Company
LOGO
Kaizen Events in Office &
Service Environments: A Two-Part Webinar
Part II - December 10, 2009
© 2009 Karen Martin & Associates
Learning Objectives (both webinars)
Participants will learn:
The difference between Kaizen and Kaizen Events.
When to use Kaizen Events.
Step-by-step approach to planning and executing office
and service-based Kaizen Events.
The “Kaizen Commandments” that reduce common
pitfalls.
How to create a Sustainability Plan with teeth.
How to navigate the common obstacles to success.
2
© 2009 Karen Martin & Associates
Kaizen Event Phases
Execution 2-5 Days
Follow
Up 4-8 Weeks Post
Planning 4-6 Weeks Prior
3
© 2009 Karen Martin & Associates
5-Day Kaizen: Sample Structure
Day 1 & 2
(Plan)
Day 3 & 4
(Do, Check)
Day 5
(Check, Act)
4
Kick-off (executive presence)
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 & stakeholders
Present results
CELEBRATE!
5
© 2009 Karen Martin & Associates
Kick-Off
Recommended Order
Executive Sponsor
Value Stream Champion (if relevant)
Improvement Leader (if dedicated staff)
Facilitator
Ice Breaker (if helpful)
Lean Overview (if necessary)
If tied to a VSM, review the current & future states
Charter Review (always), Expectations &
“Notional” Schedule.
6
© 2009 Karen Martin & Associates
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.
7
© 2009 Karen Martin & Associates
Agenda
Tuesday, December 1
PLAN
Wednesday, December 2
PLAN – DO (Design)
Interim Briefing
Thursday, December 3
DO – CHECK (Test & Finalize)
Interim Briefing
Friday, December 4
ACT (Train)
Final Presentation
8
© 2009 Karen Martin & Associates
Team Dynamics
9
Forming
Storming
Norming
Performing
Tuckman Model
Bruce Tuckman, 1965
Adjourning
The Improvement Cycle
Identify & Prioritize
Macro Opportunities
Analyze
Current State
(Micro)
Brainstorm &
Prioritize
Opportunities
Design, Test
& Refine
Improvements
Implement
Improvements
Monitor,
Refine &
Sustain
Plan for
improvement
P
D
A
C
1
3
5 4
6
2
7
P
DC
A
© 2009 Karen Martin & Associates
Current State Documentation
Options
Go to the gemba! – OBSERVE
Review Performance data
Draw Spaghetti diagrams
Documentation / job aid review
Videotape / photos
Worker interviews
Work samples
Metrics-Based Process
Mapping (MBPM)
11
Metrics-Based Process Mapping
MBPM Post-it Conventions
# Staff
(if relevant)
Barriers to flow
(if relevant)
PT (process time)
LT (Lead time) % Complete &
Accurate
Step #
Activity
(Verb / Noun)
Function that
performs the
task
Step 9: Label the value-adding (VA) and
necessary non-value adding (N) activities
14
Metric
Current State
Projected
Future State
Projected %
Improvement
Total Process
Time (timeline)
Total Lead Time
% Activity
Rolled First
Pass Yield
Total PT
(all steps)
Labor
requirements
Freed capacity
Metrics-Based Process Mapping
Summary Metrics
© 2009 Karen Martin & Associates © 2008 Karen Martin &
Associates
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)
© 2009 Karen Martin & Associates
ECN Process – Document Travel
Finance
Operations
Management Conference
Room Sales Engineering
Quality
Assurance Safety Marketing
Training
Room
Human
Resources
Supervisor
© 2009 Karen Martin & Associates 18
Impact of Shared Equipment
Distance traveled to printer
Dept A = 92 ft. per trip
Dept B = 696 ft. per trip
120 occurrences / day = 4656 miles/year
Walk pace = 1 mile per hour
= 582 days/year of unproductive, non-value-adding
time
= 4,656 hours
= 2.4 FTEs
© 2009 Karen Martin & Associates
Root Cause Analysis
19
Do you THINK or do you KNOW?
© 2009 Karen Martin & Associates
Root Cause Analysis (RCA)
RCA is necessary to:
Avoid jumping to conclusions
Avoid creating “band-aid” fixes (addressing only the symptoms)
Select proper countermeasures
Design and implement lasting solutions that truly eliminate the problem
20
© 2009 Karen Martin & Associates
Root Cause Analysis Tools
Simple problems
Five Why’s
Problem Analysis Tree
More complex problems
Brainstorm causes (fishbone)
Tally frequency of most likely causes
(check sheet)
Identify relevant few (Pareto analysis)
for countermeasure development
21
If
necessary
© 2009 Karen Martin & Associates
Future State Design
Goals Reduce total Lead Time (LT) & Process Time (PT)
Improve overall process quality (increase Rolled First Pass Yield – RFPY = %C&A x %C&A…)
Increase % Activity (PT/LT x 100)
Reduce LT, PT, and increase %C&A at individual steps
Reduce workforce stress, frustration, etc.
How? Eliminate non-value-adding activities
Reduce handoffs
Improve quality of output
Eliminate rework
Eliminate inspections, audits, reviews, approvals
Reduce batching, WIP (work-in-process) & queuing
Reduce transportation and motion
22
Building a Lean Enterprise
Process
Stabilization
Tools
Building a Lean Enterprise
Flow-Enabling
Tools
The Improvement Cycle
Identify & Prioritize
Macro Opportunities
Analyze
Current State
(Micro)
Brainstorm &
Prioritize
Opportunities
Design, Test
& Refine
Improvements
Implement
Improvements
Monitor,
Refine &
Sustain
Plan for
improvement
P
D
A
C
1
3
5 4
6
2
7
P
DC
A
© 2009 Karen Martin & Associates
Brainstorm Solutions
1. Classic brainstorming – no holds barred
2. Merge similar ideas.
3. Eliminate “unwise” ideas.
4. Number & Prioritize solutions.
5. Select those that can be accomplished in
the Kaizen Event.
Keep scope and objectives in mind
Don’t try to boil the ocean in one event
26
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
28
29
Owner Owner's ManagerDue
Date
4 1
3 2
4 1
3 2
4 1
3 2
4 1
3 2
4 1
3 2
4 1
3 2
4 1
3 2
4 1
3 2
4 1
3 2
4 1
3 2
4 1
3 2
4 1
3 2
4 1
3 2
4 1
3 2
4 1
3 2
5
4
3
2
6
7
8
11
14
15
13
12
9
10
Value Stream Champion
Facilitator
Progress
Event Dates
Team Lead
Action Item
1
Comments
Kaizen Event
30-Day ListEvent NameExecutive Sponsor
Spell-check Sheet
4 1
3 2
4
3 2
4
3
4
100% Complete
Progress Key
0% Complete
25% Complete
50% Complete
75% Complete
30
Event Name
Event Dates
Owner
1
2
3
4
5
6
7
8
9
10
11
12
Parking Lot Issues
Issue / Discovery
Executive Sponsor
Facilitator
Team Lead
Value Stream Champion
Team Recommendation
The Improvement Cycle
Identify & Prioritize
Macro Opportunities
Analyze
Current State
(Micro)
Brainstorm &
Prioritize
Opportunities
Design, Test
& Refine
Improvements
Implement
Improvements
Monitor,
Refine &
Sustain
Plan for
improvement
P
D
A
C
1
3
5 4
6
2
7
P
DC
A
© 2009 Karen Martin & Associates 32
Documentation of New Process
Minimal use of traditional SOPs (standard
operating procedures)
Heavy use of job aids
MUST TEST WITH PARTIES OUTSIDE THE
TEAM
Test with real-time process, if possible
Standard Work Job Aid Criteria
• Simple
• Visual
• Physical
• Posted at
point of use
• Created by
people who
do the work
and tested
by others
34
Creating Job
Aids to Promote
Standard Work
• Use color-
coding when
possible
• Keep it simple
Checklists
assure all
critical tasks
are done
within defined
timeframes
© 2007 Karen Martin & Associates
© 2009 Karen Martin & Associates 36
Standardize
The Improvement Cycle
Identify & Prioritize
Macro Opportunities
Analyze
Current State
(Micro)
Brainstorm &
Prioritize
Opportunities
Design, Test
& Refine
Improvements
Implement
Improvements
Monitor,
Refine &
Sustain
Plan for
improvement
P
D
A
C
1
3
5 4
6
2
7
P
DC
A
© 2009 Karen Martin & Associates
Common Obstacles to Success
Kaizen Events not tied to a strategic plan.
Scope too broad.
Teams too narrow (functions).
Key leadership not at interim briefings.
Lack of communication and upfront
consensus building.
Inadequate training on new process.
Inadequate structure for sustaining the
improvement. 38
© 2009 Karen Martin & Associates 39
Implementation = Training
Why training
Communicate new process
Distribute new procedures, aids, tools, etc.
Create confidence & competence among workers
Build sustainability
Potential training audience
Workers and their supervisors / managers
Downstream customers (if impacted by change)
Upstream providers (if input they provide will be
changed)
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
© 2009 Karen Martin & Associates 41
Workforce Training
Facilitation – Just-in-time, just-the-facts
Must be mandatory & interactive Face-to-face if possible
May require multiple sessions
If geographically dispersed, person-to-person with support of: Conference calls
Webinars
Voice mail
Email (instructions, procedures, etc.)
Designated mentors for on-going support
Channel for post-training feedback, Q&A, etc
© 2009 Karen Martin & Associates 42
Workforce Training
Content – everything that is required in order to
perform the new process tomorrow
Purpose of event
Quality, Cost, Delivery, Safety, Morale
Business needs
Instruction on new process
Handouts for everyone
New procedure, process map, checklists, visual aids, etc.
Demonstrate new process (if possible)
Discuss on-going support/monitoring, sustainability
plan, audit plan
Who should they contact for help and/or additional
improvement suggestions?
© 2009 Karen Martin & Associates
Kaizen Event Final Phase
While training is occurring
Calculate projected results (actual, if possible)
In financial terms, when possible
Complete Event Report
Create Sustainability Plan
Finalize 30-Day List
Finalize Parking Lot
Plan for Team Presentation
43
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
© 2009 Karen Martin & Associates
Common Obstacles to Success
Kaizen Events not tied to a strategic plan.
Scope too broad.
Teams too narrow (functions).
Key leadership not at interim briefings.
Lack of communication and upfront
consensus building.
Inadequate training on new process.
Inadequate structure for sustaining the
improvement. 45
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.
Sustainability Plan
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.
© 2009 Karen Martin & Associates
Sustainability Issues
Who owns the process?
Doesn’t have to align with org chart
Should have authority across multiple functions
Doesn’t have to be management
What are the 2-5 Key Performance Indicators?
Who will be responsible for monitoring process
performance?
Formal process audits – 30-day audit is a must!
Ongoing improvement
Heavy use of visual management increases
success.
47
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
© 2009 Karen Martin & Associates
Kaizen Event Phases
Execution 2-5 Days
Follow
Up 4-8 Weeks Post
Planning 4-6 Weeks Prior
49
Key
Follow-up
Activities
Task Due Date Owner Comments
1Observe the new process the first day or shift following the event. Make real-
time adjustments, if needed.
2
Hold first of four weekly post-Event meetings with Kaizen Team to assess
progress on 30-Day List, monitor process performance, identify/resolve new
problems, and discuss lessons learned.
3Send thank you's to all team members, on-call support, and others who
helped.
4 Broadcast results organization-wide (via email, newsletter, etc.)
5Post Event Report and Sustainability Plan on improvement communication
board(s) and shared drives.
6 Assess if new process is being followed.
7 Take corrective action if process is not being followed.
8If controlled procedures / processes were changed, update relevant
documentation as necessary.
9 Plan future improvement activities, if needed.
10Share "later" ideas on Ideas List with relevant leadership and continuous
improvement staff.
11 Modifiy process further if it needs additional improvement.
12
13
14 Meet with team to assess progress on 30-Day List.
15 Measure process to validate projected future state metrics.
16 Adjust process, if needed.
17Interview process workers and those affected by the improvements to assess
success and need for future improvements.
18
19
20 Meet with team to assess progress on 30-Day List.
21 Measure process to validate projected future state metrics.
22 Adjust process, if needed.
23
Determine data needs required for further current state analysis and future
state design. Assign accountability for measurement and timeframes for
delivery.
24 Prepare for 30-day audit.
25
26
27 Meet with team to assess progress on 30-Day List.
28 Conduct 30-day audit.
29 Adjust process and/or take corrective action, if needed.
30 Conduct 30-day audit briefing and post audit results.
31 Schedule 60-day audit.
32
33
34 Conduct 60-day audit.
35 Adjust process and/or take corrective action, if needed.
36 Communicate and post audit results.
37
38
3 Weeks After
4 Weeks After
60 Days After
Coordinator
1 Week After
2 Weeks After
Post-Event ActivitiesExecutive
SponsorEvent Name
Value Stream
ChampionEvent Dates
Facilitator
The Improvement Cycle
Identify & Prioritize
Macro Opportunities
Analyze
Current State
(Micro)
Brainstorm &
Prioritize
Opportunities
Design, Test
& Refine
Improvements
Implement
Improvements
Monitor,
Refine &
Sustain
Plan for
improvement
P
D
A
C
1
3
5 4
6
2
7
P
DC
A
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
© 2009 Karen Martin & Associates
Spread Organizational Learning
Communicate results
Newsletters
Online bulletins
Applying learnings to other parts of the organization
Additional Kaizen Events
Review, modify, and roll out process to other business units,
product lines, conditions, etc.
Beware of too many Kaizen Events
No more than 4 events per 100 employees per year.
BUT… much lower if involving similar functions.
And… much lower if you don’t have adequate resources
dedicated to continuous improvement.
53
© 2009 Karen Martin & Associates
Learning Objectives (both webinars)
Participants will learn:
The difference between Kaizen and Kaizen Events.
When to use Kaizen Events.
Step-by-step approach to planning and executing office
and service-based Kaizen Events.
The “Kaizen Commandments” that reduce common
pitfalls.
How to create a Sustainability Plan with teeth.
How to navigate the common obstacles to success.
54
© 2009 Karen Martin & Associates
Save the Date!
2010 Webinar Kick-off
Wednesday, January 20 – Lean Psychology
How to leverage human behavior to maximize improvement
efforts.
Thursday, January 21 – Facilitator Skills
Tips to reduce resistance, stimulate innovation, and successfully
challenge paradigms.
Survey re: interests and learning needs will be
included in next week’s newsletter – please
respond
55
Recommended Resources
Click here to order from Amazon
© 2009 Karen Martin & Associates 57
Karen Martin, Principal
7770 Regents Road #635
San Diego, CA 92122
858.677.6799
For Further Questions
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