Denver’s Peak Academy

1. Denver’s Peak Academy Black Belt Training Day 3 – Tools to Eliminate Waste

2. Agenda – Day 3: Tools to Eliminate Waste

3. Peak Academy A3 Boxes 4-9

4. The A3 Model Planning 1 Why Change is Needed 2 Current State Future State 3 Innovation Gap Analysis / Assumptions 4 Brainstorming 5 6 Experiments Sustain the Innovation 7 Action Plan Results 8 Lessons Learned 9

5. TITLE:_________________________________ Date Started:_______Current Date:_________ Team:___________________________ Executive Sponsor: Process Owner: 1 Why Change is Needed 4 Gap Analysis / Assumptions 7 Action Plan • Sample Questions • Why are we doing this? • What is the burning platform? • What is the chief complaint? • What is the impact of this issue? • Intent of the action • Scope – Start & end points • What holds us back from the Future State? • What are the root causes of these road blocks? • Use Tools to ID Waste 2 Current State 5 Brainstorming 8 Results Describe attributes of the current state – Quantitative & Qualitative Graphically present picture of Current State 3 Future State 9 Lessons Learned 6 Experiments • Describe attributes of the future/goal state – Quantitative & Qualitative • Graphically present picture of Future State • Are metrics defined and achievable? • METRICS: Hard-$ savings, Soft-$ savings, Service Level Improvement, and Human Development

6. Building box 4 of the a3 What holds us back from the Future State? What are the root causes of these road blocks? Use Tools to ID Waste • Building on your A3 from yesterday, complete Box 4 addressing the questions above. • You will have 15 minutes to work on Box 4 and then we will share as a class. 4 Gap Analysis/Assumptions

7. Peak Academy Continuous Flow

8. Paperwork Game • The objective of your group is to complete all 6 pieces of paperwork as quickly and accurately (# rework) as possible • Groups will be split by batch size: • One group works in batches of 6 (each person completes their step for all sheets before passing) • Another group does one sheet at a time • Other groups will work in batches of 2 or 3 (each person completes their step for 2 or 3 sheets before passing)

9. 3 2 6 2 2 4 2 3 + 2 + 6 + 2 + 2 = 15 √ 3 + 2 + 6 + 2 + 2 = 15 15 + 4 + 2 = 21 √ 3 + 2 + 6 + 2 + 2 = 15 √ 15 + 4 + 2 = 21 15 + 4 + 2 = 21 √

10. Batching vs. One-piece flow Batching: • Completing multiple units of work before moving it on to the next step One-Piece Flow: • Completing a single unit of work before moving it on to the next step Ortho Clinical Diagnostics Jan ‘08

11. Batching vs. One-Piece flow Example: DHS

12. WIP: Work in Progress • WIP is any work in a process that is waiting to be completed • WIP requires storage for the material or information, and can have negative impacts on productivity, quality, and customer satisfaction • Examples: • Piles of applications in inboxes • Clients waiting to be called for the next step • Groceries at a checkout counter

13. Rework- the “Hidden Factory” http://nayariniestiningsih.blogspot.com/

14. Rolling First-time Yield • Percent Complete & Accurate: • Percent of occurrences where a process step is completed without needing corrections or requesting missing information • Rolling First-Time Yield: • Percent of occurrences where the entire process is completed without needing to be fixed or rehandled in some way • This is the product of the Percent Complete and Accurate for each process step, expressed as a percentage • Example: Processing Claims ### claims done with no rework 1,000 claims 90% 90% 90% 90% 90%

15. BREAK • Let’s take a short break and jump back in with other Lean tools: • Visual Management systems • 6-S

16. Peak Academy Tools to Eliminate Waste (A3 – Boxes 5 & 6) Visual Mgmt Systems & 6-S

17. Tools to Eliminate Waste: Visual Management SystemsFor more information, see BMGI Course: Visual Management • Visual Management Systems • Production Boards • Kanban • Andon • Some Potential Benefits • Show productivity in “real time” • Provides Transparency to the Process • Good for Customer Service Improvement • Increases “Flow” in a process

18. Production Boards Budget Board at the BMO

19. Production Boards Peak Academy work management and Gemba Walk boards DOF DECC fundraising

20. Production Boards • Production Boards at Denver Water: • Top boards show daily service issues & status • Bottom right board shows total cost for eVoucher Invoices

21. Billboard • Japanese Term for “billboard” – “kanban” • Creates PULL in a process flow to reduce Lead Times & Inventory • Only proceed in a process when Kanban is shown Kanban – Easy to see when levels are low. Only then re-stock

22. Lantern • Japanese term for “lantern” – “andon” • Used to alert team or management about issues (or opportunities) • Opportunity for experts (those that “do” the process) to make change

23. Visual Management Systems: Exercise • Individually, create a production board for one of your innovations. (15 mins) Choose a process that occurs in your work-place Create a Production Board that may be applicable to your work Try to only use the materials in the room. • Present your Production Board to the person next to you. After 5 minutes. Switch and let them tell you about their production board. (10mins) • Facilitator will ask for a few to discuss with the group. (25 mins) • Question: • Could the creation of a Production Board be a “Just Do It” after you’re done with Black Belt training?

24. 6-S: Game The 6S numbers game…

25. 6-S: The “WHY” of 6SFor more information, see BMGI Course: 5S 6-S is a Lean tool to eliminate waste that: • Is used for improving organization of the workplace • Reduces waste associated with searching for supplies, tools, and information • Increases morale, safety & quality • Makes problems more visible

26. 6-S: What is a 6S? Safety

27. 6-S: A Basic Cornerstone of Lean • Supports other elements of Lean • 6S is a ‘basic enabler’ for developing a culture of continuous improvement 27

28. 6-S: Sort • Separate unnecessary from the necessary • Remove things not required for the process • Add things that are missing • Discard junk • Red Tag items • For follow-up, evaluate and decide • Item is needed = keep it • Item not needed = discard it!

29. 6-S: Set in Order • Provide the needed tools at each workstation • Organize everything so it is convenient to complete the work • Standardize workstations where similar work is done • Centrally locate shared items so they are convenient for everyone who uses them • Move items out of drawers and into the open so they easy to retrieve • Label everything!

30. 6S: Shine • Clean all work surfaces, under & behind all equipment • Label and outline all locations • Re-paint to make everything look new • Goal: create a visual workplace

31. 6-S: STANDARDIZE • Maintain adherence to the first three S’s • Develop task sheet for each 6S’d location • Assign owner to each of task sheet • Develop 6S scoring method

32. 6-S: Sustain • Schedule periodic audits to score 6-S by area • Display results – 6-S Scorecard • Allocate time periodically to continue up-keep: • Sort • Set in Order • Shine • Standardize • Safety

33. 6-S: SAFETY • Be on lookout for safety issues & resolve • Employee Safety • Ergonomic Issues • Ensure safety equipment is operational • Enter work orders for safety issues that cannot be resolved in the 6-S activity 33

34. 6S: Tips • Scope 6S areas small (workstation or copy room vs dept) • More 6S activities are better than 1 large activity • Have enough time available for a thorough Sort • Do a little pre-work (Create 6S worksheets, etc.) • Size team to match the area • Include people on team from outside the area • They will ask “Why do you have the space set up this way”? • No need for perfection on 1st 6S pass – plan on multiple passes • Don’t clean up the area before the 6S – the worse the before, the better the after • Email and/or print-out (display) before and after pics!

35. 6-S Example: Common Areas in an Office After 6-S Before 6-S “Out of clutter, find simplicity, from discord, find Harmony. In the middle of difficulty lies opportunity.” - Albert Einstein -

36. LUNCH BREAK • Let’s take a break and pick back up with other tools to eliminate waste: • Standard work & mistake-proofing • Types of innovation events

37. Tools to Eliminate Waste Standard Work A3 Boxes 5-6

38. Standard Work – Make a Dog face (1st Round) • Make a dog face using the square sheet of paper provided • Your dog does not have to look like this one: • When you’re done, share it with the class!

39. Standard Work – Make a Dog Face (2nd Round) • Now – let’s see what the customer really wanted: • Instructions • Make the dog face again on a new sheet of paper • Discussion: How did it go this time?

40. Standard Work – Make a Dog Face (3rd Round) • Make a dog face using the picture provided on another sheet of paper AND the instructions

41. Tools to Eliminate Waste – Standard WorkFor more information, see BMGI Course: Standard Work Standard Work: • Create standard procedures & documentation that will… • Mature your process & sustain innovation • Help train team members • This can be as simple as a “Process/Procedure Document” Improve Org Service Delivery! Standard Work State before Innovation RIE / Innovation

42. Standard Work – Discussion • Lean concepts at work here: • The customer defines value – always start w/ what they value • Standard Work eliminates waste and errors Deliver value to customers without waste (wasted paper!) Make your standard work visual when possible

43. Standard Work – examples • Animal Care Control Administrative Citation:

44. Standard Work – examples • Animal Care Control Adoption Notice:

45. Standard Work – examples • Denver Human Services – Child Support:

46. Standard work in your workplace • Form a group of 2-3 people and design Standard Work for one of your work processes. • As a team, come up with a visual check list to maintain and adhere to a standard. Use one of your innovations and as a team come up with standard work for that innovation. You will have 20 minutes: • Spend about 5 minutes brainstorming ideas with your group • Spend the remaining 15 minutes creating the Standard Work as a group. • Share your Standard Work with the class • Is this something you would consider implementing as an innovation after class? • Were you able to get ideas from your classmates?

47. Tools to Eliminate Waste: Mistake-proofing • Also known as poka yoke - pronounced “poh-kah yoh-keh” • Error-proofing • Some benefits: • Reduced re-work • Reduced defects • Increases safety • Increase ROI – less re-work!

48. Mistake-proofing examples Drop-down menus prevent incorrect inputs Auto-fill reduces inputting errors Required fields prevent missing data Outlook warns users of a potential oversight

49. Mistake Proof Exercise How do you make a process step mistake proof? Ideas: • Templates— • Do we ask for a print out only to hand it back to the customer after we read it? Is it possible to read it on an Iphone? • Carpenters use jigs or patterns—does your process lend itself to a pattern or jig? • A jig is a type of custom-made tool used to control the location and/or motion of another tool. A jig's primary purpose is to provide repeatability, accuracy, and interchangeability in the manufacturing of products. Spend the next 15 mins work on your A3 Innovations: In box 5 and 6 write what type of steps you can mistake proof on your innovations. Discuss them with your neighbor.

50. Peak Academy RIE Example