Conducting Successful Kaizen Events Enterprise Lean Cristine Leavitt November 12, 2013

Learning Objective Learn the steps and tips for planning and conducting a successful Kaizen event.

Agenda What is a Kaizen event? Planning the event Holding the event and implementing changes Monitoring results Sustaining standard work and ensuring continuous improvement Plan DO Check Act Plan Phase: Identify need/problem/opportunity Work with sponsor and team leader to agree on project scope, goals and performance targets – Prepare Charter Confirm project type is appropriate for a Kaizen event Select and invite team Schedule event Collect information on the current situation/process, including reliable data on customer needs and service speed, quality, and costs; Do Phase: Map current state process Assess the current situation (identify strengths and weaknesses/wastes, validate root cause, prioritize problems) Generate, evaluate and select improvements for eliminating non-value added steps and reducing variation Map the future state process Create action items/plan to accomplish improvements Create performance measures Document standard operating procedures, lessons learned, and ideas for future improvements Present results to sponsor and stakeholders (Report Out presentation and celebration!) Implement improvements, including training employees Check Phase: Monitor implementation and institute metrics for ongoing auditing and validation of project goals Act Phase: Adopt, adjust or abandon improvements Transfer responsibility for sustainment to process owner

Increasing Organizational Value What is a Kaizen Event? A 3-5 day facilitated event that engages a team to remove “waste” from a process. 7 Wastes 5S Strategy Leadership Performance Measures Training Project Portfolio Lean Transformation Standard Word Increasing Organizational Value Kaizen Engage the creativity of employees to make the process better But a Lean transformation is more than just a kaizen

Communicate! Communicate! Communicate! Planning Phase Select Project Define Scope Set Goals Engage Team Schedule Meetings Collect Info. Hold Kick-off Select the project (define the business issue) Define project scope Set goals & complete a project charter Define and prepare the team Schedule meetings Collect information and data Communicate! Communicate! Communicate!

1. Select the Project Consider the following criteria: Alignment Select Project Define Scope Set Goals Engage Team Schedule Meetings Collect Info. Hold Kick-off Consider the following criteria: Alignment Impact Need Willingness Ability Strategic alignment It is important to the overall success of the division, or work unit that this process functions well (reliably, predictably, efficiently) It is related to one of our strategic objectives Impact It’s a process that affects a large number of stakeholders/customers It’s a process that consumes a lot of internal resources It’s a highly visible process to stakeholders and/or customers Need It’s a process that clearly is not working as well as it should (lots of complaints, rework, defects, unhappy employees, etc.) It’s a core business process that affects many other processes or programs Willingness Manager of the affected area has an interest in supporting and making needed changes Workers are open to change, and would be able and willing to participate in an improvement event Ability

Improvement Project Types

Defining Project Type

Project Selection Tips Clear start and end points (can be described as a process) Easily identifiable internal and external customers Improvement can be measured Start with quick wins before tackling larger projects

2. Scope the Project Define what is IN scope Select Project Define Scope Set Goals Engage Team Schedule Meetings Collect Info. Hold Kick-off Define what is IN scope What is the first step of the process? What is the last step? Define what is OUT of scope If we can’t define that, we may need a different tool (Process preparation-2P)

Scoping Tips How big is too big? (rule of thumb; if there are 10 or more functions, reduce the scope) Adjust the scope if you do not have the current state process documented by mid-morning of Day 2 Use a SIPOC diagram Supplier Inputs Process Outputs Customer

3. Set Goals & Complete a Project Charter Select Project Define Scope Set Goals Engage Team Schedule Meetings Collect Info. Hold Kick-off Establish SMART goals (time, defects, FPY) Set the bar high! (50% reduction in lead time) Goals should be clear, and easy to communicate Goals should be set by the project sponsor Complete a project charter SMART: Specific, Measurable, Aligned, Realistic, Time-bound FPY – First Pass Yield

A3 – Project Charter

4. Define and Prepare the Team Select Project Define Scope Set Goals Engage Team Schedule Meetings Collect Info. Hold Kick-off Team Roles: Sponsor Team leader Facilitator Team members Sponsor: Set project purpose, goals, and scope Assign resources and remove barriers Team Leader or Project Manager: Lead team, guide process, liaison to sponsor and units impacted Coordinate implementation of action plan Facilitator: Train and coach team on Lean principles and tools Facilitate Kaizen event process Team Members: Collect, share and analyze information Recommend changes and develop an action plan *May have a Steering Team, Champion or Subject Matter Experts for larger projects Commitment is needed from everyone!

Sponsor Responsibilities Create or ratify project scope and goals Select the team leader, facilitator, and team members (often with team leader) Invite team members and communicate project to key stakeholders – transparency is key! Kickoff the event with words of support Stay involved with the team and attend check-in meetings at the end of each day Attend final presentation and recognize team Ensure improvements are implemented and sustained Sponsor should invite team members to a pre-event meeting to explain: Scope and goals Why they were selected Expectations – time commitment/ schedule Importance of the event

Team Leader Responsibilities Assist on scope, goals, and defining team members Gather process information and data Schedule kickoff and event meetings and venues Help the facilitator with team member involvement Lead check-in meetings Coordinate implementation of action plan Trouble shoot and bring issues to sponsor’s attention Monitor progress and performance Ensure standard work is followed and sustained and results achieved

Facilitator Responsibilities Help the sponsor and team leader define and prepare for the kaizen event Facilitate the event Train on Lean principles and tools Work with the team to provide deliverables Support implementation and sustainment 3. To train kaizen team members, you should: Train team members in the elements of the 7 wastes, process mapping, and process improvement Train team members in the purpose and application of standard work Team members may need to understand the elements of 5S 4. To facilitate the team and capture the results of the kaizen event you should: Manage the schedule, participation, and progress each day Capture and record decisions, and actions on the report out document Attend team leader meetings, ensure good communication between the team and sponsor As new facilitators, co-facilitate with some one more experienced Don’t give up Have fun, if you’re not having fun the team isn’t having fun

Team Member Responsibilities Knowledge and expertise on the current process (may also want a person from outside of the process to provide a fresh perspective) Use data to understand and solve problems Ability and willingness to participate – are they open to change or a CAVE dweller? Create and abide by team ground rules Develop project deliverables (future state process, action plan, report out presentation) Implement action plan and sustain improvements 18

5. Schedule Meetings Select Project Define Scope Set Goals Engage Team Schedule Meetings Collect Info. Hold Kick-off Reserve rooms and peoples schedules 4-6 weeks prior to the event (including Kick-off meeting) Event venue criteria: Isolated - quiet for work and not disturbing others Lots of available wall space Technology for training Provides access to process materials and resources 19

6. Collect Information and Data Select Project Define Scope Set Goals Engage Team Schedule Event Collect Info. Hold Kick-off Team leader collects process data: Volumes (# processed per month, year) Current metrics relevant to the process (time, first pass yield, rework, customer satisfaction) Forms/databases used in the process Defects – External, re-work Customer needs and requirements (CTQ)

7. Hold Kick-Off Meeting Purpose: Get everyone on the same page Select Project Define Scope Set Goals Engage Team Schedule Event Collect Info. Hold Kick-off Purpose: Get everyone on the same page Sponsor Kickoff (business issue and anticipated customer and staff benefits) Review project charter & roles and responsibilities Answer questions Sign Project Commitment

Communicate before, during and after the event Identify key audiences for the project and what they may need or want to know and how best to deliver the information Eg: Let leaders and staff know that you are engaging a team to recommend changes to improving the process; share the process goal and timeline; who is involved, and who they may contact with questions, concerns and advice. Communicate before, during and after the event 22

Planning Advice Use a project charter and sign charter Do not use a kaizen event to address employee performance issues Include someone from outside the process on the team Clarify team member time commitment before, during & after Educate/coach sponsors to manage their expectations Solicit input from staff and stakeholders upfront Provide an avenue to report concerns, questions, and improvement ideas before, during and after the project Publicize the project – it shouldn’t be a secret! Provide sponsor check-ins to obtain guidance and avoid zingers!

Event & Implementation Phase Map and characterize the current state process Observe the process (e.g. strengths and weaknesses/wastes) Brainstorm improvements Map and characterize the future state process Create an action plan Set performance measures Share results with stakeholders Implement the action plan You will need the following supplies: Training materials (PowerPoint, toast kaizen video) Paper for swim lane mapping Markers Flipcharts Laptop and speakers (video equipment) Post-it notes (5 different colors) Tape Scissors treats

1. Map & Characterize the Current State Process People (job functions) Characterize the process by assigning time to tasks and waits and counting the number and time for tasks and waits and the number of decisions, handoffs, and storage. 25

2. Observe the Process Strengths Weaknesses (OFI) Where does the process work well? What are value-added steps? Where are the 7 wastes? Overproduction Waiting Transportation Extra processing Inventory Motion Defects * Underused creativity! Non Value-Added Activities All of the other things that we do, but don’t cause the product or service to physically transform. Rework Doing the same thing over again. What prevented us from making it right the first time? Let’s identify that and fix it! Moving Can we move operations closer to minimize the movement of materials or information? Why does there need to be a handoff at all? (Eliminate the move) Handoffs are often a function of “knowledge silos.” We need to pull back the curtain and look at the actual action taken and see if a specially trained person really needs to perform that function. Inspecting Many processes are not capable of letting products/services go to customers without inspecting. The function of inspecting doesn’t physically transform anything. While inspecting we should collect the data about why something isn’t correct and then use the data to put in place improvements that eventually gets rid of the need to inspect. Inspection and the associated data collection, should always be looked at as a short-term, temporary process. Testing Testing is another form of inspection. Re-entering information. This happens typically in the office as one person hands off a job to another person. Many times it is blamed on “4 systems that don’t talk to each other.” The challenge is to simplify the process and you will often find you don’t need to enter the information at all. This is also true with a lot of shop floor data entry. You need to ask, “What is going to be done with the information? What improvement activities will this generate?” Waiting occurs any time there is a handoff from one person to another. Sometimes people are waiting for each other. Sometimes information/materials are waiting for a person or a machine to be available. Many times a person is watching an automatic process operate, thus waiting for it to be done. We must question “What else can the person be doing while that process is running?”

3. Brainstorm Improvements List lots of ideas (big, bold ideas - no cost ideas) Rank and prioritize ideas Select ideas to include in future state process High Impact / Low $ High Impact / High $ Low Impact / Low $ Low Impact / High $

4. Map & Characterize the Future State Process Current State Future State Quantity Time Tasks Waits Handoffs File/Store Decisions Totals % Change = (Current hours – Future hours)/Current hours) x 100 [ ] % reduction in lead time [ ] % reduction in task time

5. Create an Action Plan What Who When Status 1. 2. 3. 4.

6. Set Performance Measures If you do not have performance measures, create performance measures during the event. Track performance on a regular basis to see whether you are achieving expected performance levels. Use both qualitative and quantitative measures (critical 2-4 measures). Use visual measures to quickly communicate progress, enhance standard work, and facilitate issue identification and resolution. Typical measures: Lead time, FPY, # errors/defects

7. Share Results with Stakeholders Hold a report out presentation where team members present project goals and recommended changes to key stakeholders Ask questions Celebrate!

8. Implement the Action Plan Include in your action plan how and when you will monitor performance. Have a strategy for identifying and resolving issues, including resistance

Event and Implementation Advice Create & enforce team ground rules Provide just-in-time training Reduce the project scope - if you need to Prioritize ideas based on impact & ease of implementation ($) Provide snacks and have fun during the event! Make the action plan accessible and easy to change and name the person who will complete each task Expect and plan for challenges Hold yourself and others accountable Reward and recognize people for bringing up issues

Monitoring Phase 30, 60, & 90-day status meetings with sponsor Validate whether changes achieved project goals Document future state process Manage resistance

Monitoring Advice Hold weekly or daily action plan status meetings The sponsor should assure that the action plan is being implemented If the team runs into resistance that has stalled their efforts the sponsor needs to get involved – go to the Gemba (See, Ask, Lean, Show Respect) Monitor the demeanor of staff – are they energized or disheartened? Focus action plan discussions on yellow and red status tasks 35

Continuous Improvement Phase Adopt, adapt, or abandon the approach. Document the future process and centrally store process maps – transfer process sustainment to process owner Include in the action plan how and when you will review the process. At least annually revisit the process to assess opportunities for improvement (OFIs).

Continuous Improvement Advice Sustaining improvement is often the most difficult part – make sure people do not slip back to the “old way of doing things” Expect to improve a process multiple times (3-5 times) to remove wastes and get closer to the “Ideal”

Kaizen Event Results Kaizen Event Results SSB: Assistive & Adaptive Technology Kaizen Event Reduced technology evaluation assessment from 70 to 19 days (73% time reduction), 66% reduction in forms, standardized report forms, developed standard definitions, and enhanced supervisor ability to track progress and troubleshoot. TAA Projects: 1) Customer Application Kaizen, 2) Purchase & Payment Redesign Kaizen: reduced application process from 83 to 39 days (53%). Redesign: reduced purchase/payment from 72 to 38 days (47%). Reorganized customer caseloads, formalized internal discussions on unusual customer cases, improved policy development process, improved training process. UI: Customer Service Center Kaizen (General Mills & DEED) Eliminated duplicate requests for status updates from the Customer Service Center staff and resulted in reducing status updates from 25 days to 1 day (96% time reduction) UI: Phone Agent Problem Solving Project (General Mills & DEED) Fishbone analysis: 50% reduction in supervisor time spent bringing additional agents on line (saved 2500 hours per year).

For More Information Enterprise Lean Dept. of Administration, State of Minnesota MN.gov/Lean | Lean@state.mn.us Mary Jo Caldwell |Director of Enterprise Lean Office: 651.201.2560 | Mary.Jo.Caldwell@state.mn.us Cristine Leavitt | Lean Expert Office: 651.201.2567 | Cristine.Leavitt@state.mn.us