Presentation on theme: "Transactional Change in Action - Using Lean Principles"— Presentation transcript:
1Transactional Change in Action - Using Lean Principles
2Presenter Karen Kusler Process Improvement for UCO Lean Facilitator Formerly with Institutional AssessmentLean FacilitatorUniversity of Central Oklahoma100 N. University DriveEdmond, OK 73034(405)
3Lean Enterprise is….A systematic approach to identifying and eliminating waste (non-value-added activities) through continuous improvement.
4History Began in the Manufacturing Industry Executive VP Kreidler introduced Lean to UCO in 2002Methodology to improve efficiency, reduce waste, and streamline processesResult in employee satisfaction, clarity of role in process, and standardize work where appropriate
5Words To Live By“Do not believe that it is very much of an advance to do the unnecessary three times as fast”– Peter Drucker“Bureaucracy defends the status quo long past the time when the quo has lost its status”– Laurence Peter
6Lean Thinking Fundamental Objective: To create the most value while consuming the fewest resourcesDefine value from the customer’s perspectiveIdentify which process steps create value and which are only wasteWork to eliminate the root causes of the waste and allow for continuous flow of work and tasks
7Lean is Not… A headcount reduction program A toolbox A method for reducing resources that are needed to support the “customer”
8Goal is Quality of Service Quality is not a program – it is an approach.Quality’s goal is excellence – anything less is an improvement opportunity.Quality implemented properly – increases customer satisfaction, reduces time and cost.
9and adds no value to the product or service for the customer. Waste (Muda)– anything that is more than the minimum amount ofprocess,workers’ time,materials, space, orequipmentand adds no value to the product or service for the customer.
10Lean and Eliminating Waste Typically 95% of lead time is non value-added
118 Wastes in ProcessesOverproduction – producing more sooner, or faster than is required by the next process.Office examples – printing paperwork out before needed, purchasing items before needed (results in inventory storage, processing paperwork before the next person is ready for it
128 Wastes in Processes Inventory (Inbox) – any form of batch processing Office examples – filled in boxes (electronic and paper), office supplies, sales literature, batch processing transactions and reports.
138 Wastes in Processes Waiting Office examples – System downtime, system response time, approvals from others, information from customers
148 Wastes in Processes Extra Processing Office examples – Re-entering data, extra copies, unnecessary or excessive reports, transactions, cost accounting, expediting, labor reporting, budget processes, travel expense reporting, month-end closing activities
158 Wastes in Processes Correction – any form of defects Office examples – Order entry errors, design errors and engineering change orders, invoice errors, employee turnover
168 Wastes in Processes Excess Motion – movement of people Office examples – Walking to/from copier, central filing, fax machine, other offices
178 Wastes in Processes Transportation – movement of paperwork Office examples – excessive attachments, multiple hand-offs, multiple approvals.
188 Wastes in ProcessesUnderutilized People – people’s abilities, not their timeOffice examples – Limited employee authority and responsibility for basic tasks, management command and control, inadequate business tools available
19Lean Project Phases – Lean Team! Agreeing on the process to study, how to map it, who will participate, and logistics.PreparationAgreeing on a well understood map of the current situation.Current StateAgreeing on a shared vision of a Lean future state.Future StateAgreeing on how to implement the future state vision.Planning
20Project Preparation Select potential project with sponsor/Champion Scope effort with functions represented in the selected value streamConfirm business objectiveIdentify measures of successDevelop SIPOCIdentify participants & decision panelConfirm scope with Decision PanelWalk the flow
21Case Study – Fixed Assets Reason SelectedThe current process results in undocumented and over-documented assets in the computer system.CustomerAccounting staff that needs the information to prepare end of year reports and respond to external auditors is the customer.
22Case Study Goals Capitalize all qualified fixed assets. Create processes to capture qualified fixed assets.Identify miscoded fixed assets when ordered.Validate Procard purchases of qualified fixed assets.Define the process to write-off disposed assets.
23Current StateWhenever there is a product or service for a customer, there is a value stream. The challenge lies in seeing it.Draw a Current State Value Stream Map (VSM)Visualize workPoint to problemsFocus directionAsk the 7 review questions
25Review Questions What does the customer really need? How often will we check our performance to customer needs?Which steps create value and which are waste?How can we flow work with fewer interruptions?
26Review QuestionsHow do we control work between interruptions? How will work be prioritized?How will we balance the work load and/or different activities?What process improvements will be necessary?
27Future StateDraw a Future State Value Stream Map based on responses to the review questions
33Finding Sources of University Assets Vary FoundationPurchasesGrantsItems under $2500 not captured for capitalization
34Response Consistent information gathered Foundation – link form to document donationsPurchases – expand inventory management input to include as capitalized items (even under $2500)Grants – train staff to document assets
35ResultEnd of year report and asset capitalization is more accurate
36Making the Change in a Process Establish the main objectivesKaizen burstsCreate master plan (Lean Team)Create detail plan (breakout groups)Emphasis who, what, when, and whyEstablish project review datesPresent the plan to the Decision Panel
37No Pain – No $GainWhen the pain of staying put is greater than the pain of changing, then you have a chance to make cultural change. Can you find employee and customer pain and help them out of it in a less painful way?The pain I know is almost always less than the pain I don’t know. But I can imagine that it is pretty bad.
38Learn More About LeanUCO offers educational programs on “Using Lean Principles for Transactional Change”Next seminar is April 12 (registration fee $49)For details go to or call (405)
39Some Books That Helped Us Along the Way “Execution”“The Agenda”“Good to Great”By – Larry Bossidy,Ram CharanBy – Michael HammerBy – Jim Collins
40Some Books That Helped Us Along the Way “Using Lean For Faster Six Sigma Results”“Leadership On The Line”“Lean Thinking”By – Ronald Heifetz, Marty LinskyBy – James Womack, Daniel JonesBy – Mark Nash, Sheila Poling & Frony Ward