Lean Strategy Black Belt

Consensus phase
(and related techniques)
B U S I N E S S P A T H O L O G Y S T E P # L E A N S T R A T E G Y

95% LEADERS are not aware

of mission, vision & strategic goals BUSINESS
CONTEXT

18% PEOPLE IN POLAND

Are satisfied with their job MUTUAL DIRECTION

V O I C E O F T H E
P R O C E S S E S
E N D - 2 - E N D

C U S T O M E R
80% PROCESSES
Have never been measured

L E A D E R E M P L .

90% LEADERS
Improvise at work LEADERSHIP 734
B U S I N E S S P A T H O L O G Y S T E P # L E A N S T R A T E G Y

BUSINESS
CONTEXT

MUTUAL DIRECTION

V O I C E O F T H E
9/10

P R O C E S S E S
E N D - 2 - E N D

C U S T O M E R
IMPLEMENTATION
TRIALS ARE NOT L E A D E R E M P L .
CONTINUED
LEADERSHIP 734
 1

LEAN BUSINESS
CONTEXT
Identification and elimination of wastes
2 MUTUAL DIRECTION

3 3
LEAN STRATEGY 5

V O I C E O F T H E
P R O C E S S E S
E N D - 2 - E N D

C U S T O M E R
5 steps of strategic transformation

Ensuring working environment within the

organization where all employees are engaged in
common winning!
L E A D E R E M P L .

Everyone, everyday (working according to the role) 4 LEADERSHIP 734

fulfills business context (mission, vision, strategic
goals), simultaneously identifying and eliminating
wastes.
 Current state analysis tools
(Consensus supporting tools)
Value vs. waste
EVERY PROCESS CONSISTS OF
VALUE AND WASTE VALUE

VALUE ADDED
Activities, which customer is willing to pay for, done right for
the first time

WASTE
Activities, which don’t give any value and can be removed

NECESSARY ACTIVITIES
Activities, which don’t give any value, but must be carry out
to because of law regulations, contracts, etc.
8

OVERPRODUCTION WAITING INVENTORY

UNNECESSARY OVERPROCESSING WASTED HUMAN

MOTION OR POTENTIAL
TRANSPORTATION

CORRECTING LOOKING FOR BLAMING

DEFECTS AND INFORMATION OR
GAPS CLARIFYING
The definition of LEAN says that this is
identification & elimination of wastes which are
activities which are done as a part of the process
and don’t bring any value to the product of service.
10

Value Stream Mapping

(VSM)
11

A value stream map consists of all the steps (both value-added and non-value-added) in the process.
One of the key elements of value stream mapping is that it provides a baseline of defined processes in a current
state and provides a baseline of future state map. It shows process flow, how much time takes each step &
other additional info about the process.

GOAL OF CREATION OF VSM

➢ Allows to see through the processes
➢ Gives everyone a clear understanding of the process
Process
➢ Helps to identify non-value added operations VSM map
➢ Facilitates teamwork and communication
➢ Keeps everyone on the same page
Shows the process in a
➢ Is a Base of Change Plan (Future State Map)
Shows the sequence of
value stream with activities
events to build a product or
classified into 3 categories
produce an outcome
VA, NVA, NNVA
12

The key to create an excellent current state VSM is to document what you actually see with your own
eyes. We are not interested in how the process is supposed to work, or was designed to work.

Correctly completed VSM will help you reply to

the following questions:
• What are client requirements?
• What is a Value Adding activity?
• What is a percentage of wastes in the process?
• Can we asses Volumes in the process?
• Where we have inventory in the process?
• Is there a standard of work on every stage?
13

Process is a sequence of activities designed to achieve specific result (product, service). The process is used by
internal or external customer. In Lean, processes are analysed using Value Stream Mapping technique.

8 steps to map the process:

1. Define Customer’s requirements
(quantity, quality)
2. Define the process flow
3. Define data and metrics
4. Walk through the process and collect
data, information, inventories and
queues!!!!!
5. Complete data
6. Present the flow of activities
7. Present the flow of information
8. Summarize data for the process (value
add time vs. lead time, quality related
data, service levels, costs, etc.)
14

Before we can identify our value stream, we need to determine the value in
the process that the customer is willing to pay for.

Then we should ask the customer what are his requirements to the value
(product/ service).

1 000 pcs/ month

What is the final product?
What is the scope of the process? 99% quality
2 days
15

A process flow is a picture of the separate steps of a process in sequential order.

Team should identify and draw every process step. Process step is an physical activity during Service provision.
If necessary you can add a Service team over the top of the step.

There are steps that create value and those that do not. Some of non-value-added steps, perhaps because of
regulations, policies and current technologies, cannot be eliminated or at least cannot be eliminated
immediately. They all should be included in the VSM of the current state.
To gather the data needed we need to focus on the following elements:

1. Time (CT, LT, TT, VA)

2. Volumes Picking
3. Inventory
4. Waiting
10 / 8 (100%)
5. Quality of the process (FPY)
SAP
6. Quality of the input (C&A) C/T = 0,5 - 1 h
7. FTE and availability
Vadd = 5 min
8. System
9. Overal Equipment Effectiveness 10 pcs daily
10. Automatic/ manual step % C&A = 80%

Availability = 2 shifts/7,5h

Manual
24

STEP 3-5: Data and indicators – observe & collect

The most important step in the process of creating VSM. It requires time to go and see and
understand how the process is really executed.

The Leader and the team should spend sime time in GEMBA collecting reliable data about the E2E
process using relevant measuring methods.
25

STEP 3-5: Data and indicators – observe & collect

Client
Agreement prep
Data:
10 / 8 (100%) 1000 pcs monthly
SAP 50 pcs daily
C/T = 0,5 - 1 h LT – 10 days
Vadd = 5 min

10 pcs per day

% C & A = 80%

D = 2 shifts/7,5h

OEE = 90%
Application Customer

Data: Requirements:
1000 applications/ Quickly, easy, cheap,
month available
LT – 10 days
Quality – 100%

I I I
3 Dni
1d 0,5 d
1000
Client data verification On-site support for Client Docs collection and supply
50 50 Decision
Contact with Client Docs analysis

10 / 7 (50%)
I
10 / 10 (100%) 5 / 3 (40%) 5 / 3 (50%) 3 / 3 (100%) 3 / 3 (100%)

I SAP SAP SAP SAP SAP

1 Dzień P/T = 10 min P/T = 10 min P/T = 15 min P/T = 15 min P/T = 1h C/T = 0,5 h
C/T = 2 dni C/T = 1 dzień C/T = 30 min C/T = 1 dzień C/T = 0,5 dnia P/T = 0,5 h
Vadd = 5 min Vadd = 5 min Vadd = 10 min Vadd = 5 min Vadd = 10 min Vadd = 3 min
C = 630 klientów C = 360 klientów C = 56 klientów C = 108 klientów C = 108 klientów C = 216 klientów
% K & D = 90% % K & D = 80% % K & D = 60% % K & D = 90% % K & D = 80% % K & D = 90%
D = 2 zmiany/7,5h D = 1 zmiana/7,5h D = 1 zmiana/9h D = 1 zmiana/9h D = 2 zmiany/7,5h D = 2 zmiany/7,5h
OEE = 95% OEE = 100% OEE = 90% OEE = 80% OEE = 95% OEE = 95%
Application IT Customer

Data: Weekly plan Requirements:

1000 applications/ Quickly, easy, cheap,
month available
LT – 10 days
Quality – 100%

I I I
3 Dni
1d 0,5 d
1000
Client data verification On-site support for Client Docs collection and supply
50 50 Decision
Contact with Client Docs analysis

10 / 7 (50%)
I
10 / 10 (100%) 5 / 3 (40%) 5 / 3 (50%) 3 / 3 (100%) 3 / 3 (100%)

I SAP SAP SAP SAP SAP

1 Dzień P/T = 10 min P/T = 10 min P/T = 15 min P/T = 15 min P/T = 1h C/T = 0,5 h
C/T = 2 dni C/T = 1 dzień C/T = 30 min C/T = 1 dzień C/T = 0,5 dnia P/T = 0,5 h
Vadd = 5 min Vadd = 5 min Vadd = 10 min Vadd = 5 min Vadd = 10 min Vadd = 3 min
C = 630 klientów C = 360 klientów C = 56 klientów C = 108 klientów C = 108 klientów C = 216 klientów
% K & D = 90% % K & D = 80% % K & D = 60% % K & D = 90% % K & D = 80% % K & D = 90%
D = 2 zmiany/7,5h D = 1 zmiana/7,5h D = 1 zmiana/9h D = 1 zmiana/9h D = 2 zmiany/7,5h D = 2 zmiany/7,5h
OEE = 95% OEE = 100% OEE = 90% OEE = 80% OEE = 95% OEE = 95%
Application IT Customer

Data: Weekly plan Requirements:

1000 applications/ Quickly, easy, cheap,
month available
LT – 10 days
Quality – 100%

I I I
3 Dni
1d 0,5 d
1000
Client data verification On-site support for Client Docs collection and supply
50 50 Decision
Contact with Client Docs analysis

10 / 7 (50%)
I
10 / 10 (100%) 5 / 3 (40%) 5 / 3 (50%) 3 / 3 (100%) 3 / 3 (100%)

I SAP SAP SAP SAP SAP

1 Dzień P/T = 10 min P/T = 10 min P/T = 15 min P/T = 15 min P/T = 1h C/T = 0,5 h
C/T = 2 dni C/T = 1 dzień C/T = 30 min C/T = 1 dzień C/T = 0,5 dnia P/T = 0,5 h
Vadd = 5 min Vadd = 5 min Vadd = 10 min Vadd = 5 min Vadd = 10 min Vadd = 3 min
C = 630 klientów C = 360 klientów C = 56 klientów C = 108 klientów C = 108 klientów C = 216 klientów
% K & D = 90% % K & D = 80% % K & D = 60% % K & D = 90% % K & D = 80% % K & D = 90%
D = 2 zmiany/7,5h D = 1 zmiana/7,5h D = 1 zmiana/9h D = 1 zmiana/9h D = 2 zmiany/7,5h D = 2 zmiany/7,5h
OEE = 95% OEE = 100% OEE = 90% OEE = 80% OEE = 95% OEE = 95%

Time to credit decision – 10 days Approval rate – 70% Process effectiveness – 0,25%
Value added time – 38 min FPY – 28%
29

Cycle time, Leadtime,

Process effectiveness
Cycle time (C/T) analysis – time from the beginning to the beginning
Cycle Time is the period required to complete one cycle of an
operation, the time from the beginning of the activity to the moment
when you are ready to start the activity once again.
C/T analysis bases on collection of relevant number of measurements
results and calculation of the average time of one cycle. A scatter
diagram reveals distinctions between minimum and maximum results.
Using the diagram you can obtain information about unevenness
C/T meaurements
within the process.

time
av. C/T

Cycle number
31

Mutli Observation Study (MOS)

and DILO
 MOS (Multi Observation Study)
The tool can be used to determine the activities which consume the most time of the team. It provides a simple way
to determine the percentage of activities considered as adding value as well for individuals as for the team.
The analysis bases on frequent (in fixed intervals, 3-5 minutes) observations of team members.
Observation done each 3-5 minutes. Don’t forget to explain people what you are doing, collect historical data (if
available), prepare report.

Adding Value
Wastes

MOS

Actual work time

Break

Example of MOS usage Spinning mill, 1927

1. Together with the whole team define activities that the team
usually perform and place them on the form.
2. Together with the whole team define what activities should be
considered as:
• VA - activities that bring value to the customer
• NVA - activities that don’t bring value to the customer (wastes)
• NNVA - activities that don’t bring value to the customer but can’t be avoided as
for example are obligatory because of the law (wastes but necessary)
3. Put names of the team members in the same order of being placed (it will be easier for you to choose an
activity to given person when you have a name rather than a number). If you know that someone will come
later, then still this person should be included in the table between people where he/she is sitting.
4. Start the observation- every 3 or 5 minutes (it depends on the size of the team, for small team it can be 3
minutes. Check what action is each team member performing at the moment and write down the number that
applies to the given action.
5. Based on the results , you will be able to receive ABC Analysis and graphs that will
help you analyze the data.
 It’s a detailed time line of activities performer during the day. The analysis
should cover full working time.

Start Stop Time Activity Comment

08:00:00 08:13:00 00:13:00
08:13:00 08:29:00 00:16:00
00:00:00
00:00:00
00:00:00
00:00:00
00:00:00
00:00:00
00:00:00
00:00:00
00:00:00
00:00:00
00:00:00
00:00:00
00:00:00
00:00:00
38

Standard Work Combination

Sheet
(SWCS)
SWCS (Standard Work Combination Sheet)

is a tool that is used to present the real activities, step by step based on a continuous
observation of the team member to check if the standard process is followed and identify
potential discrepancies from the standard.
Standard Work Combination Sheet - visually represents the flow for work within the process area.
It specifies the exact time required for each steps of the process, a long with the walk or wait time between that
process and the next one in the sequence.
SWCS brings many of the lean tools together.
It is a graphical representation of the process for visual control, emphasizing the work sequences of the operation
The SWCS brings together all elements of the process, including the time element and shows the actual sequence
of completing the work.
It shows the manual work, or the automatic work, the walking or non-value added time and the takt time.
Use the SWCS to understand how the cycle time for each process in the value stream compares with takt time.
• Sit next to the person and start filling in the template based on the work observation- all activities/process
steps (even if they are repeating) should be placed one above the other.
• Every activity should be specified as manual/auto/ walking and marked up differently:
• Manual as
• Walking as
• Auto as -------
• Write down the time of every step.
• Time of Value Added activities
should be Marked up in blue
and Non Value marked up in red.
 Steps described in Standard
Work Combination Sheet are the
same as in spaghetti chart
44

PVA matrix can be used to prioritize Effort Effort Effect

projects and decide which is going Effect

to be implemented as the first one.

Big Small Big Big
• It is used in analysis of effort
(money, difficulty level) and effect Effect
(results).
Effort Effect Effort

Small Small Small Big

WHAT HAVE YOU
LEARNED?