‘Lean’ Continuous Improvement

Heads & Managers Forum1/12/2014 1

Agenda

1. Background & Strategic Context2. Initial Progress 3. Training Update 4. Introduction of Damian Morris, Leading

Edge Group

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UCC Strategic Plan 2013-17

Project 21Introduce lean practices to the key processes of the University

• Action initiated in May 2014• Leading Edge awarded the training contract

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LEAN - What is it?

A collaborative team approach to simplify processes and to reduce the time they take

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Why?

• Highlighted by staff as an opportunity • A technique to simplify complex processes • Provides a staff development opportunity

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Training Levels

Black Belt: expert level

Green Belt: project leader level

Yellow Belt: 2-day training

White Belt: 1-day familiarisation training

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Key Points from initial Staff Briefing

• Learn from others

• Confirm support from budget holders

• Start small

• Pilot the training

• Initiate all levels of training at once

• Establish a Steering Group

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Initial Steering Group(for the first 12 months)

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Verdi Ahern (Campus Accommodation)

Adrienne Buckley (Finance)

Mary Byrne (CACSSS)

Ger Cully (IT Services)

Margo Hill (Registrars)

Gary Hurley (IEO)

Alan Kelly (SEFS)

Maeve Lankford (HR)

Mary McSweeney (UCC AL)

Niamh McGettrick-Cronin (B&E)

John McNulty(Registrars)

Kathryn Neville (M&H)

Rónán Ó Dubhghaill (Ext Relations)

Tom O’Grady (Tyndall)

Seamus O’Reilly (B&L)

Dave Sammon (B&L)

Eileen Savage (M&H)

Mark Stanton (SU)

Steering GroupTerms of Reference for the first 12 months

• Influence project selection • ensure alignment with strategic plan and local needs

• Provide support and advice for staff • Facilitate cross-office engagement• Provide support for key projects • Report regularly to UMTS• Set realistic goals to support CI in UCC• PR Continuous Improvement across UCC

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12 Month Plan 2014/15

• Initial Governance• Setup a cross university steering group

• Strategy• Develop a 5-year strategy

• Communications• Produce a website and a communications plan

• Training • Complete 2 Green Belt training programmes • 20 participants to achieve GB certification• Complete 2 Yellow Belt training programmes• Complete 2 White Belt training programmes• Select 2 cross-office Green Belt projects

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Progress on Training

• 7 Finance staff completed Green Belt training

• 12 staff on Green Belt training

• 15 staff completed Yellow Belt training

• 42 staff completed White Belt training

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Green Belt Training (Finance)

• Tyndall National Institute Transfer to Agresso Procurement System Adrienne Buckley

   • Identification and Elimination of Waste in the process of

applying Tyndall Funding to Students Account Mary Martin

    • Report Automation Clare Lehane

• Improving the Expense Claim Process in University College Cork Catherine Donovan

    • Bank Account Rationalisation Mary McSweeney

           • Elimination of Manual Intervention in the Allocation of

Pension Costs Tom Cremin

          • Improving the Email Management Process in the

Procurements and Contracts Office Fiona Thompson

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Thank You

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+LEAN Training

About Leading Edge Group

Established: 1995

International Locations: Ireland, Canada and Australia (Dubai Q1 2015)

Employs: Over 40 staff/consultants

Provider of: Continuous improvement consulting and training – improving efficiencies and productivity

Client Sectors: healthcare; life sciences; general manufacturing; supply chain management; public sector; financial services etc.

Track Record: Over 15 international Lean transformations in the last 5 years

THE LEADING EDGE GROUP

Training and Education

Consulting Services

Leading Edge Group Models

Accredited Education

Leadership / Change Management

Competency-Based Skills

Customised Training Solutions

What We Do

Diagnostic / Analysis

Lean Transformation

Tailor-made CI Solutions

Supply Chain Optimization

LEAN Model

LEGACY Model

LEARN Model

CIMM / MentorAssessment

www.leadingedgegroup.com

Working together with UCC

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Executive Education

Masters in Supply Chain Management (NFQ9)

Certificate / Diploma in Supply Chain Management (NFQ7)

Delivery of modules in association with

Department of Food Business and Development & ACE

UCC Staff Training / Professional Development Administration and Services Belts Participants - White Belt 72, Yellow Belt 15 & Green Belts 19

School of Economics – MBS Economics of Business Practice

Thesis - The Influences of Lean Education

Introducing Lean

The burning platform: Without changing the way we do our work, even without considering the additional pressures of the current financial climate, we will be unable to maintain our success, and our competition is always raising the bar.

Lean Thinking is now being used in the public and private sectors around the world to improve:

– Customer service– Quality– Efficiency– Staff morale– Internal communication and cooperation

Lean in Higher Education works by applying the same principles as those of Lean's origins.

Managing the White Space

Value Add

What the customervalues

Non Value Add

Waste

All organisations have value streams; process conduits to deliver customer value.

In a typical business, Value Add represents less than 5% of the total lead time.

Lean is all about identifying, reducing and managing the white space.

Two Key Concepts

Lean is a philosophy of work, an approach that has grown from the application of two key concepts:

Current State

Future State

1. Continuous improvement (Kaizen)Continuously looking at your work processes and striving to improve them (using the Plan-Do-Check-Act or DMAIC improvement cycle).

2. Respect for peopleRemembering that our staff are our greatest asset. It is, after all, the staff of an organisation who know what works well and what needs to be improved, and who have the ability to suggest and make the necessary improvements.

The Five Lean Principles

• Understand what it is that your customer values and express that value in terms of Quality, Delivery and Cost

Specify value in the customer’s terms

• The series of steps or actions that collectively build value for the customer, from request to delivery, capturing data to characterise the performance

Identify and map the value stream

• Implement a process that quickly produces the value-creating activities, without backtracking or rework

Make value flow

• Ensure that the process is driven by pull from the customer, rather than pushed by the producer/supplier of the process

Pull from later processes to earlier ones

• Constantly learn, improve and sustain, supporting and respecting people

Continually strive for perfection

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Product/Service Delivery

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Employees

Processes

Information

Customers

Inputs

Quality

Cost

Delivery

Outputs

Inflexibility

Variation

Waste

Sources of LossLean is about attacking these sources of loss

Action Action

Process

Sources of Performance Loss

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Traditional view: do whatever it takes to get results. Lean view: people utilising standard processes to get results

Traditional view: sorry, that’s not our departments responsibility.

Lean view: demand is increasing beyond our colleagues teams capacity, we know how to do this work and we have available capacity, lets help!

Traditional view: that’s the way we have always done this work. Lean view: if I can identify waste, I can do something to reduce it.

Waste: TIM WOODS Transportation: Unnecessary movement of materials, people, information,

equipment or paper.

Inventory: Excess stock, unnecessary files and copies, extra supplies.

Motion:Unnecessary walking and searching. Things not within reach or readily accessible.

Waiting: Idle time that causes the workflow to stop, such as waiting for signatures, machines, phone calls.

Over-processing: Processing things that don't add value to the customer, such as asking for student details multiple times, excessive checking or duplication.

Over-production: Producing either too much paperwork / information, or producing it before it is required. This consumes resources faster than necessary.

Defects: Work that needs to be redone due to errors (whether human or technical) or because incorrect or incomplete information was provided.

Skills Under-utilisation: Not using the full potential of staff by wasting available knowledge, skills and experience. 24

Activities Breakdown

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NNVA

VA

Employeeactivities

NVA

Value creationActivities that

directly add valueto the product

WasteWork that does not

add value to the product

Necessary supporting activities.

Non value adding, but unavoidable

activities

“Lean is about improving by cutting out wasteful activities, reducing non-value added activities and creating more time for value-added activities”

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Kaizen:Continuous Improvement Kaizen: many small changes for the better

Without a standard way of working, there can be no improvement.

Standards are the basis for comparison (before/after)

Improvements are applied value stream by value stream

Standardised Problem Solving Methodology (DMAIC or PDCA)

DMAIC Process

27 Powerful Problem Solving Process. Alternative to PDCA. More Data Focus.

A3 Problem Solving Tool

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1. 1.

2. 2.

3. 3.

4. 4.

Is:

Problem statement:

Countermeasure Potential Impact on target

1 1

2 2

3 3

4 4

5 5

1

2

3

4

7. Monitor Results & Process (CONTROL)

Department Organisation objective

Start date & planned duration

4. Analyse the Root Cause (ANALYSE)

Stakeholders (name & role)A3 No. and Name

1. Clarify the problem (DEFINE)

Team members (name & role)

Team Leader (name & 'phone ext)

3. Set the Target

6. Implement Countermeasure (IMPROVE)

8. Standardise & Share Success (CONTROL)

2. Breakdown the problem (MEASURE)

Is not:

5. Develop Countermeasures (ANALYSE)

Lean Leadership

For Lean to provide the most benefit to an organisation, it must become part of the 'philosophy' of that organisation...the way we work.

The best Lean organisations are always thinking about how they can improve what they do...they are always closely aligned with customer and stakeholder requirements and know how their performance levels for all value streams.

And that ultimately leads us to better performing organisations

Better Customer service Higher Quality Greater Efficiency Improved Staff morale Excellent Internal communication and

cooperation

Initial findings from Thesis:The Influences of Lean Education Influence on Student

– Has Lean has changed my way of thinking – Positive 82.1%

– Has Lean has been useful to my job – Positive 77.9%

Quality of course

– Quality of course material – Excellent / Good 81.5%

– Knowledge of the trainer - Excellent / Good 81.9%

(Note Initial findings from Thesis conducted by S Clancy MBS Economics of Business Practice)

Case Study – UCC Finance Department

Focused on Tyndall National Institute procurement process

– Project team – 9 Members

– Waste Walk, Brainstorming, VSM, Kaisen, Identify waste, risk register, 5 Why’s

– Timeline May 2014 – Nov 2014 (including training)

Impact

– 1 FTE moved to a value adding role in project set up

– Recurring annual savings €66k

– Quality improvement in process

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Questions?

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