2 breakout session # 205 tim ortel, cpcm, intuitive surgical date 15 april 2008 time 2:10 pm –...
TRANSCRIPT
![Page 1: 2 Breakout Session # 205 Tim Ortel, CPCM, Intuitive Surgical Date 15 April 2008 Time 2:10 PM – 3:10 PM Can Contracting Be “Leaned”?](https://reader030.vdocuments.us/reader030/viewer/2022032313/56649e735503460f94b722e3/html5/thumbnails/1.jpg)
![Page 2: 2 Breakout Session # 205 Tim Ortel, CPCM, Intuitive Surgical Date 15 April 2008 Time 2:10 PM – 3:10 PM Can Contracting Be “Leaned”?](https://reader030.vdocuments.us/reader030/viewer/2022032313/56649e735503460f94b722e3/html5/thumbnails/2.jpg)
2
Breakout Session # 205
Tim Ortel, CPCM, Intuitive Surgical
Date 15 April 2008
Time 2:10 PM – 3:10 PM
Can Contracting Be “Leaned”?
![Page 3: 2 Breakout Session # 205 Tim Ortel, CPCM, Intuitive Surgical Date 15 April 2008 Time 2:10 PM – 3:10 PM Can Contracting Be “Leaned”?](https://reader030.vdocuments.us/reader030/viewer/2022032313/56649e735503460f94b722e3/html5/thumbnails/3.jpg)
3
What is Lean?
• No “Fat”• Streamline flow• Optimized process• Promotes Value Add• Reduces
– Cost– Lead time
• A philosophy?• A process?• An end result?• Continuous
improvement• “Good enough is not
good enough”
![Page 4: 2 Breakout Session # 205 Tim Ortel, CPCM, Intuitive Surgical Date 15 April 2008 Time 2:10 PM – 3:10 PM Can Contracting Be “Leaned”?](https://reader030.vdocuments.us/reader030/viewer/2022032313/56649e735503460f94b722e3/html5/thumbnails/4.jpg)
4
Lean application
• Typically in manufacturing• Promotes pull versus push• Integrates people, process, tools to avoid
waste• At work in:
– Automotive, electronics, medical– Aerospace, construction
![Page 5: 2 Breakout Session # 205 Tim Ortel, CPCM, Intuitive Surgical Date 15 April 2008 Time 2:10 PM – 3:10 PM Can Contracting Be “Leaned”?](https://reader030.vdocuments.us/reader030/viewer/2022032313/56649e735503460f94b722e3/html5/thumbnails/5.jpg)
5
Lean in non-production?
• Insurance claims
• Invoice payments
• Order management
• Purchase order process
• Is there “lean”ed contracting?– Yes!!
![Page 6: 2 Breakout Session # 205 Tim Ortel, CPCM, Intuitive Surgical Date 15 April 2008 Time 2:10 PM – 3:10 PM Can Contracting Be “Leaned”?](https://reader030.vdocuments.us/reader030/viewer/2022032313/56649e735503460f94b722e3/html5/thumbnails/6.jpg)
6
No more “Muda”
無駄
![Page 7: 2 Breakout Session # 205 Tim Ortel, CPCM, Intuitive Surgical Date 15 April 2008 Time 2:10 PM – 3:10 PM Can Contracting Be “Leaned”?](https://reader030.vdocuments.us/reader030/viewer/2022032313/56649e735503460f94b722e3/html5/thumbnails/7.jpg)
7
Tools that support lean
• Flow charts• Value stream maps• Pareto charts• Failure analysis• Cross training• Fishbone charts• COMMWIP
• 5 Whys• Just In Time• Kanban• Kaizen/Blitz• Force Field Analysis• Single Piece Flow• 5S
![Page 8: 2 Breakout Session # 205 Tim Ortel, CPCM, Intuitive Surgical Date 15 April 2008 Time 2:10 PM – 3:10 PM Can Contracting Be “Leaned”?](https://reader030.vdocuments.us/reader030/viewer/2022032313/56649e735503460f94b722e3/html5/thumbnails/8.jpg)
8
Sample “Fishbone” Ishikawa Chart
![Page 9: 2 Breakout Session # 205 Tim Ortel, CPCM, Intuitive Surgical Date 15 April 2008 Time 2:10 PM – 3:10 PM Can Contracting Be “Leaned”?](https://reader030.vdocuments.us/reader030/viewer/2022032313/56649e735503460f94b722e3/html5/thumbnails/9.jpg)
9
Pareto Chart
![Page 10: 2 Breakout Session # 205 Tim Ortel, CPCM, Intuitive Surgical Date 15 April 2008 Time 2:10 PM – 3:10 PM Can Contracting Be “Leaned”?](https://reader030.vdocuments.us/reader030/viewer/2022032313/56649e735503460f94b722e3/html5/thumbnails/10.jpg)
10
Flow Chart Example
![Page 11: 2 Breakout Session # 205 Tim Ortel, CPCM, Intuitive Surgical Date 15 April 2008 Time 2:10 PM – 3:10 PM Can Contracting Be “Leaned”?](https://reader030.vdocuments.us/reader030/viewer/2022032313/56649e735503460f94b722e3/html5/thumbnails/11.jpg)
11
Flow Chart Example
![Page 12: 2 Breakout Session # 205 Tim Ortel, CPCM, Intuitive Surgical Date 15 April 2008 Time 2:10 PM – 3:10 PM Can Contracting Be “Leaned”?](https://reader030.vdocuments.us/reader030/viewer/2022032313/56649e735503460f94b722e3/html5/thumbnails/12.jpg)
12
Sample Value Stream Map
...
![Page 13: 2 Breakout Session # 205 Tim Ortel, CPCM, Intuitive Surgical Date 15 April 2008 Time 2:10 PM – 3:10 PM Can Contracting Be “Leaned”?](https://reader030.vdocuments.us/reader030/viewer/2022032313/56649e735503460f94b722e3/html5/thumbnails/13.jpg)
13
Sample Value Stream Map (www.sme.org)
![Page 14: 2 Breakout Session # 205 Tim Ortel, CPCM, Intuitive Surgical Date 15 April 2008 Time 2:10 PM – 3:10 PM Can Contracting Be “Leaned”?](https://reader030.vdocuments.us/reader030/viewer/2022032313/56649e735503460f94b722e3/html5/thumbnails/14.jpg)
14
Force Field Analysis
![Page 15: 2 Breakout Session # 205 Tim Ortel, CPCM, Intuitive Surgical Date 15 April 2008 Time 2:10 PM – 3:10 PM Can Contracting Be “Leaned”?](https://reader030.vdocuments.us/reader030/viewer/2022032313/56649e735503460f94b722e3/html5/thumbnails/15.jpg)
15
Why take the lean journey?
• Takes care of customers – adds value• Improves enterprise processes• Develops employees, enhances teamwork• Makes improvement a way of life, not a fad• Reduces lead times, costs, variation• Makes processes simple, repeatable, sustainable• Competitors will go lean if you don’t (and are?)
![Page 16: 2 Breakout Session # 205 Tim Ortel, CPCM, Intuitive Surgical Date 15 April 2008 Time 2:10 PM – 3:10 PM Can Contracting Be “Leaned”?](https://reader030.vdocuments.us/reader030/viewer/2022032313/56649e735503460f94b722e3/html5/thumbnails/16.jpg)
16
Let’s COMMWIP-Proof the process
• Do you want to achieve “lean”ed?
• Why?
• No more “MUDA” – waste
• Build up trust in process
• Improve (& simplify) process
![Page 17: 2 Breakout Session # 205 Tim Ortel, CPCM, Intuitive Surgical Date 15 April 2008 Time 2:10 PM – 3:10 PM Can Contracting Be “Leaned”?](https://reader030.vdocuments.us/reader030/viewer/2022032313/56649e735503460f94b722e3/html5/thumbnails/17.jpg)
17
What is waste (MUDA)
• Why eliminate waste?
– Customers don’t want to pay for it– Employees don’t like it– Suppliers don’t understand it
– “Any element of processing or distribution that adds no value to the final product (service) – waste only adds cost & time” (& frustration)
![Page 18: 2 Breakout Session # 205 Tim Ortel, CPCM, Intuitive Surgical Date 15 April 2008 Time 2:10 PM – 3:10 PM Can Contracting Be “Leaned”?](https://reader030.vdocuments.us/reader030/viewer/2022032313/56649e735503460f94b722e3/html5/thumbnails/18.jpg)
18
COMMWIP – the 7 deadly wastes
• Correction• Overproduction• Motion• Material Movement• Waiting• Inventory• Process
• Overproduction • Waiting • Transportation • Inventory • Motion • Over processing • Defective units
![Page 19: 2 Breakout Session # 205 Tim Ortel, CPCM, Intuitive Surgical Date 15 April 2008 Time 2:10 PM – 3:10 PM Can Contracting Be “Leaned”?](https://reader030.vdocuments.us/reader030/viewer/2022032313/56649e735503460f94b722e3/html5/thumbnails/19.jpg)
19
Sizing up COMMWIP wasters
• How you identify waste– Brainstorming, flow charts, pareto charts
• How you document it– Fishbone (Ishikawa), pareto charts
• How you fix it– Brainstorm, failure mode analysis – Flow chart, force field analysis
![Page 20: 2 Breakout Session # 205 Tim Ortel, CPCM, Intuitive Surgical Date 15 April 2008 Time 2:10 PM – 3:10 PM Can Contracting Be “Leaned”?](https://reader030.vdocuments.us/reader030/viewer/2022032313/56649e735503460f94b722e3/html5/thumbnails/20.jpg)
20
Correction (COMMWIP)
• Doing things over again, rework, repeat• Leads to added waiting, motion?• Types of contract waste
– Wrong specification– Wrong approvals– Wrong metrics, measures– Wrong process design
![Page 21: 2 Breakout Session # 205 Tim Ortel, CPCM, Intuitive Surgical Date 15 April 2008 Time 2:10 PM – 3:10 PM Can Contracting Be “Leaned”?](https://reader030.vdocuments.us/reader030/viewer/2022032313/56649e735503460f94b722e3/html5/thumbnails/21.jpg)
21
Overproduction (COMMWIP)
• Building too many – Poor yields, bad forecast, variation
• Types of contract wasters– Unnecessary, & too many reports– Excessive copies– Process redundancy– Too many drafts before final– Over-specification
![Page 22: 2 Breakout Session # 205 Tim Ortel, CPCM, Intuitive Surgical Date 15 April 2008 Time 2:10 PM – 3:10 PM Can Contracting Be “Leaned”?](https://reader030.vdocuments.us/reader030/viewer/2022032313/56649e735503460f94b722e3/html5/thumbnails/22.jpg)
22
Motion (COMMWIP)
• Unnecessary work movements• Extra steps which don’t add value• Multiple repeat steps in process• Contract wasters
– Excessive, unnecessary approvals– Extra process steps (reviews, emails)– Excessive meetings (or wrong focus)
![Page 23: 2 Breakout Session # 205 Tim Ortel, CPCM, Intuitive Surgical Date 15 April 2008 Time 2:10 PM – 3:10 PM Can Contracting Be “Leaned”?](https://reader030.vdocuments.us/reader030/viewer/2022032313/56649e735503460f94b722e3/html5/thumbnails/23.jpg)
23
Waiting (COMMWIP)
• Lots of handoffs in process
• Queues, buffers
• Reviews, approvals
• Waiting due to meetings, decisions signoffs
• Unnecessary meeting participation
• Lacking a “KISS” perspective
![Page 24: 2 Breakout Session # 205 Tim Ortel, CPCM, Intuitive Surgical Date 15 April 2008 Time 2:10 PM – 3:10 PM Can Contracting Be “Leaned”?](https://reader030.vdocuments.us/reader030/viewer/2022032313/56649e735503460f94b722e3/html5/thumbnails/24.jpg)
24
Processing (COMMWIP)
• Long process flow
• Complex process design
• Serial versus concurrent steps
• Redundant steps and/or approvals
• Extra time to rework, fix
• “We’ve always done it this way”
![Page 25: 2 Breakout Session # 205 Tim Ortel, CPCM, Intuitive Surgical Date 15 April 2008 Time 2:10 PM – 3:10 PM Can Contracting Be “Leaned”?](https://reader030.vdocuments.us/reader030/viewer/2022032313/56649e735503460f94b722e3/html5/thumbnails/25.jpg)
25
Kaizen 改善• 改 ('kai') KAI - “change” “action to correct”• 善 ('zen') ZEN - “good”, “for better”
• A culture of sustained continuous improvement• Eliminate waste in systems and processes• Begins & ends with people • Involved leadership guidance• Continuously improve: quality, low cost, & delivery• Transforms companies to 'Superior Competitors'
![Page 26: 2 Breakout Session # 205 Tim Ortel, CPCM, Intuitive Surgical Date 15 April 2008 Time 2:10 PM – 3:10 PM Can Contracting Be “Leaned”?](https://reader030.vdocuments.us/reader030/viewer/2022032313/56649e735503460f94b722e3/html5/thumbnails/26.jpg)
26
Kaizen – what is this? 改善
• Cross functional improvement team
• A project – to solve a problem, improve
• Evaluate and measure “as is”, “before”
• Brainstorm “could be, should be”
• Prototype solutions, measure “after”
• Cross train, then implement
![Page 27: 2 Breakout Session # 205 Tim Ortel, CPCM, Intuitive Surgical Date 15 April 2008 Time 2:10 PM – 3:10 PM Can Contracting Be “Leaned”?](https://reader030.vdocuments.us/reader030/viewer/2022032313/56649e735503460f94b722e3/html5/thumbnails/27.jpg)
27
Kaizen sequence of events• Define problem• Define root cause: (fishbone)• Research root cause: (brainstorm, paretos)• Define “as is” process – draw it: (flow chart)• Brainstorm fixes, improvements (force field)• Structure “could be” process – draw it (flow chart)• Prototype a “should be” process – cross training• Change process (use force field analysis)• Measure before & after – define metrics!!!
![Page 28: 2 Breakout Session # 205 Tim Ortel, CPCM, Intuitive Surgical Date 15 April 2008 Time 2:10 PM – 3:10 PM Can Contracting Be “Leaned”?](https://reader030.vdocuments.us/reader030/viewer/2022032313/56649e735503460f94b722e3/html5/thumbnails/28.jpg)
28
The PDCA cycle
PLAN
DO
CHECK
ACT/ADJUST
![Page 29: 2 Breakout Session # 205 Tim Ortel, CPCM, Intuitive Surgical Date 15 April 2008 Time 2:10 PM – 3:10 PM Can Contracting Be “Leaned”?](https://reader030.vdocuments.us/reader030/viewer/2022032313/56649e735503460f94b722e3/html5/thumbnails/29.jpg)
29
Value Stream Map Example(www.lean.org)
![Page 30: 2 Breakout Session # 205 Tim Ortel, CPCM, Intuitive Surgical Date 15 April 2008 Time 2:10 PM – 3:10 PM Can Contracting Be “Leaned”?](https://reader030.vdocuments.us/reader030/viewer/2022032313/56649e735503460f94b722e3/html5/thumbnails/30.jpg)
30
From “muda” to “shinrai”
無駄
価値
信頼
Muda “waste”
Kachi “value”
Shinrai “trust”
![Page 31: 2 Breakout Session # 205 Tim Ortel, CPCM, Intuitive Surgical Date 15 April 2008 Time 2:10 PM – 3:10 PM Can Contracting Be “Leaned”?](https://reader030.vdocuments.us/reader030/viewer/2022032313/56649e735503460f94b722e3/html5/thumbnails/31.jpg)
31
No more “Muda”
無駄
![Page 32: 2 Breakout Session # 205 Tim Ortel, CPCM, Intuitive Surgical Date 15 April 2008 Time 2:10 PM – 3:10 PM Can Contracting Be “Leaned”?](https://reader030.vdocuments.us/reader030/viewer/2022032313/56649e735503460f94b722e3/html5/thumbnails/32.jpg)
32
Intuitive Surgical
![Page 33: 2 Breakout Session # 205 Tim Ortel, CPCM, Intuitive Surgical Date 15 April 2008 Time 2:10 PM – 3:10 PM Can Contracting Be “Leaned”?](https://reader030.vdocuments.us/reader030/viewer/2022032313/56649e735503460f94b722e3/html5/thumbnails/33.jpg)
33
Buying a robotics surgery system
Customer Need
Legal Review
SalesContract
ShipInstall
Service
BuildMake To
Stock
![Page 34: 2 Breakout Session # 205 Tim Ortel, CPCM, Intuitive Surgical Date 15 April 2008 Time 2:10 PM – 3:10 PM Can Contracting Be “Leaned”?](https://reader030.vdocuments.us/reader030/viewer/2022032313/56649e735503460f94b722e3/html5/thumbnails/34.jpg)
34
Why “lean”ed
• Lean is a tool: leverages process, projects
• COMMWIP-proofing enhances lean
• Kaizen: a project tool (within lean)
• “Good enough is not good enough”
• It’s not just enough to win –– Better yourself in the process also!
![Page 35: 2 Breakout Session # 205 Tim Ortel, CPCM, Intuitive Surgical Date 15 April 2008 Time 2:10 PM – 3:10 PM Can Contracting Be “Leaned”?](https://reader030.vdocuments.us/reader030/viewer/2022032313/56649e735503460f94b722e3/html5/thumbnails/35.jpg)
35
Checking out “lean”ed contracting
• “Applying Lean Thinking to Govt Contracting”– Dr. Rose M. Smith (On Line Powerpoint)
• Air Force Smart Operations 21 (AFSO21)– http://www.newsblaze.com/story
• DAU – Lean Enterprise Model– http://www.dau.mil/educept
• 754th Electronics Systems Group– http://integrator.hanscom/af.mil/2007
![Page 36: 2 Breakout Session # 205 Tim Ortel, CPCM, Intuitive Surgical Date 15 April 2008 Time 2:10 PM – 3:10 PM Can Contracting Be “Leaned”?](https://reader030.vdocuments.us/reader030/viewer/2022032313/56649e735503460f94b722e3/html5/thumbnails/36.jpg)
36
You can “lean” your contracts
• Use kaizen (“KISS”) to simplify, optimize• Yet comply with legal policy/guidelines
– FAR, State, Local, Sarbanes Oxley
• When processes are “discretionary”– “Think out of the box”– “Draw outside of lines”– No more “That’s the way we always have..”“That’s the way we always have..”
![Page 37: 2 Breakout Session # 205 Tim Ortel, CPCM, Intuitive Surgical Date 15 April 2008 Time 2:10 PM – 3:10 PM Can Contracting Be “Leaned”?](https://reader030.vdocuments.us/reader030/viewer/2022032313/56649e735503460f94b722e3/html5/thumbnails/37.jpg)
37
Remember
• Process should be “value add”
• Process should serve customers
• Do users trust the process?
• Be a change agent (vs. an observer)
• Think from a “clean” whiteboard
• Keep a Plan, Do, Check, Adjust focus