F2 and LEAN Introduction to LEAN November 15 th , 2010

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F2 and LEAN Introduction to LEAN November 15 th , 2010. 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!. Who Is Finance & Facilities (F2)?.
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F2 and LEANIntroduction to LEAN November 15th, 2010Goals
  • 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!Who Is Finance & Facilities (F2)?LEAN Supports Our F2 Strategy MapVision:We are a global leader able to deliver outstanding service anywhere, anytimeValues: Integrity • Collaboration • Innovation • Diversity • Excellence • Respect • TeamworkValue to Our CustomersEnhance ResourcesMission:We help people who change the worldProvide value for your moneyHelp solve complex University-wide problemsProvide clear, timely, accurate, consistent communications from knowledgeable staffAttract and Retain a Talented and Diverse StaffImprove Operational ExcellenceEnhance leadership effectivenessCreate and maintain collaborative relationshipsDevelop customer value propositionLead strategic UW-wide projectsRecognize performance excellenceDevelop individuals to their full potentialImprove, streamline and innovateChampion environmental stewardshipProvide key input for informed decisions on financial & physical assetsGrow and steward UW’s assetsManage resources to support strategic prioritiesWhat Is LEAN? LEAN is “a systematic approach to identifying and eliminating waste...” which includes—
  • identify current state
  • envision future vision
  • rapid process improvements
  • customer involvement
  • LEAN engages staff—to identify and solve problemsLEAN encourages leaders—to trust and respect staff to do so-- James P. Womack and Daniel T. Jones (2003), in Lean ThinkingWhy 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
  • What Is Unique About LEAN?
  • “Wing-to-wing” improvements involve customers, F2 staff, process partners and suppliers
  • Faster rate of change
  • Customers define what’s valuable
  • Aggressive improvement goals (often 50%)
  • In F2, continuous improvement is a way of life
  • LEAN Terms
  • 5S - A place for everything and everything in its place
  • A3 Report: A one-page report that documents a process. "A3" is an international-size paper about 11 x 17 inches
  • 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.”
  • 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, the work sequence of specific tasks, and the minimum inventory of parts on hand needed to conduct the activity.
  • Exercise (5 minutes)Instructions:Form into groups: Ask someone to record the key points of your discussion on the sheet provided. Some may become future LEAN projects! Identify processes within F2 that you think contain waste or need improving, and briefly explain why. Identify the pain/problem areas ( Hint: Don’t solve the problems…just identify them!) We will collect the sheets at the end of class.Change Model - ShingoCultural transformation through integration of principles of operational excellence across the enterprise and its value stream creates a complete systemic view, leading to consistent achievement of resultsWhere Is F2 Practicing LEAN Now?Control SpendControl spendConsolidate ITConsolidate ITOptimize SpaceOptimize spaceReduce labor timeFurniture ProcurementShared SystemsProtect the CoreCampus AlterationsPurchasing Supplier RegistrationGrant UnbilledMailing ServicesSFS Direct LoansReal Estate Office InquiresGrant Closings5SCopy Centers5 Key LEAN Principles
  • Customer defines value
  • Produce at the rate of customer demand “pull”
  • Eliminate Waste
  • Focus on work flow and value streams
  • Pursue continuous improvement
  • Additional LEAN Concepts
  • Welcome problems (“Having no problem is the problem”)
  • Trust facts over data (go see what’s happening, “gemba”)
  • Focus on the process, not people
  • Develop people and teams
  • Learn by doing
  • “Push” System Producer Generated DemandSupply & inventory producedregardless of demandConvince customers they need or want itPushed to the customer 50% OFF!TODAY ONLYUse “Pull” Systems To Avoid Over ProductionCustomer Generated DemandUnderstand what your customer wants, then produce at the rate used.Product replenishedCustomer buys product Supplier notifiedReplacement producedTransportedIdentifying The 8 Key WastesOverproductionWaitingTransportProcessingMovementComplexityUnderutilizedpeopleExcess inventoryReducing Processes To Core ValueEXCESSIVE MOTION(WALKING TO NEXT TASK, ETC.)DEFECTS(IDENTIFYING, HANDLING, FIXING)WASTED TIME AND ACTIVITYCORE PROCESS VALUEO P E R A T I O N A L L E A D T I M EUNNEEDED PROCESSING TIMEWAITING(OFTEN RESULT OF UNBALANCED TASKS)TRANSPORTATIONFocus on eliminating the wasted time and activity. LEAN Tool – A3 Components Mission Statement: What is the goal or objective?Background / Business Case: Why is this important?Current State: Where are you now?Future State:Where do you want to be in a year?Action Plan: What actions are needed to get to the Future State?Metrics:How will you measure progress towards the Future State? LEAN Tool - A3What Is A Kaizen Event?Two or Three Day Workshop
  • Team includes project leader, facilitator, staff members, customers/process partners
  • Identify Current State, Identify Issues, Envision Future State, Identify Kaizen Projects
  • 30, 60 and 90-Day Report Outs to LeadershipKaizen Event Scope DocumentWhat is the problem?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 titleName and titleHigh level overview of the overall process to focus on from beginning to ending steps of the processNames /titles including customersWhat Is A Value Stream Map (VSM)?A process map:
  • Define first to last step
  • Clarify relationships of different tasks
  • Discover non-value added steps
  • Has values added to each step
  • That:
  • Describes the entire current process
  • Helps identify problems
  • Helps team to choose improvements to work on
  • Value Stream Map – Alterations Process Value Stream Mapping Process List how much time is needed for each stepMay also add other values to the map i.e. Complete/Accurate/Correct % (CAC%) etc.Value Stream Mapping Time MeasuresStep 1Step 2Touch Time (T/T)Interruptions, Need more information, BreaksTouch Time (T/T)Wait Time (W/T)Process Time (P/T)Process Time (P/T)Total Lead Time (TLT)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
  • Value Stream Mapping Process - continued
  • Calculate times:
  • Total time (TLT) it takes to complete the process
  • Total touch time (T/T)
  • 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(s) to work on
  • Create an action plan
  • What Is 5S?5S creates an efficient workflow by reducing waste in the placement and movement of materials, information, equipment, and people.LEAN Activity : February 2010Facilities Services – 5S (All staff in Administration Building)Customer Impact/Benefit to Customer:Workspace FocusFacilities 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 5SAfter 5S5S LEAN concept:
  • Sort
  • Straighten
  • Shine
  • Standardize
  • Sustain
  • Recovered Operating Room –5S EventBeforeAfter“Dizzying Complexity”Is this a good use of anyone’s time and skill?Communication to Admit One ED Patient Patients Randomly Picked up by Providers PDCA Pod Design2004 LayoutPatients Cared for in Teams2005 Layout & Teams in Pods5S WARNING!-- The Toyota WayLEAN 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.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 deviates from the standard
  • Helps the team to stay focused and accountable to improve the process
  • Provides a place for a team to share knowledge and experiences
  • Visual ControlsVisual Controls – Kaizen ExamplesGCA Unbilled Team discusses project with Sue Camber, AVP and other sponsors, guestsGCA Budget Closings Team reports progress to V’Ella Warren, SVP and other sponsors, guestsLEAN Kaizen Event #3: January 2010Financial Management – GCA Budget ClosingsCustomer Impact / Benefit to Customer:
  • Eliminate backlog of GCA closing budgets
  • Customer feedback from April 2010 customer survey
  • April Backlog of 5,478 reduced by 3,819 (70% )
  • 2. Improve closing process and avoid future backlog
  • Currently, 673-day average to close a research budget
  • Improved process targets 120-day closing average
  • 72 days average to close with pilot of Future State
  • GCA identifies opportunities for customer improvement with the help of Susan Carpenter-Brandt (Psychology) and Verna Blackhurst (Aquatic and Fishery Sciences). LEAN Kaizen Event #6: June 2010Financial Management – GCA UnbilledCustomer 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
  • Unbilled backlog has been reduced to $7 million
  • GCA reviews their current process to identify opportunities to reduce the amount of unbilledLEAN Kaizen Event #4: April 2010Financial Management – Copy CentersCustomer 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 CentersAaron Munoz (Business School customer)
  • Sal Ramirez
  • (UWMC customer)
  • Beth Berquist (Harborview customer)LEAN Kaizen Event #7: July 2010Financial Management – Mailing ServicesCustomer Impact / Benefit to Customer:
  • Increase mail preparation revenue by 40%
  • Eliminate overtime hours
  • Reduce junk mail and misaddressed mail
  • Recycled 3609 pounds of waste or junk mail since Aug 9 (7 weeks) Sal explains how Mailing Services can help UWMC reduce their need to resort mail and handle junk mail, and teach them how to package outgoing mail to reduce mailing costs.
  • Sal Ramirez
  • (UWMC customer)
  • LEAN Kaizen Event #10: July 2010Financial Management and College of Arts and Sciences – Shared Services Initiative Customer Impact / Benefit to Customer:Reduce Humanities department administrative labor time by 20% with focus on the Payroll, Purchasing and Web processes.Customers and process partners share their business needs with Financial Management staffDavid Miles(Spanish & Port, French & Italian process partner)Michael Furr(Linguistics process partner)
  • Amy Pelloff
  • (not pictured)
  • CHID process partner
  • ZhenyaLavy( Simpson Center process partner)LEAN Kaizen Event #1: December 2009Financial Management - Furniture ProcurementCustomer 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 furnitureA typical LEAN workshop brings customer, suppliers, and process partners to one table.
  • Betty Lee Chen
  • Capital Projects Office
  • (process partner of Financial Management) helps improve the value chain
  • Roberta HopkinsNot pictured (Classroom Support Services)
  • Amy Van Dyke
  • (Bothell Campus)
  • Sherry NapierBank & Office Interiors (suppliers) LEAN Kaizen Event #2: January 2010Facilities Services - Campus AlterationsCustomer 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.LEAN Kaizen Event #5: June 2010Financial Management – SFS Direct LoansCustomer 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 processKey Process Partners explain and share their business needs to Student Fiscal ServicesJohn Gannon (not pictured) Information Management
  • Fred McWhirter
  • Information Management
  • LEAN Kaizen Event #8 – July 2010Treasury – Real EstateCustomer Impact/Benefit to Customer
  • Reduce QTD: (Query to Deliverable)
  • Target measures:
  • Improve ACU% (Accurate, Complete, Useable) from 40% to 80%
  • Reduce maximum QTD time from 25 weeks to 2 weeks
  • Customer Impact / Benefit to Customer:1. Reduce customer cost by 10%2. Improve billing and reporting processCustomers explain and share their business needs with Real Estate staff
  • Kerry Kuenzi
  • (Office of Planning & Budgeting customer)
  • Amie Marston
  • (UW School of Medicine customer)
  • Lane McKittrick
  • (UW Bothell customer)
  • LEAN Kaizen Event #9: July 2010Financial Management – Supplier RegistrationCustomer Impact / Benefit to Customer:
  • Reduce the time to register new suppliers
  • Current process takes up to 30 days Improved process targets 2 days or less
  • Reduce the number of discrepancies with supplier registrations
  • Customers and process partners share their business needs the Purchasing staff
  • Chesca Ward
  • (Business Diversity Office process partner
  • Ronda Grazen (Intercollegiate Athletics customer)What Is Just Do It? Just Do It… Improvements that:
  • are quick to implement
  • you have direct control over
  • the impact is clearly understood and agreed upon
  • 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
  • How Does LEAN Impact F2? LEAN dependsmoreon people, not less. More than a set of tools and improvement techniques, it is a culture and mindset 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, be creative and grow
  • share lessons learned with others
  • own the entire process – beyond your own work
  • “LEAN is a Journey, not a Destination…”LEAN starts you on a journey to discovering new ways of seeing things that need continuous improvement.LEAN WebsiteView the LEAN web site for updates, resources, etc.http://f2.washington.edu/LEAN
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