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.