April 2016 by Lean Management Journal

Changing Industry How lean fits in the rapidly changing world of industry. Organisations and interviews in this issue include: Vaillant, Go Process Design Ltd, Industry Forum, Global Academy of Finance and Management

In this issue: Industry 4.0 and lean equipment Discussing the links between industry 4.0 and the development of lean. Industrial method yields results How the municipality of Odense used industrial methods to improve their administration processes. Benchmarking survey on autonomous maintenance How automotive maintenance has effected the food and drink sector.

the-lmj.com

April 2016

EDITOR’S LETTER

Dear Reader... manufacturing are all words that spring to mind. The question is, what do these words mean and how can they relate to lean and your organisation? How does internet of things help with your kanban system? Will industry 4.0 help your organisation to eliminate muda?

Commissioning Editor & Designer Fred Tongue

f.tongue@hennikgroup.com

Managing Editor Victoria Fitzgerald

v.fitzgerald@hennikgroup.com

Editorial Director Callum Bentley

c.bentley@hennikgroup.com

Art Director

Jamie Rector

j.rector@hennikgroup.com

Welcome to the April issue of The LMJ, in this issue we will be looking at the ways new business techniques and technology affect lean, and how lean affects them in return. The way and rate at which business is changing means there are constantly new challenges, which need meeting. This also brings along with it a new load of terminology and buzzwords that can often make the meaning unclear. Internet of things, industry 4.0 and additive

We look to make these questions a little clearer in this issue.

Upgrading your computer software can be a pain, it takes months to fully acclimatise to a new operating system, time which could be spent doing work and making progress on your current system. Now imagine if you took this teething pain and multiplied it by the number of employees in your organisation, whether it’s 30, 300 or 3,000 the knock on affect could be huge.

Malcolm Jones discusses how this new stage of manufacturing technology resembles the beginning of lean thinking and how the two can learn from one another. He also discusses the ways the two use information at their heart.

Despite this it could be even more costly to keep running a programme, which crashes once a day, takes 10 minutes to start up or doesn’t properly retrieve messages then it could be more costly than the time spent to learn a new way of doing things.

Jean Mutton looks at how we can make user journey mapping more customer centric by using service design, including buying a coffee in someone else’s shoes in order to become more connected with your customer.

This is one of the themes we’ll be looking at during The LMJ OpEx Annual Conference. How to transform an organisation is one thing, but how to maintain that lean transformation and mind set over time is a whole other issue.

We have an article by Mike Orzen who looks at the buzzword of transformation, what it means in a lean framework and how to apply all those things to an IT transformation.

I hope you enjoy this issue and would love to see as many of you as possible at our annual conference in May, Happy reading,

The terms surrounding industry 4.0 can all seem very daunting. Most businesses are risk averse and try to avoid changing anything, which might upset the apple cart, especially if the organisation is successful. People get comfortable with systems; take computer operating systems for example.

Fred Tongue

Commissioning Editor

In order to receive your copy of the Lean Management Journal kindly email lmj@hennikgroup.com or telephone 0207 401 6033. Neither the Lean Management Journal nor Hennik Group can accept responsibilty for omissions or errors. Terms and Conditions Please note that points of view expressed in articles by contributing writers and in advertisements included in this journal do not necessarily represent those of the publishers. Whilst every effort is made to ensure the accuracy of the information contained in the journal, no legal responsibility will be accepted by the publishers for loss arising from use of information published. All rights reserved. No part of this publication may be reproduced or stored in a retrieval system or transmitted in any form or by any means without prior written consent of the publishers.

CONTENTS

April 2016 4 - - - - - - -

MEET THE EDITORS

5 - - - - - - -

NEWS PRINCIPLES AND PURPOSE

8 - - - - - - 11- - - - - - -

Industry 4.0 and lean equipment Malcolm Jones writes about how the new wave of manufacturing technology fits in lean thinking.

A service design approach to user journey mapping A look at how service design can help you get in the mind of your customers, by Jean Mutton.

16- - - - - - -

D-CAS: an evolution in change and process management A look at the latest techniques in management and how to implement them.

19- - - - - - -

The background to operator asset care within the food and drink industry and results of a benchmarking survey on autonomous maintenance OUT AND ABOUT

25- - - - - - -

Valliant Vaillant How a manufacturer of boilers is making their organisation one of the most sustainable manufacturers.

27- - - - - - -

CASE STUDY Industrial method yield results in Danish municipality A look at how a municipality in Denmark used typically industrial thinking to become more lean.

30- - - - - - -

OUT OF THE BLUE Apple pies, grilled cheese sandwiches and sysyem thinkers Bill Bellows takes a critical look at the way we think and whether we should define ourselves by the way we think.

33- - - - - - -

LEAN ONLINE

34- - - - - - -

LEAN EVENTS

35- - - - - - -

SUBS FORM April 2016 | the-lmj.com

MEET THE EDITORS

Our experienced editorial board members contribute to the journal providing comment against articles and guiding the coverage of subject matter.

Jacob Austad

Novo Nordisk, Denmark

LeanTeam, Denamrk

Lean Enterprise Research Centre, Cardiff Business School

Bill Bellows

Brenton Harder

David Ben-Tovim

President, In2:InThinking Network

Commonwealth Bank of Australia

Flinders Medical Centre, Australia

Gwendolyn Galsworth

Joseph Paris

Sarah Lethbridge

Visual Thinking Inc., USA

Operational Excellence Society

Cardiff Business School. UK

Malcolm Jones

Torbjorn Netland

Dr Nick Rich

Industry Forum, UK

Steve Yorkstone Edinburgh Napier University, UK

John Bicheno

Rene Aagaard

April 2016 | the-lmj.com

Nowegian University of Science and Technology, Norway

Swansea University, UK

More information about our editorial board. their experience, and views on lean is available on the LMJ website:

the-lmj.com

NEWS

Further funding for lean thinking research Costain, Highways Agency England and UK and European universities are teaming up to help research, develop and implement the leaner construction and maintenance of motorways in the UK. In 2014 Costain were awarded £150,000 by Highways England to manage a programme of R&D projects, which were designed to speed up the implementation of lean construction. Costain worked alongside Cardiff, Salford and Nottingham Trent Universities, as well as the Lean Construction Institute, to ensure that the solutions designed on paper were put in to practice. After the success of those previous projects, Costain have a new year long contract by Highways England. There will be £15bn of investment in British roads by 2021 and the research funding has increaser to £375,000. The project will involved five universities from the UK as well as Aalto University in Finland.

Projects include earthworks control, which aims to deliver savings in time and cost by eliminating idle time on earthwork equipment. Highways England technical manager, Andrew Wingrove, said, “Highways England’s Lean research programme is targeted at delivering short to medium terms efficiency savings contributing to our £1.2 billion efficiency goal.

“Costain will provide in kind support to manage academia to facilitate research at site activity level that will change the way the highways construction sector works. This will deliver improvements in productivity, quality, safety and engagement with our supply chain, including SMEs.” 10 projects will be undertaken and all of them are expected to be complete by the end of the year.

“Projects include earthworks control, which aims to deliver savings in time and cost by eliminating idle time on earthwork equipment.”

April 2016 | the-lmj.com

NEWS

The Standard names Kush Pathak Assistant Vice President of Lean Center of Excellence Standard Insurance Company has recently announced that Kush Pathak is now the assistant vice president of the Lean Centre of Excellence. Pathak has been tasked with developing an organisational strategy to establish a Lean CoE and provide solutions based on lean principles. Pathak has over 15 years of business process experience in a consulting capacity. He led process consulting engagements for manufacturing, retail and education industry clients. “Kush is an excellent processimprovement leader with a proven record of success in building and motivating highperforming, disciplined teams,” said David O’Brien, senior vice president of Information Technology at The Standard. “We feel confident that his expertise will strengthen our business operations and enhance our efficiency.”

“Kush is an excellent process-improvement leader”

April 2016 | the-lmj.com

Tullamore Hospital staff graduate from National Quality Course A number of staff from Midland Regional Hospital Tullamore, in Ireland, recently graduated from a course in quality improvement and were awarded for their achievement by the Institute for Healthcare Improvement (IHI).

There were 280 graduates from hospitals, community and children services from across Ireland. All gathered at Farmleigh House to mark the course graduation, which was delivered by the IHI Open School and funded by the Health Information and Quality Authority (HIQA).

NEWS

Rhode Island celebrates first year of Lean Government Initiative Governor of Rhode Island, Gina Raimondo, recently celebrated with state and business leaders to celebrate the first anniversary of the state’s Lean Government Initiative. The programme was created in an effort to make, ““make government more responsive to the people it serves,” according to Raimondo’s office. The stimulus to introduce this initiative was to reduce waiting times and eliminate unnecessary steps. “I have to say it’s exceeded my expectation which is a credit to everyone in this room,” Raimondo stated. “We want to make sure we have an effective, efficient, action-oriented government, and that’s exactly what we’re seeing.” Over 1,600 state employees have received training as part of the initiative up to now with 50 process reviews underway or complete across the state’s government services.

Process improvement experts release new book Kimberly Watson-Hemphill and Kristine Nissen Bradley have released a new book all about the lean six sigma and why your organisation should implement it. “Innovating Lean Six Sigma” offers strategic guidance for leveraging lean six sigma to engage and empower employees, the book also helps to drive financial benefits. “You have to start with your company’s strategy to help you identify why you want to embark on a Lean Six Sigma journey,” encourages Bradley. “Are you in a growth cycle and wanting to decouple your growth and cost curves? Is one of your strategic goals to improve customer satisfaction? “Do you want to introduce more innovative products? By understanding why, you can begin to think about what projects you need to focus on and ultimately how you’re going to implement the process improvement methodology.”

“This award recognizes Arrow’s leadership role in guiding innovation forward in the technology supply chain.”

Innovation of the Year won by Arrow Electronics at Lean & Six Sigma World Conference Arrow recently won the award for its Lean Six Sigma Logistics Olympics programme, which is designed to bring together teams that work in the company from all over the world to compete in Olympic themed events. This event aims to integrate lean culture and methodologies in to employees daily work. “Arrow Electronics is always looking for ways to improve its global logistics processes and services to better meet the needs of our customers and suppliers,” said Tim Kolbus, vice president of Arrow’s global logistics business. “This award recognizes Arrow’s leadership role in guiding innovation forward in the technology supply chain.” Arrow logistics employees generated over $1 million in cost savings through Lean Sigma Global Olympics events in 2015. Arrow is expanding this successful project to additional employees in 2016.

April 2016 | the-lmj.com

PRINCIPLES AND PURPOSE

Industry 4.0 and lean equipment Industry 4.0 is being hailed as the Fourth Industrial Revolution, although some might say that the introduction of Lean processes by Toyota in the 1950’s and onwards should also be counted as an additional industrial revolution. There are strong links between what is now happening in Industry 4.0 and the development of Lean. Industry 4.0 is being hailed as the Fourth Industrial Revolution, although some might say that the introduction of Lean processes by Toyota in the 1950’s and onwards should also be counted as an additional industrial revolution. There are strong links between what is now happening in Industry 4.0 and the development of Lean. If we go back to the beginnings of Lean in the 1930’s, Toyota based their process on two pillars, JIT and Jidoka. JIT meant producing what

April 2016 | the-lmj.com

the customer wanted, precisely when they wanted it and Jidoka means separating people from the equipment or process. The first patented Jidoka device was the tensioner on the Toyota Automatic Loom which stopped the loom whenever a thread broke, removing the need for a separate worker to watch each loom to manually stop it. This allowed one person to manage a large number of automatic looms. Note that one function of Jidoka is that the machine tells the worker that there

Malcolm Jones

Principal Engineer - TPM at Industry Forum

PRINCIPLES AND PURPOSE

is an issue which needs addressing. JIT also relies heavily on good demand information over extended supply chains. John Sterman and the systems group at MIT have demonstrated the effect of interruptions to the information flow in lean systems, the demand amplification or ‘Bullwhip’ effect where demand is distorted by information lags, generating excess inventories as well as stockouts, the antithesis of Lean, and our lean approaches attempt to mitigate this by synchronising information and material through Kanban techniques. This is where Industry 4.0 meets Lean, in the provision and management of information. Industry 4.0 is based on the digitisation of information and its transmission through web based applications. Instead of using semi manual Kanban and Heijunka systems to synchronise information and material flow for production scheduling, technologies such as RF tags can be used to assign material to workstations and manage flow through the factory in real time. In this article however I am more interested in the implications of Industry 4.0 for the management of Lean Equipment through Total Productivity Maintenance (TPM), as often used in a lean system. TPM is usually structured according to pillars of activity, including Autonomous Maintenance for the production group, Planned Maintenance for the maintenance group and Quality Maintenance for the quality group. All these activities are inherently integrated, but for some purposes it is useful to consider them separately. The objectives of Planned

Maintenance are to maintain the optimum reliability of equipment at optimum cost. To do this we rank the criticality of equipment to the production process and perform FMECA (Failure Mode Effect and Criticality Analysis) to identify the optimum maintenance approach to specific items of equipment. One concept in common use is the P-F curve from reliability engineering. This curve is used to illustrate how potential (P) of a functional failure (F) can be detected and mitigated before failure occurs.

This is based on the observation that most failure is statistically random – there is a constant probability of failure over time, so that time based PM schedules are inherently inefficient, either under maintaining or over maintaining. The time interval which is of most interest to reliability engineers is the P-F interval, the interval between being able to detect potential failure and the failure occurring. As the above graph illustrates, condition monitoring technology is far more effective at detecting potential failure than manual inspection, and in particular can detect potential failure far earlier, allowing preventive maintenance activity to be scheduled to avoid functional failure. Based on our FMECA we would normally set intervals for inspection

using particular technology, often, but not necessarily, conducted by external specialists and also requiring expert interpretation of results. The goal of TPM and reliability engineering has always been to move from reactive to planned to condition based maintenance, but the barrier has been the cost of the technology and the expertise required for its use. The promise of Industry 4.0 is that web based applications can use real time data from machine monitoring systems and even expert systems for interpretation to provide continuous feedback on critical equipment, making the TPM goal of Zero Breakdowns an achievable reality. Some of this is futurology, particularly in terms of expert systems which can interpret condition monitoring data, but much of the condition monitoring technology and data gathering capability already exists. The implications for the maintenance department are that in the medium term considerable upskilling will be required in terms of the implementation and interpretation of condition monitoring data. Autonomous Maintenance is a distinctive feature of the TPM approach to Lean equipment management. Autonomous Maintenance has two fundamental objectives, firstly the restoration of equipment to optimum condition and development of procedures to maintain that condition, and secondly to build the production group’s skills to the point where they are autonomously managing the equipment, only calling on outside resources for specialist maintenance tasks.

April 2016 | the-lmj.com

PRINCIPLES AND PURPOSE

“This is where Industry 4.0 meets Lean, in the provision and management of information.”. Two features of this approach are the development of inspection standards and the use of an abnormality tagging process to identify, record and correct abnormalities. One common issue is that the paper based Autonomous Maintenance procedures need to be duplicated into CMMS systems to provide a searchable database of equipment abnormalities which can then be used to optimise equipment reliability. The promise and use of Industry 4.0 in Autonomous Maintenance is threefold, all based on the use of web based tablet technology. While the Autonomous Maintenance process of equipment restoration will always be a hands-on activity for the production team, supported by maintenance, web based tablet applications can enhance this. The first step AM is to gain an understanding of the equipment function. Tablet based instruction through simulations is an effective way of doing this – a simulation can show the functioning of the equipment in far more detail than observation and explanation. Once teams have restored equipment to its optimum condition they are then tasked with creating and implementing autonomous standards to maintain that condition. Typically these

April 2016 | the-lmj.com

would be checklists and One Point Lessons illustrating the check to be carried out. The benefit of making this tablet based rather than paper based or even workstation based is that hyperlinks can move directly from the checklist to the One Point Lesson while the operator is making the inspection, and the results can then be recorded in real time, and if quantitative can even feed the reliability database to provide predictive information. Another use relates to the ‘tagging’ process where abnormalities are recorded by production staff on paper tags which may be attached to the equipment itself and also have duplicate copies to serve as input to the work order system. A tablet based tagging system would have several advantages, not least the feature that data is input only once into the system and can also be shown visibly on equipment diagrams, making it easier for production to describe an abnormality and for maintenance to understand the issue being raised. Electronic displays can indicate the number and location of abnormalities on a visual of the equipment, and even indicate resolution rates and leadtimes. Quality Maintenance is the term used in TPM to denote process control activities, particularly those focused on the quality of the equipment output. In common with everything in TPM, the goal is zero losses, in this case Zero Defects. Process control is particularly important in a TPM environment which aims for zero defects on a first pass basis rather than relying on QC inspection to prevent defects reaching the customer. QM is based on a particular thought process

called P-M Analysis, focusing on the physical mechanisms where product interacts with process and establishing control points with known process parameters. The intersection with Industry 4.0 is the monitoring of that process data, together with real time process adjustment. Just as a machining centre might adjust its feed based on tool wear, we can theoretically control any process automatically once we have correctly identified the control points and parameters. Much of this is already in place in control rooms in process plants, but the next industrial revolution lies in small scale automated process control for discrete equipment. An article such as this is not the place to advertise particular technical solutions, but one starting point for companies could be looking at their use of condition monitoring technologies, investigating current monitoring solutions and developing their capabilities in both people and technology so as to be ready for the promised advances of Industry 4.0. Industry 4.0 is the next step in Jidoka, the separation of people from machines, where machines provide real time information to enable both the optimisation of flow through the process and the optimisation of equipment reliability and performance. I believe Sakichi Toyoda, inventor of the Toyota Automatic Loom and father of the founder of Toyota Motor, would have welcomed Industry 4.0 as the next step in his quest to develop human automation (Autonomation, another name for Jidoka), freeing workers for more value adding and creative work.

PRINCIPLES AND PURPOSE

A service design approach to user journey mapping For over 30 years, Jean was a manager in higher education where she brought service design, process review and systems thinking to a range of projects. Here Jean talks about mapping out your consumerâ&#x20AC;&#x2122;s journey. We all need to make the services we deliver more useful, usable, efficient and customer-centered. Service Design is a relatively new kid on the block but is rapidly gaining ground in both the public and private sectors as the go-to technique for not only a better customer experience but also business efficiency. There is a lot of similarity between lean six sigma approaches and service design - both are

adaptable, flexible and customerfocused. However, where lean looks to eliminate the 7 wastes and maximise value, service design focuses on designing for experience and the emotional connection a customer has with the business (good or bad) in order to review existing or develop new services. Processled innovation may result in product or service improvements but these are more likely to be short-term than if the new or

Jean Mutton Service Design Expert

April 2016 | the-lmj.com

PRINCIPLES AND PURPOSE

revised service is co-produced with the end-user firmly in mind or, ideally, in co-production. The design council have drawn up the seminal model of the service design process, see figure 1. An important point here is that the ‘specific problem to be solved’ is not defined until there has been a considerable amount of research into user behaviours and needs and insights drawn from them. Too often in business, when we make project plans the ‘problem’ is identified at the outset and the milestones are set without any opportunity to go beyond ‘agile’ to surface real issues. The design process is all about iteration and proto-typing, failing and failing better next time. There is a mantra of ‘doing not talking’ – actually mocking up a service experience and using role-play will give you far more understanding of your customer journey than a ten-page report. The service experience has three key stages: awareness of the

service, the service exchange and follow-up. During the service exchange both the customer and the service provider will be contributing to the effectiveness of the encounter and will (consciously or unconsciously) compare their prior experiences. This will result in an experience, which could fail, meet or exceed the customer’s expectations. We all know the importance of getting customer feedback on your product or service delivery - but how best to do it? Most of us will immediately think of focus groups (limited impact) and surveys (they will only answer the questions you ask) - have you ever said to yourself ‘There’s got to be a better way?’ In order to really understand what is motivating your customer you need to understand not only what they really want and need but also what their ‘lived experience’ of interacting with your business is, on all levels. This is where the tools and techniques of service design come into their own by helping you shape your business to meet

your customer’s needs by looking at your service delivery from the end-user point of view. A key approach in the service design toolbox is mapping out the user journey. This can be done in a variety of ways: through storyboarding, service blueprinting and drawing up an emotional journey map, which captures the ‘felt’ experience. A good place to start when you are looking to build a customer journey map is with developing a persona or set of personas, representing your diverse body of customers. This process also helps build empathy as you get ‘under the skin’ of the service users and build a view of the service through their eyes. Here are some of the key questions you will want to ask about your persona. This is best done in a workshop setting in small groups – you can then ask one member of the team to introduce their persona to the rest of the group. The others can then ask more questions about the character, building up the fullest possible backstory to better understand motivations and drivers. Practice has shown that if you build your services for those at the edges, ‘the outliers’, the ones in the middle will be fine. You then need to start to build up a chronological journey for your persona. This can take several forms but it needs to capture the emotional highs and lows as ‘touchpoints’.

Figure 1

April 2016 | the-lmj.com

We use personas to build up a rich picture of what motivates and what de-motivates the end users, taking into account the emotional connection. This does not need to be high-tech – a blank piece of paper and a set of coloured pens will get you going.

PRINCIPLES AND PURPOSE

There are many disparate actors, systems and processes involved in service delivery and too often staff work in silos with little understanding of the personal impact of the customer journey. One approach to break down these barriers, engaging all stakeholders (including customers) to draw up service journeys as seen from the end-user perspective. These ‘touchpoints’ can then be analysed and using ‘swim lanes’, all front and back stage operations are identified and the interoperability of the nature of the service, is laid out in its entirety, often for the first time. The identification of these ‘pain points’ has proved a powerful approach in concentrating efforts on enhancements where the biggest impact can made to the felt user experience. The act of creating blueprints also fosters empathy and helps staff to understand each other’s roles in delivering the service.

could be targeted to make service improvements. Here is an example of a service blueprint template from the SPIDER project (see refs below). This template would be filled out using sticky notes to build a picture of the service journey and the interactions, which make up the ‘touchpoints’. Co-production with the end user (or as many of them as you can muster) is crucial in making and testing out any journey map, be it the ‘as is’ map which captures the current service delivery or the ‘to be’ which will describe the new or improved service. An often overlooked advantage in making and testing the map, you will need to gather together all stakeholders in the business,

let alone be in the same room and working together to build the customer journey. This is where the ‘light bulb’ moments happen and staff recognise how important it is to step outside of their silo and see the bigger picture from the customer perspective. Here is an example of an emotional journey map of someone buying a car, see figure 3. You can easily see where the customer has both negative and positive experiences. People may ask, how many of the negative experiences will customers bear before they walk away? That is a near impossible question to answer as it depends on many things: how desperately they want it; how resilient they are; how many negative moments there are etc. On the other

One way to introduce staff to thinking about the end-user experience as a succession of ‘touchpoints’* is to ask them to take their customer persona on a trip to buy a take-away coffee (*touchpoints are where the interaction takes place: tangible (people, paper etc) or intangible (websites, emails, social media etc). Buying a take-away drink is something we have all done and allows people to think through the ‘journey’ step by step in a chronological fashion with all the component parts, front stage and back stage, mapped out in detail. From here we can experience what the service journey would look like from the end-user perspective, picking out ‘fail’ and ‘wait’ points, where resources

Figure 2

many of whom may not have had the opportunity to see where ‘their bit’ fits in and impacts on the journey further up or down the line. Everyone wants to do their best for the customer (who wouldn’t?) but they may not have even been in contact with other key stakeholders in the business

side of the coin is how well the business communicates with the customer and sets expectations. We will all respond better if things are not going so well if we are kept informed and not treated like mushrooms – kept in the dark and fed on, well, you know what. If you have ever been April 2016 | the-lmj.com

PRINCIPLES AND PURPOSE

“Buying a take-away drink is something we have all done and allows people to think through the ‘journey’ step by step in a chronological fashion with all the component parts, front stage and back stage, mapped out in detail.” Figure 3

to large attractions like Thorpe Park or Alton Towers, you will know that queues are inevitable, but expectations are managed by signs saying, ‘you are only half an hour from this point to the Terminator’. How many times have your customers felt disappointed or frustrated by a lack of communication with your business? How often have staff not understood where ‘their bit of the service delivery’ fits in with and impacts on everyone else’s? Once you have put together your ‘as is’ journey map of the current

service delivery you will begin to understand your end-to-end customer experience from a holistic perspective. You can also see where service improvements need to be made and where you are not joining the dots across the service delivery, from the end-user point of view. Here is a quote from a service manager in the HE sector: “I attended one of the service design workshops, and worked on the initial blueprint for our enrolment process. It was really enlightening to place myself as

the student and imagine the experience from their standpoint, rather than putting process first, which we do too often. After seeing the outcomes broken down into a service design plan with such tangible elements I can really see where I can apply this to other processes that my team work on’’ (Beverley Matthews, Programme Advisory Service coordinator, University of Derby). So why not have a go? Happy mapping!

Further reading and resources: • • • • • •

www.designthinkersacademy.com (for templates) www.servicedesignbooks.org (list of books on Service Design) www.globalservicejam.org (‘have a go’ training in Service Design techniques) www.thespiderproject.eu (for templates and other resources) www.publications.cetis.org.uk (Service Design in Further and Higher Education) Twitter #servicedesign

April 2016 | the-lmj.com

The Future of British Manufacturing

#FOBMI

FUTUREOFBRITISHMANUFACTURING.COM

Britainâ&#x20AC;&#x2122;s response to Industry 4.0 Future of Making Things Roadshow Understand the trends that are shaping the design and manufacturing industry and how other companies are

responding to them. Attending a regional FoMT event

at a High Value Manufacturing Catapult Centre is the second step in the Future of British Manufacturing

initiative. A roadshow of in person events where together, weâ&#x20AC;&#x2122;ll explore: 1.

EVE

28th

25th

15th

21st

Apri

May

June

Sept

The technology disruptors impacting the

NTS

l | Lo

ndo

| Co

| Rot

| Gla

The 3 key Manufacturing trends emerging as a result

How manufacturers are embracing these trends to

sgow

innovate, differentiate and compete globally

Free to attend for manufacturers

Register to attend at www.futureofbritishmanufacturing.com For more information contact the events team on 020 7401 6033 (opt 3) or events@hennikgroup.com

Researched and delivered by:

Supported by:

herh

manufacturing industry 2.

vent

PRINCIPLES AND PURPOSE

D-CAS: An evolution in change and performance management The Genesis of D-CAS© Throughout our combined 32 years of professional experience within the private sector and armed forces a common story was observed, one of which was told countless times. This tale, instead of beginning with once upon a time, started with “we want things to change and become better but…”. When trying to determine the root cause of this narrative what we uncovered was nothing short of counterintuitive. Organisations small and large have possessed resources in performance improvement such as six sigma and lean, yet were underutilised, misaligned, or frankly not used at all. What was equally

April 2016 | the-lmj.com

puzzling was that leadership often believed in the methodologies, but were unwilling to dedicate the manpower and time that could unlock their full potential in fear of jeopardising day to day operations. It is easy for leadership to state that their organisation is in need of change and improvement. However, when presented with complex or resource consuming proposals the willingness of leadership to support any such initiative quickly fades. Opportunity costs are often cited, resulting in a lack of strategic vision and the means to make change become a transformative evolutionary force fostering a culture of continuous improvement. Instead, change is

Larry Perry, MBA, LSSBB, CPHQ Founding Partner and Chief Operating Officer of NexGen Strategic Consulting LLC

Christopher Pinna, ChE, MBB Chief Performance Officer of NexGen Strategic Consulting LLC.

viewed merely as a substitution, presenting the organisation with “Band-Aid” solutions, fixing the here and now, doing little in developing the ultimate resolution to underlying issues. Organisations that rely on near-sighted tactical

PRINCIPLES AND PURPOSE

decision making often fear change. Companies that fear change eventually become stagnant entities destined to wither away into oblivion (Myatt, 2012). According to Dr. W. Edward Deming, “we can do something about our problems, or we can continue the way we are.” Unfortunately, the latter is often decided. The resulting fear produces many continuous improvement projects focused so much on gaining efficiencies that they fail to challenge the basic assumptions of what is driving corporate culture. Today’s leaders need to take a hard look at the cultural implications of continuous improvement. A datadriven mind-set may encourage managers to ignore intuition or anomalous data that doesn’t fit preconceived notions. In other cases it causes managers to ask execution-oriented, cost-focused questions too early, instead of percolating and exploring ideas through designed experimentation that can’t be justified through traditional metrics. Continuous improvement doesn’t have to be incompatible with disruptive innovation. But unless we think about continuous improvement in more subtle, nuanced, and creative ways, we may force companies to choose between the two (Ashkenas, 2012). Enter the Dynamic Change Acceleration System or D-CAS. D-CAS was formulated in order to make change and performance improvement easy for organisations. It is important for every organisation, small and large, to develop their own brand and style to maximise acceptance throughout all levels in order to develop sustainable high quality

solutions without sacrificing one for the other. Solutions are only effective if both quality and acceptance are at appropriate levels for a particular enterprise. Solutions Effectiveness = Quality (performance) x Acceptance (change) D-CAS builds upon this principle of performance management re-engineering by merging improvement science with change management. The very fabric of D-CAS relies on the underlying assumption that one cannot happen without the other.

management, it is imperative to exploit the given constraint(s) in order to maximise utilisation and productivity. In the case of improvement science applications, this would almost always include time and human capital. As with every improvement science method, D-CAS does not deviate from the initial sensing / scoping session with the project sponsor, process owner and primary stakeholders. It is during this event where vital information is procured. The following questions should be answered in order to gain an appropriate understanding of the project;

The D-CAS© Methodology

•

The foundation of D-CAS centres itself around the construction of specifically tailored improvement science road maps designed for maximum impact in the ability to meet customer expectations and organisational acceptance by involving individuals closest to the process. D-CAS borrows from all methodologies, including Lean, PDSA, Six Sigma, Design for Six Sigma, and Theory of Constraints, to name a few. It is important to state that D-CAS does not replace any of the aforementioned approaches, as when truly deployed they are incredibly effective. Rather, when an organisation is constrained for time, human capital and other complimentary resources, D-CAS seeks to utilise the most appropriate elements of all, equipping the improvement scientist with the necessary tools and techniques that are demanded by the project, thus navigating through the constraining forces. D-CAS exploits the constraints of an organisation, a key element of the 5 Focusing Steps of constraints management. Within constraints

•

• • • •

• • •

What is the purpose of the project? (Problem or Issue / New Process) Are there other projects that can be referenced / leveraged? If improving, what does the current process look like? For scope, where does the process start and stop? Who are the individuals that touch this process? Who will feel a difference as a result of this project? (Both positive and negative) What are people saying? (Voice of the Customer) What data are available? Who has it? What will success look like?

Following the sensing session the D-CAS Composite Index will need to be determined. The composite index requires an understanding of the following four D-CAS Compositors; • • • •

Project Timeline Resource Availability Project Scope Project Complexity

April 2016 | the-lmj.com

PRINCIPLES AND PURPOSE

The vast majority of this information can be discerned from the aforementioned sensing. The element that lies within the purview of the improvement scientist is the project complexity. Each of the four elements are scored from 1 – 10, similar to a Failure Mode Effects Analysis (FMEA). As in an FMEA, each compositor is individually evaluated. The improvement scientist will design the D-CAS road map based on the final scoring of the index. The road map is governed by a series of workshops known as Accelerated Change Events © or ACE’s. It is during each ACE where various change management techniques and improvement science tools will be utilised with the primary stakeholders and selected teams. The ACE affords

not exceed 4 hours, and are spaced out in accordance with the established timeline. The idea behind the ACE is to allow for full participation of all stakeholders without compromising the completion of their day-to-day duties. For instance, projects with high complexity and high urgency with moderate resource availability and moderate scope simply do not have the necessary elements allowing for the deployment of a true Six Sigma DMAIC or Design for Six Sigma methodology. At the same time, Lean, although powerful, is not typically applied in projects of high complexity, thus manifesting into quite the dilemma. Running with this hypothetical situation from above, assuming we are building a new process, the road map of ACE’s could be designed as follows;

D-CAS Composite Index

If each ACE were four hours in duration the entire project would have demanded a 24-hour time commitment. D-CAS allows an organisation to produce high quality deliverables using proven techniques while working within system constraints.

Real World D-CAS Application The Dynamic Change Acceleration System© transcends industry, presenting the improvement scientist with infinite possibilities in its application and design. To demonstrate real world application of D-CAS we will cite 2 projects, all representing distinct sectors, the first of which is crisis prevention and training for security personnel and the second is set within a healthcare risk management and compliance setting with the goal of creating a standardised process for developing and approving policies and procedures.

Crisis Prevention and Training D-CAS

the improvement scientist the opportunity to select the most appropriate rudiments from all improvement science techniques, in turn providing the team with the information and knowledge required; bringing the project to a successful close. Accelerated Change Events have a typical duration of 2 hours but should

April 2016 | the-lmj.com

D-CAS Road Map • • • • • •

ACE 1 – Scope Review & Kano Analysis ACE 2 – CTQ Tree / Driver Diagram ACE 3 – Future State Process Map ACE 4 – QFD / FMEA ACE 5 – PDSA Design / DOE ACE 6 – Conclusions

An enterprise based on the east coast of the United States was tasked with building a crisis prevention and training program. This was in response to a situation that quickly escalated to physical threats of violence and ultimately ended with involving the local authorities. Upon investigation, it was determined that the individual suffered from PTSD and believed staff were ignoring him. Leadership decided that a robust crisis prevention and training program was in dire need and concluded that their current webbased training was antiquated

PRINCIPLES AND PURPOSE

and did not provide adequate information / knowledge to personnel in dealing with crisis recognition, prevention, and de-escalation. The end goal of the initiative was to produce 3 distinct videos, each with their own scenario and scripting, filmed and deployed within a 5-week period. The three scenarios slated for development were Intra-Office Conflict, Customer / Staff Conflict, and Welcome Desk Conflict. As is the case with every D-CAS project, the improvement scientist met with the sponsor, process owner and primary stakeholders for the initial sensing session. The D-CAS Composite Index was rated as follows: • • • •

Crisis Prevention and Training D-CAS Road Map

•

• • • •

production company. During the remaining 3 weeks of the initiative, the film crew was brought in to stage the conflicts utilising actors and staff members. Within a week of deployment 3,756 employees had viewed the videos and completed the course assessment. This represented over 45% of the total employee workforce. One-month post implementation, the organisation reported 100% of all staff members completing the training.

Healthcare Risk Management & Compliance Policy & Procedure D-CAS

Project Timeline - 10 Resource Availability - 2 Project Scope - 2 Project Complexity - 2

Based on the session, a team was formed and governed by the following D-CAS Road Map consisting of 6 Accelerated Change Events, totalling 9 hours, scheduled over the course of 2 weeks in order to meet the strict timeline.

•

Future State Process Map

Welcome Desk: Cues and Responses BE CALM Crisis Prevention and Management Structure At the conclusion of the ACE’s, the final scenarios slated for video were submitted to a

A risk management & compliance department in a central Texas federally qualified health centre was faced with a nonfunctional policy and procedure development and approval process. The central issue was that no two policies or procedures ever followed the same path, often beginning and ending’ at different points with varying actions in between. Once could call this a process with extreme variation but in close examination

ACE 1 – Future State Process Map: How do we want out future process to function? ACE 2 – Brainstorm Event: What are the early cues and what are the potential responses to crisis? ACE 3 – Intra-Office Conflict Scenarios ACE 4 – Customer / Staff Conflict Scenarios ACE 5 – Welcome Desk Conflict Scenarios ACE 6 – Scenario Scripting April 2016 | the-lmj.com

PRINCIPLES AND PURPOSE

of their most recent activity one could argue the case that a true process didn’t exist at all. Their goal was to create a standardised protocol for vetting, approving, and developing operating procedures and policies. The timeline for this project was approximately 4 months.

D-CAS Composite Index • • • •

Project Timeline - 7 Resource Availability - 3 Project Scope - 5 Project Complexity - 5

Policy and Procedure D-CAS Road Map •

• • • •

• • • • • •

• •

ACE 1 – SIPOC: What do you believe your current state to be? ACE 2 – CTQ Tree ACE 3 – Cause and Effect Diagram ACE 4 – Future State Process Map ACE 5 – Design FMEA – How and where can our future state fail? ACE 6 – Design FMEA RPN Scoring ACE 7 – Validate Design FMEA ACE 8 – Future State Process Map Redesign ACE 9 – Kano Analysis – Style Guide & Training Package ACE 10 – Training Package Design ACE 11 – Priority Pay-Off – What will be the best policy / procedure to test? Test Future State with selected policy / procedure ACE 12 – Team Review

During the sensing session leadership made the decision that any new policy / procedure

April 2016 | the-lmj.com

would need to be vetted through the new process. As such a hard stop was placed on approvals thus growing the backlog with the caveat that any policies / procedures required by a governing regulatory body would be approved accordingly. With this decision the urgency of the project was lowered but still at a level requiring a timely conclusion. The team decided that a pharmacy policy would be used to test the future state. The thoroughness of the Design FMEA provided the team with enough foresight of potential failures allowing the construction of a robust future state. The future state exceeded expectations in its ability to mitigate the potential failures, demonstrating its capacities in eliminating process deviation. Feedback was positive all around. The pharmacy director stated

Kano Analysis

that the new process allowed the team to stay on target, delineating requirements as well as clearly defining the approval chain of command. To quote the pharmacy director, “the ambiguity in terms of what my team needed to accomplish as well as who needed to be communicated what was no longer an issue. The guessing game was removed which allowed our policy to be developed quickly and approved within a timely manner. The previous pharmacy policy took nearly 3 month to develop and approval and was less complex. With this new process we developed a brand new policy of greater complexity and had it approved within 6 weeks.” Upon the conclusion of the test, senior leadership provided their seal of approval.

PRINCIPLES AND PURPOSE

Conclusion Companies need the ability to change rapidly and improve their operations continuously. The environment in which they operate is incredibly volatile and as such need to evolve to remain

competitiveness. In doing so, organisations need to develop and refine their own approach to performance and change management. There is no silver bullet or perfect model. Each organization needs to assess how performance and change should be managed and design accordingly. The Dynamic

Change Acceleration System is the instrument that allows an organisation to do just that. When wielded, D-CAS provides an organisation with the ability to create approaches and solutions specific to the situation at hand and continuously reassess the fit of their processes in an everchanging environment.

REFERENCES • • •

•

Ashkenas, Rob. “It’s time to Rethink Continuous Improvement.” Harvard Business Review. 8 May 2012. https://hbr.org/2012/05/its-time-to-rethink-continuous.html Myatt, Mike. “How to Lead Change: 3 Simple Steps.” Forbes / Leadership. 7 February 2012. http:// www.forbes.com/sites/mikemyatt/2012/02/07/how-to-lead-change-3-simple-steps/#3cd3e1695ce6 Llopis, Glenn. “Change Management Requires Leadership Clarity and Alignment.” Forbes / Leadership. 30 June 2014. http://www.forbes.com/sites/glennllopis/2014/06/30/changemanagement-requires-leadership-clarity-and-alignment/#7a9cab005074 Weiss, Tracey B PhD and Franklin Hartle. Reengineering Performance Management: Breakthroughs in Achieving Strategy Through People. CRC Press LLC, 1997. Print

The Lean

TOP25

11 May 2016 | London Produced by:

Do you know someone demonstrating excellence in continuous improvement? The LMJ Top 25 recognises those individuals that initiate and push through positive change in their organisation. Help us celebrate those individuals who are looking to continuously improve and strive for more. If you know someone who has improved productivity, performance, culture or process flow please let us know.

Visit the website to make a nomination: the-lmjtop25.com April 2016 | the-lmj.com

PRINCIPLES AND PURPOSE

Autonomous maintenance in the food and drink industry Considerable interest has been shown by leading food and drink manufacturers in the potential of enhanced performance delivery through Operator Asset Care (OAC) OAC, within the Concept of Autonomous Maintenance The origins of OAC are found within the concept of Autonomous Maintenance â&#x20AC;&#x201C; recognised as one of the main pillars of the Total Productive Maintenance (TPM) model covering Professional Maintenance, Autonomous Maintenance, Early Equipment Management (EEM), training and development, 5S, Quality etc. Unfortunately the word maintenance in TPM created problems. Technicians wrongly assumed that their role would be reduced and tasks transferred

April 2016 | the-lmj.com

to operators. Operators were concerned they would need to be trained as technicians etc. Over the last 5 years however, particularly within the food and drink sector, the OAC concept has grown rapidly in preference to the more challenging autonomous maintenance philosophy with most sites adopting the approach and regular OAC assessments to verify the competences required and eliminate known waste. OAC is now seen as a key driver towards achieving operational excellence in food and drink. Site

Sarah James MCP Consulting and Training

leaders previously adopted the approach that production broke the equipment and maintenance repaired it. Arguments would arise during the daily production meeting whether the root cause was engineering or not and then continue with analyses of quoted downtime against repair time. As the true root cause was not analysed then the problems would not be eliminated. Now, with more investment in sophisticated equipment and control systems, a leading edge food & drink site requires operators to be

PRINCIPLES AND PURPOSE

more knowledgeable on the use, cleaning and care of their machinery, enabling technicians to be focussed on utilising their high tech skills on preventive and proactive activities. The ‘Six Losses’ (or Long Stops & Short Stops) are expensive. Directors are focussing on the return on investment for these sites with waste eliminated. Hence the need to link Lean with TPM and Reliability to maximise the Overall Equipment Effectiveness (OEE) delivered.

MCP’s Work within Food and Drink MCP has been working with leading food and drinks companies discussing OAC. This has involved assisting with a survey to assess the potential benefit of Operator Asset Care in the production industry as part of a MSc. thesis research project and collaboration with the National Skills Academy (NSA) food & drink. Topics under debate include: •

• •

What ‘good’ should look like in terms of skills for operators and technicians skills’ models Staff engagement& communication Effective use of computerised maintenance management

• •

systems(CMMS) Journey towards improved OEE Animation of processes and components to aid understanding

AMIS MCP’s Asset Management Improvement Service (AMIS) is a 3-5 day assessment tool. For 25 years MCP has conducted AMIS assessments at over 1500 sites worldwide, and helped in over 4000 operational improvement programmes ranging from food and drink, pharmaceutical, chemicals to automotive. AMIS has continuously evolved to measure the effectiveness of an organisation’s asset management systems, maintenance approach, organisational structure, training and development, computerised maintenance management systems and operational processes. AMIS Research into Autonomous Maintenance: Only 17% of Participants said Autonomous Maintenance was successful!

as the first stage of his OAC implementation project. Gary asked MCP if they would support the research project by allowing his MSc. thesis questionnaire to be circulated to the AMIS participants in the UK. Food and drink companies who participated in the research include: Greencore, GlaxoSmithKline, Heineken, Kraft, Kerry, Mars, Matthew Walker, Nestle, Northern Foods, PepsiCo, S & A Foods and United Biscuits.The overall results from the survey indicated: 1.

In 2011, Gary Barnes a technician at Diageo studying for his MSc at the University of Manchester undertook research into the success of autonomous maintenance

The principles of OAC include the 4 stages of: 1. Equipment Competent Operator– ECO (includes Standard Operating Procedures - SOPs, Skills Matrices and Competences) = ‘ECO Warrior’ understanding his equipment and not a ‘push button’ operator 2. Clean, Inspect & Lubricate (CIL) 3. Changeover, Set-up and Centre-lining 4. OAC Checks from Reliability studies (First level maintenance with defined tolerances and aligned with Craft PMs as well as Condition Monitoring or Predictive Maintenance - PdM)

Over 70% of participants had tried TPM over the last 20 years. Only 17% said TPM was a success with 50% showing partial success 36% of respondents indicate barriers were at shop floor level. Companies who had understood the barriers to change or had demonstrated benefits to stakeholders had better success 33% indicated management had not bought into the culture change process which links to Q3 above Most companies are now migrating to asset care excellence and some 27% responded that they had successfully implemented OAC. 23% are currently planning their OAC Implementation with another 20% considering OAC as the next part of their lean programme Twenty years ago the words autonomous maintenance caused some challenges with both operators and craft groups. 89% responded that OAC was a key pillar of their asset management programmes and over 50% said they recognised the importance of correct April 2016 | the-lmj.com

PRINCIPLES AND PURPOSE

implementation to deliver the known benefits. 7. 81% believe greater success is delivered when barriers are understood and a culture change programme is used to deliver engagement. 8. “Maintenance” was considered to be an issue with over 50% of people, organisational development and competences in terms of health & safety were seen as vital ingredients. 9. Only 26% of responses agreed that a reliability technique is important to select the optimum combination of approaches i.e. OAC checks, craft PMs, condition monitoring or predictive maintenance (PdM) techniques, overhauls, ‘design-out maintenance’ (DOM) and run to failure (RTF). Too often managers adopt a simplified walkabout check list not aligned to the techniques currently in place. Often no requests are raised from these OAC checks which is the same challenge as the effectiveness of PMs when completed 100% each week. 10. Only 37% regularly use reliability techniques (RCM, FMECA, REM etc)with 32% occasionally using such techniques • The work with the AMIS OAC workgroup supports these general findings. The history to date includes a number of workstreams including: • Gap analyses to identify opportunities • Organisational development • Assessment centres to identify appropriateness and training needs • Basic training • Competences and certification

April 2016 | the-lmj.com

During any AMIS Journey to world class performance OAC development is a key workstream and would cover the following elements: OAC is now well adopted and the sustainability as well as delivery of high performance demands high levels of competences and aligned processes. Therefore the organisational aspects as well as learning & development programmes need to be fully aligned with the manufacturing excellence workstreams. The MSc. research project included the practical implementation of OAC at one Diageo site. This learning has now been rolled out across all sites globally. OAC is a key pillar of manufacturing excellence and provides two key elements including: Higher and more stable OEE through more competent operators Reliable plant through a proactive regime underpinned by the OAC checks reducing the need for handholding by technicians

“Technicians wrongly assumed that their role would be reduced and tasks transferred to operators.”

It is not easy to drive out the waste in terms of craft skills utilisation on proactive work unless equipment competent operator competences are ensured. MCP would like to thank all the AMIS participants involved with the benchmarking survey for supporting a young technician with his professional development. For further information on the following please contact MCP www.mcpeurope.com : 1. MSc Thesis – Autonomous Maintenance Benchmarking results 2. AMIS Journey to Manufacturing Excellence 3. OAC Networking Workgroup 4. Autonomous Maintenance / OAC Maturity Assessment

OUT AND ABOUT

Valliant Vaillant: boiler makers with a difference Fred Tongue recently made the trip up to the East Midlands to visit a firm that practices what it preaches. Vaillant group, in Belper, produce boilers and keeps a new In Derbyshire the firm produces eco-friendly boilers for consumer and commercial use in a wide variety of specifications and options for all kinds of purposes. The company has a large production floor with dozens of operatives working on boilers one at a time. Each boiler is put together by hand and the whole process is conceived, from start to finish, by a single operative. In a world where automation is something that is used more and more in the manufacturing world Vaillant refuse to employ robots in making their products. The firm constantly innovates with cutting-edge production processes but wants to maintain a “human touch” when it comes to their

products. Not only does this make it easier to trace faults if they do occur, but it also gives employees a sense of pride and ownership over the product, which they are creating, meaning that they take care with every product that they produce. The only automation in the factory is for the packing stages and the vending machines in the lunch area. Despite making all of their products by hand Vaillant makes sure that all of their products meet their customers exacting standards. It has installed a Bluetooth system, which monitors the steps and time taken to complete a process and if the operative doesn’t fulfil all the necessary criteria then the system doesn’t allow them to go forward

with the process unless the criteria are satisfied. The system also sense if an error has been made and can stop that item from going forward in the process. The shop floor is adorned with graphs and data that tracks faults and issues. This data is then fed back to determine whether or not the fault is due to the product or the operative. If it is a fault with the product steps are taken to address the production process and the product in order to prevent further problems. If the operative is the one making the mistakes then they receive extra training to ensure the problem is resolved for good. The firm is so obsessed with the quality of their products they

April 2016 | the-lmj.com

OUT AND ABOUT

“The shop floor is adorned with graphs and data that tracks faults and issues. This data is then fed back to determine whether or not the fault is due to the product or the operative.”

inspect the thickness of their paintwork more stringently than some companies review their finished product. Despite paint not being key to boiler performance, Vaillant check paint thickness on every panel to make sure their boilers function and look the way they should. Vaillant also proudly boast a zero landfill plant in Belper a status it achieved in 2011. The firm has received several awards from industry-recognised bodies and publications praising the work it is doing for sustainable manufacturing. Not only do Vaillant manufacture boilers and other heating solutions, which is energy intensive, they also train their technicians and engineers on the same premise to ensure training is all up to the specific standards required. Training engineers requires the firm to have a room of fully operational models all plugged in to water, gas and the mains. This makes being sustainable difficult, but is a problem that Vaillant have tackled head on.

April 2016 | the-lmj.com

One of the ways it does this is by installing a geothermal heat pump at the facility so that the hot water at the plant is provided through geothermal energy as opposed to other means. The company has also managed to get a carbon neutral status, but that isn’t enough for the team. The dream is to be more than that and achieve a negative carbon emissions rating. There are plans to install solar panels on the considerable roof space, which houses the manufacturing plant.

Recently, at their Belper plant they have also made big steps in reducing the amount of packaging. The plant makes extensive use of reusable packaging and aims to make sure that every component that comes through the plant is in reusable packaging. The company is very conscious of the impact it has and is constantly endeavouring to be manufacturer its products in a sustainable way. Manufacturing is often seen to be wasteful and unsustainable but Vaillant are changing that stereotype, one boiler at a time.

“Recently, at their Belper plant they have also made big steps in reducing the amount of packaging. The plant makes extensive use of reusable packaging and aims to make sure that every component that comes through the plant is in reusable packaging.”

CASE STUDY

Industrial method yield results in Danish municipality Management of Professionals: The implementation of simple production management principles from the industry and systematic training of employees have resulted in reduced time consumption, superior case management and growing employee wellbeing in the municipality of Odense. Are training methods, which increase productivity at a window factory, USEABLE in a public administration? And when work deals with people and professional evaluations, are industrial experiences then applicable? Is it at all possible to standardise public management? Yes, yes and yes. A seemingly surprising response from the municipality of Odense, where The Employment and Social Services Department has obtained notable results after testing an industrial method to

optimise operations and quality in the administration. In the spring of 2014 we conducted five pilot projects with the training system TWI (Training Within Industry), and they have yielded very clear results all around: better service for citizens, less time wasted, more qualitative case management, higher employee satisfaction, profound professionalism and more clarity about employees and managersâ&#x20AC;&#x2122; roles in the administration, says Thomas Ilskov, operation management consultant in the municipality of Odense.

Thomas Ilskov B.Sc. Eng. in Manufacturing & Systems

April 2016 | the-lmj.com

CASE STUDY

Aha-moment kick started the process The breeding ground for the pilot projects was an “aha-moment” in connection with a larger IT project in the spring of 2014, where the municipality of Odense outlined the workflow process for parts of the administration. This process revealed that the workflow; for the most part went undocumented, that it varied considerably among employees and departments, that the training of new employees was missing, and that a follow-up on how the workflow was conducted was missing as well. This led us to organise a workshop with a focus on municipal operation management and we participated in a TWI-conference in the summer of 2014. The conference convinced us that TWI was the correct method to implement in order to achieve systematic training in the workflow and get streamlined standards for how we work. No other municipality has done this before, states Thomas Ilskov.

Training is key The systematic training constitutes the core in TWI. A training that follows a very detailed methodology from the industrial method, with written standardised workflows. We chose to stay true to the TWI-method’s manuals, which are very specific, in our five pilot projects, which include about 120 employees from four sections in the administration, says Thomas Ilskov.

April 2016 | the-lmj.com

He also explains that the basic difference between before and now is: before the TWI-projects the employees conducted their work without being aware, of why they used the methods or systems they used, and without necessarily knowing if their colleagues were working in the same way, or if the next link in the chain would continue work on a case. For this reason, a consensus or a context in the system did not necessarily exist. And so, by using a streamlined training of both new and existing employees, one can ensure that all employees know why they must work the way they do, and ensure that they work in a similar manner if they are working with streamlined functions, tasks or systems.

Left core competences untouched The project, however, also showed that training does not entail the answer to everything. E.g. the municipal social workers work with great professional insight in their field of work, and the project did not change this fact. The industry’s methods are eligible for the administrative tasks concerning professional evaluations of citizens’ needs. This means that the employees can be trained to fill out forms, make system searches and conduct interviews, but they are not trained in the core of their professionalism – in the social workers’ case the evaluation of the citizens’ situations and needs. Nevertheless, according to a questionnaire concerning the benefits of the five TWI-pilot projects,

the facts that the processes were simplified and structured lead to greater freedom and focus on the essentials i.e. the dialogue with the citizen. The employees perceive on average a 63 percent improvement of professionalism, cooperation, well being, role clarification, task descriptions etc. Well-being has improved with 27 percent, the internal teamwork has improved with 41 percent, and 90 percent would recommend others to complete a similar project. We can conclude that TWI has solved out challenges better than any other method we have encountered. TWI is based on the same principle that is advocated for by Toyota, namely the notion that one should build people before building cars, and this is a perfect foundation for our work with Lean, which we simply refer to as ‘Operation management’, says Thomas Ilskov. He explains that one now face a detailed implementation plan, where the training of employees and tools for the operationmanagement are in focus. This creates a link between process description, training, goal follow up and work performance. After a hectic year with many positive encounters with TWI we possess a continued humility towards the things we can continue to learn and the things that can continue to build us up. For this reason we are very interested in learning more about related experiences, which other municipalities may have had, encourages Thomas Ilskov.

CASE STUDY

Facts about training within industry (TWI) The training system Training Within Industry (TWI) is founded by the American Department of War during World War II. The combination of labor being deployed to active service and the need for markedly increasing production capacity in the industry created an acute need for effective training of many new employees. One task group realised that the most effective and fastest way to implement a change would be to offer tools to the industry with which it could implement the changes itself. Thus, a training program was created with a unique train-thetrainer focus. Read more about TWI on twi-institute.com and twiinstitut-skandinavien.dk.

How TWI works “The method supports our mindset” The project has made me more present in the encounter with the citizen. As said by Karen Balle Andersen, who is authority caseworker in the municipality of Odense and has participated in one of the five TWI-pilot projects. Her experience is that the projects have helped to improve the context and common structure of case managers’ daily working methods. In practice it has in fact become evident that a great variation exists in the way work is conducted in and across the administration. According to Karen Balle Andersen the projects have generated a feeling of greater security that the workflow

standards, which employees and managers focus on, bring about a streamlined and clear high quality setting for the meeting with citizens. She has helped to define standards and has trained colleagues in the TWI methods.

Being present in the management task Basically, the method is useable in an optimising and fruitful process, which aims at improving the effects of our core tasks, says Lotte C. Jensen. As a manager she has participated in a TWI-pilot project with her department. She notes that the current implemewntation of the TWI-method will create an ideal breeding ground for the principle of present-management, and in addition the method focuses in on the managers and departments’ possibilities to improve the operations. She ascertains, that the method supports our mindset both horizontally and vertically. It promotes process optimization

and its quality, but it also draws on resources from all parties involved and calls for an allocation of responsibilities, where all links in the management chain contributes and participates.

Thomas Ilskov has worked with developing and implementing systems and business processes in service and admin for the last 18 years. He is an experienced people manager from Sales and Customer Service and worked in the telco business before joining Odense Kommune (municipality of Odense) He holds a B.Sc. Eng. in Manufacturing & Systems and is TWI Trainer in Job Instruction and Job Relation

“The projects have generated a feeling of greater security that the workflow standards, which employees and managers focus on, bring about a streamlined and clear high quality setting for the meeting with citizens.”

OUT OF THE BLUE

Apple pies, grilled cheese sandwiches and sysyem thinkers Bill Bellows, President, In2:InThinking Network

Beginning with the June 2015 edition of the Lean Management Journal (LMJ), I will be preparing a monthly column, titled “Out of the Blue.” As with the articles I have been writing for the LMJ since 2009, these columns will highlight concepts associated with an integration of ideas from W. Edwards Deming, Russell Ackoff, Genichi Taguchi, and Tom Johnson, amongst many other systemic leaders, with applicability to improving how individuals and organisations think together, learn together, and work together. The concepts will be presented through a wide range of anecdotes, united in a way that offers a new lens for revealing and adopting the Toyota Production System. In keeping with the use of the expression, the aim of these articles is to present concepts to the LMJ community, which might appear to be “out of the clear blue sky,” yet, could be immensely valuable to lean practitioners. A few decades before The Big Bang Theory introduced television audiences to fictional theoretical physicist Sheldon Cooper, with guest appearances by Stephen Hawking, astronomer Carl Sagan was one of the most well-known non-fictional US scientists. Amongst Sagan’s research interests was the search for extra-terrestrial intelligence, including the odds of finding it amongst the planets surrounding his estimated “billions upon billions of stars.” Sagan was also known to have once offered his advice to chefs, specifically on how to prepare an apple pie. “If you wish to make an apple pie

April 2016 | the-lmj.com

from scratch,” he offered, “You must first invent the universe.” With a similar regard for seeing systems, the 19th century ScottishAmerican conservationist John Muir once reflected, “When we try to pick out anything by itself, we find it hitched to everything else in the universe.” Such wide views surely qualify Sagan and Muir as systems thinkers, where a system, to borrow from organisational theorist Russell Ackoff, “is more than the sum of its parts, an indivisible whole. It loses its essential properties when it is taken apart. The elements of a system may themselves be systems, and

every system may be part of a larger system.” An apple pie, like an automobile or a football club, can be taken apart, but, to do so, one is left with disconnected components, not quite the same as an afterdinner sweet. Whether collecting a list of ingredients for baking, or preparing for holiday travel, each element in a plan is eventually joined to the other elements to achieve the successful output of the system. In his book, The Checklist Manifesto, physician Atul Gawande offers story upon story of the advantages of preparing and

OUT OF THE BLUE

following checklists, whether as a pilot organizing for a transatlantic flight or a heart surgeon planning to install a pacemaker. Time and again, he reminds us of the potential value of a checklist as a foundation for creating what is commonly referred to as Standard Work. Gawande well appreciates that we are pragmatists and have things to do besides construct lists with infinite detail. By way of example, consider the response of our then 7-year old son to the question of how to prepare his favorite lunch, a grilled cheese sandwich. “Easy”, he said, “you only need three things – bread, butter, and cheese.” This is a very practical list and one that would match the responses of a fair number of readers. But, one might ask, what about the rest of the universe to which these three things are hitched? Well, of course, it depends on our starting point. Given the initial condition of a ready supply of cheese, butter, and bread, plus a hot frying pan, this is all one would need. Given the “10 foot view” of “bread, butter, and cheese”, would any of us be regarded as a systems thinker in comparison to Sagan and Muir? Using a favorite example for constructing a checklist, I recently asked six audiences of college students to list at least five things they need to wash a table, with the subject table in the hallway outside of the classroom. In borrowing an illustration from W. Edwards Deming, responses in each session included water, soap, a bucket, a sponge, a towel to dry it, and someone to do the work. Similar to “bread, butter, and cheese to make a grilled cheese sandwich,” this is a very practical list, regarding preparation of the ingredients. Typically missing

from the “List 5 things needed to wash a table” list is consideration of the eventual use of the table, perhaps for dining, arts and crafts, or playing cards. As noted by Russell Ackoff, systems thinking implies an awareness of the relationships between the “parts of” a system. Lacking awareness of these interactions, a system is but a collection of independent parts, absent the “of.” From this perspective, one could count the number of parts in a product, the number of steps in a process, and the number of employees in an organization. The existence of the relationships between the elements of a system can be defined with three orientation questions, “What is this part of?”, “Where did this come from?”, and, “What will this lead to?” From a systemic perspective, the sequence of these questions may be represented by the connection (or flow) of the parts (pieces or events) below:

1. From Where? 2. This Part/Piece/Event 3. Lead To? Further expansion of a given system can be achieved by repeated use of these questions, or logic (as in, “where does the “To” lead to ?”). As defined by Edward de Bono, a noted authority on thinking about thinking, one’s awareness of the existence of the “flow” pattern connecting these elements stems from the use of “water logic”. Conversely, the inability to connect the pieces, or the lack of awareness of water logic, gives rise to a part perspective. Under such mechanistic circumstances, one would not be aware of a flow. This situation is defined by de Bono as

“When we try to pick out anything by itself, we find it hitched to everything else in the universe.” the use of “rock logic”. To become part focused or piece focused is rock logic. Stepping back, is the “universe” perspective of Sagan and Muir the “right” size? While it is true that the whole universe is connected to the bread, butter, and cheese that go into our son’s grilled cheese sandwich, it is unnecessary, if not a distraction or nuisance, to consider the universe during the act of producing the sandwich. On the other hand, if one is attempting to solve a complex, history-rich problem, such as reducing world hunger, one would benefit from a larger system view. As another example of seeing systems, consider a picture of our daughter’s youth football team, including players, coaches, and our team mom. In seminars, I have used the photograph to ask “Who is on the team?” Would the list be limited to the players, or expand to admit the parents, other teams, and others not shown, including the grounds crew? What about great-grandparents? At what point would the list end? Such questions offer another reminder that every system is part of a larger system. Also, to reference Ackoff, when working to improve a school system, is the system a classroom, a school, a school district, or the education system of a country, including colleges and universities? He suggests we start where we have the largest control, for to

April 2016 | the-lmj.com

OUT OF THE BLUE

“As noted by Russell Ackoff, systems thinking implies an awareness of the relationships between the “parts of” a system. Lacking awareness of these interactions, a system is but a collection of independent parts, absent the “of.””

work on a system too large, for which we have little control, would lead to unnecessary frustration. But, he adds, this is only the starting point for those who desire further gains which systemically-minded leaders are capable of. Previous Out of the Blue columns have conveyed the limitations of viewing performance in black and white terms. For example, some of us could be classified as systems thinkers, others as not. Using this binary logic, many would label Sagan and Muir as systems thinkers and our son and others with a list of “bread, butter, and cheese” as “not systems thinkers”. Closer to home, you might consider yourself

to be a systems thinker and label your boss or another executive in your organization as “not a systems thinker”. Or, could it be that all of us are thinking about systems and what differentiates us is the size of the system that we consider in a given situation – 100 feet, 1000 feet, 100,000 feet, the universe, or larger, when looking for intelligent life in other galaxies? Moving from physical size to a timescale, how far into the future or past are we looking for the system in question? A week, a month, a year, or more? For example, is a business decision based on a one-year payback, and, if so, why one year? Towards this end, how far into the past do we look for explanations of September 11th, 2001?

Just as the answer to “Is there petrol in the car?” does not reveal the amount of petrol in the tank, commenting on whether or not someone is a systems thinker, yes or no, does not focus attention on the size of the system at hand and why this size was chosen. Far better would be to recognise that we are all systems thinkers and avoid the use of this label, in the same way we need not label each other human beings (unless there aliens amongst us), and recognise that all systems are boundaryless, even though they are often modeled as closed, finite systems for the sake of convenience or practicality. Simply put, what is the boundary of the system in question and why was this size chosen? Both questions offer insights on thinking patterns that are of potential interest when systemic solutions are needed. To borrow from Deming, “The boundary of the system…...may be drawn around a single company, or around an industry, or as in Japan in 1950, the whole country. The bigger the coverage, the bigger be the possible benefits, but the more difficult to manage, The aim must include plans for the future.”

“Given the “10 foot view” of “bread, butter, and cheese”, would any of us be regarded as a systems thinker in comparison to Sagan and Muir?”

April 2016 | the-lmj.com

LEAN ONLINE

Lean Online Sam Yankelevitch has written an informative piece all about how lean can be applied in reducing waste from miscommunication http://bit.ly/1VAFEe9

@DebashisSarkar Has an account where he regularly talks about lean management and often shares links to insightful articles.

Chris Daffy has written an article all about worker loyalty and the strategies needed to maximise it http://bit.ly/1XKovNI

April 2016 | the-lmj.com

LEAN EVENTS

The LMJ OpEx Annaul Conference 2016 11th-12th May, 2016 London, UK The LMJ OpEx Annual Conference promises to be one of the standout events the year. The conference has thought leaders and practitioners from some of the biggest and most well respected brands in the world, including: McDonaldâ&#x20AC;&#x2122;s, Phillips and HSBC. The conference will cover a wide range of topics across a variety of industries, including manufacturing, supply chain and logistics and the services sectors. The event will take place over two days and will include the launch of the Lean Top 25 report, which celebrates exemplary and noteworthy people pushing their organisations forward. To nominate please visit http://bit.ly/1oOCJkY

April 2016 | the-lmj.com

The event will also include a pre-conference networking drinks evening presented by the Operational Excellence Society as well as the annual dinner. To find out more please visit: http:// lmjopexannualconference.com/

Lean Kanban North America 2016 16th-18th May, 2016 San Diego, California This event draws from hundreds of organisations and their real life experiences. The conference will look at the cutting edge of Kanban to show much spare capacity you have and how best to utilise it. Visit: http://lanyrd.com/2016/ lkna16/

Playing Lean Facilitator Training in Paris 27th May, Paris, France This event aims to help improve lean practice through practical application and hands on workshops. The day centres on the Playing Lean game, which was designed to teach lean start-up in an engaging and fun way. There will be professional support throughout the day to help explain where you might be going wrong and how to improve. To find out more visit: http://bit. ly/1UbYw3w

For information about our own events visit our website at: www.themanufacturer.com/events

$65 – £45 –

€50

SUBS FORM Novembe

r 2 0 15

| www.lean

mj.com

annual subscription to LMJ, of 10 issues, is £295 for the print edition and only £195 for the AnAn annual subscription to LMJ, of 10 issues, is £295 for the print edition digital and onlyedition. £195 for the digital edition. To subscribe, please complete all the fields below, send us this page (or a photocopy) and

To subscribe, please complete all the fields below, send us this page (or a photocopy) and will contact you within five days to process your subscription. wewe will contact you within five days to process your subscription.

Some of the benefits of subscribing to LMJ include: Some theaccess benefitsto ofthe subscribing LMJ include: - online back catalogue of articles from • ofFull websitetoleanmj.com January 2012 Full access to the website leanmj.com - online back of articles January 2012 • 20% discount to LMJ events throughout thecatalogue year, including thefrom flagship LMJ Annual 20% discount to LMJ events throughout the year, including the flagship LMJ Annual European Conference European Conference

Forename:

on improving Can you keep n forever, your organisatio to the or is there a limit lean? powers of

tatives include represen Forum, s in this issue AB, Industry and interview Organisations University of Lincoln, Revere ia University. from: SPI Lasers, s School, Columb Cardiff Busines ways to keep ment: different IN THIS ISSUE: Improve ous of Continu Three Levels and improving. you moving and lean at the be innovative on: Can you Lean and Innovati lean routine same time? to witness their visits SPI lasers Laser Lean: LMJ first hand.

Title:

LIMITLESS LEAN

Surname:

Position:

Company:

Email:

Phone number: Address Line 1:

Address Line 2: Town:

Country:

Post/Zip Code:

Company main activity:

Company or personal twitter handle: Company tick ONE box) Companysector sector(Please (Please tick ONE box) Local government Military Prof Services Retail

Other:

Finance Government Healthcare Legal

Areyou youinterested interested contributing to The LeanLMJ Management Journal? Are inin contributing to the Yes

LeanLMJ Management Journal mailing list? Are inin being added to the Areyou youinterested interested being added to The mailing list? Yes

Among which areare of most interest to you? to you? Amongthe thefollowing followingtopics, topics, which the most interesting Academic debate Standards Assessments Lean IT

Visual management Event reviews Case studies Research

Leadership Tools Coaching Employee engagement

Date:

Signature:

Civil Service Construction Consultant Engineering

I would also like to receive the Lean Management Journal’s FREE e-newsletter

SCAN AND EMAIL TO: lmj@hennikgroup.com or subscriptions@hennikgroup.com

POST TO: Hennik Group Subscriptions, 5th Floor, Elizabeth House, 39 York Road, London, SE1 FAX THIS FORM TO: +44 (0)844 854 1010 7NQ, AND EMAIL TO: subscriptions@hennikgroup.com POST UK TO:SCAN Hennik Group Subscriptions, 5th Floor, Elizabeth House, 39 York Road, London, SE1 7NQ, UK

April 2016 | the-lmj.com

SECTION TITLE Hennik Research Elizabeth House, 39 York Road, London, SE1 7NQ T: +44 (0)20 7401 6033 www.hennikgroup.com

the-lmj.com 36

April 2016 | the-lmj.com