Kaizen Event Agenda
Kaizen for ProEdTech: Part B
Elna Hamp
JWI 550 Operations Management
Dr. Michael Laverty
August 4, 2019
Potential Kaizen Events
The value stream map used in Part A’s assignment outlines the order processing from our fifteen websites which begins with a customer input an order. There are three opportunities across the value stream that denote a Kaizen they are. Comment by Michael Laverty: When a customer inputs an order Comment by Michael Laverty: Opportunity
1. Step #1 – Customer input of order on websites. Step #1 details were not included in the value stream map in Appendix A, but there are known issues that ultimately impact customer delivery and satisfaction that should be reviewed, evaluated and documented before a Kaizen is scheduled.
2. Step #2 - #5 – Download of the .csv files, input of orders in advantage, QCing order and fixing orders. The error rate of steps #2 - #5 is 25%. Impact is significant:
a. holds up processing of credit cards for the entire batch until all orders are corrected – impacts cash flow, customer fulfilment, and customer satisfaction
b. continuance of errors flows to credit card process – impacts credit card standings, rework to call customer, cash flow, customer fulfilment, and customer satisfaction
3. Steps #6 - #7 – Process of credit cards and fix credit card submission. Errors start with steps #1 - #5. There are known issues that are impactful in steps #6 and #7, but Kaizen’s need to be performed on Step #1 though Step #5 first. After completion of these events we will move to Steps #6 - #7. Comment by Michael Laverty: Excellent detail provided here
Kaizen Event Deployed and Justification
From above, the executive has chosen Step #2 through Step #5. A study was done on five different days and the error rate was 25%. The sales team who receives customer compliant calls believes this error rate is higher than 25%. The current combined lead time (LT) is 32 hours and prep time (PT) is 13 hours. Both times are anecdotal and need to assessed by a “gemba walk” which will be done during the Kaizen event (Markovitz, 2014). More work needs to be done to determine the error rate benchmark and LT and PT, but the error rate is significant and impacts cash flow, customer fulfilment, customer satisfaction and employee satisfaction. Comment by Michael Laverty: Excellent supporting detail!
Kaizen Objective
The object is to reduce the error rate from 25% to 10%, LT from 32 hours to 15 hours, and PT from 13 hours to 9 hours. Comment by Michael Laverty: Good, we need a date for completion
Kaizen Scope
The scope will focus on Step # 2 through Step #5. We may uncover issues that impact steps #1, #6 , #7 and #8, but these will be put on a parking lot list for later exploration. The below bottlenecks highlighted in the VSM for Assignment A will not be part of the Kaizen scope they are (Martin, 2014):
1. Lack of API’s between the systems: Websites, Advantage and LMS.
2. Credit cards can only be processed by one person on our operations team.
3. We have approved other team members and cross-training is needed to remove this bottleneck.
4. Attendance issues on the IT and Operations team hold up processing of the spreadsheets, inputting orders and QCing of the orders. Cross-training is needed to ensure that work does not stop when employees are out on PTO and review of attendance needs to be done.
Kaizen Event Agenda
Comment by Michael Laverty: Quality selection fo lean tools!
Comment by Michael Laverty: Quality rationale delivered here!
Kaizen Event Rational Comment by Michael Laverty: Rationale
Kaizen Events Explained w/ Number of Days
This kaizen event will occur in Delhi, India. Pre-event activities for team members will focus on half sessions on specific lean tools that we will use during the event. Elna Hamp and Deepak Sehrawt both have training in Six Sigma. Elna was champion of many projects during her employment at United Healthcare. Deepak is a Lean Six Sigma Green Belt and will facilitate the sessions. Deepak will conduct half-hour sessions before the event to train the team on lean tools (see pre-event planning). Half-hour sessions before the event are needed to review the tools and concepts so the Kaizen event can be completed in three days. Deepak will also be accountable for pre-event tasks including: Kaizen schedule, Kaizen Charter, high-level Value Stream Map (Appendix A), and development of tools presentations for the kaizen event including: Why Kaizen, SIPOC, Gemba Walk, TIM U WOODS, Poka-yoke, and C&E Matrix. All materials for team members will be provided for the event (sticky notes, pens, pencils, printed materials, etc.)
The first day consists of reviewing Kaizen Charter, current high-level VSM, developing SIPOC, a GEMBA walk, and the start of documenting the current state. The second day consists of a review of concepts and activities that will help the team understand waste, variation, ranking programs, and brainstorm ways to improve the current process. All of these set up the mapping of the future state, which will start the afternoon of the second day. The last and third day consists of finalizing the future state, drafting an implementation plan, and preparing and presenting a plan and getting buy-off from the Executive Team. The entire Executive Team will attend the following sessions each day: Welcome, Lunch, Closing Recaps at the end of each day, and Company Event.
The event deliverables ultimately conclude in an implementation plan presented to the Executive team. Other desired outcomes for the meeting include: improved teamwork, improved personal discipline, improved morale, creating quality circles, and encouraging and rewarding improvement. To ensure these desired outcomes the following is required: pre-planning, Executive Team enthusiastic buy-in, qualified facilitator, defining the scope of the event, determining success metrics, and accepting and acting on feedback during the session (Roussel, n.d.).
Sequence for Session Topics
The sequence for session topics is to create both a current and future state map of the process which will culminate in an implementation plan presented to the Executive Team. Activities each day will help team members gain an understanding of the tools used for process improvement, and gain insight into the value of the tools to improve our processes. The is the first Kaizen event that team members have attended. These same team members will be attending other events that will be scheduled at a later date.
How Agenda Supports the Kaizen Objectives and Scope
The Kaizen event is directly focused on Steps #2 through #5 and minimizing the error, LT and PT for these steps. Likely discussions that cover other steps will be documented on Parking Lot to ensure focus on Steps #2 through #5. Kaizen event will culminate in presentation and buy-off from the Executive Team.
Lean Tools Used – Definition
Definitions taken from: (George, 2005), (Six Sigma Tools, n.d.), and Wikipedia
Appendix A - Value Stream Map
References
George, M. L., Rowlands, D., Price, M., & Maxey, J. (2005). The Lean Six Sigma Pocket Toolbook. New York: McGraw-Hill.
Markovitz, D. (2014, November 02). Go to where the actual work is being done. Retrieved August 02, 2019, from https://hbr.org/2014/03/go-to-where-the-actual-work-is-being-done
Martin, K. & Osterling, M. (2014). Value Stream Mapping. New York, NY: Mc Graw-Hill
Roussel, J. (n.d.). Checklist for planning an Awesome Kaizen event. Retrieved August 03, 2019, from https://blog.kainexus.com/improvement-disciplines/kaizen/kaizen-events/planning-checklist
Six Sigma tools & techniques. (n.d.). Retrieved August 03, 2019, from https://asq.org/quality-resources/six-sigma/tools
Day 1Day 1
TimeSession Topic/ObjectiveLean ToolsOutput/DeliverablesRationale
8:00 - 8:15Welcome
Key deliverables for meeting:
1. improved teamwork
2. improved personal discipline
3. improved morale
4. create quality circles
5. encourage and reward improvement
6. completion of future state,
implementation plan and presentation to
Executive Team
Welcome by champion (Elna Hamp). Explain my lean
and six sigma background, hiring of Deepak
(facilitator) to lead lean and discuss why lean is
important to our success. First half of day will
include senior leadership to underscore importance
of project.
8:15 - 8:45Team introductions
All team members have not worked together;
introductions include a fun icebreaker activity with
treats
8:45 - 9:00
Review of agenda and
expectations (ground rules)
Kaizen Schedule, Parking Lot List
Review and make necessary changes to
Kaizen Schedule
Understanding of the schedule, discuss any conflicts
and set expectations - make changes to schedule if
necessary
9:00 - 9:15Morning break
9:15 - 9:45
Review and make changes to
Kaizen Charter
Kaizen Charter
Review, develop, discuss and gain
consensus on Kaizen Charter
Review charter and get buy-in from team; reward
participation in activity to encourage ongoing
participation
9:45 - 10:00
Review Value Stream Map
(VSM) and discuss current
issues
VSM
Review, develop, discuss and gain
consensus on VSM
Review purpose of VSM and VSM developed for
Kaizen, pointing out negative impacts to customers
10:00 -
10:30
Develop SIPOCSIPOC
Review, develop, discuss and gain
consensus on SIPOC
Review what a SIPOC is and they importance; develop
SIPOC to set stage for GEMBA and current-state
documentation in the afternoon
10:30 -
12:00
GEMBA WalkGEMBACompletion of GEMBA Walk
Review GEMBA, importance and complete GEMBA
walk which will help with current state activity and
needed improvements
12:00 - 1:00Lunch
Senior leaders will join; each leader should sit at
different tables to get to know Kaizen team members
focusing on non-business discussions
1:00 - 3:00Document current state
Process mapping, Swim Lane Flow
Chart, Post-it note (PIN) process
map
Review, develop, discuss and gain
consensus on current state
PIN map the current state to understand timing of
steps, who is reponsible, handoffs, etc. This work is
crucial for next step of improving the process.
3:00 - 3:15Break
Senior leaders will join; each leader should sit at
different tables to get to know Kaizen team members
focusing on non-business discussions
3:15 - 4:00
Continue - Document current
state
See above rationale in document current state.
4:00 - 4:30
Review the current day and
preview next day
Use flipchart to document positives and negatives of
the day encouraging both - prewire a couple so team
understands both negative and feedback is needed
and rewarded. Discuss next days agenda and make
changes if necessary
Day 2
TimeSession Topic/ObjectiveLean ToolsOutput/DeliverablesRationale
8:00-8:15
Welcome back and preview the
day
See Welcome Output/Deliverable Day 1
Compliment team on progress with emphasis of
teamwork and importance of improvement in
processes; show executive sponsorship with
everyone's attendance
8:30-9:00TIM U WOODS ReviewTIM U WOODSReview and discuss TIM U WOOD
Review of TIM U WOOD important for team to
understand areas of waste and share examples of
waste of their own (examples outside of out business)
8:30-9:00TIM U WOODS ActivityTIM U WOODS
Uncover occurences of waste in current-
state process
TIM U WOODS activity will set the stage for
improvement
9:00-9:15Break
9:00-9:30VariationPig exerciseUnderstanding of the impact of variation
Operations team has a lot of processes with
significant variation. Manager has had a difficult
time explaining why variation if evil. This activity is
fun and illustrates variation.
9:30-9:45Poka-yoke and Error-proofingPoka-yokeApplication of Poka-yoke to Kaizen event
Error rate is 25% in the process and needs significant
improvement; poka-yoke will illustratrate error-
proofing
9:45-10:15Brainstorm Improvement IdeasBrainstorming
Document improvement ideas - sticky
notes will highlight the # of improvement
where group has consensus
Team breaks into three groups to put improvement
ideas on sticky notes on process map which will
facilitate teamwork and start the improvement
identification and future state
10:15-10:30Break
10:30-11:00C&E MatrixC&E Matrix and Ranking
Rank the top three to five input variables to
move into FEMA
Identify all the possible causes of problems in our
process and rank them for FEMA
11:00-12:00FEMAFEMA
Complete FEMA on top three to five input
variables
Help the team identify and prioritize failure modes
for the process
12:00-1:00Lunch
1:00-3:00Map Future State
Process mapping, Swim Lane Flow
Chart, Post-it note (PIN) process
map
Document Future StateTeam will document future state with objective to
3:00-3:15Break
3:15-3:30Kaizen FeedbackFeedback on Future State
Champion and Facilitator will provided feedback on
future process based on the GEMBA walk to help
team continue to make progress on the future state.
3:30-4:00Map Future State
Takie kaizen feedback make changes to
future state
Continuation of mapping future state.
4:00-4:30
Review the current day and
preview next day
Use flipchart to document positives and negatives of
the day. Discuss next days agenda and make changes
if necessary
Day 3
TimeSession Topic/ObjectiveLean ToolsOutput/DeliverablesRationale
8:00-8:15
Welcome back and preview the
day
See Welcome Output/Deliverable Day 1
Compliment team on progress with emphasis of
teamwork and importance of improvement in
processes; show executive sponsorship with
everyone's attendance
8:15-9:15Completion of Future State
9:15-9:30Break
9:30-10:30
Draft Implementation Plan and
SOP's
Project planning, Implementation
Plan, SOP
Implementation Plan, SOP's
Engage team members in creating implementation
plan and SOPs for process.
10:30-11:30
Review Metrics and Discuss
Ability to Improve
Document LT, PT, Error rate current state
and future state
Inclusion of metrics in final presentation to measure
success of Kaizen event
11:30-12:30Lunch
12:30-2:00
Prepare final event presentation
to management
Powerpoint, Flip chartsEvent report and presentation
Team creates final presentationand talking points
outlining overview of event, implementation plan
with deadlines and accountabilities. Selection of two
to three presenters based on group consensus.
2:00-2:15Break
2:15-2:45
Present report to Executive
Team
Presentation and Q&A
Presentation and approval of
implementation plan
Educates Executive Team, shows Kaizen team support
and buy-in from the Executive Team for
implementation of the team.
2:45-3:15
Debrief with team and team
pictures
Awards for all team members
Debrief with the team will provide feedback for the
champion and facilitator for improvements for the
next Kaizen Event. Awards presentation will facilitate
key deliverables from event focused on improved
teamwork, improved morale and encouraging and
rewarding improvement.
3:30-5:30Company event
Improve and encourage teamwork and
morale of the company.
Company celebrations will occur at the end of each
Kaizen event to show appreciation of Kaizen team
members. Expect to include every employee in
process improvement exercises in the future.
TermDefinition
Brainstorming
Brainstorming is a method for generating a large number of ideas in a short period of time. Brainstorming is usually most valuable during the Define
phase, especially when using tools such as failure mode and effects analysis.
C & E Matrix
A cause-and-effect matrix (C&E matrix) helps you discover which factors affect the outcomes of your Six Sigma initiative. It provides a way of mapping
out how value is transmitted from the input factors of your system (the Xs) to the process or product outputs (the Ys).
Current StateCurrent state of a process.
Error rate
Error rates refer to the frequency of errors occurred, defined as “the ratio of total number of data units in error to the total number of data units
transmitted.” As the error rate increases, the data transmission reliability decreases.
FEMA
FMEA identifies all the probable failure modes for the product or process. It prioritizes the failure modes for focused attention by using a scoring model
based on Severity (S), Occurrence (O) and Detect ability (D).
Future StateFuture TO BE state of a process.
Gemba
Gemba is a Japanese term meaning "the actual place". The idea is that to be customer-driven, one must go to the customer's gemba to understand his
problems and opportunities, using all one's senses to gather and process data.
Gemba Walk
A gemba walk is a tour of the shop floor. The “gemba walk” bridges theory and practice by bringing leaders to the shop floor to observe processes as
they happen.
Implementation PlanThe Implementation Plan provides a structure for detailing the action steps, due dates and people responsible for implementing solutions.
Kaizen
Kaizen refers to activities that continuously improve all functions and involve all employees from the CEO to the assembly line workers. ... By improving
standardized programmes and processes, kaizen aims to eliminate waste
Kaizen Project Charter
The kaizen charter is a living document that evolves throughout the planning process. It establishes the team, and scopes the project, setting the goals
and boundaries.
Lead TimeLead time is the time between the initiation and completion of a production process.
Parking Lot
PARKING LOT is a productivity technique for effectively dealing with distracting but important non-agenda items that arise during the course of
your meeting. Non-agenda items always seem to find their way into meetings.
Pig Exercise
Team building exercise of drawing a pig illustrates the importance of standardized work - impact of variation. Round 1 starts with the audience drawing
the side profile of a pig. In round 2 you give standard work instructions to the audience to draw the pig. The final round has the audience draws the pig
with standard work instructions with visual template for comparison. Everyone will find it easier to draw the pig in the final round. You’ll also find that
all the pigs in the audience look that same at the end.
Poka-yoke
Poka-yoke is a Japanese term that means "mistake-proofing" or "inadvertent error prevention". A poka-yoke is any mechanism in any process that
helps an equipment operator avoid mistakes. Its purpose is to eliminate product defects by preventing, correcting, or drawing attention to human
errors as they occur.
Post-It Note (PIN)
process mapProcess map using post-it-notes.
Process Map
A Process Map is a diagram that visually displays a series of events, or steps that occur within a given
process.
Process Time
The period during which one or more inputs are transformed into a finished product by a manufacturing procedure. A business will typically seek to
minimize its process time for a particular manufactured good without compromising quality to the point where consumers would purchase less of it.
SIPOC
SIPOC is a tool that summarizes the inputs and outputs of one or more processes in table form. The acronym SIPOC stands for suppliers, inputs,
process, outputs, and customers which form the columns of the table.
Standard Operating
Preocedure (SOP)
A Standard Operating Procedure (SOP) is a set of written instructions that document a routine activity that is to be followed by members of an
organization. Standard Operating Procedures are essential parts of good quality systems. Sound and well-written SOPs should enhance consistency and
reduce human error.
Swim Lane Flow Chart
A swimlane is used in process flow diagrams, or flowcharts, that visually distinguishes job sharing and responsibilities for sub-processes of a business
process. Swimlanes may be arranged either horizontally or vertically.
TIM U WOODS
TIM U WOODS is an acronym for the 8 wastes commonly found within business, it is a widely recognised model used within industry. These 8 wastes
are; transportation, inventory, motion, under utilized human resources, waiting, over processing, over production, defects, staff
Value Stream Map
(VSM)
Value-stream mapping is a lean-management method for analyzing the current state and designing a future state for the series of events that take a
product or service from its beginning through to the customer with reduced lean wastes as compared to current map.