Lean Value Stream Mapping: Early Intervention Program

1. Lean Value Stream Mapping: Early Intervention Program Presented by: Cynthia Morrison, Education and Training Coordinator Cher Levenson, Quality Management Coordinator Diana Ehri, Performance Management Consultant Susan Ramsey, Director Date: March 25 - 28, 2013

2. Introductions/Logistics • Name, Office, Duties as they relate to this project • Expectations for the 4 day Lean event • Tell us your favorite movie and why? • Emergencies • Restrooms • Breaks • Food/beverages • Cell phones/blackberries • Roles and Responsibilities • Rules of Engagement

3. Objectives Create an efficient process for determining EIP client eligibility and subsequent enrollment into EHIP by April 1, 2014. To accomplish this we will: EIP Role: • Begin successfully tracking applications received by two categories: mini and full by April 1, 2013. • Establish baseline of completed full applications by July 1, 2013. • Increase the percentage of completed mini applications from 80% to 85% by July 1, 2013 and to 95% by January 1, 2014. • Once baseline result has been established on completed full applications, a target will be determined. • Increase the percentage of EIP applications processed within 10 business days from 10% to 35% by July 1, 2013 and to 60% by January 1, 2014.

4. Objectives EIP Role Continued • Increase the average number of EIP applications processed per week from 120 to 150 by July 1, 2013 and to 200 by April 1, 2014 or 100% of applications received if less than these totals. • EIP and EHIP Combined Roles • Decrease the staff time necessary at both EIP and EHIP to monitor data exchange from 40 hours per month to 10 hours per month by April 1, 2014. • Modify data sharing requirements and processes to reduce duplicative work between EIP and EHIP staff. • Eliminate the need for two separate client applications to EIP and EHIP by April 1, 2014.

5. Objectives EIP and EHIP Combined Roles • Decrease the staff time necessary at both EIP and EHIP to monitor data exchange from 40 hours per month to 10 hours per month by April 1, 2014. • Modify data sharing requirements and processes to reduce duplicative work between EIP and EHIP staff. • Eliminate the need for two separate client applications to EIP and EHIP by April 1, 2014.

6. Agenda

7. Agenda

8. Agenda

9. Agenda

10. Lean Overview

11. Lean Overview What is Lean? A systematic approach to identifying and eliminating waste through continuous improvement Why Lean? • Reduces cycle time • Reduces defects • Increases quality • Improves customer satisfaction • Improves employee morale

12. How is Lean of Value? • Allows staff to do their best every day • Improves customer experience • Increases efficiency and capacity • Encourages problem-solving The Lean approach respects people and honors their contributions.

13. Lean fits DOH! Characteristics of an excellent organization • Offers what customer wants • Strives for customer satisfaction • Follows efficient standardized processes • Noted for high quality & quickness Lean can help • Defines value from customer’s perspective • Strives for speed from start to finish, first pass quality • Standard work is key enabler • Establish competitive edge

14. Improvement Cycle 5 1 Improvement Cycle 4 2 3

15. Define Value To be considered valuable or value-added, an activity must meet these three criteria: C The customer must care about it P It must modify the product or service (changing fit, form or function) R It has to be done right the first time Look at the process from the perspective of the ‘thing’ that is going through the process

16. Voice of the Customer

17. Voice of the Customer Hearing from the customer will help us determine the “value-added” steps in the process. As a customer, please answer the following questions: • What do you want • When do you want it • Why do you want it • How do you use the product and how much do you use it

18. Value Stream Mapping Overview

19. Lean Improvement Cycle 5 1 Improvement Cycle 4 2 3

20. Value Stream Mapping Event

21. What is a Value Stream? • The entire set of activities (both value-added & non-value-added) needed to deliver a specific product/service to a customer. • A visual tool that illustrates how a product moves through the value stream with a focus on improving the whole value stream rather than optimizing pieces of it

22. Value Stream Map A visual tool that illustrates how a product moves through the value stream with a focus on improving the whole value stream rather than optimizing pieces of it. UpstreamWorkshop Name, Date and Current or Future State Downstream What is a Value Stream? Q Q Q Q Q Customer Supplier What What What What What What Who Who Who Who Who Who C/T C/T C/T C/T C/T C/T T/T T/T T/T T/T T/T T/T Q Q Q C/T T/T Q Q C/T T/T Q C/T T/T C/T T/T C/T T/T C/T T/T

23. Steps for Building the Current State VSM Supplier 5 7

24. Develop the Kaizen Burst • A Kaizen is an improvement for the better • Determine how to alleviate each rework loop in the current state • Determine how to remove the non-value added steps • Determine how to simplify or combine non-value added but necessary tasks • Determine how to change from “push” to “pull” • Determine how to eliminate idle time/waste in system • Determine if all paperwork/systems are needed

25. Develop the Kaizen Burst • Determine if all systems are needed • Alleviate or minimize multi-tasking • Smaller batch sizes/one piece flow • Instant responses • Determine if all checks are needed/build mistake proofing into processes • Determine how to reduce the C/T of each step in current state by at least 50%

26. Open Parking Lot and Kaizen Newspaper Parking Lot Kaizen Newspaper Parking Lot

27. VSM Standard Legend

28. What we will do • Create the Current State • Process steps • Process issues • Takt/demand time • Process times • Value added /non-value added • Wastes • Apply Lean Tools to Create the Future State: • Work/Visual Controls • Flow/Pull/Kanban

29. Open Parking Lot and Kaizen Newspaper Parking Lot Kaizen Newspaper Parking Lot

30. Agenda

31. Time and Waste

32. Elements of Time Cycle Time (C/T) The amount of time to accomplish the standard work sequence for one product, excluding queue (wait) time. Touch Time (T/T) The time that the product is actually being worked on. Queue Time (Q/T) The time a product spends in a line awaiting the next event to occur – this wait time is waste, or muda. Lead Time (L/T) The total time a customer must wait to receive a product after placing an order.

33. Takt Time (TT) The available production time divided by the rate of customer demand Set-up Time (S/U) Set-up time is the period required to change from one process to another Input Yield (IY) The percent done right the first time through Elements of Time

34. What is Waste? Any non-value added activity Adds problems and blocks the flow of value Waste should be minimized or eliminated!

35. Root Cause Analysis

36. Root Cause Analysis • Goal: • To find the real cause of a problem or issue • Understand the impact to the organization • Resolve it with a permanent fix. • We need to determine: • what happened? • why it happened? • where it happened? • how to eliminate it?

37. Five Whys? • What is it? • A process of asking “Why?” at least 5 times in a row • When is it used? • When people do not truly understand the situation, or when a deeper understanding is necessary • Why? (the Five Whys?) • Causes people to use higher order thinking skills • Cuts through layers of bureaucracy to find the true meaning • Causes people to challenge their current situation or problem • Helps people understand root causes or problems • Helps people clarify motivation

38. Five Whys – the process • Identify a problem, situation, or concept to be studied • Ask “Why?” this particular condition exists • Each time the question “Why?” is answered, ask “Why?” again • Continue to ask “Why?” until everyone involved is satisfied they have arrived at the root cause

39. Is My Map Complete?

40. Is My Map Complete? • Identify customers or your organization • Identify suppliers of data information to your organization • Identify all process steps for the workshop scope at the level of detail that exposes waste • Once the map has all the process steps • Update/develop Kaizen bursts – problem statement- name on the map and document Kaizen opportunity in the Kaizen newspaper – write the problem statement and potential improvement • Identify arrows (push/pull) • Identify rework arrows/percentage of occurrence • Identify all information systems used

41. Is My Map Complete? • Connect the Information Systems/Tools (electronic or manual) with the process steps • Connect all process steps to indicate flow of work • Determine current metrics/measures and where they are located on the map • Examples of input and outputs of group (screen print or reports/forms, etc.) • Notional timeline at the least – if time is available complete the data box with filled in data • Total cycle time • Total wait time • Total touch time • Agreement/Concurrence from your group that the current state map represents reality • Agreement/Concurrence of connecting organizations

42. Open Parking Lot and Kaizen Newspaper Parking Lot Kaizen Newspaper Parking Lot

43. Agenda

44. Flow, Pull, Kanban

45. Lean Improvement Cycle 5 1 Improvement Cycle 4 2 3

46. Flow Production(Future State) • A pipeline with steady, predictable flow • Work in Process is a known, fixed Level. • Scheduling is predictable. • Product or service moves quickly and Continuously through the system.

47. Lean Improvement Cycle 5 1 Improvement Cycle 4 2 3

48. Push vs. Pull Push (Current State) Pull (Future State) Sending work to the next role whether they are ready for it or not • Sending work to the next role when they are ready for it

49. What is Visual Management? An innovative system that uses simple but powerful visual techniques to communicate

50. Types of Visuals Four Types of Visuals: • Displays/Indicators • Signals • Controls • Guarantees