Lean and Agile Management - KeynesYouDigIt/Knowledge GitHub Wiki

The Fog

What is the purpose of this campaign? What is our capacity? What is the goal? Are we ahead or behind? What experiments are we doing now? Next? How much inventory do we have? What skills do we have? What are our processes?

How do your measure value for internal customers? Suppliers?

  • Pull vs. push
  • Reduce variation
  • Don't be short-term, reduce headcount, or look for quick money
  • Transformations can take 3 years to implement
  • You have to do all the tools at once
  • Inventory is not an asset
  • Don't organize by function, organize by value-stream
  • Once a process is standardized, use daily management to maintain it
  • Non-clients: You, the organizational unit, or the budget
  • Job to be done: DIY, service, experience, brand
  • Benefit package: Combination of tangible/intangible, creates client experience
  • Paradox: Rigid specification enables creativity (loose & tight)
  • Business process orientation: Emphasize processes as opposed to hierarhcies. Process-oriented "why" of thinking- outcomes and customers.
  • Define customer needs as outcomes with metrics. Look for underserved outcomes. Evaluate competitors. Size markets. How much will customers pay for improvement?
  • Plan-Do-Check-Act - Deming
  • Problems are treasures- they unlock the next level
  • Flow: One unit at a time
  • Jidoka: Don't ship junk
  • Yokoten: Share knowledge across the company, copy & improve
  • Sensei: Leader. Leads by asking questions.
  • Deshi: Assistant sensei
  • Kaizen: Continuous improvement.
    • Standardize work
    • Develop counter-measures
    • Determine the root cause
    • Hypothesize solution
    • Test hypothesis
    • Implement solution
    • Repeat
  • The ultimate goal is helping people reach their potential
  • Muda: Waste
  • Shusa: Chief engineer
  • What do we need to be successful?
  • Obeya: Big room
  • In knowledge work, value is usable knowledge. Everything else is waste. Too much information is overproduction.
  • Point the river to the sea, define the river banks, then let go.
  • Perfect the process for the consumer, the business, and the employee. Not the function or the boss.

Lean

Working systematically to eliminate all non-value adding processes in order to achieve your goals with the least possible effort, with the least possible waste (what doesn't add value).

  • Make more efficient processes
  • Repetitive lean: Creating more value by continuously eliminating waste
  • Lean consumption: Ensure goods work together, don't waste time, provide what they want/where they want it/when they want it

Lean Wastes

  • Motion
  • Waiting
  • Conveyance
  • Correction
  • Overprocessing
  • Overproduction
  • Work in progress
  • Knowledge

Lean Principles

  • Quality controls
  • JIT production
  • Continuous improvement

Lean Software

  • Eliminate waste
  • Amplify learning
  • Decide as late as possible
  • Deliver as fast as possible
  • Empower the team
  • Build integrity (quality) in
  • See the whole

Management Disciplines

  • Deliver value efficiently to the customer
  • Enable people to lead and contribute to their full potential
  • Discover better ways of working
  • Connect strategy, goal, and meaningful purpose

Agile Manifeso

  • Individuals and interactions over processes and tools
  • Working software over comprehensive documentation
  • Customer collaboration over contract negotiation
  • Responding to change over following a plan

Toyota Production System

Toyota has been open about their processes, but few can imitate them, because they don't buy in at a cultural level. Honda and Nissan have the same problems as Detroit.

  • Tools and practices are not the system itself

Principles

  • Long-term focus
  • Level the workload
  • Stop to get it right
  • Visual controls- Does everyone know what's going on?
  • See it yourself - Go to the Gemba
  • Decide slowly by consensus, implement rapidly
  • JIT
  • Continuous improvement
  • Organizational learning
  • Develop people and partners
  • Have respect for people
  • Do the right process

Organizational Agility

  • Trust
  • Small and flat
  • Honest
  • Experiment
  • Cross boundaries
  • Rapid reskilling

Lean Philosophy

  • Culture change, not just processes
  • 10% success in implementation
  • Need to make decisions at the lowest level possible
  • It's not about reducing headcount

Indicators of success: Reduction in lead time, faster inventory rotation, increase in % of documented procedures

Conditions necessary for implementation:

  • The capacity to simultaneously deploy 5 tools at once
  • Continuous improvement viewpoint
  • View it as a long-term journey
  • Empower the entire chain

Lean Questions

  • Who are our customers?
  • What do they value?
  • Who are our suppliers?
  • What are our most important processes?
  • What are the steps in each process? Which add value?
  • What waste do we have?
  • What can we do to reduce waste?

Products

  • Customers hire products to do jobs for them
    • The job, not the customer, is what matters
  • Every product has a social, functional, and emotional dimension
    • Milkshakes & fast food - A commuting snack

Marketing

  • Create value for customers. Find or create a need.
    • Improve value through people, processes, and power.
  • Use market-based info for decisions. You can use customer requests or complaints, or look at successful competitors.
  • Bring the voice of the customer to the firm
  • Product: Functionality, quality, appearance, package, brand, warranty
  • Price: List, discounts, financing, leasing options, allowances
  • Place: Locations, logistics, channels, coverage, service level, internet
  • Promotion: Advertising, PR, word-of-mouth, message, media, endorsements

For the next step in the value chain:

  • Product: What we deliver
  • Price: Effort to use
  • Place: Where is it needed?
  • Promotion: Know our capabilities

Clients

Can be:

  • An end-user
  • The check-writer
  • The next step in the chain

Tools

  • BPE: Policy deployment, Total Asset Utilization
  • TPS: Kaizen
  • Lean: Increase customer value
  • Agile: Deliver frequently

Agile

Satisfying the customer through frequent delivery of valuable products.

Processes

  • Bad processes will overwhelm good people
  • People need to build their own processes. Look out for side-effects.
  • Continuously improving provides more value, addresses bottlenecks, and frees up resources
  1. Have a process
  2. Follow the process
  3. Improve the process

Improve processes with:

  • Mission review
  • A/B testing
  • "Front line" suggestions
  • Brainstorming
  • Policy deployment
  • 5 Whys
  • Six Sigma
  • Visual Management
  • Competition
  • Incentives
  • TPS

Types:

  • Creative- Scrum, the Lean Start-Up
  • Operational- TPS, Baldrige CI, Kaizen
  • Destructive- Termination

Capability Maturity Model

  1. Processes are anything at all
  2. Processes are defined, documented, practiced
  3. Processes are consistent across the organization
  4. Processes are measured quantitatively & evaluated
  5. Processes are continuously improved

CMM is not a methodology, ignores products, and is only for repetitive tasks.

Four-Step Problem Solving Process

  1. Do I have a problem? What is happening, and what should happen?
  2. Do I know the cause? (5 Whys)
  3. Have I confirmed the cause & effect? (Rapid experimentation)
  4. Have I confirmed the counter-measure?

Process Maps

  • High-level Process Map
    • I/O labeled
    • Information flows labeled with dashed lines
    • Material flows labeled with solid lines
  • Low-level Process Map
    • Narrower scope
    • Rectangles for steps
    • Diamonds for decisions
    • Rectangle with wavy bottom for data
  • Cross-functional/Swim-lane map
    • Who is responsible?
  • Value-stream map
    • Identify value-adds
    • Identify wasteful and potentially wasteful steps