Presentation Transcript

1. F2 and LEANIntroduction to LEANJuly 21, 2010

2. Goals Understand why Finance & Facilities (F2) is involved with LEAN Become familiar with basic LEAN principles and concepts Learn some basic LEAN tools Note: LEAN is not an acronym!
3. Who Is Finance & Facilities (F2)? April 2010 V’Ella Warren Senior Vice President Facilities Group Treasury Group Financial Management University Audit F2 Admin. Charles Kennedy Associate Vice President, Facilities Services Richard Chapman Associate Vice President, Capital Projects Doug Breckel Associate Vice President, Treasury Keith Ferguson Chief Investment Officer Ann Anderson Associate Vice President , Controller Sue Camber Associate Vice President, Research & Student Fiscal Services Richard Cordova Executive Director of Audits Ruth Johnston Associate Vice President, F2 Admin. / Strategy Mgmt. Campus Engineering & Operations Custodial Services Maintenance & Alterations Organization Relations Transportation Services Emergency Management Technology Services Finance & Administration Major Projects Group Special Projects Group Student Life Group Business Services Safety Strategic Initiatives Program Management Asset Liability Management Real Estate Risk Management Treasury Operations Investment Management Creative Communications Financial Accounting & Tax Payroll Travel Records Management Procurement Services Global Support Student Fiscal Services Grant and Contract Accounting Management Accounting & Analysis Equipment Inventory Operational Audits Grant & Contract Compliance Audits Medical Center Audits Information Systems & Technology Audits Special Investigation Audit Liaison Budget and Planning Human Resources Project Management Metrics & Reporting Organization Development Quality Improvement LEAN
4. LEAN Supports Our F2 Strategy Map Vision: We are a global leader able to deliver outstanding service anywhere, anytime Values: Integrity • Collaboration • Innovation • Diversity • Excellence • Respect • Teamwork Value to Our Customers Enhance Resources Mission: We help people who change the world Provide value for your money Help solve complex University-wide problems Provide clear, timely, accurate, consistent communications from knowledgeable staff Attract and Retain a Talented and Diverse Staff Improve Operational Excellence Enhance leadership effectiveness Create and maintain collaborative relationships Develop customer value proposition Lead strategic UW-wide projects Recognize performance excellence Develop individuals to their full potential Improve, streamline and innovate Champion environmental stewardship Provide key input for informed decisions on financial & physical assets Grow and steward UW’s assets Manage resources to support strategic priorities
5. What Is LEAN? LEAN is “a systematic approach to identifying and eliminating waste...” which includes— value stream mapping rapid process improvement future vision customer involvement LEAN engages staff— to identify and solve problems LEAN encourages leaders— to trust and respect staff to do so -- James P. Womack and Daniel T. Jones (2003), in Lean Thinking
6. Why LEAN? 1. LEAN helps Finance & Facilities (F2) leaders and staff to become more: customer sensitive nimble efficient 2. LEAN thinking and actions help us to: build a common culture - those closest to the work constantly learning how to make that work better improve our management processes of observation, experimentation and speed become better problem finders and solvers develop transferable job skills
7. What Is Unique About LEAN? “wing-to-wing” improvements involve customers, F2 staff, process partners and suppliers Can respond to a faster rate of change Customers define what’s valuable Aggressive improvement goals (50%) are often focused on “waste” reduction Staff does the work of identifying and solving problems F2 will focus on continual improvement – “It’s a way of life for us.”
8. LEAN Terms 5S - A place for everything and everything in its place Sort: the needed from the not needed Straighten: everything has a place, is marked and labeled, and is easy to find and put away Scrub: Clean and make it easy to keep clean Standardize: Sort, Straighten and Scrub is a habit Sustain: Maintain established procedures A3 Report: A one-page report that documents a process. "A3" is an international-size paper about 11 x 17 inches
9. LEAN Terms GembaA Japanese term that means "actual place.“ Gemba WalkGoing to the actual place to see and understand the situation where the work is done. The first step is understanding the actual situation and "going to the gemba.”
10. LEAN Terms KaizenA Japanese term that means "change for the better" through continuous, incremental improvement. Kaizen Event/WorkshopAn event or workshop that teaches how to identify waste in a given process and to make rapid improvements to a process. Standard WorkA precise description of each work activity specifying cycle time, takt time, the work sequence of specific tasks, and the minimum inventory of parts on hand needed to conduct the activity.
11. Exercise Instructions: At each table, spend 5 minutes identifying processes within F2 that you think contain waste or need improving, and explain why. What is the pain? (Don’t solve the problems…just identify them!) Please use the sheet provided to record your ideas, as they may become LEAN projects! We will collect the sheets at the end of class.
12. Where Is F2 Practicing LEAN Now? Control Spend Consolidate IT Optimize Space Reduce Labor Time Furniture Procurement Shared Systems Campus Alterations Protect the Core Purchasing Supplier Registration Grant Unbilled Mailing Services SFS Direct Loans Real Estate Office Inquires Grant Closings 5S Copy Centers
13. LEAN Kaizen Event #1: December 2009 Financial Management - Furniture Procurement Customer Impact / Benefit to Customer: 1. Simplify furniture ordering process Customer feedback at project end indicated need for improvement Customer word of mouth that current process is confusing 2. Create a standardized process for buying furniture A typical LEAN workshop brings customer, suppliers, and process partners to one table. Capital Projects Office (process partner of Financial Management) helps improve the value chain Bank & Office Interiors (suppliers) listen to Amy Van Dyke of UW-Bothell Amy Van Dyke (Bothell Campus). Not pictured, but also providing “voice of customer” is Roberta Hopkins (Classroom Support Services)
14. LEAN Kaizen Event #2: January 2010 Facilities Services - Campus Alterations Customer Impact / Benefit to Customer: 1. Enhance campus-client communications for alterations projects June 2009 low customer-satisfaction survey rating (75%) for campus-client communications 2. Reduce cycle time by 50% for alterations projects (= reduced customer costs) June 2009 low customer-satisfaction survey rating (54%) for cost-effectiveness Joyce Suzuki (Housing and Food Services), explains the impact she and other customers feel Beth Hammermeister (Genome Sciences), participating as “voice of the customer” Facilities Campus Alterations listens to customer and process partner concerns and impacts. Everyone collaborates to create a process that results in minimal waste and maximum value to clients.
15. LEAN Kaizen Event #3: January 2010 Financial Management – GCA Budget Closings Customer Impact / Benefit to Customer: 1. Eliminate backlog of GCA closing budgets Budget closing delays are a common customer inquiry to GCA Customer feedback from April 2010 customer survey 2. Improve closing process and avoid future backlog Currently, 673-day average to close a research budget Improved process targets 120-day closing average GCA identifies opportunities for customer improvement with the help of Susan Carpenter-Brandt (Psychology) and Verna Blackhurst (Aquatic and Fishery Sciences).
16. LEAN Kaizen Event #4: April 2010 Financial Management – Copy Centers Customer Impact / Benefit to Customer: 1. Reduce customer cost by 10% 2. Improve billing and reporting process Change current once a month to real-time billing (daily) Reports that help customers better manage their usage Customers explain and share their business needs to FM Copy Centers Aaron Munoz (Business School customer) Sal Ramirez (UWMC customer) Beth Berquist (Harborview customer)
17. LEAN Kaizen Event #5: June 2010 Financial Management – SFS Direct Loans Customer Impact / Benefit to Customer: 1. Reduce the number or record rejects by 70% Currently 1,000 – 1,200 record rejects a year resulting in manual research and correction 2. Create a standardized reject research and correction process Key Process Partners explain and share their business needs to Student Fiscal Services John Gannon (not pictured) Information Management Fred McWhirter Information Management
18. LEAN Kaizen Event #6: June 2010 Financial Management – GCA Unbilled Customer Impact / Benefit to Customer: Reduce the amount of the unbilled backlog December 2009 unbilled backlog of cost reimbursable grant expenditures was $15.8 million Target amount is $2.0 million or less GCA reviews their current process to identify opportunities to reduce the amount of unbilled
19. LEAN Concepts Create a culture of change Welcome problems (“Having no problem is the problem”) Trust facts over data (go see what’s happening, “gemba”) Don’t judge or blame people or process Be hard on process, easy on people Develop people and teams Learn by doing
20. 5 Key LEAN Principles Customer defines value Produce at the rate of customer demand Eliminate Waste Focus on work flow and value streams Pursue continuous improvement
21. “Push” System Organization Generated Demand 50% OFF! TODAY ONLY
22. Use “Pull” Systems To Avoid Overproduction Customer Generated Demand
23. Identifying The 8 Key Wastes Overproduction Waiting Transport Processing Movement Complexity Underutilized people Excess inventory
24. Reducing Processes To Core Value Focus on eliminating the wasted time and activity.
25. Introduction To F2’s LEAN Tools A3 Kaizen Event Value Stream Mapping 5S (Workplace Organization) Visual Controls Just Do It!
26. A3
27. What Is A Kaizen Event? Two- or Three-Day Workshop Team includes project leader, facilitator, staff members, customers/process partners Value Stream Mapping, Identify Issues, Future State Mapping, Kaizen Projects 30, 60 and 90-Day Report Outs to Leadership
28. Kaizen Event Scope Document What is the problem and why is it important? When Problem Statement /Background: Event/Workshop Dates: Process Metrics: Event Mission/Vision: Sponsor: Goals / Objectives: Project Leader: Process Description: Lean Consultant: Team Members: What metrics will be used to track process improvements? What do you want to accomplish during the workshop? Name and title What are the overall goals / objectives you want to achieve? Name and title High level overview of the overall process and the beginning and ending steps of the process the team will focus on Name and title Names /titles including customers
29. What Is A Value Stream Map? A process map: From first to last step Has values added to each step That: Describes the entire current process Helps identify problems Helps team to choose improvements to work on
30. Value Stream Map – Alterations Process
31. Value Stream Mapping Exercise Choose a topic to map: Ordering supplies Requesting annual leave Mailing a package Planning a meeting Preparing a PowerPoint presentation Preparing a budget request Identify the main steps you complete to accomplish this process Place the notes in order from start to finish
32. Value Stream Mapping Process List how much time is needed for each step Touch Time (T/T): The actual time spent doing the work within a process step Wait Time (W/T): The time between process steps Process Time (P/T): The time to complete a process step Total Lead Time (TLT: The time spent doing the entire value stream process, including all process times and wait times. May also add other values to the map i.e. Complete/Accurate/Correct % (CAC%) etc.
33. Value Stream Mapping Time Measures Step 1 Step 2 Touch Time (T/T) Touch Time (T/T) Wait Time (W/T) Process Time (P/T) Process Time (PLT) Total Lead Time (TLT)
34. Value Stream Mapping Process Calculate total time (TLT) it takes to complete the process Calculate total touch time (T/T) Calculate total wait time (W/T) Look at the map and identify any issues that leap out at you What do you see? What does the process do well? Where are the wastes? Can you identify some “LEAN” opportunities? Choose a Kaizen (improvement) to work on Create an action plan (don’t do this in workshop)
35. What Is 5S? 5S creates an efficient workflow by reducing waste in the placement and movement of materials, information, equipment, and people.
36. LEAN Activity : February 2010 Facilities Services – 5S (All staff in Administration Building) Customer Impact/Benefit to Customer: Workspace Focus Facilities Services’ 5S projects are designed to improve customer service by identifying and eliminating wasted time and space to allow for increased accuracy and productivity. Before 5S After 5S 5S LEAN concept: Sort Straighten Shine Standardize Sustain
37. Example: Reducing Messy Work Flow
38. To an Organized Flow
39. 5S WARNING! -- The Toyota Way LEAN is not just about using 5S to clean and organize a work area. The real value of 5S is to create and maintain an efficient work flow and make problems visible.
40. What Is A Visual Control? Visual representation of process in a highly visible location that: Makes problems visible Focuses on improving Value-Added Work Flow Communicates at a glance how work should be done and whether it is deviating from the standard Facilitates accountability of the team to the process Allows for frequent communication and sharing
41. Visual Controls
42. Visual Controls – Kaisen Examples
43. What Is Just Do It? Just Do It… Improvements that are quick to implement, that you have direct control over, and the impact is clearly understood and agreed upon that will be measured. Examples: Make revisions to one of your reports Create contract definition sheet – Alterations Event Reduce Time in Meetings – Strategy Management 5S within your work area
44. How Does LEAN Impact F2? LEAN dependsmoreon people, not less. It’s more than a set of tools and improvement techniques. It is a culture that respects and depends on staff to: identify and fix problems to get quality right the first time work with a sense of urgency, purpose and teamwork think, learn and grow be creative share lessons learned with others own the entire process
45. LEAN Website View the LEAN web site for updates, resources, etc. http://f2.washington.edu/LEAN