LEAN (OpEx & CI) Study Guide

Manufacturing

-Tangible product -Lower variety in demand type -Products have long life cycles -Products can be stockpiled -Production is not usually seen by customer -Human element is not important to the customer -A poor quality product can be replaced

DILO

An observational or self run exercise to understand how a typical day is at the operational level from a team members perspective

WILO

Analysis to develop a view of how the employees' time is spent during a week. To understand how the Team Managers are spending their time.

Muda (Waste)

Any activity that consumes resources (including time) but creates no value for the customer. e.g. error corrections, producing MI that is not required.

Waste

Any activity that does not add value, as defined by the customer. A property of the process, not the processor.

Womack and Jones

Authors of the book Lean Thinking (published in 1994) and the creators of the five key lean principles.

Team Capacity Waterfall (TCW)

Measure of how much of the time available to a team is actually used working on the core tasks.

Lag Measure

Measures the problem; typically "output" oriented, easy to measure but hard to improve or influence

Lead Measure

Measures the root cause; typically "input" oriented, hard to measure and easy to influence

KPI (Key Performance Indicator)

Type of performance measurement used by an organisation to understand how it is performing against its strategic objectives

What is the LEAN value stream cycle? (aka the five principles of Lean?)

Value, Value Stream, Flow, Pull, Perfection

Mura (Unevenness of operation)

Variation in the operation of a process not caused by the end customer. e.g. system downtime and batching

Three

How many types of demand are there?

Unnecessary movements by people

What is Motion Waste?

More work or higher quality than is required by the customer

What is Overprocessing Waste?

Production that is more than needed or before it is needed

What is Overproduction Waste?

Underutilizing coleagues skill, talent, and knowledge

What is Skills Waste?

Unnecessary movements of products and materials

What is Transportation Waste?

Wasted time waiting for the next step in a process

What is Waiting Waste?

KANO Model

A diagram exercise to help you understand your customer needs and identify your Critical to Quality measures?

TIMWOODS

Acronym for the eight categories of Service waste

Standard Work

Aligning everyone to the same way of working creates a baseline for improvement; these documents can discussed during Sit Ins. -Establishes process step sequence -Clear step-by-step instructions for each activity -Creates a standard to build a CI environment from -Drives good leadership beahviors -Establishes best practices -Focuses on the customer and eliminates waste -Demonstrates whats in it for me

Value Stream

All of the activities required to complete an end-to-end process. Pays attention to internal SLAs/KPIs. Looks at who the typical teams and stakeholders. Evaluates a current performance against purpose. Starts with a customer request and ends when that request has been fulfilled and it includes all of the activities within.

Dissatisfiers

Basic requirements (can be known as must haves) that were expected features or characteristics of a service. If these are not fulfilled, the customer will be extremely unhappy.

William Edwards Deming

Co-founder of the PDCA cycle, was a quality management guru who strived for continuous improvement and creator of the 14 points of TQM

Taachi Ohno

Considered to be the father of the Toyota Production System, which became Lean Manufacturing in the U.S. He devised the seven wastes (or muda in Japanese) as part of this system. He wrote several books about the system.

Huddle boards

Create a forum to review performance, raise issues, and set key objectives around quality, cost, people, and delivery Conducted daily and run for 15 minutes

Sit-Ins

Creates a forum to surface deviations, identify best practices, and to support the development of the new starters (and current team members as well). Consist of manager sitting next to the team member and observing production tasks, using a BEST PRACTICE document when available. Manager spends 30-60 min per person every week and are planned in advance on the visual display/whiteboard. Skills matrix is updated after each session

Service

Deeds, processes, and performances. It includes all economic activities whose output is not a physical product or construction. It is generally consumed at the time it is produced and provides added value in forms that are essentially intangible concerns of it`s first purchaser. -Intangible product -Higher variety in demand type -Instant;short-lived experiences -Cannot be stockpiled -Customer is part of the production -Human element is key to the customer -Fantastic service must follow to compensate for original poor service

Opportunity Demand

Demand that presents a wider opportunity to the business

Failure Demand

Demand which exists due to problems, inaccuracy, confusion, etc., for the customer

Delighters

Excitement requirements-Unexpected features or characteristics that impress customers and earn you "extra credit". Needs are typically unspoken.

Individual Variability

Experienced people are working in different ways to complete the same task / process

Describe what you saw versus how you feel Sit in silence after letting them know what you observed and noticed

How do you give feedback?

7

How many stages does a Barclays b have?

One -Results

How many stages of Act are in a Barclays b and what are they?

Two -Solution -Implement

How many stages of Check are in a Barclays b and what are they?

Two -Causes -Options

How many stages of Do are in a Barclays b and what are they?

Two -Problem Statement -Desired State

How many stages of Plan are in a Barclays b and what are they?

Regularly

How often should you update a Barclays b?

Reduce Failure Demand, Eliminate Opportunity Demand, and Design for Value Demand

Lean aims to do what with the three demands?

Muri (Overburdening)

Overburden on equipment, facilities, and people caused by mura and muda e.g. key man dependencies at month end.

Satisfiers

Performance requirements (can be known as nice to haves) that are standard characteristics that increase or decrease satisfaction by their degree.

DILO Characteristics

Results will be used by the team members and team leaders to assess the various activities during the day; breaking these down into Value Add (VA); Necessary Non Value Add (NNVA); and Non Value Added Step (NVA)

1-on-1 coaching sessions

Sessions that give the team members an opportunity to discuss their performance and development with their manager and/or leader

Value and Failure Demand Analysis

Technique that can unlock huge value for service businesses. Helps us understand the current capability of a company to meet customer requirements. Good to use when diagnosing current state of performance.

Customers within the organization

The CEO/CFO, MDs, Heads of Departments, Team managers, and customer facing teams can be categorized as what in relation to the VoC?

Value Demand

The demand that we want

Capacity Imbalance

The difference in how demand arrives and the available capacity to deal with it

Skill Variability

The impact of new starters as they are less experienced than existing team members. As time passes their level of contribution increases

Jikoda

This term is often regarded as the forgotten pillar of the Toyota Production system. It speaks about quality at source, or built in quality; no company can survive without excellent quality of product and service and this is the route through which this is achieved. It means JUST IN TIME and can be broken down into the below simple steps: -Discover an abnormality -STOP -Fix the immediate problem -Investigate and correct root cause

Visual management boards

This tool allows one to understand the current situation at a glance, exposes problems, and inspires solutions. Structured approach to ensuring quality, waste reduction, and improvements through the process. Used to display the operational performance of a business area, in as near to real time as possible. Provides visibility of performance to everyone who operates and controls operational activity in that area. Shows what good looks like.

Efforts caused by rework, scrap, and incorrect information

What is Defects Waste?

Excess products and materials being processed

What is Inventory Waste?

Henry Ford

Was the first person to truly integrate an entire production process assembling the modular Model T in 1913 and creating the first moving assembly line.

15th century Venetian Flow Production

What E2E/LEAN concept was discovered to have stemmed from the 1400s?

OEPS

What acronym is utilized to display the proper steps on how to give feedback?

-Agree the categories/subcategories with the team prior to the exercise starting -Think about what is the reason for each activity -Generally, the more granular the data, the better -5 min intervals are ideal if possible -Try to avoid 'Other' category -DILO should be a mandatory exercise for all target employees -You need data from at least 70% of your employees for the analysis to be representative -It is really important that operators collect the data as they are going along -Collection Period 10 days minimum

What are some tips for collecting a successful DILO?

-Ensure consistency in execution and time -Detect issues or better practices -Enforce management proximity -Support individual development plan Ultimately, they are used for PROCESS CONFIRMATIONS

What are the 4 objectives pursued in a Sit In?

1. Efficiency 2. Control 3. Income 4. Resilience 5. Experience

What are the 5 key measures of LEAN outcomes?

1. Schedule/process 2. Data/Metrics 3. Problem Solving/Solution Driven 4. Communication/Team Dynamics

What are the characteristics of effective huddle sessions?

Transportation, Inventory, Motion, Waiting, Overprocessing, Overproduction, Defects, Skills

What are the eight categories of "Manufacturing Waste"?

1. Identify Customers 2. Understand their needs 3. Define what they care about 4. Develop measures of performance

What are the four steps to understand the VoC?

1. Customer Mapping 2. Gathering Data 3. Translation into CTQs 4. Creation of measures

What are the four steps to understanding the VoC?

1. Obtain historical demand 2. Overlay the resource 3. Analyze the data 4. Identify solutions

What are the four techniques that capacity alignment utilizes to reduce loss in day to day operations and effectively create more capacity?

Critical to Quality (CTQ)

What are the key measurable characteristics of a product or process whose performance standards or specification limits must be met in order to satisfy the customer?

1. Total Time 2. Total Available Time 3. Net Available Time 4. Processing Time 5. Variability & Capacity Imbalance 6. VA time (optional)

What are the order of calculations for the TCW?

Delay, Unnecessary Movement, Unclear Communication, Duplication, Incorrect Inventory, Opportunity Lost, Errors

What are the seven service wastes?

1. Internal/external data 2. Listening post 3. Research methods

What are the sources of customer information?

1. Problem statement 2. Desired state 3. Causes 4. Options 5. Solution 6. Implement 7. Results

What are the stages of a Barclays b in sequential order?

Setting good measures

What are the three below questions indicative of? 1. Are we measuring what is important to the customer end-to-end? 2. Are our measures balanced appropriately? 3. Are measures of performance aligned from top to bottom through the business?

Value Add, Non Value Add, Necessary Non Value Add

What are the three categories of Waste Analysis?

Value Demand, Failure Demand, Opportunity Demand

What are the three types of demand?

PDCA

What cycle is known as the common approach to problem solving?

1. Display 2. Performance 3. People 4. Continuous Improvement (CI)

What do visual management boards consist of?

O-Observation E-Explain P-Pause S-Suggest

What does OEPS stand for?

Satisfiers, Dissatisfiers, Delighters

What does the Kano Model show?

S - Specific or Simple M - Measurable A - Achievable or Actionable R - Relevant T - Timely

What does the SMART acronym stand for?

P-Plan D-Do C-Check A-Act

What does the acronym PDCA stand for?

G-Goal R-Reality O-Options W-Wrap-up

What does the acronym for the GROW model stand for?

Individual variability - experienced people are working in different ways to complete the same task / process Skill variability - the impact of new starters as they are less experienced than existing team members. As time passes their level of contribution increases Capacity imbalance - the difference in how demand arrives and the available capacity to deal with it

What factors can cause imbalance in the TCW?

Critical to Quality or CTQs are the key measurable characteristics of a product or process whose performance standards or specification limits must be met in order to satisfy the customer. ... CTQs are used to decompose broad customer requirements into more easily quantified elements.

What is a CTQ?

Desk manual

What is an example of an SOP?

Capacity Imbalance

What is an opportunity highlighted from the TCW during the Diagnosis phase that is often a significant loss?

Capacity demand alignment is used to bridge the gap between work load and resource enabling a team or operation to be more effective. It comprises of series of techniques that help teams deal with the typical peaks and troughs in workload across the day, weeks and year

What is capacity and demand alignment?

Unquantifiable wastes: 1. Gaps between demand coming in and the number of people or amount of time available to do it 2. Inconsistencies in output targets 3. Working on tasks in the wrong order 4. Ineffective capacity management

What is capacity imbalance made up of?

Total time = total payroll time for all team members Total Available Time = Total Time minus holidays and other paid absences Net Available Time = Total Available Time minus time spent in work but not performing core processing tasks e.g. meetings Processing Time = Process Volumes multiplied by Lowest Repeatable Time (i.e. not a one off fastest time, a reasonable expected target) Value Add Time = Processing Time minus waste and necessary non value add

What is included or measured in the TCW?

DILO

What is run for 10 continuous days and does not include an OTHER category?

VA time (Value Add Time)

What is the 6th step in the order of calculations for the TCW that normally takes longer following a more in depth review of the waste within the processes?

The Shewhart/Deming Cycle

What is the PDCA also known as?

DUDEIOU

What is the acronym for the seven service wastes?

KPIs have to align with with the organization`s overall strategy and vision and are clearly understood by colleagues

What is the main criteria that a KPI should follow?

Listening Post

What kind of customer information is this? -Complaints -Customer service reps -Sales reps -Billing -Accounts receivable -Collection

Internal and External Data

What kind of customer information is this? -Existing company information -Industry experts -Secondary data -Competitors

Research Methods

What kind of customer information is this? -Interviews -Focus groups -Surveys -Observations -Creation of a data collection plan

GROW Model

What model is used to display the impact of being coached and coaching others?

It can be used on a regular basis to identify additional areas for improvement and reset the baseline following an initial improvement exercise. It can also be used during the implementation phase of a team by team transformation to ensure progress is as per plan

When do you use the Team Capacity Waterfall (TCW) tool?

Non Value Add

Which Waste Analysis category should we aim to eliminate?

Value Add

Which Waste Analysis category should we aim to mazimize?

Necessary Non Value Add

Which Waste Analysis category should we aim to minimize?

Toyoda

Who invented Jidoka?

In order to improve productivity it is important to know where all the time is being spent. This will help to provide a baseline for performance data, prioritise improvements and identify opportunities to increase capacity

Why use the Team Capacity Waterfall (TCW) tool?