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

LEAN SEMINARS/1
Reduce Waste, Add More Value
To Your Customers
20th Jan, 2014, London

Andrea Darabos MSc., MBA
Business Improvement Consultant, Coach

Andrea@leanadvantage.co.uk
Phone: +44 793 604 1196
LEAN ADVANTAGE Ltd.

In Partnership with:

Why Lean Seminars?
LEAN ADVANTAGE SEMINARS @

, in partnership with the team of

•

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 have
happier employees and more satisfying work

•

We would like to share our knowledge with small-medium enterprises
and the social sector

Copyright © of LEAN ADVANTAGE Ltd. www.leanadvantage.co.uk
Andrea Darabos Lean Practitioner, Andrea@leanadvantage.co.uk , +44 07936 041196, Twitter @ADarabos

Agenda
• 15 mins
• 10 mins
• 15 mins
• 15 mins
• 10 mins
• 15 mins
• 5 mins
• 35 mins

Introductions
What is Lean?
How customers think of value (and waste)
Breakout session – how do the 8 wastes apply to me?
How winning organisations optimize for value
Breakout session – opportunities in my organisation?
Why is lean thinking essential for a social enterprise?
Q&A, feedback, networking


3

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


4

About Me - Andrea
• Hungarian, 30-40
• What I do: I coach, train, consult, public speak…

I help organisations to see themselves
through the eyes of their customers,
~ to build skills of continuous improvement, agility
• My previous knowledge of lean:
7 years of lean, agile, project management
On my lean journey…
• Why this seminar: to show the power
of lean agile, when applied to real-life problems

5

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 sectors
around the world:
• Government & Public sector, Military and Defense, Banking,
Software Industry, Retail, Research, Service Sector, Startups

6

What is Lean?
1, A Philosophy?
Based on:
Roger Dyer, JEL
Business Process
Improvement Ltd.
Niklas Modig,
Ericsson executive
presentation

2, Improvement
Methodology

A set of Tools and
Techniques
that can be used to guide
problem-solving and
continuous improvement

3, A Toolbox?
Lean is a philosophy, methodology and toolbox all in one.

7

What is Lean?
1, A Philosophy?
Based on:
Roger Dyer, JEL
Business Process
Improvement Ltd.
Niklas Modig,
Ericsson executive
presentation

A Mindset and Belief that
we need to continuously improve
to maximize value for the customer
by reducing waste and variation, forever

2, Improvement
Methodology
A set of Tools and Techniques
that can be used to guide
problem-solving and
continuous improvement

3, A Toolbox?
Lean is a philosophy, methodology and toolbox all in one.

8

Lean is not alone in improving
value creation…
Theory of Constraints

SCRUM

Complexity thinking

Lean Agile Leadership
Change (project) management
Agile Product Management

Kaizen

Lean Six Sigma
KANBAN

… Etc.


10

Exercise 1, - Value Creation
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


11

How Customers think of Value
„A tale of two friends”

OUCH!


12

TOTAL: 3 days

2 hrs

2 hrs

1,5 day
Examination

Diagnosis

1 hr

1 day
Surgery

1 hr
Pharmacy

Drive
home


Start of
Recovery

13


TOTAL: 0,5 day
1 hr

1 hr

1 hr
Examination
and
Diagnosis

Surgery

10 mins
Medication

Transport
service


Start of
Recovery

14

Which Customer Would You Like to Be?
TOTAL: 3 days

2 hrs

2 hrs

1,5 day
Examination

Diagnosis

1 hr

1 day
Surgery

1 hr
Pharmacy

Drive
home

Start of
Recovery

TOTAL: 0,5 day
1 hr

1 hr

1 hr
Examination
and
Diagnosis

Surgery

10 mins
Medication

Transport
service


Start of
Recovery

15

(We) Customers Think End to End Experience
„I will never come back again!
They are wasting my time.”
„I love their product, but
their service ***disappoints*** !”
Photo credits: Shutterstock


16

How (We) Organisations Provide Value
CEO

CXO

CXO

CXO

Sales

Marketing

Product/Service
Development

„I am in Sales!
Engineering should fix this”

CXO
Product/Service
Delivery

„The customer is
your problem!”

CXO

Etc.

Customer
Support

„I have never
met a customer!”


17

The 8 Lean Office Wastes
T
I
M
W
O
O
D
S

Motion

Waiting

Moving data,
Unfinished work,
materials or the customer Unread emails

Searching, handling,
multitasking

Authorization,
decision-making

Overprocessing

Overproduction

Defects

Skills - unused

More work than needed
to satisfy the customer.

Producing too much,
too soon.

Data entry, lost
information, rework

Not using the full
potential of employees

Transport

Inventory


18

Exercise 2, - Learn to See Waste
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.


19

How winning organisations optimize
for value?
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.

20

A Typical Enterprise Value Stream
Customer
Problem
or Need

Customer
Need to Order

Order to
Cash

Customer
Support

Customer
Satisfaction
and Loyalty

E.g. Marketing, Product Development,
Quote, Sales Order, etc.
Value Stream: The collection of all actions/processes necessary to transform
customer needs into products and services supported throughout their lifecycles.


21

Value is created by You, but defined
by the customer

Total lead time
Value-Adding time

Non Value-Adding time – BNVA waste
NVA waste

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

22

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

23

Exercise 3, - Value Creation
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?


24

Why Value Stream map?
• 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

25

How to Value Stream map?
• 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


26

Why Lean for Social Problems?
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.


27

Lean’s (Social) Potential
Mission: „To end curable blindness”
Story of Aravind Eye Care System –
Inspired by lean, the founder Dr. G. Venkataswamy
implemented standardization and continuous improvement
to 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/3cjnNPua7Ag
Long: http://youtu.be/Jr70IrWM-n8 (Lean in Aravind: min. 14:00)

28

Good Reads – Lean Value Creation


29

Save the Dates!
LEAN ADVANTAGE SEMINARS @

•

, in partnership with the team of

Monday, 20th January 6:00 p.m. – 8:00 p.m. - TODAY

Reduce 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
Thank You! Give us feedback and send your thoughts, questions.

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

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