Lean seminar - Reduce waste, add more value to your customers 20th-jan2014 London IMPACT Hub

LEAN SEMINARS/1

Reduce Waste, Add More ValueTo Your Customers

20th Jan, 2014, London

Andrea Darabos MSc., MBABusiness Improvement Consultant, Coach

[email protected]

Phone: +44 793 604 1196

LEAN ADVANTAGE Ltd.

In Partnership with:

• At LEAN ADVANTAGE Ltd., we work with large, global organizations

• Our Mission is to improve the value creation in organisations, governments, in order to achieve better services and happy customers

• Our Vision is to improve leadership in organisations, to havehappier employees and more satisfying work

• We would like to share our knowledge with small-medium enterprisesand the social sector

LEAN ADVANTAGE SEMINARS @ , in partnership with the team of

Why Lean Seminars?

Copyright © of LEAN ADVANTAGE Ltd. www.leanadvantage.co.ukAndrea Darabos Lean Practitioner, [email protected] , +44 07936 041196, Twitter @ADarabos

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Agenda

• 15 mins Introductions

• 10 mins What is Lean?

• 15 mins How customers think of value (and waste)

• 15 mins Breakout session – how do the 8 wastes apply to me?

• 10 mins How winning organisations optimize for value

• 15 mins Breakout session – opportunities in my organisation?

• 5 mins Why is lean thinking essential for a social enterprise?

• 35 mins Q&A, feedback, networking


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Introductions – Diversity Game

• About Me:

• What I do:

• My previous knowledge of lean:

• Why this seminar:

Sum up diversity points per table: +1 point if all of you are different in a given category


Copyright © of LEAN ADVANTAGE Ltd. www.leanadvantage.co.ukAndrea Darabos Lean Practitioner, [email protected] , +44 07936 041196, Twitter @ADarabos 5

About Me - Andrea

• Hungarian, 30-40

• What I do: I coach, train, consult, public speak…

I help organisations to see themselvesthrough the eyes of their customers,~ to build skills of continuous improvement, agility

• My previous knowledge of lean:7 years of lean, agile, project managementOn my lean journey…

• Why this seminar: to show the powerof lean agile, when applied to real-life problems

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What is Lean?

• Lean originates from manufacturing in Toyota Japan, 1960s:

“To survive long term as a company by improving and evolving how we make good products for the customer.”

• Since then, Lean has been successfully applied in all major sectorsaround the world:• Government & Public sector, Military and Defense, Banking,

Software Industry, Retail, Research, Service Sector, Startups


1, A Philosophy? What is Lean?

3, A Toolbox?

A set of Tools and

Techniques

that can be used to guide

problem-solving and

continuous improvement

2, Improvement

Methodology

Lean is a philosophy, methodology and toolbox all in one.

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Based on: Roger Dyer, JEL Business ProcessImprovement Ltd.Niklas Modig, Ericsson executivepresentation


1, A Philosophy? What is Lean?

3, A Toolbox?

A Mindset and Belief that

we need to continuously improve

to maximize value for the customer

by reducing waste and variation, forever

A set of Tools and Techniques

that can be used to guide

problem-solving and

continuous improvement

2, Improvement

Methodology

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Based on: Roger Dyer, JEL Business ProcessImprovement Ltd.Niklas Modig, Ericsson executivepresentation


Lean is a philosophy, methodology and toolbox all in one.

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Lean is not alone in improvingvalue creation…

Complexity thinking

Lean Six Sigma

KANBAN

Lean Agile LeadershipSCRUM

Change (project) management

Theory of Constraints Kaizen

Agile Product Management

… Etc.


Exercise 1, - Value Creation

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Step 1: What Value (services, products) do you provide to your customers?

Pick one and note it down

Step 2: Who are your customers for that service/product?

Write down a list of your

- External customers

- Internal customers


How Customers think of Value

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„A tale of two friends”

OUCH!



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Examination Diagnosis

Surgery PharmacyStart of

RecoveryDrive home

1,5 day 2 hrs 2 hrs

1 day 1 hr 1 hr

TOTAL: 3 days



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SurgeryExamination

and Diagnosis

Start of Recovery

Transportservice

Medication

1 hr 1 hr 1 hr 10 mins

TOTAL: 0,5 day


Which Customer Would You Like to Be?

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SurgeryExamination

and Diagnosis

Examination Diagnosis

Surgery

Start of Recovery

PharmacyStart of

Recovery

Transportservice

Medication

Drive home

1,5 day 2 hrs 2 hrs

1 day 1 hr 1 hr

1 hr 1 hr 1 hr 10 mins

TOTAL: 3 days

TOTAL: 0,5 day


(We) Customers Think End to End Experience

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„I will never come back again!

They are wasting my time.”

„I love their product, but

their service ***disappoints*** !”

Photo credits: Shutterstock


How (We) Organisations Provide Value

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Etc.

„I am in Sales!

Engineering should fix this”

„The customer is

your problem!”

„I have never

met a customer!”

CXO

Sales MarketingCustomerSupport

Product/ServiceDevelopment

Product/ServiceDelivery

CEO

CXO CXO CXO CXO


The 8 Lean Office Wastes

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TIM

WOODS


Transport Inventory Motion Waiting

Overprocessing Overproduction Defects Skills - unused

Moving data,materials or the customer

Unfinished work,Unread emails

Searching, handling,multitasking

Authorization,decision-making

Not using the fullpotential of employees

Data entry, lostinformation, rework

Producing too much,too soon.

More work than neededto satisfy the customer.

Exercise 2, - Learn to See Waste

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Where do the 8 Lean Office Wastes (TIM WOODS) exist

in Your Organisation?

Note down as many examples as you can think of.

Discuss with your table.


How winning organisations optimizefor value?

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Step 1: What Value (services, products) do we provide to our customers?

Step 2: Who are our customers (internal, external) for this value?

Step 3: What are the steps we do to create this service for our customers?

Step 4: What waste and opportunities can we identify

(based on customer feedback) in our service?

Repeat.


Customer Support

Order to Cash

A Typical Enterprise Value Stream

Customer Need to Order

Value Stream: The collection of all actions/processes necessary to transform customer needs into products and services supported throughout their lifecycles.

Customer Satisfaction and Loyalty

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Customer Problemor Need


E.g. Marketing, Product Development,Quote, Sales Order, etc.

Customers want: Maximal Value-Adding time as % of Total lead time (Flow efficiency).

Total lead time

Value is created by You, but defined

by the customer

Value-Adding time Non Value-Adding time – BNVA wasteNVA waste

22Copyright © of LEAN ADVANTAGE Ltd. www.leanadvantage.co.ukAndrea Darabos Lean Practitioner, [email protected] , +44 07936 041196, Twitter @ADarabos

Value Analysis

Value-Adding activity• Essential for a good service or delivery of product• Customer is usually willing to pay for this activity• Should be standardized, optimized

Business Non Value-Adding activity• Is necessary for the business (financial, regulations)• Should be minimized if possible

Non Value-Adding activity• Not necessary & not valued by the customer• Usually, one of the TIM WOODS• Should be eliminated

23Copyright © of LEAN ADVANTAGE Ltd. www.leanadvantage.co.ukAndrea Darabos Lean Practitioner, [email protected] , +44 07936 041196, Twitter @ADarabos

Exercise 3, - Value Creation

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Step 1: DONE

Step 2: DONE

Step 3: Identify your value stream(s).

What are the steps we do to create this service for our customers?

Share your value stream with your table.

Step 4: Any waste (TIM WOODS) that you can see in your value stream?


Why Value Stream map?

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• To see yourself with the eyes of your customer

• To understand what customers value

• To save cash and customers’ time

• To catalyze customer-focused improvement

• To enable employees to see the future


How to Value Stream map?

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• Do it collaboratively with all the necessary stakeholders involved• Focus on the actual, current state

- Understand where you are before you decide where to go• Draw by hand, note down all the current steps involved

- How information and materials flow- Gather actual data on lead times, queue times

• Understand customer value as defined by them (VA)• Identify NVA waste, opportunities and start improving


Why Lean for Social Problems?

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Governments, NGOs, Social Enterprises


Step 1: What Value (services, products) do they provide to our customers?

Solving social problems

Step 2: Who are their customers?

Citizens, people in need

Step 3, 4: Lean is a mindset that constantly strives to maximize

social impact for the benefit of all in need.

Lean’s (Social) Potential

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Mission: „To end curable blindness”

Story of Aravind Eye Care System –

Inspired by lean, the founder Dr. G. Venkataswamyimplemented standardization and continuous improvementto be able to serve the millions of people in need. Today, it is the most productive eyecare facility in the world.

Short: http://youtu.be/3cjnNPua7AgLong: http://youtu.be/Jr70IrWM-n8 (Lean in Aravind: min. 14:00)


http://youtu.be/3cjnNPua7Ag

http://youtu.be/Jr70IrWM-n8

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Good Reads – Lean Value Creation


• Monday, 20th January 6:00 p.m. – 8:00 p.m. - TODAYReduce Waste, Add More Value To Your Customers

• Monday, 17th February 6:00 p.m. – 8:00 p.m.Get More Done in Your Business with KANBAN

• Monday, 17th March 6:00 p.m. – 8:00 p.m.5 Simple Steps to Improve Your Business and Life

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LEAN ADVANTAGE SEMINARS @ , in partnership with the team of

Thank You! Give us feedback and send your thoughts, questions.Copyright © of LEAN ADVANTAGE Ltd. www.leanadvantage.co.ukAndrea Darabos Lean Practitioner, [email protected] , +44 07936 041196, Twitter @ADarabos

Lean seminar - Reduce waste, add more value to your customers 20th-jan2014 London IMPACT Hub

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