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An introduction to Lean tools and methodologies

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1 An introduction to Lean tools and methodologies
LEAN: Getting Started - Module 1: 8 Wastes & 5S An introduction to Lean tools and methodologies

2 LEAN: Getting Started Today’s session will focus on:
A brief history on Lean Two key Lean concepts – 8 wastes and 5S process Activities to practice Lean concepts Tips on how to get started using Lean Q&A with Lean experts Hello, my name is Kelly Lindseth and I will be Facilitating todays webinar learning session Lean Getting Started. Housekeeping – Lean Getting Started Glossary of Terms, for those staff who are wondering whether there participation will be captured in the LMS systems – the answer is yes we - all staff state staff will be entered within the week, you will received an electronic survey at the completion of this webinar – your input will be used to ensue the value of webinars like this one meet your learning needs, lastly, please mute your audio (phone or headset) until we ask for participant input. Thank you, These webinars are being brought to you by the Washington Workforce Association and Employment Security Departments Workforce & Career Development Division and New Office of Lean Transformation. Today’s session will be approximately 1.5 hours in length and will cover the following - ((Reach Slide)) These sessions will be repeated throughout December and into January. To learn more about our Lean webinar series, including Module 2 on Standardized Work and Visual Controls (Late January) please visit our WorkSource Staff Development Event Calendar. It is our hope that you will all walk away from this session and begin applying your new understanding of Lean to your everyday work with customers. We have Experts and Practitioners on this call and will hear from them later in this web session.

3 LEAN: Getting Started Why should you care about Lean?
We are experiencing decreased funding Service demands are changing State and other organizations are focused on it ((Read Slide) Declining budgets and a shrinking workforce mean organizations are being asked to work differently in order to continue to provide quality services to customers as needs change and resources become more scarce. Lean is a systematic process that can lower operating costs, reduce waste, increase customer satisfaction, and improve employee morale by creating more opportunities for employees to feel empowered to improve their work environments. Lean provides a system for organizations to identify and eliminate waste. By reducing redundant or non-value added activities or processes, staff have more time to focus on mission critical work. Across the U.S., companies, agencies and organizations have achieved impressive results by improving their processes using Lean methods. Here in Washington state, former Governor Gregoire issued Executive Order 11-04: Lean Transformation - in December 2011, which launched the shift towards Lean practices both at the state and local level. Governor Jay Ensley championed the importance of Lean in the private sector and built his new administrations agenda Results Washington on Lean principles. When Commissioner Dale Peinecke was appointed to lead ESD, he brought with him a private sector perspective that has been beneficial in rethinking the way we deliver services – the A3 process he used to develop his new strategic plan is a great example. How can applying Lean help us in our work? It will better enable us to meet our organizations. It will empower staff to make changes to reduce waste in their jobs and spend more time with customers. Customers will feel better about the value of our services and the public will feel better about the investment they are making in their communities. We will define “customer” for the sake of this presentation as whomever services or products are being delivered to – co-workers, staff, job seekers, funders, partners, and other internal departments or units.

4 LEAN: Getting Started What is Lean?
Lean is a systematic approach to identifying and eliminating waste through continuous improvement. ((Read Slide)) The fundamental objective of Lean is to create the most value while consuming the fewest resources. Lean defines value from the customer's perspective and identifies which steps in a process create value for the customer and which don’t add value (waste). Lean focuses on eliminating the root causes of the waste to allow for continuous flow of work and tasks, and to reduce costs and improve services. ((Can anyone provide an example of waste in your current work with customers? --- How about redundancy?))

5 LEAN: Getting Started History of Lean Early 20th Century
Time & motion studies, industrial psychology Mid 20th Century Training Within Industry (TWI) Late 20th Century Lean Manufacturing 21st Century Lean Office History of Lean In the early 20th century, Frederick Winslow Taylor, the father of scientific management, introduced the concepts of standardized work and best practices. However, it was Henry Ford’s revolutionary mass-production assembly plants where many Lean practices first emerged. Ford’s success startled the country by implementing what we know as a manufacturing process that increased production and made the automobile affordable for the middle class. Ford understood many of the forms of waste and the concepts of value added time and effort. In the spring of 1950, the Toyota company participated in a 3-month visit to Ford’s Rouge plant in Dearborn, Michigan. Upon their return to Japan, they concluded that the way Ford’s system of manufacturing had evolved would not work for Toyota. Toyota set out to develop an entirely new means of production known as the Toyota Production System (TPS). TPS pioneered the Lean concepts we use today, including just-in-time, built in quality, and continuous improvement. While Lean was initially touted as a manufacturing concept, it quickly became apparent that all businesses rely on processes to deliver goods and services to their customers and that Lean could be successfully used in private and public organizations.

6 LEAN: Getting Started There are 6 basic Lean principles -
Focus on effectively delivering value to the customer Respect and engage the people that do the work Eliminate waste Maintain flow Pull through the system Strive for perfection ((Read Slide)) Now I will provide you with a brief overview of these principles. Please refer to your Glossary of Terms for a deeper understanding. 1. Focus on effectively delivering value to your customer Lean always starts and ends with the customer; it is the customer and only the customer who defines and determines the value of your product or service. The customer defines what they value and what they don’t. Your customers set the expectations. Ask yourself from the perspective of the customer – How quickly can I receive the service or product? Is the information I am receiving correct and relevant? Is the information easy to understand and use? Is the service or product available when I need it? Customers are always changing. Technology, markets and demographics change your customer’s behavior continuously. One example is the accessibility to the Internet and the emergence of social media impact on how people research careers and look for jobs. In order to be a Lean organization, we need to always ask ourselves, “Do my services meet my customers needs today and what needs to be changed to ensure that I can meet their needs tomorrow?” 2. Respect and engage the people In many organizations, hierarchy is deeply entrenched and employees can feel they do not have a voice. Over time, employees stop offering ideas and opinions because they feel they won’t be valued. In a Lean culture, people are expected and encouraged to engage fully, not just perform their daily job functions. 3. Eliminating all types of wastes There is some level of waste in every process. We will cover the 8 wastes shortly. 4. Maintain flow One of Lean’s central principles is flow. When you have flow, everyone keeps the system moving at just the right speed to deliver the right amount to the customer at the right time. Think of a time when you experienced a process that moved quickly and efficiently from one step to another with few or no delays. Perhaps getting your license renewed or the check-out line at a grocery store. 5. Pull through the system In Lean, products and services are pulled through a system. Think of our products and services as being pulled instead of pushed through a set of processes based on customer needs. We assist the customer to assess their needs and pull together the right resources to meet those needs. In Lean, you can use scheduling practices to keep the flow of a system operating at a steady and achievable pace. An example would be the number of local offices that have shifted to individual appointments with customers versus serving them on a first come, first served basis. This allows for better management of service flow through the process. Another example would be the WorkSource Event Calendar – the customer determines their own need, accesses the calendar and registers to attend an event of their choosing. 6. Strive for Perfection Your ability to effectively provide value to your customer relates directly to your ability to eliminate waste and keep it away, permanently. This means that Lean is a never ending journey. There is and always will be something you can improve. As you examine your processes, you’ll discover wastes you did not know existed, because they were masked by bigger wastes. It’s like draining a murky pond; you never know what lurked below the surface until the water is gone. Lean is about making small incremental improvements that are generally not earth-shattering improvements, but regular incremental improvements that eliminate waste, here, there and everywhere, bit by bit. The first step is to identify waste.

7 LEAN: Getting Started Most processes contain waste -
Waste is any non-value added activity that slows down or stops the delivery of a service or product provided to the customer. ((Read Slide))

8 LEAN: Getting Started Value added activities -
An activity is “value added” if, and only if, these three conditions are met: The customer would be willing to “pay” for the service or product The “form, fit, or function” of the service or product changes overtime to keep it relevant and valuable The service or product is quality ((Read Slide)) Every activity in your organization either adds value or it doesn’t. In Lean, you analyze each activity in every process for its contribution to value. In the ideal state, every activity directly meets your customer’s criteria for value – and if it doesn’t, you don’t do it. Think about this principle in the context of what you do for your customers. How much of all of your time, your resources and your energy is consumed doing things that create value for your customers? Here’s a tip: View the process from the perspective of the ‘thing/object/person’ that is going through the process. Keeping in mind that value is always defined from the perspective of the customer.

9 LEAN: Getting Started Non-value added activities (waste) -
Any operation or activity that consumes time and/or resources, but does not add value to the service or product provided to the customer. ((Read Slide)) In Lean, any activity that does not meet all three value added criteria is deemed non-value added. Either the customer would not be willing to pay for it, or the activity hasn’t transformed the product or service in any measurable way, or the activity wasn’t done correctly the first time. In other words, from the customer’s perspective it’s wasted time or effort. Non-value added activities are broken down into necessary and unnecessary activities. Necessary: Includes actions that are non-value added, but are for some other reason deemed crucial (like regulations or program eligibility criteria). These forms of waste usually cannot be eliminated immediately or entirely. Unnecessary: are activities that are both non-value added and unimportant. These activities are the first targets for elimination. Note: There are always going to be non-value added processes that are necessary.

10 LEAN: Getting Started The eight (8) wastes - Defects Overproduction
Complexity (over-processing) Waiting Inventory Excess Motion Transportation Underutilized People ((Read Slide)) Please refer to your glossary for more detail on the 8 wastes. Defects: Errors are the most common form of defect. Defined customer requirements and standard steps help eliminate defects/errors ensuring services are provided the same way every time. Overproduction: Making or providing more information/service than is required. Just-in-time (pull) processing helps to reduce overproduction. Complexity: Effort that adds no value from the customer’s perspective. Simplify each step to basics and eliminate double handling or extra steps such as duplicate data input and multiple approvals. Waiting: Idle time created from waiting. Less waiting means higher productivity and happier customers. Unnecessary Inventory: More inventory than needed for a particular job. Clear old inventory to lighten the investment. Excess Motion: Any movement of people or machines that doesn’t add value to the product or service. Put items in proper places so time is not wasted searching. Implement correct ergonomics. Set up workstations so motions are fluid. Excess Transportation: Moving materials, information or customers around the office and between partners. Determine the fewest steps needed to get the product/service to the customer. Underutilized People: Not using or misusing people’s mental, creative, and physical skill abilities. Assign work based on people’s strengths, passion and knowledge to get the best ideas for continuous improvement initiatives. Flatten hierarchy to give staff sufficient authority to do their job. Invest in staff development- provide sufficient training opportunities for staff to learn and grow. Question - How many times have you experienced some or all of these wastes in your work? How many times have we as employees felt underutilized in our work?

11 LEAN: Getting Started Type of Waste Examples Defects
Data errors, missing information, document errors, confusing instructions or requirements, typos Overproduction Unneeded reports and copies, excess messages, doing work not requested Complexity Unnecessary process steps, too many signature levels, workarounds Waiting Time for approval cycles, waiting for information or decisions, waiting for people in meetings Inventory Excess materials/information, obsolete databases/files/folders, unused reports Excess Motion Trips to the printer and copier, unnecessary movement to find files or supplies, travel to meetings, multiple “clicks” to access electronic information Transportation Report routing, transport of documents, document storage Underutilized People Underutilizing people’s knowledge and creativity, uneven workflow resulting in some team members overburdened while others are underutilized ((Read Slide)) Do you have time to analyze waste? You can’t afford NOT to! Lean can help! Put on your waste buster helmet and take a look at this slide – can you identify areas of waste in your daily work or office based on these examples?

12 Images courtesy of http://kallistaconsulting.com.au
LEAN: Getting Started Let’s start with 5S! The 5S system is a good starting point for all improvement efforts aiming to drive out waste from the service process, and ultimately improve a organization’s bottom line by improving products and services, and lowering costs. How many of you have heard the saying - “A place for everything, and everything in its place”? This is the mantra of the 5S method. Would you agree that your physical work environment has a major impact on the effectiveness of your processes? Behavior change in organizations is difficult to accomplish. The easiest way to start changing behavior is to adapt your environment, because people are affected by their work environment. EXAMPLE: Kelly’s story about organizing her desk according to her observation in the commissioner’s office. The key here is to start small and make changes that effect your immediate work environment – over time these changes can influence the broader health and vitality of your workplace. Before After Images courtesy of

13 Images courtesy of http://www.niftysol.com
LEAN: Getting Started The 5S’s - Sort Set in order Shine Standardize Sustain What is 5S? 5S is an improvement process involving five steps (sort, set in order, shine, standardize, and sustain) to create and maintain a clean, neat and high-performance workplace. 5S is often used to ready the workplace for future Lean events and continuous improvement efforts. Note: 5S is our Commissioner’s favorite Lean principle 5S is sometimes referred to as the 5 pillars of a visual workplace. 5S programs are usually implemented by small teams working together to get materials and needed information closer to operations, right to workers’ fingertips and organized and labeled to facilitate operations with the smallest amount of wasted time and materials. Images courtesy of

14 “When in doubt, move it out!”
LEAN: Getting Started 1S: Sort Distinguish between necessary and unnecessary items and eliminate the unnecessary ones. “When in doubt, move it out!”

15 LEAN: Getting Started Signs of a disorganized workspace -
Key documents, items or information can’t be located quickly or at all Large quantities of the same supplies are stored in multiple locations Areas, drawers and cabinets are “dumping grounds” for miscellaneous items Supply areas contain items that have not been used in years, like toner cartages for printers that have been surplused, cords and cables to unknown electronics

16 LEAN: Getting Started How to sort things:
Decide what you need to do your work. Remove unnecessary clutter. Throw away all trash and unrelated materials in the workplace. Classify and store all tools and materials. Remove items that are broken, unusable or infrequently used.

17 Locate at the workplace Store away from the workplace
LEAN: Getting Started Tips for sorting - Priority Frequency of Use Sort Action High Once per day Locate at the workplace Medium Once per month Store together Once per week Low Once per year Store away from the workplace Less than once per year Throw away/surplus

18 “ A place for everything, and everything in its place.”
LEAN: Getting Started 2S: Set in order Once you’ve eliminated all the unneeded items, set everything essential in its proper place. Arrange materials so the most frequently used items are the easiest and quickest to locate. Test: Could you find an item in 30 seconds or less? “ A place for everything, and everything in its place.”

19 LEAN: Getting Started Signs of an organized workspace -
Office appearance is neat and clean with minimal clutter Needed items are quickly and easily located You can immediate spot out-of-place items or excessive or insufficient inventory

20 LEAN: Getting Started 3S: Shine
Identify inconsistencies, problems and improvement opportunities. Remember to include electronic files. At the end of the day, tidy the work area and be sure everything is restored to its place. ((Read Slide)) “Remember, practice stow as you go!” “Stow as you go!”

21 LEAN: Getting Started 4S: Standardize
In groups, establish standards, guidelines and schedules - make them visual. Continue to assess the use and disposal of items. See and recognize what needs to be done. Standardizing makes sort, set-in-order and shine a habit. It requires team member commitment to incorporate 5S into our everyday work routines. Here are some ideas for standardizing: ((Read slide)) “If you can’t see, you don’t know. If you don’t know, you can’t control.”

22 LEAN: Getting Started 5S : Sustain Maintain and review new standards.
Sustain 5S focus to prevent falling back into to old habits. Conduct regular walk-throughs and inspections. Continuously look for ways to improve. 5S is Sustain. Here are some tips for sustaining 5S: ((Read slide))

23 Are you ready to start using Lean?
LEAN: Getting Started Are you ready to start using Lean? Debrief Activity – POLL – (Poll document name 8Wastes and 5S .apt) – execute poll and show results. Time for some Q&A with Lean Practitioners

24 LEAN: Getting Started What’s next? Start practicing your new skills
Sign up for Lean: Getting Started Module 2 – Standard Work and Visual Controls (January 2014) -http://www.wa.gov/esd/1stop/technical_assistance/staff_development.htm Get involved in a local or regional Lean event Ask your local administrator about local Lean projects you could get involved in The best way to learn anything is to practice. Can your office benefit by implementing 5S? See if you can apply the Lean 8 Wastes or 5S processes over the next week to make a move value. Let us know what you decided to tackle and what the outcomes is – we would love to hear from you. Don’t forget to help us out by completing the Lean Evaluation electronic survey. Look for it in your later today!

25 LEAN: Getting Started Additional Resources -
LEAN: Getting Started - Glossary of Terms ESD Office of Lean Transformation website Results Washington website Lastly, there is lots of great information available on Lean. Getting involved in a local event is a great way to practice your Lean skills and improve services to our customers. ((Read Slide)) Jenifer Franklin the ESD Office of Lean Transformation Director and she and her staff are involved in a number of exciting projects. I encourage you to check out their new website to keep up with some of the exciting projects going on around the state. In addition, we have two WCDD Lean Project Leads – Alberto Isiordia & Nona Mallicoat who are great resources on Lean and Lean Event planning. Some of the WCDD Lean Projects, inlcuide - Centralized UIRO/EUC Scheduling and Mailing Recruitment and Hiring Veterans DVOP Intensive Services TANF referral process (This was Southwest LPA only – included DSHS/WorkSource/Clark College/PIC – Don’t know if you want to use) The current (this week) WorkFirst project Upcoming REA/JSR process Lastly, watch for the Lean: Getting Started – Module 2 – Standardized Work & Visual Controls – to be offered in January.

26 In closing I want to thank you taking time out of your busy schedules to participate today. We hope you have what you need to immediately get started using Lean at your desk, in your office, across your area. Remember transformation takes time but the investment you make in using Lean to help in your work now – will pay off in the future. And as W Edwards Deming said “quote from slide” Thank you and have a great afternoon.


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