Kaizen Team Primer

1. Kaizen Team Primer Meeting Date Team Members

2. Team Launch • Get team together for the first time to Launch project • Use suggested agenda for a Kaizen project • Utilize the ‘SPACER’ Technique • Establish code of conduct, roles, expectations

3. It’s Not About the “Tools” • The responsibility lies, not with black belt (Lean leader) specialists, but with the leadership hierarchy that runs the operation and they are teachers and coaches. • It’s a process …

4. Safety • Safety is our first priority • Let’s start every meeting with a Safety Contact • Discuss any safety concerns associated with the project.

5. Purpose • Provide a simple overview of the meeting, what will be the focus…

6. Agenda • Identified start and stop times of the meeting • Specific agenda items with predetermined time allotment for each • Action items from the last meeting • Identify which phase the project is in • What tools will be used

7. Code Of Conduct • Simple rules that will support a productive meeting, developed by the team • Respect the clock • Don’t speak over people, one person speaks at a time • Be on time • No speeches allowed, No one speaks longer than 60 seconds • Leave rank at the door • Come prepared • Every team member has the right and responsibility to enforce the code of conduct • Team should agree on techniques used to call attention to code violations

8. Expectations • Brief description of the expected outcome of the meeting, specific goals, milestones • Discuss expectations of each team member

9. Roles And Responsibilities • Roles of each member during the meeting • Time keeper: Ensures deadlines are met • Scribe: Makes ideas visible • Facilitator: Keeps team focused • Spokesperson: Reports to other groups • Recorder: Takes notes and captures action items • Process Monitor: Assures code of conduct is followed

10. Team Launch; Project Kickoff (continued) • Get team together for the first time and Launch your project • Use suggested agenda for a Kaizen project • Explain “Process Excellence” – Why is this different?

11. What is Process? • Process is everywhere…everything is a process • Process = a series of actions or steps taken in order to achieve a particular end

12. So What is Process Excellence? Improving the way that we create and deliver value It’s about what we do for the customers, not to them

13. Why Does Process Excellence Matter? • In our industry what we provide is not the differentiator • It’s what we do and how we do it • We must understand and deliver what our customers need better than our competitors • Process Excellence can help you achieve that

14. How Does It Help Us? • Process Excellence isn’t just about lower operating costs, it’s about aligning our organization to achieve success • That means… • Less Complexity • More Time • Improved Service • Lower Costs • Increased Revenue • Better Lives • And Happier Customers Process= The work we do Excellence= The way we do it

15. What is the Tool / Application Flow? Walk the Process(backwards) High Level MapSIPOC/VSM Detail MapBrown Paper Review Charter Baseline Data DEFINE MEASURE Root Cause Fishbone Select ImprovementsBrainstorm & PICK Value Analysis Waste Walk Future State Map IMPROVE ANALYZE Risk Assessment SxOxD Demonstrate Improvements Pilot & Implement Mistake Proof Control Plans IMPROVE CONTROL

16. Project Kickoff (continued) 1) Use suggested agenda for a Kaizen project • What is Kaizen?

17. What is the Purpose of Kaizen? • Kaizen is a way of unlocking the talents and abilities of workers and allow decisions to be made • at the operating level in the organization, • in the quickest time, • by the people that know the situation the best

18. What is a Kaizen Event? • A Kaizen event follows the DMAIC road map • Kaizen event(s) are a three to five day event of intense improvement activities directed at a specific area of a business • It is a process based on improving Safety, Quality, and Delivery, by the elimination of waste in its many forms

19. What is the Focus of a Kaizen Event? • Kaizen events are a way of accelerating business process improvements • to enhance Safety and improve productivity • helping management to find new ways to gain savings in time, space, and labor output • to reduce cycle times • to reduce work-in-process • to reduce scrap and defects while minimizing the need for capital

20. What are Supporting Roles in a Kaizen Event?

21. Supporting Roles in a Kaizen Event (continued)

22. What is the Define phase about? In the Define Phase emphasis is on the current state: • Where the problem is occurring • Duration of the problem • What the problem is (in numbers) • What is the KPI / financial impact of the problem • What is the scope and who are the key stakeholders • Tool application in the Define Phase • Review Charter (Understand scope, issue and benefit) • Prep for Kaizen Event (Identification of Identity flow) • Walk the Process (backwards)

23. WhatConcerns DoesaProjectCharterAddress? • Using a simplified form of the Charter that your project is based on … • Describe ideas in terms of a problem statement • Situation – What is the current opportunity? • Objective – How do we measure success? • Benefits – What value does it provide? • Team Members – Who should be involved?

24. What are the Sections of a Charter? Current Situation: Problem Statement Objective: Reduce/optimize/increase __________________________________________________________ (project y) from _________________________________________________________________________(current level) to ____________________________________________________________________________ (target level) for __________________________________________________________________________ (specific area) while reducing/increasing/holding constant______________________________________( constraining Y’s) ‘S.M.A.R.T.’ Benefits: What Value Does It Provide? Team Members: Who Should Be Involved?

25. How Can I Prepare for a Kaizen Event? • Review situation and gain a solid understanding of the problem at hand to address the following concerns: • What is Current Situation / Opportunity? • How Do we Measure Success? • What are the Right Metrics / Measures? • How Do We Calculate and Capture Business • Impact? (Financial Gain)

26. Situation – Opportunity Statement What is the current opportunity? • In a few brief sentences explain: • What the opportunity is • How long it’s been occurring • Any specifics that narrow the scope • Specific service • Specific shift • etc…

27. Objective Statement How do we measure success? • Gain insight into our current processes • How good is it (Baseline)? • How good could it be if perfect (Entitlement)? • What is limiting it from getting better? • How can it be improved (Closing the Gap)? • How much of the gap do we want to close during this project (Goal)? Reduce/optimize/increase: (project Y) from (current value) to (goal level) for (specific area) while holding constant (constraints)

28. Financial Assessment Statement How do we document benefits? • This needs to be objectively defined, mathematical description (if possible) of how to calculate the business impact ($$$$) • This must be accepted and supported by the Controller / CFO • If this is not defined well in the beginning of the project, you will struggling at the end to determine the financial impact

29. Team Member Statement Who should be involved in this improvement effort? • Carefully consider the Makeup of the Team • Core (Full-Time) team members are those who will stick with the project from start to finish • Identify experts or other specialized people you’ll need for the project as extended team members • Ideal team size is 3-5 people • Do not forget the Process Owner and any other Key Stakeholders!

30. What Are Some Project Review Considerations? • Does charter state what the project is trying to accomplish, in measurable terms? • Is the project worth doing? • What happens if the project fails? • Does it fit within Ports Americas business initiatives? • Is this a customer-oriented project? • Is it properly scoped? Boiling the ocean or right sized? • What are the specific goals of the project? • Who owns the process? • What’s the probability of success? • Can we get benchmark information? If so, where? • What resources are available in the team? • What is the actual process we are working to improve?

31. How is a Process really a “System”? • What is a Process? • A series of actions, having a beginning and an end, that are directed towards achieving an outcome • A simple model of a process • The process changes the inputs to produce an output(s) Process Inputs Outputs

32. What are some Elements of a Process System? Below is a list of major elements of a process system: When the system fails, it is usually the result of one or more of these elements • Purpose • Entities • Tasks or Activities • Sequence or Flow • Materials • Resources • Decisions • Queues • Arrivals • Duration • Feedback • Communication • Information • Schedules

33. How do Processes Exist to Fulfill Needs? • Questions to be Answered About Needs • What are the needs which are addressed by this process? • Who or what created those needs? • Is this a need of the Customer or of the Business? • What constitutes successful “fulfillment”? • How do I know if my process is working right? • If you can’t define the purpose, why are you doing it?

34. Steps to Garner Facts (Walk the Process) 1) Interview those who work in the process to help document the various needs / process issues S - Enter conversation at a Social level O - Explain the Objective of documenting the process L - Listen to what they have to say A - Advise and Ask R - Record 2) Validate the input / data 3) Verify information with several sources • Allows any oversights to be corrected

35. Steps to Garner Facts (Walk the Process) • Starting at end (back) of the actual process, the team follows a typical flow (or tracks a service) from end to the beginning to understand need(s). • Map major steps in Pencil. (Don’t be too detailed) • Start with a quick walk, to get a feel for the flow and sequence. Then, go back and talk to the right people at each step and explore the “fulfillment” of need(s). NOTE: Don’t map the organization, document the needs within the organization. Address the need(s).

36. What is the Measure phase about? The Measure phase is about understanding the current state and collecting data to establish a baseline: • Key inputs or outputs that have a heavy influence on the process or are the result of the process • Consideration is taken into account on how accurate and reliable the data is • Tool application in the Measure Phase • SIPOC (scope) • Detailed Map (something flowing through process) • Data (determine overall health of a process)

37. General Purpose of Mapping • Everything we do is a process… some processes are straightforward… other processes can be chaotic • Process Mapping • Allows people to illustrate what happens in a process • Demonstrates scope of a project • Is an excellent visual aide for identifying the “hidden process” or waste • Identifies all the potential inputs that may affect the output • Identifies all the decision points that may impact a transactional process

38. High-level Flowcharting (Vertical format) Entity Flow

39. Steps to Create a SIPOC 1) Name the process (Use verbs/adjectives) 2) Indicate the start/stop, or the scope of the process (What are the triggers that initiate and end the process?) 3) Indicate the five to seven highest-level steps in the process as they exist today (Use verb/adjectives – how does this process operate?) 4) Indicate the output(s) of the process (Use nouns – what is it this process does?)

40. Steps to Create a SIPOC (continued) 5) Indicate the customer(s) of the process (Whom does this process affect/benefit?) 6) Indicate the input(s) of the process (Use nouns - what is needed to execute this process and deliver the outputs?) 7) Indicate the supplier(s) of the process (Which individuals/teams provide inputs into this process?)

41. What are some Process Mapping Pointers? • Go to the place where the process is performed • Talk to people involved in the process and get the real facts • Observe and chart the actual process • Reality is invariably different from perception; Few processes work the way we think they do • The purpose of process mapping is to identify waste, not to develop the perfect process map • Process map what is, not what you would like the process to be • Process Mapping is dynamic, so use Post-it notes, dry erase markers, pencils, etc… • All Process Maps must have start and stop points

42. What does Detailed Process Mapping Provide? • A detail process map is a pictorial representation of the flow or sequence of actions that comprise a process • It differs from the High Level Process Map previously created, in that it’s a lower level map actually detailing how the work gets done

43. 1 2 3 What you THINK it is.. What it ACTUALLY is.. What it SHOULD be.. What are the Different Views with Process Maps? There are usually three views of a process:

44. What are the Symbols Used to Process Map? • Start & End: An oval is used to show the materials, information or action (inputs) to start the process or to show the results at the end (output) of the process • Activity: A box or rectangle is used to show a task or activity performed in the process. Although multiple arrows may come into each box, usually only one arrow leaves each box • Decision: A diamond shows those points in the process where a yes/no question is being asked or a decision is required • Break: A small circle with either a letter or a number identifies a break in the process map and is continued elsewhere on the same page or another page / or map

45. WhatisPurpose of ‘Brown Paper’Process Map? • Describes in detail the process as it works today • This is the “as-is” model • Shows the big picture but, with all the details • Is high touch, low tech • Identifies strengths and opportunities • Captures the complexity and disconnects of key operational issues • Identifies outside areas involved in the process It’s called Brown Paper because of the color of the paper that is typically used, you can use any color paper… flip chart paper is also commonly used

46. Why use Brown Paper (Kraft paper) Mapping? • Provoke thought for improvement opportunities • Promote common understanding • Increase cross-functional learning • Train new employees • Use as a presentation

47. Brown Paper Versus Flowcharts • Brown Paper (Kraft) Mapping • Capture formal, informal and emotional processes • Are self-explanatory • Include “live” or operational documents / forms/ procedures • Capture important data • Quality levels • Volumes (Inputs, throughputs, outputs, backlog) • Labor hours • Elicit high employee involvement and ownership • Highlight opportunities for improvement • Key difference is the level of detail and the ability to add documents and data directly on the map itself

48. Steps to Create a Brown (Kraft) Paper • Use the post-it as simple flow chart symbols • Hang as rectangle for a Process Step and turn 45 degrees to act as a Process Decision point 3) Draw lines showing the flow • Decision points should always have at least 2 lines coming from it Process Step (Verb) Process Decision? (Ask a Question)

49. Steps to Create a Brown (Kraft) Paper 5) Use different color post-its to represent different aspects such as, value added and non-value added NOTE: If you don’t have different colors, use a colored marker and draw a box around the post-it • examples: Non-Value Added Step Step Needing Follow-up I.T. System

50. Flow versus Performance (Data Usage) • Process mapping helps us understand process flow • Now we must collect data to more objectively evaluate and measure process performance (metrics) • To be successful, we must meet both Customer and Business requirements • Customer (VOC) - effectiveness measures • Business (VOB) - efficiency measures • A good measurement system incorporates both