Lean Thinking - Make Value Flow Part 2

Making change is hard, but there are some models whose purpose it is to provide markers that shows the way.  These different road-maps take us to different destinations depending upon which journey we are on.  The criteria are specific, but easy to follow based on your current state.

PRODUCTIVITY IMPROVEMENT
Here we have our old friend DMAIC (Design-Measure-Analyze-Improve-Control) that is the umbrella for quality improvements based on statistical analysis tools developed in the '30s through the 1970s.  The model helps us to Define the problem, Measure how well the process is performing, Analyze for the root cause(s), Implement methods and practices to overcome the root cause(s), and finally Control our ability to backslide to the old and comfortable ways no matter how chaotic they are.

PROCESS DESIGN
If you are executing in the DMAIC model and one of the root causes is "we do not have a process", or you have been tasked to figure out how to do this new thing, then you may have found an opportunity to design a new process using DMADV (Design-Measure-Analyze-Design-Verify).  This should not be two dude's "Excellent Adventure" where you mess up until the boss finally accepts your new process because she is tired of your rock coloring game.  If y=f(x), then you need to figure out the important x's, or stated another way, stop guessing what color she wants for the rock.

Our Friend the Quality Function Deployment.  3 days?  Bah!

First find out who are the customers and what do they want about the product you are designing your process around, this is also called Voice of the Customer.  Do you have a large audience of customers?  Perhaps a well constructed survey would be best.  How about commandments from your company that your process must exist within or government regulations with which you must comply?  These would be the Voice of the Business.

Next, when you have collect this information, you can construct the Critical to Customer Requirements and Critical to Business Requirements.  Since "Critical" means measurable, we have the basis of performance.  No more needing to guess about the color of the rock she wants.

Now you can design the process that creates what is needed, how it is needed, in the amounts needed.  Simple right?  Probably not, especially if you think a complex solution proves just how intelligent you are.  Let's go with a solution that is as simple as it can be.  When designed and you have made a few rocks, do they align with the critical requirements?  If the answer no, then you are not finished.  Keep trying, you are almost there.  When the process is working as it should, document your process, someone will be expected to execute it later.

SOFTWARE DESIGN
The Software Development Life Cycle is a specific model used in the execution of software projects.  Keep in mind this is for implementing the solution that should be backed up with validated root cause analysis (remember the complexity thing earlier?).  The phases are Analyze, Design, Develop, Test, and Finalize; these should seem somewhat familiar in the DMADV model.

Agile is a customer-centered methodology where all the players are gathered together, complaints and good ideas are collected, prioritized, and executed in a group environment.  This is supposed to decrease the cycle time as everyone is together during the development and testing phases.  Scrum is a type of Agile where the prioritized activities are worked in Sprints using improved planning techniques.  This is an over-simplified explanation, but has shown to be effective when used appropriately.

WRAPPING IT UP
In the end we are trying to make our products flow better.  If we can design processes with less waste and variation, then achieving Return on Investment is faster.  Buy-in from our internal and external customers are important to our success in the future and our focus is still on the 4P's.

Process Entitlement

We are all entitled to something, aren't we?  How about some peace and time to think before the fire-fighting begins?  Probably not.  That is unless we have thoughtfully designed our processes to perform at a specific level.  Short cycle time, high quality, just a few people touching the product, and we do not leave the day with a backlog larger than we can emotionally handle.  How often does this happen in your operations?

Profitable and Customer Satisfying processes do not happen accidentally or magically appear just because someone has the specials letters on their resume (MBA, MBB, SSBB, CQE, PMP, ETC).  These processes also do not "just work" because the right people are in the right place at the right time (Process Heroes).  It does not matter if we are using manufacturing or business processes, we should be able to receive predictable and profitable performance no matter which well trained and qualified person is sitting in that chair at that time.

Our Process Hero Saves the Day!

When you start measuring your processes you will probably find that the performance is not what you expected and you will have that sinking sensation.  Stop and breathe, this is normal to feel some level of anxiety once you have swallowed the red pill and it will pass as soon as you start to think about how to begin analyzing for root causes and implement solutions to address those root causes. So logically, if your process just happens because you throw a contract or database at the team then you will have the performance (good or bad) that just happens by chance.  If you have your Process Heroes in place you may have decent on time delivery or quality with rework and inspection, but performance will not be predictable.

Our Process Heroes can only go for so long, and remember what Dr. Tyrell told us, "The light that burns twice as bright can only burn for half as long" (Yes!  It's that important!).  When we burn out our Process Heroes we have to rely on people to inspect quality into our products, and Dr. Deming had something important to say about that too.

This change begins like most others, measure the results of the things going though your system.  This could be airplanes, circuit boards, decisions, grades, reports, or sales of widgets.  Are you receiving the results of your process that you are Entitled to receive?

The Assumed Permanency of the Things We Create

We assume that what we create will live forever.  This week I got the chance to volunteer in the Moore, OK cleanup.  The destruction was awesome (in the traditional great and fearful way).

The same can be said of our relationships and processes.  There is always the possibility that something comes along and transforms our creations.  We are only human.

But the most important thing to remember and act upon is that we are a community.  We watch out for and protect each other.  That is why we are here.

New Learning With Costs

I have been away from the Lean blogosphere this semester and focusing on AC 626 - Cost Accounting for Managerial Decision Making.  While I have done this type of work as an Industrial Engineer, I think this class tied together some loose ends that I was not aware that were swinging in the breeze.  While I will try to not geek out on you I think this has enhanced how I look at the impact that reducing cycle time has on your operations and eventually your customer, no matter what method you choose to use.

I think in this case Work-in-Process absorbs so much time and energy (that you have to pay someone to worry about) and the fact that our complex systems are not helping us reduce the cost of operations, we "enhance" the links between our employees and our systems with further complex processes.  This has a direct effect on unit cost and, if not managed correctly, will make us run our operations into the ground.  I think we have seen this with the automobile industry.  Why do we reward poor performance with bail-outs and loans that will never be repaid?

While I do not aspire to do Lean with all the cost improvements that we can eat, the focus is still cycle time and unit cost is a reflection on doing the right things right and making the right decisions.  In future writings I will address these with deeper detail.

In the mean time let you mind be aglow with whirling, transient nodes of thought careening through a cosmic vapor of invention!

Ditto.

Managing By Means

Here is a beautiful song destined for Top 10 eternity by Doug Hendren, Managing By Means.  This is a lovely song based on the Toyota Kata.

Data Visualization

Data should tell a story, and we want to tell that story through the PDCA, DMAIC, or DMADV models.  Below is a great way to think about making your data into a picture that is easy to comprehend presented by Matthias Shapiro.

Lean Transformation: Top Down or Bottom Up?

When we have Command & Control and grass roots effort, what do we do with the frozen middle?

I have talked quite a bit about the roles of Leadership, Facilitators, and Team Members.  These are important people that are Setting the Vision & Direction, Leading Teams to Improve Processes, and Providing Expertise in their Job Functions.  But what do we do with the managers between the top and bottom of the organization?  These people are the hard-chargers who were good fire-fighters that were needed at the time based on how we performed work under the batch and queue system of production.

These people now own processes, are measured to achieve results (maybe?), and are supposed to be growing the next generation of Leaders that will be replacing them in the next few years.  If you want the improvements to stick, they have to be involved in the change.  This level of the organization is where most of the Project Sponsors will reside.  Increasing the flow in their processes will improve their measures and provide them the opportunity to think beyond the fire of the moment.  Once you are on the Journey there will be less need to break out the old fire-fighting helmet.

This is where strategic tools like Lean Policy Deployment, Value Stream Mapping, and PICK Charts come into play.  These prioritization decisions are owned and controlled by the Process Owners.  It's not as exciting as putting on the Cape and Cowl, but it creates the condition where stability and balance can flourish.  Overcoming the daily fire drills can positively contribute to reduced levels of stress and decreased burn-out.  Remember what Dr. Tyrell said, "The light that burns twice as bright burns for half as long."

Once it is determined which improvement is first and what resources will support the transformation the Project Sponsor will help to draft a charter with the Facilitator.  The charter provides the reason the team exists as it defines the Problem Statement, Goal, Scope (In and Out), Business Case, Resources, and Milestone Review Schedule.  If you are trying to use Lean Six Sigma to implement your "good ideas", you will be very disappointed.  The Good Idea Fairy is the ultimate business trickster and will lead you to the point where you are completely disappointed and will resist anything that remotely sounds like Lean and/or Six Sigma.

Our transformation model is simple enough to understand, but is not for the weak-willed.  You must have stamina to make it through the steps, and you will find that you spend a good portion of your time "Making Value Flow".  But this is exactly where you involve your Facilitators and Smart People to make the good change happen.  On the other side you will have a stronger and smarter team.