Post on 13-May-2015
description
Kaizen Events
Lean Enterprise Program
UCSD Extension
Instructor: Karen Martin
Learning Objectives
• You will learn:
– How Kaizen Events differ from kaizen.
– How to plan an event (including necessary
leadership engagement, scoping, team formation,
and logistics).
– How to execute/facilitate an event.
– How to sustain improvements.
– How Kaizen Events can help shift culture.
Agenda
• Overview
• Kaizen Event Planning
• Event Execution – Part I
• DVD - Breakthrough Kaizen Events (DVD)
• Event Execution – Part II
• Event Follow-up / Sustaining the Change
• Applying Kaizen Events in Your Organization
© 2011 Karen Martin & Associates 4
Kaizen Defined
KAIZEN
Kai Zen
Break apart
To change
Study
Make better
Continuous Improvement
© 2011 Karen Martin & Associates 5
Kaizen Event – Definition
A two- to five-day focused improvement
activity during which a sequestered, cross-
functional team designs and fully
implements improvements to a defined
process or work area, generating rapid
results and learned behavior.
Karen Martin & Mike Osterling
The Kaizen Event Planner, 2007
© 2011 Karen Martin & Associates 6
Improvement Roles
Who? Accountability Tool
Senior
Leadership
What has to
happen
Value Stream
Mapping
Frontline
Workers
How it will
happen Kaizen Events
Middle
Management
Str
ate
gic
Ta
cti
cal
© 2011 Karen Martin & Associates 7
“Never tell people how to do things.
Tell them what to do and they will
surprise you with their ingenuity.”
- General George S. Patton
© 2011 Karen Martin & Associates 8
Kaizen Event Characteristics
• Aggressive, measurable objectives
• Sequestered, cross-functional team
(100% focus)
• Short duration: 2-5 consecutive days
• Scope: Narrow and deep
• Emphasis on the elimination of
unnecessary non-value-adding
activities
© 2011 Karen Martin & Associates 9
Defining Value
• Value-Adding (VA) - any operation or activity your external customers value and are (or would be) willing to pay for.
• Non-Value-Adding (NVA) - any operation or activity that consumes time and/or resources but does not add value to the service provided or product sold to the customer.
– Necessary - regulatory requirements, support processes, etc.
– Unnecessary - everything else - WASTE
Work Effort Classification as
Defined by the Customer
© 2011 Karen Martin & Associates 11
Kaizen Events Characteristics (continued)
• Low cost
– Define and exploit the “technical
boundaries” of existing resources
– “Creativity before capital” thinking
• Rapid Implementation (during the
event)
Truck 5S Kaizen Event
© 2011 Karen Martin & Associates 14
To avoid sub-optimization, tie all
Kaizen Events to a Value Stream Map
or other strategic improvement plan.
Sub-optimized Value stream optimized
15
16
17
Current State Value Stream Map
Purchasing Segment
Non-repetitive purchases less than $5,000
Supplies Purchasing - Current State VSM
Finance
Review
Budget
PT = 5 mins.
C&A = 60%
6
Corp Purchasing
Manager
Approve in
ERP
PT = 5 mins.
C&A = 90%
1
0.25 days
5 mins.
0.5 days
5 mins.
5 days
5 mins.
1 days
5 mins.
1 days
10 mins.
0.5 days
15 mins.
3 days
5 mins.
7 days
15 mins.
10 days LT = 28.4 days
PT = 65 mins.
AR = 0.477%
Supervisor
Review Req.
PT = 5 mins.
C&A = 95%
2
Sys Engineer
Review
Requisition
PT = 5 mins.
C&A = 90%
1
IS Manager
Review
Requisition
PT = 5 mins.
C&A = 100%
1Financial Mgr
Review
Requisition
PT = 10 mins.
C&A = 95%
1
Admin Asst
Enter
Requisition
PT = 15 mins.
C&A = 98%
1
4 hrs. 40 hrs. 8 hrs. 8 hrs. 24 hrs. 56 hrs.
Originator
Inititate Req.
PT = 10 mins.
C&A = 10%
31
2 hrs.
Form File
File Maker
ERP
Quicken
Vendor
Website
Excel
4 hrs.
Customer Demand:
615 requisitions per y ear
20 ReqsExternal
Supplier
PT = 20 mins.
Hard CopySupplies
Data Entry
Corp Purchasing
Submit PO
to Supplier
PT = 15 mins.
C&A = 98%
6
10 Reqs 63 Reqs
1
2 3 4 5 6 7 8 9 10
RFPY = 4.2%
PT = Process Time
LT = Lead Time
C&A = % Complete & Accurate
AR = Activ ity Ratio (PT/LT x 100)
RFPY = Rolled First Pass Y ield
80 hrs.
Supplies Purchasing - Future State VSM
Customer Demand:
615 requistions per year
Dept.
Manager
Approve
in ERP
PT=5 mins.
C&A = 90%
1
0.5 days
5 mins.
0.75 days
5 mins.
1 days
20 mins.
10 days LT = 12.3 days
PT = 30 mins.
AR = 0.508%
Supervisor
Review
Req.
PT=5 mins.
C&A = 95%
28 hrs.
Originator
Enter Req.
in ERP
PT=30 mins.
C&A = 85%
31
File Maker
ERP
Vendor
Websites
6 hrs.
Standard
Work for
review
Additional
IT access
Requisition
Checklist
Cross
Training
Additional
IT access
External
Supplier
PT=20 mins.
Supplies
4 hrs.
Auto Notify
Integrate Form
File with File
Maker
Use budget in place
of Quicken
Dedicated
Buyers
Corp Purchasing
Place
Order
PT=20 mins.
C&A = 98%
6
Approval
1
2 3 4 5
PT = Process Time
LT = Lead Time
C&A = % Complete & Accurate
AR = Activity Ratio (PT/LT x 100)
RFPY = Rolled First Pass Yield
RFPY = 71%
80 hrs.
Future State Value Stream Map
Purchasing Segment
Non-repetitive purchases less than $5,000
1 2 3 4 5 6 7 8 9 10 11 12
1, 3, 6Reduce number of I.T. systems by 50%;
orig to corp PT to 40 minsPROJ Sam P.
2, 4-6Reduce number of review/approvals by
66%; orig to corp LT = 1.25 daysKE Bruce T.
7Eliminate handoff to admin asst; orig to
corp LT = 1.25 daysKE Dianne M.
1Improve %C&A from originator to 85%;
RFPY to 71%KE Ryan A.
3Reduce number of I.T. systems; reduce
PT orig to corp to 40 mins JDI Lori Y.
8,9Reduce LT through corp purchasing to 1
dayPROJ Jill W.
Future State Implementation PlanExecutive Sponsor
Value Stream Champion
Value Stream Mapping Facilitator
Date Created
Implementation Plan Review Dates
9/27/2007 11/1/2007
Allen Ward
Sally McKinsey
Karen Martin 10/4/2007 11/15/2007
9/13/2007 10/18/2007 11/29/2007
Type OwnerImplementation Schedule (weeks) Date
Complete
Block
#Goal / Objective Improvement Activity
Signature:
Date: Date: Date:
Signature: Signature:
Value Stream Mapping Facilitator
Create dedicated buyers
Approvals
Executive Sponsor Value Stream Champion
Integrate FormFile with MasterFile system
Eliminate Quicken use
Define standard work for requisition review;
cross-train reviewers as needed
Define standard work and cross-train
originators in ERP data entry
Create checklist for requisition initiation;
integrate into existing form
Type legend: JDI = Just do it; KE = Kaizen Event; PROJ = Project; RPE = Rapid Planning Event
© 2011 Karen Martin & Associates 21
Hold Kaizen Events when…
• Rapid change is desired.
• Cross-functional problem solving is necessary.
• You want to break old habits.
• You want to develop the workforce.
• You want to embed lean thinking into the
organizational DNA.
22
Kaizen Events - Macro PDCA Cycle
• Monitor process performance
• Complete 30-Day List
• Conduct 30-Day & 60-Day Audits
• Adjust process as needed
• Continuously improve
• Hold Event
• Create Sustainability Plan
• Communicate success
• Create Charter
• Scope & Schedule Event
• Form Team
• Gather Data
• Conduct Lean Overview
Plan Do
Check Act
23
Kaizen Events - Macro PDCA Cycle
• Monitor process performance
• Complete 30-Day List
• Conduct 30-Day & 60-Day Audits
• Adjust process as needed
• Continuously improve
• Hold Event
• Create Sustainability Plan
• Communicate success
• Create Charter
• Scope & Schedule Event
• Form Team
• Gather Data
• Conduct Lean Overview
Plan
(4-6 weeks prior)
Do
Check Act
© 2011 Karen Martin & Associates 24
Kaizen Event Charter
• Serves as a planning/shaping tool
– What are our measurable objectives?
– Who needs to be involved?
• Defines the event scope and boundaries
• Assigns accountability
• Serves as a communication tool
Workforce
Training
1
2 1
3 2
4 3
5 4
5
1 6
2 7
3 8
4 9
5 10
1
2 1
3 2
4 3
5 4
1
2
3
4 Date:Date: Date:
Contact Information
Signature: Signature:
Name
FacilitatorValue Stream Champion
Name
Dates
Start & End
TimesSpecific Conditions
Value Stream
Champion
FacilitatorProcess Trigger
Kaizen Event CharterEvent Scope Leadership Schedule
Last Step
First Step
Executive SponsorEvent Name
Team LeadInterim
Briefings
Location
Value Stream
Event Drivers / Current State Issues Team Members
Final
Presentation
Event Boundaries &
LimitationsEvent Coordinator
Function
Event Goals and Objectives
Potential Deliverables On-Call Support
Function Contact Information
Possible Obstacles Approvals
Signature:
Executive Sponsor
© 2011 Karen Martin & Associates 26
Charter Highlights
• Communicate why – drivers for improvement
– Create upfront alignment
• Scope effort
– Aim for narrow and deep
• Define objectives
– How will we measure our success?
• Select facilitator
– Objective and skilled
• Form team
– Cross-functional and inclusive
• Schedule interim briefings
© 2011 Karen Martin & Associates 27
Kaizen Event Facilitator Roles
© 2011 Karen Martin & Associates 28
Kaizen Event Facilitator
Necessary Traits • Skills / Knowledge
– Lean tools
– Root cause analysis
– Project & time management
– Team building / facilitation
– People effectiveness – from front line workers to execs
• Authority / Respect – Designated change agent / influence leader
– Trustworthy
– Comfortable removing obstacles & reaching out to senior leadership
• Personality / Energy – Challenging, yet supportive
– Positive, upbeat, energetic
– Pushy without irritating
• Objectivity / Fairness – No attachment to the work being improved
© 2011 Karen Martin & Associates 29
Scoping
• Define fenceposts, conditions, and limitations.
• Gives the team “freedom with boundaries.”
• Tells the team what they do NOT have permission to do.
© 2011 Karen Martin & Associates 30
Refining the Focus
• Purpose – To break improvement into manageable chunks
• Counter the temptation to want to solve world hunger in a single improvement cycle.
– To select the most effective team.
• Process – Identify conditions that go through different process
steps.
– Select one based on “pain,” volume, cost, customer impact, compliance issues, etc.
– Analyze the current state for that single condition; attempt to apply future state improvements to a broader set of conditions
Narrowing the Scope:
Example
Order
Fulfillment
Process
International
Domestic
Service Parts
Consumables
Units
Non-
Warranty
Warranty
Service Parts
Consumables
Units
Non-
Warranty
Warranty
© 2011 Karen Martin & Associates 32
Scoping Activity
• Pair up with a partner.
• Select a mfg or non-mfg process to be improved.
• Using the worksheet, select the specific set of
conditions a Kaizen team might focus on for making
improvements.
• ID first and last steps (improvement fenceposts).
• Be prepared to discuss.
Kaizen Event Scoping
Activity Worksheet
© 2011 Karen Martin & Associates 34
Setting Objectives
• Objectives are – Measurable
– Contain numbers
– Baseline compared to desired state
• Goals – General statements of intent
– Contain only words
– Contain no baseline, nor desired state
• Aim for objectives, not goals – Goal: Implement kanban.
– Objective: Reduce stockouts from 25% to 10%.
• Examples from your projects
© 2011 Karen Martin & Associates 35
Sample objectives
• Reduce LT from 3 days to 1 day.
• Increase FPY from 60% to 85%.
• Reduce X operation cycle time from 2.5
hours to 30 minutes.
• Increase uptime from 70% to 90%.
• Increase inventory turns from 3 per year to 8
per year.
• Reduce operator annual turnover from 50%
to 25%.
© 2011 Karen Martin & Associates 36
Forming the Kaizen Team
• The single greatest determinant of event success
• No more than 10 (6-8 ideally)
• Action-oriented individuals – Or thorough prepping / coaching of more passive members
• Must currently perform work being improved
• Manage team member selection – May need to lobby for team members
– Obtain approval of person’s direct supervisor first
– Avoid being told who needs to be on the team by people who don’t understand Kaizen Events
– Must have full time representation for all critical operations
– One the Kaizen Charter is set, no one is added to the team unless the team requests them
© 2011 Karen Martin & Associates 37
Kaizen Team Composition - Options
• Upstream suppliers (internal)
• Operators / staff who perform the work being improved
• Downstream customers (internal)
• Subject matter experts (i.e. information systems, regulatory, legal, risk management, etc.)
• External suppliers / contractors
• External customers
• Union representatives
• Maintenance / facilities representatives
• Outside eyes
• Management (limited representation)
• Administrative support (to create standard work tools)
© 2011 Karen Martin & Associates 38
Interim Briefings
• Every day or two
• Team presents their ideas; leadership assures team has considered all options and thought through all implications
• Leadership’s role – not to say “no” – To say “Have you considered this?” “How would we
handle…?” “What if…?”
• Workforce grows stronger as they learn how to identify and eliminate waste
• Leadership grows stronger as they’re able to shift their focus to strategic planning and performance monitoring
• Venue for challenging policies
Workforce
Training
1
2 1
3 2
4 3
5 4
5
1 6
2 7
3 8
4 9
5 10
1
2 1
3 2
4 3
5 4
1
2
3
4 Date:Date: Date:
Signature: Signature:
Name
FacilitatorValue Stream Champion
Name
Dates
Start & End
TimesSpecific Conditions
Value Stream
Champion
FacilitatorProcess Trigger
Kaizen Event CharterEvent Scope Leadership Schedule
Last Step
First Step
Executive SponsorEvent Name
Team LeadInterim
Briefings
Location
Value Stream
Event Drivers / Current State Issues Team Members
Team
Presentation
Event Boundaries &
LimitationsEvent Coordinator
Function
Event Goals and Objectives
Potential Deliverables On-Call Support
Function
Possible Obstacles Approvals
Signature:
Executive Sponsor
Class Activity:
1. Determine the functions that need to be represented on your Kaizen
Event team.
2. Determine who should attend interim briefings.
1
2
© 2011 Karen Martin & Associates 40
Additional Prep: Data and Materials
• Gather anticipated equipment and supplies
• Collect baseline data – Enough to avoid wasting time; not too much that the
team is robbed from discovery
– Current state performance metrics
– Recent inspection results, surveys, etc.
– Implement time-limited root cause check sheets (if relevant)
• Gather relevant materials / documentation – Existing policies and procedures
– Existing job aids
– Relevant regs, industry standards, etc.
© 2011 Karen Martin & Associates 41
Additional Prep: Activities
• Post “process issues and improvement ideas” flip-charts in relevant work areas
• Conduct pre-event session for team and affected work area(s) – Lean overview (or review) including principles and key
tools
– Review Charter
– Review roles and responsibilities; Kaizen Commandments
– Set expectations
• Arrange for food and recognition awards
42
Kaizen Events - Macro PDCA Cycle
• Monitor process performance
• Complete 30-Day List
• Conduct 30-Day & 60-Day Audits
• Adjust process as needed
• Continuously improve
• Hold Event
• Create Sustainability Plan
• Communicate success
• Create Charter
• Scope & Schedule Event
• Form Team
• Gather Data
• Conduct Lean Overview
Plan Do
(2-5 days)
Check Act
43
Within The Event - Micro PDCA
Plan Do
Check Act
Macro
PDCA • Test
improvements
• Refine & finalize improvements
• Implement improvements
• Train workforce
• Design & develop improvements
• Kick-off
• Document & analyze the current state
• Design future state
• Brainstorm & prioritize solutions
Plan Do
Check Act
© 2011 Karen Martin & Associates 44
Kaizen Commandments
• The team starts and ends the day together.
• Being on time is critical.
• The team stays 100% committed and 100% focused.
• No interruptions.
• All wireless devices on silent mode or off. No vibration.
• Rank has no privilege.
• Finger-pointing has no place.
• No veto power from outside the team.
• No silent objectors. Don’t leave in silent disagreement.
• Seek the wisdom of ten, rather than the knowledge of one.
• The current process isn’t “broken”; it needs improvement.
• It’s okay and encouraged to disagree; it’s not okay to be disagreeable.
© 2011 Karen Martin & Associates 45
5-Day Kaizen: Sample Structure
Day 1 & 2
(Plan)
Day 3 & 4
(Do, Check)
Day 5
(Check, Act)
Analyze current state
Perform root cause analysis
Design future state
Interim briefing
Design & test improvements
Obtain buy-in
Interim briefing
Finalize improvements Train process workers and
affected stakeholders Team presentation CELEBRATE!
© 2011 Karen Martin & Associates 46
Steps
• Understand the current state (identify waste)
• Perform root cause analysis
• Brainstorm improvements
• Design improvements (eliminate waste)
• Test improvements
• Adjust & finalize
• Document improvements
• Train operators / staff
• Monitor performance
47
Within The Event - Micro PDCA
Plan Do
Check Act
Macro
PDCA • Test improvements
• Refine & finalize improvements
• Implement improvements
• Train workforce
• Design & develop improvements
• Kick-off
• Document & analyze the current state
• Design future state
• Brainstorm & prioritize solutions
Plan Do
Check Act
© 2011 Karen Martin & Associates 48
Document / Analyze the Current State
• Go to Gemba / observation
• Spaghetti diagrams – Calculate motion/transportation costs and productivity
losses
• Work breakdown structure or Metrics-Based Process Mapping (MBPM)
• Root Cause Analysis
• Surveys / audits
• Videotape
• “Product” samples
• Floor plans / blueprints
Go to the Gemba
P/U
AFrame
Power Pole
Hoist Rig Up Spaghetti DiagramBefore Kaizen Blitz Improvements
Estimated distance walked during Rig Up = 3095 ft
Diagram follows the Floor Hand and does not include moving the A-Frame
Rig Up Time = 90 minutes
Water
Before:
Floor hand walk distance =
3,095 feet per rig-up
Approximate reduction of 2600’ walk
distance per floor hand per rig-up. For
1000 rig-ups per month by all the crews,
there is an annual reduction of more
than 5900 miles of walking!
After:
Walk distance = 300 - 500 feet
Spaghetti Diagrams
51
Desk
Table
Desk
Desk
Desk
Desk
Table
Desk
Table
Desk Desk
Table Table Staging Area
6, 7
, 8, 9
6
, 7, 8
, 9
Desk
6, 7
, 8, 9
6
, 7, 8
, 9
6, 7
, 8, 9
6
, 7, 8
, 9
Desk Desk
Table
Table
Start
Table Table
1
12
4c
4a
3
2
11 10
cart
4b
Mail Room
Spaghetti Diagram (Shows people and product travel)
© 2011 Karen Martin & Associates 52
Root Cause Analysis
• RCA is necessary to:
– Avoid jumping to conclusions
– Avoid creating “band-aid” fixes
– Create lasting solutions that permanently eliminate
the problem
Root Cause Analysis: 4 Key Tools
CauseCause--andand--Effect DiagramEffect Diagram
Machine Measurement Environment
People Material / Info Method
Budgets
Submitted Late
Lack of experience
Time availability
No sense of import
No stnd spread sheet
Email vs. FedEx
No standard work
Input rec’d late
Forecast in other system
Manual vs. PC
System avail.
No milestones
$ vs. units
Weather delays
Dispersed sales force
Changing schedule
Machine Measurement Environment
People Material / Info Method
Budgets
Submitted Late
Lack of experience
Time availability
No sense of import
No stnd spread sheet
Email vs. FedEx
No standard work
Input rec’d late
Forecast in other system
Manual vs. PC
System avail.
No milestones
$ vs. units
Weather delays
Dispersed sales force
Changing schedule
5 Why’s
Why?
Why?
Why?
Why?
Why?
Check Sheets Quantify Occurrences
|Equipment failure
|||||||||||||Changing customer
requirements w/ no
adjustment to expected
delivery
||||||||||Order entry error
|||Staffing/absenteeism
|||||Quality issue requiring
rework
|||||||Material shortage
Tally Reason
|Equipment failure
|||||||||||||Changing customer
requirements w/ no
adjustment to expected
delivery
||||||||||Order entry error
|||Staffing/absenteeism
|||||Quality issue requiring
rework
|||||||Material shortage
Tally Reason
54
Within The Event - Micro PDCA
Plan Do
Check Act
Macro
PDCA • Test
improvements
• Refine & finalize improvements
• Implement improvements
• Train workforce
• Design & develop improvements
• Kick-off
• Document & analyze the current state
• Design future state
• Brainstorm & prioritize solutions
Plan Do
Check Act
© 2011 Karen Martin & Associates 55
Brainstorming Improvement Ideas
1. Collect ALL ideas without evaluation.
a. Move quickly to minimize censoring
b. Can use “round robin” or free-for-all approach
2. Eliminate those that are not feasible due to regulatory, legal, financial, etc. issues.
3. Merge those that are similar
4. Number the “finalists”
5. Rank finalists based on:
a. Anticipated benefit
b. Ease of implementation
PACE Prioritization Matrix
High Low Anticipated Benefit
Ease o
f Im
ple
men
tati
on
Dif
fic
ult
E
as
y
20
7
5 13
4 23
1
22 8 9
2
10
16
11
6
12
14 19
15
17
3 21
18
Building a Lean Enterprise
© 2011 Karen Martin & Associates 58
Tools for Realizing the Future State
• 5S
• Visual Management
• Standardized work
• One-piece flow
• Pull systems
– FIFO lanes
– Kanban systems
• Batch size reduction
• Quality at the Source
(poke yoke)
• Work cells
• Cross-training
• Load leveling
(heijunka)
• Work balancing /takt
time
• Setup / Changeover
reduction
59
Within The Event - Micro PDCA
Plan Do
Check Act
Macro
PDCA • Test
improvements
• Refine & finalize improvements
• Implement improvements
• Train workforce
• Design & develop improvements
• Kick-off
• Document & analyze the current state
• Design future state
• Brainstorm & prioritize solutions
Plan Do
Check Act
60
Within The Event - Micro PDCA
Plan Do
Check Act
Macro
PDCA • Test
improvements
• Refine & finalize improvements
• Implement improvements
• Train workforce
• Design & develop improvements
• Kick-off
• Document & analyze the current state
• Design future state
• Brainstorm & prioritize solutions
Plan Do
Check Act
© 2010 Karen Martin & Associates 61
Testing Improvements
What are the various ways
in which one can test
improvements?
62
Within The Event - Micro PDCA
Plan Do
Check Act
Macro
PDCA • Test
improvements
• Refine & finalize improvements
• Implement improvements
• Train workforce
• Design & develop improvements
• Kick-off
• Document & analyze the current state
• Design future state
• Brainstorm & prioritize solutions
Plan Do
Check Act
© 2011 Karen Martin & Associates 63
Calculating and Communicating Results
• How does the improvement affect the
customer’s experience?
• What is the financial impact of the
improvement?
• How is the workforce affected by the
improvement?
• Use a standard report form to communicate
the above results.
MetricUnit of
Measure
Before
Measurement
Projected
After
Measurement
Projected
Change
1 Lead Time Days 8.3 2.3 -72.3%
2 Process Time Min 55.0 25.0 -54.5%
3Rolled First
Pass Yield% 4.0 72.0 1700.0%
4 Handoffs Each 6.0 2.0 -66.7%
5
6
7
8
9
10 Michael Prichard
Mary TownsendSean Michaels
Sam Parks
Event NameAllen Ward
Sally McKinsey
Facilitator
Team Lead
- Reduced equipment downtime due to waiting for
parts; trickle-down effect re: stress on maintenance
department and inter-departmental conflicts
- Less frustration with the purchasing process
- Reduced lost-time,and improved productivity, due to
walking requisitions through the approval process
- Should see less premium freight costs due to
expediting of purchased parts and customer orders.
Event Objectives
Engineers and maintence given access to ERP and
trained how to create requisitions
Reduced lead time from time requistion is received until it is input from
approx 11 days to 2 days.1
Key Improvements Implemented
Dianne O'Shea Ryan Austin
Paul Dampier
Kaizen Event ReportOrder Fulfillment Process
11/26 - 11/28/2008Event Dates
Executive Sponsor
Value Stream Champion
5
3
Team Members
Before Photos, Graphs and/or Data
ERP coding changed only department manager
authorization is required if total spend is less than
$5000
Department managers trained on approval process
including need to engage IT group if purchasing
application programs
Dave Parks
Sean Michaels
After Photos, Graphs and/or DataCollateral Benefits
2 Reduce number of approvals form 5 to no more than 2
Measurable Results
4
© 2011 Karen Martin & Associates 65
Team Presentation
• Team introductions
• Scope and objectives (review Charter)
• Current state discoveries
• Future state design / key improvements
implemented
• Key open action items (30-day and parking lot lists)
• Sustainability Plan
• Lessons learned
• Q & A
• Team recognition
Sally McKinsey Event NameOrder Fulfillment
Process
Dave Parks Event Dates 11/26 - 11/28/2008
10
12
13
9
11
5
6
7
8
1
2
3
4
Sean Michaels
• 30-Day List
• Process being addressed
• First & last steps
• Specific conditions
• Event drivers / current state issues
• Objectives
• Boundaries & limitations
• VSM and/or MBPM review
• Relevant metrics
• Photos (if relevant)
Opening Comments
• Key improvements and accomplishments implemented during the event
• Tools used
Team Presentation AgendaValue Stream Champion
Agenda Item
Sean Michaels
Facilitator
Scope and Objectives
• Team introductions
• Agenda
• "Rules" for attendees
"Before" Condition
Sam Parks & Tom Albin
Sean Michaels
Key Improvements Implemented
Paul Dampier & Michael Prichard
"After" Condition
• Potential obstacles that could prevent attaining projected performance
levels
• Define what a "parking lot" item is
• New process description
• Projected results (direct and collateral)
Dianne O'Shea & Mary Townsend
Key Open Action Items
Sustainability Plan
Brian Utke
Ryan Austin
Sean Michaels
as required
Facilitator Feedback
• Greatest success; greatest challenge
• Team feedback (each individual)
Parking Lot Issues
Lessons Learned
Wrap-up
Presenter(s)
Question and Answer
Team Recognition
Karen Louise
Leadership
• Leadership feedback to teamTeam
67
Kaizen Events - Macro PDCA Cycle
• Monitor process performance
• Complete 30-Day List
• Conduct 30-Day & 60-Day Audits
• Adjust process as needed
• Continuously improve
• Hold Event
• Create Sustainability Plan
• Communicate success
• Create Charter
• Scope & Schedule Event
• Form Team
• Gather Data
• Conduct Lean Overview
Plan Do
Check
(4-8 weeks after)
Act
© 2011 Karen Martin & Associates 68
Keys to Sustaining Improvements
• Assigned accountability/ process ownership
• Daily monitoring initially (tapering off if appropriate)
• Weekly follow-up meetings
– 30-day list management
– “Tweaking” as necessary
• Visual management
• Periodic formal audits
• Consistent training for new hires
• Continuous improvement
Who identifies relevant documentation? Who updates it? By when?
Who communicates? How? To whom? Where posted?
Who communicates? Via what medium?
How is process performance going to be communicated to workers? Are
additional visuals needed? Who owns this activity?
Which value stream map(s) need to updated, who will do it and when?
Who maintains training records?
Who communicates? How? To whom?
Who is accountable? Where posted?Post the Event Report, 30-Day List, Sustainability Plan.
Update SOPs and other ISO or regulatory documents
impacted by changes.
Communicate and post 30-day and 60-day audit
results.
Communicate audit results to stakeholders and
leadership team.
Communication / Training
Requirement
Communicate to affected parties who were not advised
during event.
Provide training for those who missed initial training.
Integrate new process into ongoing department training.
Update Value Stream Map.
Update training records to reflect who has been trained.
Plan
Who will deliver it and when?
Who leads identification of training that need to be updated (ongoing and for
new employees), when will training be in place?
Event Dates
"Go Live" Date
Team Lead
30-Day Audit Date
"Go Live" Location
60-Day Audit Date
Sustainability PlanExecutive Sponsor
Value Stream Champion
Facilitator
Event Name
Communicate process performance measurement
plan.
Activity –
How will you sustain the improvements you
accomplish with your projects?
Name Name
Signature Signature
Date Date
Will there be rewards / recognition for sustaining improvements? What will
corrective actions be if workers are not following new process? Who will
enforce these rewards/consequences?
Who monitors process performance on an ongoing basis? Who
communicates the results? When, to whom, in what format?
Who will lead audit & when? How will results be communicated? To whom?
How will the process be adjusted, if needed? What's the plan for continuous
improvement?
Who will lead audit & when? How will results be communicated? To whom?
How will the process be adjusted, if needed? What's the plan for continuous
improvement?
Who has ultimate responsibility for how process is performing?
Which Kaizen team member(s) will observe the process? How will they
communicate results? Who is responsible for adjusting the process, if
needed?
Who is responsible for finalizing process performance metrics and by when?
Which team member(s) will observe the process? When? How will they
communicate results? Who is responsible for adjusting the process, if
needed?
Process Owner
Monitoring / Measurement
Requirement
Put in place key metrics to measure process
performance; post performance.
Plan
Value Stream Champion
Define corrective actions required if new process not
being followed (rewards and consequences).
Monitor process performance frequently; post results
put continuous improvement plans in place.
Identify process owner.
Observe process one day after event is over. Talk with
workers, assure they understand how process should
be performed; see if there are problems.
Observe process one week after event is over. Talk
with workers, assure they understand how process
should be performed; see if there are problems.
Conduct 30-day audit.
Conduct 60-day audit.
© 2011 Karen Martin & Associates
Process Ownership – Key Success
Factor for Sustainability
• As close to the work as possible.
– Directors and above are not typically effective
process owners.
• Responsible for ongoing process monitoring &
improvement.
• Authorized to work cross-functionally to improve
process performance and solve process
problems.
70
71
Kaizen Events - Macro PDCA Cycle
• Monitor process performance
• Complete 30-Day List
• Conduct 30-Day & 60-Day Audits
• Adjust process as needed
• Continuously improve
• Hold Event
• Create Sustainability Plan
• Communicate success
• Create Charter
• Scope & Schedule Event
• Form Team
• Gather Data
• Conduct Lean Overview
Plan Do
Check Act
(ongoing)
Event Name
Event Dates
Audit Date
Yes No Owner
1
2
3
4
5
6
7
8
9
10
11
Unit of MeasureProjected
Change
Actual
After
Measurement
%
30-Day Audit Report
Corrective Action Needed
Are workers following the process as designed in the event (or
authorized modifications made since the event)?
Criteria
Are workers pleased with the improvements? Do they feel their
work has been simplified?
Is there evidence that all workers, including those new to the area,
have been trained on the new process?
Is process performance being measured and reported as set forth
in the Sustainability Plan?
Is the area manager monitoring and supporting compliance to the
new process?
Are all aspects of the Sustainability Plan being followed?
Are consequences for not following the new process design in
place?
Have any unintended consequences (positive or negative) arisen?
Check with downstream customers.
Is anyone resisting the new process?
Performance Metrics
Metric / Activity
Being MeasuredComments
Executive Sponsor
Value Stream Champion
Lead Auditor
Lead Time
Process Time
Actual Change
(from Before
Measurement)
Projected
After
Measurement
Before
Measurement
Number of action items due by audit date
Number of action items completed
% of action items completed
Rolled First Pass Yield
30-Day List Status
73
Learning Objectives
• You will learn:
– How Kaizen Events differ from kaizen.
– How to plan an event (including necessary
leadership engagement, scoping, team formation,
and logistics).
– How to execute/facilitate an event.
– How to sustain improvements.
– How Kaizen Events can help shift culture.
© 2011 Karen Martin & Associates 75
Karen Martin, President
7770 Regents Road #635
San Diego, CA 92122
858.677.6799
ksm@ksmartin.com
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www.ksmartin.com/webinars
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