Kaizen Participant Workbook - Cal Poly

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1Kaizen: PAC Nutcracker ProcessParticipant Name:KaizenParticipant WorkbookDates: 10, 15, and 22 July 2014Facilitator: Eric OlsenCal Poly State UniversityKaizen Workbook.docx

2Kaizen: PAC Nutcracker ProcessInvitationDear PAC team,We would like you to participate in a “kaizen” activity described below that willlead us to be more effective and improve our acceptance and recording processfor our performances. Our experience has been that the people closest to thework are the best ones to solve process-related problems. You would be aboutthe 17th group on campus to take on this challenge and we are confident that youwill be successful. One of the goals is to develop expertise among the participantsso you may then serve as facilitators for other process improvement activities inyour own areas and elsewhere on campus. Indeed, we are inviting participants whohave been in pervious kaizen events and potentially a few folks from outside CalPoly.In consultation with Eric Olsen, we have selected NUTCRACKER as arepresentative process to improve. This area was selected because this is arecurring event; is well known throughout the department; and is touched byeveryone. The workflow lends itself well to process improvement analysis; it iscross-functional; and the potential benefits of any process improvement areimportant for Cal Poly. Professor Eric Olsen cob.calpoly.edu/faculty/eric-olsen/will be our facilitator. Eric developed considerable expertise in processimprovement at, and before coming to, Cal Poly.We plan to use a “kaizen event” approach and you will be a critical participant inthe process. Kaizen is a Japanese term for continuous improvement. By bringingtogether process experts in a focused effort to analyze the process, identifyproblems, and brainstorm solutions, many organizations are making dramaticimprovements in value delivery. In industry, kaizen events often involve 2-3 daysof dedicated effort; however, we have adapted the methodology to encompassthree half-day sessions. Your presence is required for all three sessions. A numberof other central administrators will be invited to attend the opening session so theycan better appreciate and support the kaizen process. The final session will includea presentation to us of your findings and recommendations for improvement.Stephanie RobersonAssociate Managing Director Technical ServicesPerforming Arts Center San Luis Obispowww.pacslo.orgKaizen Workbook.docx

3Kaizen: PAC Nutcracker ProcessCentral Coast Lean Kaizen History18 – PAC Nutcracker Process - 201417 Hancock Hiring Process - 201416 Cal Poly Special Events Review - 201415 Employee Intake Process - 201314 Helical Sale to Order Process - 201313 SLO County GSA Customer Service Process 201312 SLO County Facility Services Maintenance WorkOrder Process - 201211 SLO County Parks & Recreation ReservationProcess - 201110 2nd Floor Admin Layout - 20119 Lecturer and TA Appointment Process - 20118 Course Approval Process - 20117 HR Staffing Process - 20116 Voler Pack and Ship Process - 20105 Commencement Budgeting Process -20104 Course Substitution Process - 20103 Academic Program Review Process - 20102 Cash Gift Process - 20091 Grant Contracting Process - 2009Kaizen Workbook.docx

4Kaizen: PAC Nutcracker ProcessWelcome!Kaizen Event OutlineSession 1a. Values and objectivesb. Training on concepts and toolsc. Practiced. Select target process for improvemente. Select preliminary metricsHomework: Observe and think about the process – Get ready!Session 2a. Confirm process selectionb. Analyze and map the processc. Classify value and non-valued. Report outHomework: Verify the mapSession 3a. Review datab. Identify problemsc. Classify and prioritize problemsd. Brainstorm solutionse. Identify and implement – Just-Do-Itsf. Create action plan: What, Who, When and Target Metricsg. Present results and plan to managementh. Celebrate!Follow-up Meeting: Confirm action plan, measures, roles, andresponsibilities.Implementation Follow-up:Results presentation to management (3-6 months)!Kaizen Workbook.docx

5Kaizen: PAC Nutcracker ProcessGround Rules:1. Participants should know the outcome expected of eachsession and the process to achieve that outcome.2. Attack issues, not people.3. At anytime, anyone can ask for a sense of the group toconclude or modify the process.4. Participants can give a brief signal to the facilitator to speakin turn.5. Everyone has the right to finish speaking.6. Everyone has an obligation to be concise.7. One discussion at a time (avoid whispered discussions).8. Do not bring unrelated work to the meeting.The gift of FOCUS!9. Everyone is a Kaizen Team member (No Observers!) – Allare responsible for the success of the event.Adapted from Hewlett-Packard, “Project Mgt – Action Sheet” (1998)Kaizen Workbook.docx

6Kaizen: PAC Nutcracker ProcessYour Personal Kaizen ListUse this page to record “kaizen bursts,” “just-do-it,” or “ideas forfollow-up” that you pick up during this event.Kaizen BurstpageKaizen Workbook.docx

7Kaizen: PAC Nutcracker ProcessSESSION 1KEY CONCEPTS & PROJECT SELECTIONValues and objectives1. Customers determine value.2. We use processes to deliver value.Overall Generic Goals for Kaizen Event: Improve the value we deliver. Improve how we deliver value (processes). Demonstrate the use of kaizen events to improve. Establish a culture of continuous improvement. Develop improvement capability in people. Make getting better fun!What is kaizen? ! Simply the Japanese word forcontinuous improvement.Kaizen Workbook.docx

8Kaizen: PAC Nutcracker ProcessTen Commandments of ContinuousImprovementPer Gemba Academy, 20101. Open your mind to change.2. Think “Yes we can, if ”3. Always attack processes, never people.4. Seek simple solutions.5. If it’s broken, stop to fix it.6. Use creativity, not capital.7. Problems are opportunities in disguise.8. Find the root cause.9. Wisdom of many, not the knowledge of one.10. There is no final destination on theimprovement journey !http://youtu.be/Q89qAbAAR3QKaizen Workbook.docx

9Kaizen: PAC Nutcracker ProcessIntroduction Exercise: Kaizen Goal PosterIn teams of 3-4 people you do not know well, create a posterthat answers: Who are you? What is your role? What would a really good outcome to this event? What is your “Whack on the Side of the Head?”Name?Good outcome:Whack:Kaizen Workbook.docxRole?

10Kaizen: PAC Nutcracker ProcessTraining on concepts and toolsValue:Cost, Quality and TIME [the “Super Metric”]Flow Charting – For ValueThe Any Process Lead Time Model2Eric Olsen – Cal Poly Industrial TechnologyCustomers vs Partners?Kaizen Workbook.docx

11Kaizen: PAC Nutcracker ProcessValue (continued)Typical Lead Time ues35%Kaizen Workbook.docx

12Kaizen: PAC Nutcracker ProcessVideo - Muda EggsWhat are the seven forms of muda?The 7 WastesKaizen Workbook.docx

13Kaizen: PAC Nutcracker ProcessEight Service Industry WastesDoes our target process have any of the following?1. Errors in documents?2. Transport of documents?3. Doing unnecessary work not requested?4. Waiting for the next process step?5. Process of getting approvals?6. Unnecessary motions?7. Backlog in work queues?8. Underutilized employees?- Lean Office Series: Lean office Value Streams – (Factory Strategies Group LLC, 2009)9. Not being able to tell what is going on!Kaizen Workbook.docx

14Kaizen: PAC Nutcracker ProcessExamples of Office Process WasteDoes our target process have any of the following?A. Too many signature levelsB. Unclear job descriptionsC. Obsolete databases/files/foldersD. Purchase orders not matching quotationE. Errors – typo’s, misspelling, wrong dataF. Waiting – for information, at meetings, etc.G. Poor office layoutH. Unnecessary E-mails-Lean Office Series: Lean office Value Streams – (Factory Strategies Group LLC,2009)Kaizen Workbook.docx

15Kaizen: PAC Nutcracker ProcessPracticeThe steps for an expense report approval process are provided below.Classify each step as to whether it is a queue, run, assurance, delay, ormove [Adapted from Mfg341 “Improve the Production System,” MotorolaUniversity, 1994].#Process Step1Expense accountform written byemployeeOut basket awaitinginteroffice mailpickupTo departmentmanager’s secretary234Waiting onsecretary’s desk5Typed by secretaryfrom handwrittencopyTo departmentmanager’s desk6CT Element(s) Distance QuantityTime(hrs)1.59.020’.58.7515’.5010.07In basket awaitingapproval signature8Examined bydepartment manager.509Signed bydepartment manager.1610 Out basket awaitinginteroffice mailpickupKaizen Workbook.docx11.5

16Kaizen: PAC Nutcracker Process#Process Step11 To accountingdepartmentCT Element(s)Distance Quantity1500’Time(hrs)1.012.2512 Waiting onmanager’s desk13 Examined bymanager.514 Approved bymanager.2515 To accountingclerk’s desk16 On desk waitingfor preparation ofcheck17 Write checkKaizen Workbook.docx25’2.016.0.25

17Kaizen: PAC Nutcracker ProcessFacility Layout – “Spaghetti Diagram”Ball Exercise:How do we reduce process lead-time while stilldelivering value?Kaizen Workbook.docx

18Kaizen: PAC Nutcracker ProcessA3 Problem SolvingTITLEI. BACKGROUND – Why are we talking about it?II. CURRENT SITUATION – Where do things stand today?III. GOALS/TARGETS – What specific outcomes are required?IV. PROBLEM STATEMENT – What is the gap?Kaizen Workbook.docx

19Kaizen: PAC Nutcracker ProcessV. ANALYSIS – What is the root cause of the problem?VI. PR0POSED COUNTERMEASURES – What is your proposalto reach the future state, target condition?VII. PLAN – What activities will be required for implementation?What, who, and by when?VIII. FOLLOW UP – What other issues can be anticipated? Howcan we ensure ongoing improvement and capture and sharelearning?Kaizen Workbook.docx

20Kaizen: PAC Nutcracker ProcessSelect process for improvement12 Project Selection Checkpoints1. Relates to key business issue(s)2. Impacts customers3. High visibility4. Leadership is receptive - managerial consensus on importance5. Crosses functional and department boundaries6. Cooperation between stakeholders is likely7. Can serve as an example for other services or processes8. Is a definable process - has multiple steps and clear start andstop points9. Is repetitive10.Process not currently being changed11.Process not a part of another process improvement project12.Not an already developed solution to be testedAdapted from: “Lean Thinking – Leadership Preparation,” University of Toyota, 2003.Kaizen Workbook.docx

21Kaizen: PAC Nutcracker aizen Workbook.docxStoppoint

22Kaizen: PAC Nutcracker ProcessCritical Question:Do we have theright people on thebus?Kaizen Workbook.docx

23Kaizen: PAC Nutcracker ProcessMeasurement: “Food for Thought”Kaizen Teams,In the event that we do not get to a critical discussion of metrics before wrapping up ourfirst session, I am providing you with some “food for thought” before we next meet.A best practice in executing improvement projects is to develop a measurement systemthat captures customer value and is simple.Customer value is usually thought of as a combination of quality, cost, and time. If wecan develop a few simple measures to capture those three concepts, we will be well onour way.A good starting point would be the “Four Lean Measurables” described below. We canstart with them and adapt them for our process:1. First time thru (FTT) – This quality measure counts the percentage oftransactions that make it all the way through the process without errors, scrap, orrework. I think a FTT of 99% is a reasonable expectation for a process, but notas it currently exists. We may want to develop a way to track errors and reworkso problems become visible. Another similar measure used for transaction-basedprocesses is “% complete and error free.”2. Dock to dock cycle time (DTD) – This measures the time from the start of theprocess until its completion. We discussed the power of cycle time as a “supermetric”.3. Build to schedule (BTS) – This measures a process’s ability to meet itscommitted completion time. We can talk about having a one numbercommitment on turnaround or customized commitments per category. A higherstandard that world-class organizations measure is completion to customerrequired date.4. Total cost (TC) – This measures the direct costs associated with a process andavoids complex allocations and accounting formulas. I would suggest that wesimply count heads or the number of times we touch the transaction as asurrogate for TC.As we map the process, other easy ways to evaluate our process will become obvious.The Four Lean Measurables offered above are just a way to get you thinking about howwe will measure improvement in the process.What gets measured gets done!Cheers, Eric O.Kaizen Workbook.docx

24Kaizen: PAC Nutcracker ProcessSession 1 Homework1. Observe and think about the process2. Grab any off-the-shelf data to aid in problem analysis3. Invite missing stakeholders as needed4. ?Kaizen Workbook.docx

25Kaizen: PAC Nutcracker ProcessSESSION 2MAP THE PROCESSGoal for the Day:ReviewKey concepts Value is in the eyes of the final customer Processes deliver value Lead time elementsConfirm project selectionDefine VALUEKaizen Workbook.docx

26Kaizen: PAC Nutcracker ProcessMap the ProcessCommon Process Map Options [adapted from: Moresteam.com]Map TypeSIPOC MapFlow ChartDistinguishing FeaturesCommentsIdentifies Suppliers, Inputs, High level startingOutputs, and Customerspoint - used in mostDMAIC projectsShows decision points and Displays proceduresIf/Then logicand logic of processDeployment Flow Identifies functionalChartresponsibilities(Swim Lane Chart)Communicates whodoes whatValue-Added Flow Separates Value-AddedChartfrom Non-Value-Addedoperations.Spaghetti Diagram Shows physical flow ofmaterial and/or information.Identifies waste ofmany types. Stratifiestime.Illustrates physicalcomplexity, distancetraveled, cycle timeDetailed map for leanimprovement projectsand Kaizen events.Value Stream Map Identifies physical flow ofmaterials and information.Quantifies inventory levels,process characteristics andcontrol mechanisms.System DiagramFocused on systemic cause Examines behaviorsand effect - showsbehind processreinforcing and balancingperformance - nonforces along with unintended linear.consequences.Note: None of these map types is mutually exclusive - you cancustomize your map to add elements drawn from different maptypes to suit the requirements of your project.Kaizen Workbook.docx

27Kaizen: PAC Nutcracker ProcessSwim Lane Chart ExampleKaizen Workbook.docx

28Kaizen: PAC Nutcracker ProcessMap table/notes#ProcessStepKaizen Workbook.docxWhoLT Element(s) DistanceBatchSizeTime

29Kaizen: PAC Nutcracker ProcessMap table/notes#ProcessStepKaizen Workbook.docxWhoLT Element(s) DistanceBatchSizeTime

30Kaizen: PAC Nutcracker ProcessMap table/notes#ProcessStepKaizen Workbook.docxWhoLT Element(s) DistanceBatchSizeTime

31Kaizen: PAC Nutcracker ProcessReport OutNumber of Process StepsTotal Lead Time EstimateLead Time Element SummaryQUEUES%DELAYS%MOVES%ASSURANCES%%%TOTAL NVARUNS [VALUE ADDED]Observations?Kaizen Workbook.docx

32Kaizen: PAC Nutcracker ProcessPlan for data verification?WHATWHONotes:Take lots of pictures!Kaizen Workbook.docxBY WHEN

33Kaizen: PAC Nutcracker ProcessSESSION 3IDENTIFY PROBLEMS, SOLUTIONS, & PLANSee the Future!Review verified dataDid we?CapturetheTRUTH!Identify “opportunities for improvement” (i.e. problems)Kaizen Workbook.docx

34Kaizen: PAC Nutcracker ProcessClarify and prioritize problemsBrainstorm solutions – “low cost and no cost”What can we IMPLEMENT NOW [Just-Do-Its] ?Kaizen Workbook.docx

35Kaizen: PAC Nutcracker ProcessCreate an action plan (include date for results follow-up presentation)Action'PlanWHATMeasuresFollow up'PlanKaizen Workbook.docxWHOCurrentBY&WHENTargetActual%Improve

36Kaizen: PAC Nutcracker Process“Quickie Kaizen”[Example courtesy of Pete Mowry – C&D Zodiac Santa Maria, CA]Note: Send any “quickie kaizen” sheets to Eric Olsen at eolsen@calpoly.edu if youwould like to share them on the Central Coast Lean website.Central Coast Lean - www.cob.calpoly.edu/centralcoastlean/Kaizen Workbook.docx

37Kaizen: PAC Nutcracker ProcessReport Out: Present results and plans to management[Modify as appropriate] Welcome “Opportunity” overview What we learned “Walk the walls” – Analysis Results Plan presentation(s) Questions from guests Reflections on the process ThanksCelebrate Success![Now for the hard part – implementing and sustaining ]Kaizen Workbook.docx

38Kaizen: PAC Nutcracker ProcessFirst Follow-up Agenda (typical)1. Recap – What did we learn?2. Measures?3. Action Plan(s)WhatPriority4. Schedule next follow-ups?5. Schedule celebration?Kaizen Workbook.docxWhoBy when

39Kaizen: PAC Nutcracker ProcessFacilitator contact info: Eric Olsen, PhDCal Poly - Orfalea College of Business - Industrial TechnologyBldg: 03 Rm: 435, 1 Grand Ave, San Luis Obispo, CA 93407-0383office: 805 756-1754 cell: 805 602-0228 e-mail: eolsen@calpoly.eduwebpage: cob.calpoly.edu/faculty/eric-olsen/Central Coast Lean - www.cob.calpoly.edu/centralcoastlean/ Useful and interesting tp://www.artoflean.com/tps history.htmKaizen Workbook.docx(TPS Video)

40Kaizen: PAC Nutcracker ProcessAPPENDIXExample Data from Grants Process Kaizen Event – Spring 2009EXHIBIT ONE: COMPARISON OF AWARDS BY COLLEGE 06/07 – 07/08EXHIBIT TWO:Kaizen Workbook.docx

41Kaizen: PAC Nutcracker ProcessEXHIBIT THREE: “THE SWIM LANE”Kaizen Workbook.docx

42Kaizen: PAC Nutcracker ProcessKaizen Workbook.docx

43Kaizen: PAC Nutcracker ProcessEXHIBIT FOUR: THE PROCESS CLASSIFIEDRQ,AGDO45minR4 DraftBudgetA5 DeliverablesAA6 CustomerEducation/ContactAARQQ,AQQ,R8 FirstCuttoCustomerM M9 CustomerReview10 Polish/ReviewA11 FirstRealProposalA12 DataEntryA13 CoverLetter/ProposalAAR410ASponsor2days- ‐1weekQQ,AGDO/Faculty1hrAGDOQM 5.9%456.00.250.0%0.250.0%010.1%240.7%23DirM M,A,DCampus18 PIs ignsADM M,A,DPI19 DeptChairs ignsADM M,A,DDeptChair20 Deana ndCenterSignsADM M,A,DDirM MGDOQ,D23 InternalDocsDD24 ExternalDocsDD15min000.750.1%0.750.0%0006M M00entD25 SendtoCustomer0.0%4.5%M M,A,D80.7548D10.1%0D50.750.0%A001AQ0.7%0.1%17 Univ s igns(GDO)22 StudentsCopy24.25116 XeniaSigns21 toGDO2.3%01hr724.25GDO/Faculty/R&GGDOAVarmax- ‐min%Tot (hrs)1hr- ‐1day7 EarlyNegotiations15 0%0.250.0%0242.2%33610.0%31226 CustomerProcessesDD27 lty1day242.2%240.7%0M M,ASponsor1- ‐2weeks16815.7%33610.0%168M MSponsor1dayR29 FormalModificationsA30 DraftContract(faculty)A31 DraftContract(cust.)AD32 Customers endstoGDO(unsigned)13043weeks02Gr /R&nsoday- ‐28 memax(hrs)2- ‐4weeksR14 InternalSignature/PAFUniversitySign- tion3 StatementofWorkAWhoR,DTimemin(hrs)%Tot45min2 AnalystGuidelines/RFPProposalD/FacultyProcessStep1 R A Q D M en Workbook.docx

44Kaizen: PAC Nutcracker Process#ProcessStepClassificationR A Q D M SequenceQTimeTimemax(hrs)Varmax- ‐min%Tot (hrs)QGDO1day242.2%240.7%034 StudentsScanDDStudent30min0.50.0%0.50.0%035 Email- 0API2hrs- ‐2weeks20.2%33610.0%334Q,AGDO1- 670.0%0.1670.0%041 OriginalgoestoSPOM MStudent0.250.0%0.250.0%042 FrontDeskM MSPO36 PIreviewsA37 AnalystReviewsAQ38 Morei ssues?39 GDOAnalystemailsSPOw/orw/oi ssuesQ40 StudentsCopypackageforGDO15min043 RushorStandard?AASPO?0.0%00.0%044 AnalystReview( ,I nsur,etc)AQDQ,A,DSPO1hr10.1%10.0%045 (PADataEntry)- ‐ifstandardAQDQ,A,DSPO 1hr10.1%10.0%046 ContactOthers- ‐i nternal,l egal,etc.AQDQ,A,DSPO242.2%33610.0%31247 CommunicatewithPIoni enegotiation748 PI/SponsorQuestionsa ndI ssues242.2%240.7%0Award01day- ‐2weeksInternalProcesses33 GDOrecievesWhoTimemin(hrs)%Tot52 SPOAnalyst(matcha ward&c ontract)AM A,MSPO15min0.250.0%0.250.0%053 Corporations 220.1%504168.515.7%672.520.1%504A49 Renegotiateemailwithc ustomersA50 CustomerProcessRepeat(w/SPO)A51 "Final"Contractunsignedbyc ustomer334SPO/CustomerA,DSPO/Customer01day4AA57 SendtoSPO00.0%0242.2%240.7%0- ‐430.0%013weeksM,R3stomer56 CustomerSignsCustomer0?5R1M MQ59 OriginalgoestoGDO60 Scana ndReturnQDM Q,MSPOM MGDOM Q,M,DStudentR62 EmailPI/OrgKey!A63 File,SPOAnalyst0A0.7545min58 SPOAnalystCopy61 SPOAnalyst,s etupa ccountACu55 SendtoCustomerSPO/FacultyM 0%0RSPO2- 15min00.250.0%0.250.0%14113.170.3%4.170.1%1735 26 35 331072.10100.0%3350.10100.0%227867DAYS 44.7139.6Kaizen Workbook.docx94.9

45Kaizen: PAC Nutcracker ProcessEXHIBIT FIVE: dAwardedAwardedAwardedAwardedContract Recd Copy To 8Copy To PI Copy To 008GDO 11/12/20089/24/2008Hard copyContract file 7/20089/25/2008Contract FullyExecContract fully executed in excessof 30 days from distribution toGDO, PI, and SPO4/18/20084/25/2008 Contract fully executed in excess8/10/2007 of 60 days from distribution to4/1/2008GDO, PI, and 12/20089/26/2008Kaizen Workbook.docx

46Kaizen: PAC Nutcracker ProcessEXHIBIT SIX: HISTORY OF LEANThe Top 10 Titans of TPSBy Jon Miller Post Date: February 8, 2009 11:31 PMI like to connect the history to people because it shows that the Lean philosophy did not come down from themountaintop; it was created by people working and improving every day. This list of the top 10 titans of TPS is highlysubjective and is organized in loose historical order, not in ranking by importance. It's a top 10 list, but we cranked it up to11. And there are 12 people on the list, if you're counting.1. Henry Ford was the founder of the Ford Motor Company. He revolutionized repetitive manufacturing of automobilesthrough standardization of parts, the moving assembly line and continuous improvement or product and process. Inspiredimitation by Toyoda family to build automobiles. Words of this titan: "It is not the employer who pays the wages.Employers only handle the money. It is the customer who pays the wages."2. Sakichi Toyoda was and inventor, industrialist, and founder of Toyota Looms Works. He gave us the jidoka concept,inspired the Toyota Precepts and set the development of the Toyota Production System in motion.Words of the titan: "Everyone should tackle some great project at least once in their life."3. Charles R. Allen created and taught the methodologies which were developed into Job Instruction and eventuallyTraining Within Industry during World War II. His book The Instructor, the Man, and the Job is mentioned several times inthe

Kaizen is a Japanese term for continuous improvement. By bringing together process experts in a focused effort to analyze the process, identify problems, and brainstorm solutions, many organizations are making dramatic improvements in value delivery. In industry, kaizen events often involve 2-3 days . Kaizen Workbook.docx - .

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