Conducting Successful Kaizen Events

1. Conducting Successful Kaizen Events Enterprise Lean Cristine Leavitt November 12, 2013

2. Learning Objective • Learn the steps and tips for planning and conducting a successful Kaizen event.

3. Agenda • What is a Kaizen event? • Planning the event • Holding the event and implementing changes • Monitoring results • Sustaining standard work and ensuring continuous improvement

4. What is a Kaizen Event? Strategy • A 3-5 day facilitated event that engages a team to remove “waste” from a process. Leadership Lean Transformation Performance Measures Training Project Portfolio Increasing Organizational Value 7 Wastes 5S Kaizen Standard Word

5. Planning Phase • Select the project (define the business issue) • Define project scope • Set goals & complete a project charter • Define and prepare the team • Schedule meetings • Collect information and data Communicate! Communicate! Communicate!

6. 1. Select the Project Consider the following criteria: • Alignment • Impact • Need • Willingness • Ability

7. Improvement Project Types

8. Defining Project Type

9. Project Selection Tips • Clear start and end points (can be described as a process) • Easily identifiable internal and external customers • Improvement can be measured • Start with quick wins before tackling larger projects

10. 2. Scope the Project • Define what is IN scope • What is the first step of the process? • What is the last step? • Define what is OUT of scope

11. Scoping Tips • How big is too big? (rule of thumb; if there are 10 or more functions, reduce the scope) • Adjust the scope if you do not have the current state process documented by mid-morning of Day 2 • Use a SIPOC diagram

12. 3. Set Goals & Complete a Project Charter • Establish SMART goals (time, defects, FPY) • Set the bar high! (50% reduction in lead time) • Goals should be clear, and easy to communicate • Goals should be set by the project sponsor • Complete a project charter

13. A3 – Project Charter

14. 4. Define and Prepare the Team Team Roles: • Sponsor • Team leader • Facilitator • Team members Commitment is needed from everyone!

15. Sponsor Responsibilities • Create or ratify project scope and goals • Select the team leader, facilitator, and team members (often with team leader) • Invite team members and communicate project to key stakeholders – transparency is key! • Kickoff the event with words of support • Stay involved with the team and attend check-in meetings at the end of each day • Attend final presentation and recognize team • Ensure improvements are implemented and sustained

16. Team Leader Responsibilities • Assist on scope, goals, and defining team members • Gather process information and data • Schedule kickoff and event meetings and venues • Help the facilitator with team member involvement • Lead check-in meetings • Coordinate implementation of action plan • Trouble shoot and bring issues to sponsor’s attention • Monitor progress and performance • Ensure standard work is followed and sustained and results achieved

17. Facilitator Responsibilities • Help the sponsor and team leader define and prepare for the kaizen event • Facilitate the event • Train on Lean principles and tools • Work with the team to provide deliverables • Support implementation and sustainment

18. Team Member Responsibilities • Knowledge and expertise on the current process (may also want a person from outside of the process to provide a fresh perspective) • Use data to understand and solve problems • Ability and willingness to participate – are they open to change or a CAVE dweller? • Create and abide by team ground rules • Develop project deliverables (future state process, action plan, report out presentation) • Implement action plan and sustain improvements

19. 5. Schedule Meetings • Reserve rooms and peoples schedules 4-6 weeks prior to the event (including Kick-off meeting) • Event venue criteria: • Isolated - quiet for work and not disturbing others • Lots of available wall space • Technology for training • Provides access to process materials and resources

20. 6. Collect Information and Data Team leader collects process data: • Volumes (# processed per month, year) • Current metrics relevant to the process (time, first pass yield, rework, customer satisfaction) • Forms/databases used in the process • Defects – External, re-work • Customer needs and requirements (CTQ)

21. 7. Hold Kick-Off Meeting Purpose: Get everyone on the same page • Sponsor Kickoff (business issue and anticipated customer and staff benefits) • Review project charter & roles and responsibilities • Answer questions • Sign Project Commitment

22. Communicate! • Identify key audiences for the project and what they may need or want to know and how best to deliver the information • Eg: Let leaders and staff know that you are engaging a team to recommend changes to improving the process; share the process goal and timeline; who is involved, and who they may contact with questions, concerns and advice. Communicate before, during and after the event

23. Planning Advice • Use a project charter and sign charter • Do not use a kaizen event to address employee performance issues • Include someone from outside the process on the team • Clarify team member time commitment before, during & after • Educate/coach sponsors to manage their expectations • Solicit input from staff and stakeholders upfront • Provide an avenue to report concerns, questions, and improvement ideas before, during and after the project • Publicize the project – it shouldn’t be a secret! • Provide sponsor check-ins to obtain guidance and avoid zingers!

24. Event & Implementation Phase • Map and characterize the current state process • Observe the process (e.g. strengths and weaknesses/wastes) • Brainstorm improvements • Map and characterize the future state process • Create an action plan • Set performance measures • Share results with stakeholders • Implement the action plan

25. 1. Map & Characterize the Current State Process People (job functions)

26. 2. Observe the Process Strengths Weaknesses (OFI) Where are the 7 wastes? Overproduction Waiting Transportation Extra processing Inventory Motion Defects * Underused creativity! • Where does the process work well? • What are value-added steps?

27. 3. Brainstorm Improvements • List lots of ideas (big, bold ideas - no cost ideas) • Rank and prioritize ideas • Select ideas to include in future state process

28. 4. Map & Characterize the Future State Process % Change = (Current hours – Future hours)/Current hours) x 100 • [ ]% reduction in lead time • [ ] % reduction in task time

29. 5. Create an Action Plan

30. 6. Set Performance Measures • If you do not have performance measures, create performance measures during the event. • Track performance on a regular basis to see whether you are achieving expected performance levels. • Use both qualitative and quantitative measures (critical 2-4 measures). • Use visual measures to quickly communicate progress, enhance standard work, and facilitate issue identification and resolution. • Typical measures: Lead time, FPY, # errors/defects

31. 7. Share Results with Stakeholders • Hold a report out presentation where team members present project goals and recommended changes to key stakeholders • Ask questions • Celebrate!

32. 8. Implement the Action Plan • Include in your action plan how and when you will monitor performance. • Have a strategy for identifying and resolving issues, including resistance

33. Event and Implementation Advice • Create & enforce team ground rules • Provide just-in-time training • Reduce the project scope - if you need to • Prioritize ideas based on impact & ease of implementation ($) • Provide snacks and have fun during the event! • Make the action plan accessible and easy to change and name the person who will complete each task • Expect and plan for challenges • Hold yourself and others accountable • Reward and recognize people for bringing up issues

34. Monitoring Phase • 30, 60, & 90-day status meetings with sponsor • Validate whether changes achieved project goals • Document future state process • Manage resistance

35. Monitoring Advice • Hold weekly or daily action plan status meetings • The sponsor should assure that the action plan is being implemented • If the team runs into resistance that has stalled their efforts the sponsor needs to get involved – go to the Gemba (See, Ask, Lean, Show Respect) • Monitor the demeanor of staff – are they energized or disheartened? • Focus action plan discussions on yellow and red status tasks

36. Continuous Improvement Phase • Adopt, adapt, or abandon the approach. • Document the future process and centrally store process maps – transfer process sustainment to process owner • Include in the action plan how and when you will review the process. • At least annually revisit the process to assess opportunities for improvement (OFIs).

37. Continuous Improvement Advice • Sustaining improvement is often the most difficult part – make sure people do not slip back to the “old way of doing things” • Expect to improve a process multiple times (3-5 times) to remove wastes and get closer to the “Ideal”

38. Kaizen Event Results

39. For More Information • Enterprise Lean • Dept. of Administration, State of Minnesota • MN.gov/Lean | Lean@state.mn.us • Mary Jo Caldwell |Director of Enterprise Lean • Office: 651.201.2560 | Mary.Jo.Caldwell@state.mn.us • Cristine Leavitt | Lean Expert • Office: 651.201.2567 | Cristine.Leavitt@state.mn.us