Lean Mastery Collection Page 11

  Choose your shorthand: The symbols you use to denote various stages of the process you are mapping don’t really have any hard and firm guidelines as they are going to be unique to every project and every business. Regardless of what you and your team ultimately choose, it is important to create a list of all of the symbols you are using and what they mean so that anyone who comes in after the fact can easily get caught up. From there, it is important to stick to the designated symbols and not make anything up on the fly. Additionally, if the business is working on more than one value stream map at a time, it is important that the symbols correspond between the two. Otherwise, things can quickly spiral into illegibility.

  Set limits: If taken from a broad enough scope, virtually every value stream map for your business can be connected to other value stream maps or go into greater detail. At some point, however, this is going to be counterproductive and you will have to set limits on what the value stream map is going to account for if you ever hope to successfully move forward. Likewise, if you let this part of the process get out of hand, then the map can lose focus and become less useful as a result.

  Start with steps that are clearly defined: After you have a clear beginning and end for the process you are mapping, the next thing to do is to make a list of all of the logical steps that need to be taken from start to finish. This shouldn’t be an in-depth look at every link in the chain, but instead, should be an overview of the major stages that will need to be looked at more closely as the process moves towards completion.

  Consider the flow of information: One important step in the value stream mapping process that sets it apart from other similar mapping processes is that each value stream map also accounts for the way that information flows throughout the process from beginning to end. What’s more, it will also chart the way information passes between team members as well. You will also need to ensure it takes into account the ways the customer interacts with your business, in addition to how frequently such interactions occur. You will also need to ensure the communication chain includes any suppliers or any other third parties the company deals with.

  Further details: When it comes to breaking the process down to its most granular level, you may want to include a flow chart with your value stream map as well. A flow chart is a great way to map out the innermost details of how a given process reaches completion. This is also an excellent way to determine the types of muda you are dealing with, so you can consider if they can be removed from the process.

  If you are interested in considering the ways your team physically moves around your space, then a string diagram can also prove effective. To generate this type of diagram, you will map out your business’s workspace by drawing in what each member of the team has to do and where they have to go in order to fully complete the process. You will want to draw different team members or different teams in different colors to keep things from getting too confusing. From there, charting the flow of information as it relates to this data can lead to surprising conclusions regarding flaws that might otherwise go unnoticed for years.

  Collecting data: When it comes to outlining your initial map of a value stream, you may find yourself with certain aspects of the process that require additional data before anything can be determined with any real degree of certainty. The data that you may need to track down will include:

  cycle time

  total inventory on hand

  availability of the service

  transition time

  uptime

  number of shifts required to complete the process

  total available working time

  When it comes to collecting this data, it is important to always remember to go to the source directly and find the details you are looking for rather than making assumptions. Furthermore, it is important to get the most updated numbers possible as opposed to looking at older, more readily available figures or hypothetical benchmarks. This may mean something as hands-on as physically keeping an eye on every part of the process in question so you can take relevant notes.

  Watch the inventory: Even if you are relatively certain about any inventory requirements for the process in question, it is vital that you double check before you commit anything to the value stream map. Minor miscalculations at this point could dramatically skew your overall results and essentially nullify all of your hard work if you aren’t careful. This means you definitely need to adopt a measure twice in order to see the best results. After all, inventory is prone to building up for a wide variety of reasons and there is a good chance that you won’t know it until you take a closer look and do a once over on what’s really on hand. You can also use this step as an excuse to take stock of exactly what the team is working with and determine how far it will actually stretch effectively.

  Using the data: After you have finished visualizing the steps found in your most important process, you are now ready to use it as a means of determining where any problem points might be. You will especially want to keep an eye out for processes that include redoing any previously completed work, anything that requires an extended period of resetting before work can begin again, or long gaps where parts of the team can do nothing except wait for someone else to finish, those that take up more resources than your research indicates you should or even just those that seem to take longer than they should for no particular reason.

  Generate the ideal version of the value stream: After you have determined where the bottlenecks are occurring, you will want to create an updated value stream map that represents how you want the process to proceed once you have everything properly sorted. This will provide you with an A to C scenario, where figuring out the pain points represents B. Ideally, it will also provide a clue as to how you can go about eliminating the waste from the process in order to create an idea, which you can really strive for both in the short and the long-term.

  Once you have determined the ideal state for the process, you can work out a future value stream map that will serve as a plan on how to take the team from where you are currently to where you need to be. This type of plan is often broken down into sections that last a few months, depending on what needs to be done. Additionally, most future value stream maps will come with multiple iterations because they will need to change several times as the project nears completion.

  When working through various variations of the value stream map, it is important to pay close attention to the lead time available for various processes. The lead time is the amount of time it will take to complete a given task in the process and, if not utilized as efficiently as possible, it can easily lead to a wealth of bottlenecks. Remember, when it comes to creating the best value stream map possible, no part of the process is beyond scrutiny.

  Chapter 5: Lean and Production

  When putting together a Lean system for your business, you will eventually determine where the waste is hiding in your current processes, which is when it will be time to consider what can be done about the flow of the process. Often, the answer will come in either the form of a continuous flow model or a batch model.

  Continuous flow model: The ideal version of the continuous flow model sees the customer order a product or service before the necessary steps are taken to generate the product or service that is being paid for. The product or service is then delivered to the customer who then pays for their order. The end result here is that there is no downtime between when the customer puts in their request and when it is completed. Furthermore, every step is going to smoothly flow into the next as a means of ensuring that overall downtime is reduced as much as possible.

  The biggest upside to the continuous flow model is that it allows business to make assumptions and plan for the future based on a profit level that prioritizes continuity and stability. A continuous flow setup also features less waste than other types of processes. The biggest downside, however, is that this type of scenario can be difficult to produce reliably as every step in the process is rarely equal, regardless of how cl
ear the value stream map might be. If you are striving to create a continuous process scenario, then you should be aware that new problems can also appear quickly if your available margin for error begins to shrink.

  In order to persist despite these drawbacks, you will want to do your best to attack these problems head-on and be determined to push through them if you hope to find success. Additionally, if you hope to choose this route, it is important to start your journey to a Lean system with this in mind, as a continuous system is only going to work if every part of the system is completely in sync with all the rest.

  Heijunka is a useful tool when it comes to facilitating this process as it promotes leveling out the quantity and quality of the process over a prolonged period of time in hopes of making everything as efficient as possible and, what’s more, to expressly prevent batching. While it might sound complicated, in reality, this process can be as simple as making sure your team has all of the storage space they need to organize the various parts of the project. They store them in folders that are organized based both on the frequency of use as well as the due date. Folders that are currently in use can be stacked vertically on top of one another while those that are idle can be stored horizontally out of the way somewhere. There are also numerous other types of organizational methods that promote heijunka, so it can be helpful to explore them all to see what offers the most benefit to your business.

  Batch production: Unlike with the continuous flow model, with the batch production model, the steps in the process to create the product or service are all completed in bulk one after the next. This makes it the superior choice when it comes to situations where what the process generates is evergreen as this will allow it to be stockpiled as a direct counter to erratic customer demand. Depending on the specifics of your business, batch production can also dramatically decrease the associated production costs as few team members can move from step to step instead of having all the steps operating at once. It also provides lots of opportunities when it comes to cross-training.

  As a general rule, you can count on batch production to be less productive when there are a greater number of individual steps that are required to complete the process. This is because the starting and stopping times would need to be calculated for each which can add up quickly if batch sizes are quite large. This can also potentially create a delay if a customer places a large customized order when a batch is already in the middle of production.

  Takt time

  Short for the word Taktzeit, Takt time is a variation of the Japanese principle of measuring time, despite its German name. Despite the fact that it is primarily used in production environments, it can have a beneficial effect on most tasks performed in a business environment as well. Specifically, Takt time is the time it takes for a team to start a new process after completely finishing the last, assuming the production rate is equal to the rate of customer demand.

  Determining takt time: If your team completes processes one at a time throughout the workday, the takt time of that process can then be determined by taking the time that has elapsed between two processes, assuming of course that demand is still being met. This means it can be written as T = Ta/D. In this case, T is your Takt time, Ta is the amount of time available to finish processes, and D is the amount of demand that the process experiences.

  You will not want to automatically take these results as fact, however, as it is rare to find a team that can run at peak efficiency at all times. As such, when it comes to determining an accurate takt time, you will want to add in some wiggle room here to compensate for the fact. From there, you will want to adjust your takt time based on additional customer requirements or team demands.

  Takt time benefits: Once you have determined the accurate takt time for your business’s processes, you will find that a number of additional beneficial options open up to you. First and foremost, you will find that it is clear which steps in the process are the bottlenecks which will make it easier to take steps to mitigate them specifically. Likewise, if you have any processes that typically go off the rails, that problem will be made apparent as well.

  As a general rule, takt time places additional emphasis on steps that add value to the process as a whole, which makes it easier to use if you are looking for muda to remove from the process. What’s more, once the team gets used to the concept of takt time, they will find that it is much easier to track how productive they are being throughout the day.

  Be aware: Takt time is not a set-it and forget-it type of affair which means that if you find that your demand changes dramatically, then you will need to recalibrate all of your takt time to adjust for this fact. This also means that if your demand isn’t relatively stable, then determining your takt time might not be very beneficial on its own. If you try and force your process into a takt timetable and it isn’t a good fit, then all you will end up doing is causing even more waste in the long run.

  Likewise, you will need to be aware of the way in which the products or services produced by your processes fit together or else, you risk creating bottlenecks anyway which will throw off the accuracy of your takt time. As a general rule, the shorter the takt time, the greater the amount of strain that resources including both machinery and people will experience on a regular basis.

  Chapter 6: Run a Lean Office

  One of the truly great parts of the Lean system is the potential it holds when it comes to standardization, specifically when it comes to minimizing waste. Much like when it comes to setting goals, setting work parameters that are clearly standardized makes it easier to answer specific questions about the process. This should include things like who will follow through on the process once it has been outlined, how many people will it take, what will the end result be, what the metrics for success should be, what is required to meet them, how long the process will take and more. These are all questions that ultimately need to be asked in order to guarantee your standardization measures don’t end up creating new problems instead of solving existing ones.

  Workflow standardization is not expressly designed to ensure that processes are completed as quickly as possible. Rather, it is about utilizing the most effective practices possible in order to ensure they are completed with the same level of reliable quality each and every time. You will also do well to remember that standard practices will naturally change over time as improvements to safety, quality, and productivity are found. You will want to take care to avoid becoming so reliant on a single type of standardization that you end up actually allowing it to hold you back from future progress.

  With that being said, it is also important to avoid falling into the trap of undertaking a round of standardization solely for standardization’s sake. Instead, it is important to consider if standardization is really the right choice by considering the various processes already in place and asking yourself if they would be of a higher quality, performed to a higher safety standard or completed with less waste. If you move forward, and this is not the case, then all you are doing is inviting in waste.

  Furthermore, standardization should involve more than simple instructional documents. It should be created from the input of those who perform the processes on the regular and then combined with a fresh round of customer feedback to ensure all bases are covered. The reasons for the standardization process should be clear to everyone involved before getting started for the best results.

  KPIs

  KPIs, also known as key performance indicators, are extremely useful when it comes to determining the ideal steps to take during the standardization process. KPIs are also useful when it comes to measuring the overall success of the process as a whole based on numerous different metrics. Choosing the right KPI to focus on is a matter of considering what metrics you value most at the moment as well as in the long-term. There are a wide variety of indicators to choose from, all of which are useful in different circumstances and when it comes to accurately defining specific values. Essentially, each KPI can be considered an obje
ct which is useful in various value-add scenarios.

  Choosing indicators: When it comes to identifying the KPIs you want to use for your business, the first thing you will need to do is ensure that your process is already well-defined as this will help you have a true handle on the specifics of every aspect of the process as well as the best ways to determine the ideal means of completion. It is important to only stick with indicators that are relevant to the goal you are currently working towards. Otherwise, they can easily be altered dramatically by factors that are literally outside of your control.

  Much like with your goals, it is important that your KPIs are SMART and that they clearly indicate specific information for a specific purpose. You will also want to choose options that are easily measured while still providing accurate results if at all possible. Much like goals, KPIs are useless if they are not realistically achievable. The most effective KPIs are those that are relevant to the success of the business in the moment or in the future while also including an element of time that has specific periods as they relate to the data.

  Be aware: It is also important to keep in mind that while determining specific KPIs isn’t too difficult, keeping track and compiling the relevant data can be more difficult than it first appears. Furthermore, additional values, including those for things such as staff morale, are difficult to gauge accurately. Before you invest resources into generating KPIs, it is important to first make sure they are adequately measurable and useful. Otherwise, you will be on your way to creating even more waste.