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[Audio] www.leanuk.org 1 Darren Walsh UK Lean Summit 2016 L e a r n i n g t o S e e Learning to Coach Learning Session.

[Audio] www.leanuk.org 2 Whenever there is a product for a customer, there is a value stream. The challenge lies in seeing it..

[Audio] www.leanuk.org Learning Objectives The aim of this breakout session is to help develop a greater understanding of: ─ The 4-step process of Value Stream Mapping ─ Developing future state maps & 'What Makes a Value Stream Lean' ─ The common challenges of Value Stream Mapping and Value Stream Transformation ─ Learn tips to help navigate the common pitfalls and develop your coaching capability. ─ Learn about routines and feedback loops that help deepen our knowledge & capability of Lean and VSM. 3.

[Audio] www.leanuk.org The 4-Step Value Stream Mapping Process 4.

[Audio] www.leanuk.org Value Stream Mapping Purpose  Provides a system-level view.  Enables everyone to see the waste simply and easily.  Snapshot from the customer's perspective.  Identifies the current operating philosophy.  Provides a roadmap for change that yields bottom line results..

[Audio] www.leanuk.org Using the Value Stream Mapping Tool Implementation Agreeing on a well understood map of the current situation Agreeing on a shared vision of a lean future state Agreeing on what process to study ( product family), how to map it, who will participate & logistics Preparation Current State Drawing Future State Drawing Planning Agreeing on how to implement the future state plan Agreeing on implementation and next steps.

[Audio] www.leanuk.org Value Stream Map 7. . . wee k 'y 4600 L 7.6 d wee Fore ca t C/T 39 seconds 10 minutes uptame 100% 27.000 sec. avail. 39 seconds Source: PRODUCTION CONTROL MRP Weekly Schedule C = Second 9 Uptime — 2 Shift 9 27.000 avail_ 46 seconds Rother and 90/60/30 day Forecasts Daily Orde r 18.4' Tray Daily Ship 2.7 days Shook C/T - 62 seconds Uptime 100% 2 Shifts 27.000 sec. avail. 62 seconds 1999, pp.32-33. 40 Uptime 100% 2 Shifts 27,000 avaiE 40 seconds.

[Audio] www.leanuk.org Typical VSM Symbols Customer/Supplier Process Box Data Box Inventory Delay/Wait E-mail Push Arrow Manual Info. ( Paper) Electronic Info. Flow ( Paperless) " Go See" Scheduling PROCESS I D email uptime Problem/ Improvement burst Supermarket/ Pull Lead-Time Ladder.

[Audio] www.leanuk.org 9 Common Challenges of Value Stream Mapping / Transformation Potential Countermeasures.

[Audio] www.leanuk.org Common Pitfalls of VSM  Creation of the future state/ ideal state  Overshooting time, resources, budget  Not having a clear definition of the scope at preparation & implementation  Scope creep  Developing accurate and realistic future states  Creating links between future state and improvement projects  Quantifying improvement projects  Only developing current states  Resistance and reaction to report outs  Not knowing when to decouple processes  Keeping the team on the same level whilst mapping the value stream  Keeping team focussed on what needs to be achieved  Lack of available data  Jumping to solution and treating improvement actions as solutions  Running out of steam and not completing improvement actions 10.

[Audio] www.leanuk.org Common Pitfalls & Countermeasures 11 VSM Pitfalls Preparation Problems Not selecting the right value stream to map Not identifying and completing pre work Scoping Issues/ scope creep Leadership ( AVL) Mapping Problems Mapping Technical Issues (e.g, no lead time ladder) Strategy for developing the Future State VSM Resistance and reaction to report outs Implementation Problems Running out of steam Not meeting objectives (Time, Budget & Result) Competing/ new projects Preparation Current State Future State Planning Implementation - Making assumptions, not knowing how to prioritise value streams. - Gaps in knowledge & capability (not gathering relevant data). - Lack of leadership throughout the value stream transformation Potential Direct Causes - Gaps in facilitators VSM knowledge & capability - Defensive culture & mindsets - Leadership behaviour - Not managing change effectively - Possible gaps in management routines & improvement capability - Possible gaps in strategy.

[Audio] www.leanuk.org Preparation Problems BLUES 95% 6% 50% Cumulative % Product Range Cumulative % of Sales Last 1% Process Steps & Equipment LH Steering Bracket RH Steering Bracket Instrument Panel Brace Seat Rail Bumper Brackets Electron ic Test Fixtur es Assy Robot Weld Flash Remo ve Paint Manua l Assy Spot Weld X X X X X X X X X X X X X X X X X Products 1 2 3 1 2 3 4 5 6 7 1 7 2 8 3 9 4 10 5 11 6 12 1 3 2 4 Position Position Additional support needed ad hoc and Reviewers of Kaizen Ideas/ Working Documents before Report Out Name Name Justine Happy Production Control Chris Goody Quality Marco Tracy Lloyd Team Leader Arecely Steve Payton Production Engineer Review & Develop Routines of core support team TEAM MEMBERS : 100% Attendance is required (From Kick Off to Report Out) Name Position Name Position Manuel Steve Jones OUM Out-of- Scope ( Areas Excluded) OTIF & Quality ( DPU) Gemba Boundaries ( Event Scope) Engineering Change, Permits, Concessions EVENT GOALS/ TARGETS (indicate "FROM" JOP and "TO" Goal) OTIF TAKT Quality Kaizen Event Agenda to achieve GOALS : Establish a current state (Layout & Balance) Establish a method of highlighting and resolving problems effecting takt Identify Problems Define Future State ( Layout, Balance) Implement/ Test countermeasures AA Core Team Daily Routines AA Sub- Assembly Site Recovery Plans Kaizen/ Improvement Event Charter Kick-Off Date: 4-Feb- 13 Primary ZALS Tool: Standard Work Stakeholder/ Exec Workshop Team Leader: Christina Olso 8 Feb 2013 Henry Larkin Repout Out Date: 11-Feb-13 Ops / Seating Event End Date: Record ID # IMP/ 42 Proccess/ Area Facilitator: Report Out Time: 1pm Process/ KPI Mgr: Lee Davies Lead Facilitator: D. Walsh Cambridge, Other Production Lines (although as the improvement programme progresses you maybe called on to support other productions lines by developing/ supporting core teams in their daily routines *Tie up with ZSUK Core team to approve prior to action Key Performance Indicator ( KPI) or Policy Deployment Objective Impacted: WHY IS THIS KAIZEN NECESSARY (Define the problem) : XXXXX Airlines Mainline not consistantly achieving Takt In-Scope (Areas Included) AA Mainline Prior to mapping, we need to: Understand our product families Select the right Value Streams to Map Prior to mapping, we need to: Ensure the right people are involved Scope is clear Pre-work is identified and completed Management routines are in place to support & sustain the implementation  Glenday Sieve  Product Family Analysis.

[Audio] www.leanuk.org 13 Developing a Future State & What Makes A Value Stream Lean.

[Audio] www.leanuk.org 14 Current State VS/ Map Exercise Identify: Potential Problems What Improvement Action Should Be Taken. 20 minutes • Break into teams of approximately 8. • Appoint one person to act as facilitator. • Appoint one person to provide background information. • Walk through how the current state process currently works. • Share the background information • Identify potential problems & improvement actions Identify What Improvement Actions You Would Take? Exercise Objective Instructions Time to Complete Deliverable.

[Audio] www.leanuk.org 15 Value Stream Map. . . alting Source: hedu\ hang Rother and Shook 1999, varia pp. 32—33..

[Audio] www.leanuk.org Future State What Makes a Value Stream Lean  Takt Time  Finished Goods Strategy  Continuous One-Piece Flow  FIFO  Pull Systems  Single Scheduling Point  Interval  Pitch 16.

[Audio] www.leanuk.org How fast should we produce? Point Efficiency vs. System Efficiency 17.

[Audio] www.leanuk.org  Utilises the customer demand rate  Synchronises the rate of production to demand Takt Time = Available Time Demand = 840 Minutes / day 42 Units / day = 20 Minutes / Unit Takt Time.

[Audio] www.leanuk.org Finished Goods Strategy 19 Assemble to Stock/ Supermarket Assembly Shipping Custome r Assembly Shipping Assemble to Order Customer Assembly Shipping Customer Machine Made to Order Purchase to Order Assembly Shipping Customer Machine Supplie r Production Control.

[Audio] www.leanuk.org Continuous Flow Processing Batch & Push Processing Lead Time: 30++ minutes for total order Continuous Flow "make one, move one" C/T = 1 min 1 2 3……………… 12.

[Audio] www.leanuk.org How do we join divided processes? Shipping Assembly Marking Customer How do I know what to work on next? How do I know what to work on next? How do I know what to work on next?.

[Audio] www.leanuk.org Process A Process B FIFO 3 Pcs Max FIFO: Sets the sequence of production Implies control over in process inventory FIFO- First In First Out 22.

[Audio] www.leanuk.org Supplying Process Consuming Process Supermarket Pull controls production between operations without scheduling Supermarket- Pull System 23.

[Audio] www.leanuk.org #1 #2 #3 #4 Flow Customer Pull # 1 # 2 # 3 # 4 Flow Customer Pull FIFO FIFO Schedule Only One Point 24.

[Audio] www.leanuk.org Establishing an interval 100 Filter D 300 Lubricator C 600 Regulator B 1000 Filter Regulator A Weekly Demand Product Production capability - 400 per day Description.

[Audio] www.leanuk.org Establishing an interval 100 Filter D 400 400 400 400 400 Total: 300 Lubricator C 400 200 Regulator B 200 400 400 Filter Regulator A Fri Thurs Wed Tues Mon Description Product Interval = ? Interval = ?.

[Audio] www.leanuk.org Establishing an interval 20 20 20 20 20 Filter D 400 400 400 400 400 Total: 60 60 60 60 60 Lubricator C 120 120 120 120 120 Regulator B 200 200 200 200 200 Filter Regulator A Fri Thurs Wed Tues Mon Description Product Interval = ?.

[Audio] www.leanuk.org  The amount of work we schedule and take away from the pacemaker  This amount defines the management " audit" cycle – to identify and react to problems  Pitch defines the frequency with which we determine if we are "ahead or behind" and meeting customer demand. Pitch 29 1 Week 1 Day 1 Shift 1 Hour 1 Takt 1 Pitch Learning to See, Rother and Shook, Lean Enterprise Institute, 1998.

[Audio] www.leanuk.org Levelling the Pacemaker 1st Shift 7:00 a.m. 7:30 a.m. 8:00 a.m. 8:30 a.m. 9:00 a.m. 2nd Shift 3:00 p.m. 3: 30 p.m. 4: 00 p.m. 4:30 p.m. 5:00 p.m. A B C D.

[Audio] www.leanuk.org What Makes A Value Stream Lean!  What is our Takt Time?  What is our Finished Goods Strategy for this Value Stream?  Where can we implement Continuous Flow?  Where can we implement FIFO?  Where do we have to use supermarket Pull Systems?  At what Single Point in the process will we Schedule the work (pacemaker) ?  What Interval can we support at the pacemaker?  What increment of work will we consistently measure to help identify variation ( Pitch)? 31.

[Audio] www.leanuk.org Phases of VSM and Change Current State Drawing Successful VS Transformation Key Phases of Value Stream Transformation Awareness Desire Knowledge Capability Reinforcement Post Implementation Implementation Key Phases of Change Planning Business Need Preparation Future State Drawing *Adapted from ADKAR Ineffective Change Management Failure Ineffective VSM Process Management Technical Failure.

[Audio] www.leanuk.org  Leaders participate actively and visibly throughout the transformation  Ensure that sponsorship at each level is helping to deliver a successful transformation  Communicate the need regularly and directly with employees  Identify potential gaps that may delay/ derail the transformation 33 T.J. S.P. M.B. A.B. G.F. E.G. I.T. E.T. U.W. D.C. P.O. T.L. W.R. B.U. C.H. COO Primary Sponsor Sales Technical Quotation Team Contracts Transformation Roles not Defined.

[Audio] www.leanuk.org 34 Techniques to Deepen Knowledge And Capability.

[Audio] www.leanuk.org 35 Organisation / Value Stream Future Current Transition Future Current Transition Future Current Transition Future Current Transition Future Current Transition Future Current Transition Future Current Transition Future Current Transition Future Current Transition Future Current Transition Future Current Transition Future Current Transition Future Feedback Loops & PDCA Linkages Current Transition Future Current Transition Future *Based on Kurt Lewin's Three-Step Change Model.

[Audio] www.leanuk.org 36 A P C D Value Stream & Process Strategic Value Added/ Gemba Fulfilling Customer Needs PDCA Cycle of Learning Feedback Loops & PDCA Linkages A P C D A P C D A P C D A P C D A P C D A P C D A P C D A P C D A P C D A P C D A P C D A P C D A P C D A P C D Current Transition Future Current Transition Future.

[Audio] www.leanuk.org Acme Stamping Steering Bracket Value Stream Improvement Problem Statement/ Background  Acme supplies stamped steel steering brackets ( LH & RH) to State Street Assembly. The product goes through 5 manufacturing processes & shipping.  The customer uses 18,400 pcs/month & requires daily shipments in pallets of 10 trays of 20 brackets. A pallet is either all RH or LH. Current Condition  Lead time for steering bracket from coil steel to shipment = 23.6 days.  Of 23.6 days, only 188 seconds are spent making a bracket.  Large inventories of material between each process.  Long changeover times, downtime in welding. State Street Assembly Michigan Steel Co. 1x daily Production Control Daily Order Weekly Fax 6 Week Forecast 90/ 60/30 Day Forecast Weekly Schedule Daily Shipping Schedule Follow Up  Reviews & involvement of related departments TBD. Other functions: Production Control Material Handling, Purchasing, Maintenance, Human Resources, Finance. Current State Map & Problems Root Cause Analysis / Future State Plan Deliverables Responsible Review CCF at pacemaker Kaizen each CT to >TT Weld uptime to 100% CO reduction to < TT Pull at pacemaker FG = 2 days KB Material handling Levelling Box Pull from Stamping WIP = 1 day CO < 10 min Pull from supplier Info flow Daily delivery RM = 1.5 days Planned Countermeasures Production Control Daily Order Daily Order 6 Week Forecast 90/60/ 30 Day Fcast State Street Assembly Michigan Steel Co. Daily Order OXOX 37 Confirmation of Effect / Target Condition  Reviews & involvement of related departments TBD. Act Standardise successful countermeasures . ─ Are you planning to transform the right value stream ─ Will you have the support of active and visible leadership throughout the VS Mapping/ Transformation. ─ Have you completed all pre-work and preparations ─ If the team struggles to complete the current state map then maybe the prep work was not completed effectively. ─ Evidence of waste, control part and lead time ladder – capability gaps ─ Leadership & management in full attendance to get a real grasp of the situation – Desire / Leadership & management routines ─ Not mapped the control part - Evidence of the 8 Lean guidelines & lead time ladder – capability gap - Employees are defensive and not keen to present plans - it may be highlighting a defensive cultural / mindset Issues If the countermeasures are taking too long, consider: - The team is struggling and needs help (possible capability gaps) - They maybe the wrong countermeasures (check 8 Lean guidelines) - You may have solutions and not countermeasures - Resources have been redirected - Not getting full 100% attendance / support and follow through on actions – Desire or Management Routine issues - Management routines and leadership behaviours are not communicating the need, creating desire or helping to address issues. If the countermeasure are not driving an improvement in business performance, then either the Countermeasures are not being tested effectively or they are the wrong countermeasures (e.g: actions based on waste and not flow) If the process or performance is not being sustained, consider: ─ Either the actions to standardised are not working effectively or the daily management is not maintaining standards. ─ Or additional problems or changes have developed..

[Audio] www.leanuk.org Summary & Questions 38  VSM is a Management Problem Solving Tool  Helps us " Grasp the Situation" and develop a greater understanding of issues impacting the work, transformation and performance.  You can't skip steps in the learning process  Establish an effective transformation plan that considers leadership  Consider the 5 dimension of LTF as you embed the change Current State P D C A P D C A P D C A GtS FutureState Vision GtS GtS 1. Improvement Capability 2. Management Systems & Behaviour 3. Sustaining & Mindsets Future State.

[Audio] www.leanuk.org Thank You 39 The primary role of managers must shift from firefighting to defining, aligning and improving systems. - Shigeo Shingo.