LEAN Project Guide

1. LEAN Project Guide An Organizational Effectiveness Program Resource Prepared by: Ben Mauk and Renee Smith Nyberg Last Updated: 8/9/2011

2. Welcome to the LEAN Project Guide! These slides are intended to be a simple map to guide the work of a new LEAN Team. Each basic step is laid out here to follow. I would suggest looking through all the slides to orient to their contents. If you have questions, please contact me and I’ll do what I can to help and answer questions. And if you can suggest improvements to the slides, please let me know! Use your common sense and flexibility in approaching these steps. If something makes sense to do out of the order presented in these slides, then do what makes sense. There are no rules; just guidance and options. Adapt and make this your own. Remember though, PLAN, PLAN, PLAN! And hold off on rushing to solutions before you fully understand the problem! Involve representatives of all those who touch the process. This work is exciting as you begin to see tangible results for your customers and your own work experience. Have fun and enjoy the process, Renee Smith Nyberg, Organizational Effectiveness Program Manager rsnyberg@uw.edu or 253.692.5874

3. A LEAN Approach: Plan - Do - Check - Act Improvement Cycle Act Plan Check Do Well begun is half done. - Aristotle

4. Form a LEAN Team Criteria: • Stakeholders who touch the problem. • About 5-8 people is a good number. • Try to include a customer or user if you can.

5. Initial Brainstorming: What are some of the problems of concern? Materials: • Flip chart, markers, sticky notes Directions: • Select a scribe • Brainstorm: Considering what you know so far, from a customer’s perspective, what problems are occurring? • Write one idea per sticky note. • Put sticky notes on flip chart.

6. Clustering and LEAN Decision • Look at what you’ve brainstormed. • Sort related ideas into clusters. • Name the clusters. • Look at the clustered problems and pain points. • Use the criteria on the next slide to decide if this should be a LEAN project.

7. Just Do It or LEAN? Do you have a LEAN project? If yes, proceed to the next slide. If no, determine if you have a “Just Do It” and proceed with those improvements.

8. If YES for LEAN, begin Part 1: Plan! Step 1Form a team, write a problem statement, set a goal. Step 2 Map the current process Step 3Collect & analyze baseline data Step 4 Determine root causes Act Plan Do Check

9. Start to fill out your Scope Document. Add to and refine it as you proceed. LEAN Meeting Dates: Sponsor: Project Leader: Team Members: Consultant/Facilitator: What is the problem and why is it important? When will the team meet? Problem Statement / Background: Goals / Objectives: Process Description: Process Metrics: Name and title .What are the overall goals / objectives you want to achieve? Name and title A high level overview of the process. (Big buckets) Identify where the process begins and ends so the team knows what to focus on. Name and title Name and title What metrics or indicators will be used to track improvements?

10. Write a problem statement. • Describe the problem and why is it important • This statement will guide the creation and work of the Lean Team. • Effective Problem Statements… • Focus on describing “the pain” • State effects, not causes • Describe gap(s) between current and desired state(s) • May refer to accepted standards and existing data • What’s happening now and why is it not desirable?

11. Based on this problem statement, who else should be on the LEAN TEAM? • 6-8 Team members. • Reps of those who touch the problem. (stakeholders) 3. Do a stakeholder analysis and determine who to invite to be on the LEAN team. (Use the bubble chart on the next page as a guide.)

12. A Bubble Chart can be used for a stakeholder analysis. Project Sponsors Executive Sponsor Put the Process here.

13. Communication Planning • Use your bubble chart to begin your Communication Plan. (See next slide for Communication Plan Template.) • As you get into your LEAN project complete and follow this communication plan.

15. Draft a Goal Statement for your LEAN Project • Write a goal statement for your LEAN project. Tips are on the next slide. • It should address the problem statement your team identified. • Include it in the LEAN scope document.

16. Creating Measurable Goals Effective LEAN goals… • Build on defined strategic goals & objectives. • Are specific. • Define objective measures. • Are achievable and realistic but BOLD. • Can be reached in 90 days. Examples: • Reduce time to pay manual invoices from 12 days to 6 days • Increase percent of staff satisfied with training from 50% to 90% • Reduce errors by 50% from the current performance level

17. Part 1: Plan Plan Act Step 1Identify a problem, form a team, set a goal. Step 2 Map the currentprocess Step 3 Collect & analyze baseline data Step 4 Determine root causes Do Check

18. Plan - Step 2: Map the Current Process • Identify beginning and end points for process. • Consider customer expectations for boundaries when you choose your boundaries. • Consider up- and down-stream implications of process boundaries when you choose your boundaries. • Identify 5-8 high level process steps.

19. Example of a Top-Down Process Map

20. Step 1: Create a High-Level Process Map for the CURRENT process. • What are the big chunks in the CURRENT process? • Where does the process start and stop? • Identify about 5-8 high-level steps. • Put each step on sticky notes. • Put steps in order on flip chart or wall.

21. Step 2: Expand the Process Map with Details • Use your high level process map as a beginning. • Create a detailed process map of the CURRENT process. • Drill down into the details of the process for each high level category. • Use 1 post-it note for each step of detail. • Put them on the flip chart under the high level category.

22. If possible, validate the Current Process Map Can you do the Three ‘Actuals’ • Go to the actual place? • Talk to the actual people? • Walk the actual process? If this is doable, then arrange to do this step.

23. Identifying Wasted Time • Go back to your process map and label each step with the estimated amount of time it takes. • Label each step as either Touch Time or Wait Time. • Calculate the Total Time for the process. May want to calculate a high and low for total time. What are the variables? Remember the definitions: Touch Time: The actual time spent doing the work within a process step Wait Time: The time between process steps Total Time: The total amount of time the entire process takes.

24. Can you identify any waste in the process? • Is there any waste in how the work flows? • Do any steps NOT add value? • Is the process too complex? Where? • Does the process vary from person to person or in some other way? • How long does the processtake? • How long does each steptake?

25. Is there evidence of any of these types of waste in the process? Label them. Overproduction Waiting Transport Over-Processing Motion Complexity Underutilized people Excess Inventory

26. Step 3: Collect and Analyze Baseline Data Plan Act Step 1Identify a problem, form a team, set a goal. Step 2Map the current process Step 3 Collect & analyze baseline data Step 4 Determine root causes Do Check

27. What additional data do you need? Considering the possible wastes, complexity, variation or lack of added value in the process, what other data do you need to better understand these? What else do you need to know to better understand the issues?

28. What additional data do you need? Review your data sources – what already exists? Review your data gathering tools (page 2 of your Toolkit) Will these be useful to you? • Affinity Diagram • Check Sheets • Surveys • Benefit and Practicability Analysis • Comparison Matrix Develop a strategy for gathering the needed data and go gather it!

29. Cautions and reminders for data collection… • Collect the right data to analyze the situation. • Don’t combine the data from different sources. • Data collectors use the same procedures and are uniformly trained in data collection. • Use consistent methods in data collection.

30. Displaying and Analyzing the Data to better understand the issues… Now that you have your data… Display your Data: Prepare the data you’ve gathered for analysis by putting it in a usable format. Refer to Page 2 of the Toolkit (Affinity Diagram, Control Charts, Flowcharts, Histograms, Pareto Charts, Run Charts or Trend Charts.) Select the display methods that fit your data and put data into a useful format for analysis. Do you need to convert your data to percentages? Do you need data over time? Analyze your data… What does the data tell you? Look back at your earlier questions and possible areas of waste, complexity, variation, etc. What is clearer now?

31. Sample Run Chart

32. Sample Pareto Graph Customer Complaints 100% 93% 100% 100 85% 80% 80 75% 60% 60 42% 40% 40 45 20% 20 35 10 9 7 0 0% Wait Time Incorrect Rescheduling Incorrect Item Late Invoice Information Appts Number of Complaints Cumulative % Complaints 80% Complaints

33. Plan - Step 4: Determine Root Causes Plan Act Step 1Identify a problem, form a team, set a goal. Step 2Map the current process Step 3Collect & analyze baseline data Step 4 Determine root causes Do Check

34. Getting Ready for Root Cause Analysis • This data analysis should further illuminate and point you to focus on certain issues in the process. • When looking at root causes in the next step, explore those issues in particular. • For example, if the problem statement says that the process is taking too long in Phase 3, and we learn from the data that Phase 3 has a lot of complexity and wait time in it, explore the issues of complexity and wait time in the next phase of root cause analysis.

35. Problem Statement: 1. Why is this problem occurring? Go through the “5 Whys” multiple times until you’ve fully explored the possible causes. Answer: 2. Why is that problem occurring? Answer: 3. Why is that problem occurring? Answer: 4. Why is that problem occurring? Answer: 5. Why is that problem occurring? Answer: ROOT CAUSE!

36. Problem Statement: The process takes too long in phase 3. 1. Why is this problem occurring? Sample of the “5 Whys” – Take 1 Answer: We have to wait for a form to be completed. 2. Why is that problem occurring? Answer: The forms back up with the verification step. 3. Why is that problem occurring? Answer: We only have one person to verify. 4. Why is that problem occurring? Answer: No one else knows how. 5. Why is that problem occurring? Answer: Others have not been trained. ROOT CAUSE!

37. Problem Statement: Phase 3 is overly complex. 1. Why is this problem occurring? Sample of the “5 Whys” – Take 2 Answer: After verification, several approvals are needed. 2. Why is that problem occurring? Answer: Approvals were put in place over time. 3. Why is that problem occurring? Answer: No one knew what was happening. 4. Why is that problem occurring? Answer: No systems were in place, but now are. 5. Why is that problem occurring? Answer: Approvals have not change to reflect systems in place. ROOT CAUSE!

38. Try using a Fishbone Diagram to determine Root Causes Category 1 Category 2 Problem: Category 3 Category 4 “Why is this problem occurring?”

39. What are the Root Causes? • Now look at all your 5 Whys and Fishbone Diagram(s) and any other analyses. • What appear to be the Root Causes? • Come to consensus as a Team about Root Causes before you move forward.

40. Part 2: DODevelop and Implement Solutions! Plan Act Step 5 Generate potential solutions Step 6 Select Potential Solutions Step 7 Implement the Solutions Do Check

41. Generate Potential Solutions • What are some sources of potential solutions you can tap to generate solutions for each identified Root Cause? Tap these sources and gather list of possible solutions. • Internal Experts: • LEAN Team Members • Supervisors, Workmates • Customers • External Experts: • Recognized expert • UW Seattle or UW Bothell peers • People in your network • Customers • Consultants • Best Practices: • Published studies or journals • Benchmarking • Professional organizations or • Professional Networks • Listservs

42. Now brainstorm possible solutions.

43. Other Solution Tools:Would 5S, Workflow Analysis or Visual Control be useful to add to your list?

44. Choose the BEST Solutions Now that you’ve brainstormed a list of possible solutions, it’s time to choose a solution(s). You could use one or a combination of the following (samples to follow in the next slides): • Prioritization Grids • Multi-Voting • Force Field Analysis Also… • Delphi Technique (page 19) • Decision-Solution Matrix (page 18)

45. Sample Prioritization Grid Hard Not worth it Investment Implementation Low value Low hanging fruit Easy Low Benefit High

46. Instructions for Multi-Voting • Appropriate for making simpler decisions Round 1: Vote for as many as you want. Eliminate the lowest. Round 2: Vote for up to half the ideas. Eliminate lowest, keeping 5 or 6. Round 3: Vote for up to half the ideas. Eliminate the lowest votes. Keep 2-3 final ideas for further investigation.

47. Force Field Analysis Template A tool to identify forces that will help or hinder a solution from going forward. Weigh them to determine how easy it would be to implement a solution. • List forces that will support a solution: • List forces that will make it hard to implement a solution:

48. Once you’ve chosen a solution(s), it’s time to select measurements: • Decide how you will measure the success of each solution and of the LEAN Project. • You may come up with multiple metrics, but don’t overload your team. • How will these metrics be collected? Specify a “recipe” for the metric so it will be collected correctly to produce the data needed. For example: We will compare number of complaints before and after the solution is implemented. Number of complaints will be recorded by the Office Assistant on a check sheet on ___ day and ___ time for ___ days – weeks – months by (whom). (Who) will tally and compile the data and report back to the team.

49. Prepare a Presentation to Sponsor What to put in your PowerPoint : (include pictures, charts, graphs of your work and analysis) • Finalized problem and goal statements • Team Members (add a photo!) • Process Boundaries (begin/end identified) • Current Process Map • Data analysis results • Root Causes identified • Propose Solution(s) and suggested time to implement (Full or pilot?) • Metrics: How will impact of solution(s) be measured and when will this be reported?

50. Once you have approval for your solutions… • Implement your solutions – pilot or full. • Deploy your communication plan to reach all stakeholders as needed. • Collect data on your metrics as planned. • Display and analyze your metrics. • Report back on outcomes to sponsor (30-60-90 days). • Discussion: • Should the solutions continue? • Should they be tweaked? • Should they be scrapped and try another solution? • Take action based on this discussion. • Share your LEAN Project with campus – post it on the Organizational Effectiveness LEAN Website!