who communicates? How? To whom?

Who is accountable? Where posted?Post the Event Report, 30-Day List, Sustainability Plan.

Update SOPs and other ISO or regulatory documents

impacted by changes.

Communicate and post 30-day and 60-day audit

results.

Communicate audit results to stakeholders and

leadership team.

Communication / Training

Requirement

Communicate to affected parties who were not advised

during event.

Provide training for those who missed initial training.

Integrate new process into ongoing department training.

Update Value Stream Map.

Update training records to reflect who has been trained.

Plan

Who will deliver it and when?

Who leads identification of training that need to be updated (ongoing and for

new employees), when will training be in place?

Event Dates

"Go Live" Date

Team Lead

30-Day Audit Date

"Go Live" Location

60-Day Audit Date

Sustainability PlanExecutive Sponsor


Facilitator

Event Name

Communicate process performance measurement

plan.

Sustainability Plan

Name Name

Signature Signature

Date Date

Will there be rewards / recognition for sustaining improvements? What will

corrective actions be if workers are not following new process? Who will

enforce these rewards/consequences?

Who monitors process performance on an ongoing basis? Who

communicates the results? When, to whom, in what format?

Who will lead audit & when? How will results be communicated? To whom?

How will the process be adjusted, if needed? What's the plan for continuous

improvement?

Who will lead audit & when? How will results be communicated? To whom?

How will the process be adjusted, if needed? What's the plan for continuous

improvement?

Who has ultimate responsibility for how process is performing?

Which Kaizen team member(s) will observe the process? How will they

communicate results? Who is responsible for adjusting the process, if

needed?

Who is responsible for finalizing process performance metrics and by when?

Which team member(s) will observe the process? When? How will they

communicate results? Who is responsible for adjusting the process, if

needed?

Process Owner

Monitoring / Measurement

Requirement

Put in place key metrics to measure process

performance; post performance.

Plan


Define corrective actions required if new process not

being followed (rewards and consequences).

Monitor process performance frequently; post results

put continuous improvement plans in place.

Identify process owner.

Observe process one day after event is over. Talk with

workers, assure they understand how process should

be performed; see if there are problems.

Observe process one week after event is over. Talk

with workers, assure they understand how process

should be performed; see if there are problems.

Conduct 30-day audit.

Conduct 60-day audit.


Sustainability Issues

Who owns the process?

Doesn’t have to align with org chart

Should have authority across multiple functions

Doesn’t have to be management

What are the 2-5 Key Performance Indicators?

Who will be responsible for monitoring process

performance?

Formal process audits – 30-day audit is a must!

Ongoing improvement

Heavy use of visual management increases

success.

47

Sally McKinsey Event NameOrder Fulfillment

Process

Dave Parks Event Dates 11/26 - 11/28/2008

10

12

13

9

11

5

6

7

8

1

2

3

4

Sean Michaels

• 30-Day List

• Process being addressed

• First & last steps

• Specific conditions

• Event drivers / current state issues

• Objectives

• Boundaries & limitations

• VSM and/or MBPM review

• Relevant metrics

• Photos (if relevant)

Opening Comments

• Key improvements and accomplishments implemented during the event

• Tools used

Team Presentation AgendaValue Stream Champion

Agenda Item

Sean Michaels

Facilitator

Scope and Objectives

• Team introductions

• Agenda

• "Rules" for attendees

"Before" Condition

Sam Parks & Tom Albin

Sean Michaels

Key Improvements Implemented

Paul Dampier & Michael Prichard

"After" Condition

• Potential obstacles that could prevent attaining projected performance

levels

• Define what a "parking lot" item is

• New process description

• Projected results (direct and collateral)

Dianne O'Shea & Mary Townsend

Key Open Action Items

Sustainability Plan

Brian Utke

Ryan Austin

Sean Michaels

as required

Facilitator Feedback

• Greatest success; greatest challenge

• Team feedback (each individual)

Parking Lot Issues

Lessons Learned

Wrap-up

Presenter(s)

Question and Answer

Team Recognition

Karen Louise

Leadership

• Leadership feedback to teamTeam


Kaizen Event Phases

Execution 2-5 Days

Follow

Up 4-8 Weeks Post

Planning 4-6 Weeks Prior

49

Key

Follow-up

Activities

Task Due Date Owner Comments

1Observe the new process the first day or shift following the event. Make real-

time adjustments, if needed.

2

Hold first of four weekly post-Event meetings with Kaizen Team to assess

progress on 30-Day List, monitor process performance, identify/resolve new

problems, and discuss lessons learned.

3Send thank you's to all team members, on-call support, and others who

helped.

4 Broadcast results organization-wide (via email, newsletter, etc.)

5Post Event Report and Sustainability Plan on improvement communication

board(s) and shared drives.

6 Assess if new process is being followed.

7 Take corrective action if process is not being followed.

8If controlled procedures / processes were changed, update relevant

documentation as necessary.

9 Plan future improvement activities, if needed.

10Share "later" ideas on Ideas List with relevant leadership and continuous

improvement staff.

11 Modifiy process further if it needs additional improvement.

12

13

14 Meet with team to assess progress on 30-Day List.

15 Measure process to validate projected future state metrics.

16 Adjust process, if needed.

17Interview process workers and those affected by the improvements to assess

success and need for future improvements.

18

19


21 Measure process to validate projected future state metrics.

22 Adjust process, if needed.

23

Determine data needs required for further current state analysis and future

state design. Assign accountability for measurement and timeframes for

delivery.

24 Prepare for 30-day audit.

25

26


28 Conduct 30-day audit.

29 Adjust process and/or take corrective action, if needed.

30 Conduct 30-day audit briefing and post audit results.

31 Schedule 60-day audit.

32

33

34 Conduct 60-day audit.

35 Adjust process and/or take corrective action, if needed.

36 Communicate and post audit results.

37

38

3 Weeks After

4 Weeks After

60 Days After

Coordinator

1 Week After

2 Weeks After

Post-Event ActivitiesExecutive

SponsorEvent Name

Value Stream

ChampionEvent Dates

Facilitator



Macro Opportunities

Analyze

Current State

(Micro)

Brainstorm &

Prioritize

Opportunities

Design, Test

& Refine

Improvements

Implement

Improvements

Monitor,

Refine &

Sustain

Plan for

improvement

P

D

A

C

1

3

5 4

6

2

7

P

DC

A

Event Name

Event Dates

Audit Date

Yes No Owner

1

2

3

4

5

6

7

8

9

10

11

Unit of MeasureProjected

Change

Actual

After

Measurement

%

30-Day Audit Report

Corrective Action Needed

Are workers following the process as designed in the event (or

authorized modifications made since the event)?

Criteria

Are workers pleased with the improvements? Do they feel their

work has been simplified?

Is there evidence that all workers, including those new to the area,

have been trained on the new process?

Is process performance being measured and reported as set forth

in the Sustainability Plan?

Is the area manager monitoring and supporting compliance to the

new process?

Are all aspects of the Sustainability Plan being followed?

Are consequences for not following the new process design in

place?

Have any unintended consequences (positive or negative) arisen?

Check with downstream customers.

Is anyone resisting the new process?

Performance Metrics

Metric / Activity

Being MeasuredComments

Executive Sponsor


Lead Auditor

Lead Time

Process Time

Actual Change

(from Before

Measurement)

Projected

After

Measurement

Before

Measurement

Number of action items due by audit date

Number of action items completed

% of action items completed

Rolled First Pass Yield

30-Day List Status


Spread Organizational Learning

Communicate results

Newsletters

Online bulletins

Applying learnings to other parts of the organization

Additional Kaizen Events

Review, modify, and roll out process to other business units,

product lines, conditions, etc.

Beware of too many Kaizen Events

No more than 4 events per 100 employees per year.

BUT… much lower if involving similar functions.

And… much lower if you don’t have adequate resources

dedicated to continuous improvement.

53


Learning Objectives (both webinars)

Participants will learn:

The difference between Kaizen and Kaizen Events.

When to use Kaizen Events.

Step-by-step approach to planning and executing office

and service-based Kaizen Events.

The “Kaizen Commandments” that reduce common

pitfalls.

How to create a Sustainability Plan with teeth.

How to navigate the common obstacles to success.

54


Save the Date!

2010 Webinar Kick-off

Wednesday, January 20 – Lean Psychology

How to leverage human behavior to maximize improvement

efforts.

Thursday, January 21 – Facilitator Skills

Tips to reduce resistance, stimulate innovation, and successfully

challenge paradigms.

Survey re: interests and learning needs will be

included in next week’s newsletter – please

respond

55

Recommended Resources

Click here to order from Amazon

http://www.amazon.com/gp/product/1563273802?ie=UTF8&tag=karmarass-20&linkCode=as2&camp=1789&creative=390957&creativeASIN=1563273802




Karen Martin, Principal

7770 Regents Road #635

San Diego, CA 92122

858.677.6799

[email protected]

For Further Questions

kaizen events in office & service environments (part 2 of 2)

Business

day kaizen

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