There are as many ways to start your Lean journey as there are blogs on the internet, business books on the shelf, and experts with opinions. Not to get left behind I have added my 2 cents worth to the conversation. The following are 10 basic guidelines, in my opinion, for starting your Lean journey as well as some things to watch out for along the way.
Step One: Find your customer
Any Lean journey must start with the customer. To people not familiar with Lean this will seem shockingly obvious. However this is often the last place people look to when trying to improve their organizations. And sadly most never talk to the customer at all.
In some people's defence it is not always obvious who the customer is. Anyone who works in retail will have a hard time understanding this delima. However when you are supporting complex IT systems deep in the basement of an insurance company it is easy to forget that the customers are the people purchasing the policies. The acid test for identifying a customer is as follows:
"Customers pay us money for our products and services"
Consider the following examples of what I mean by this:
- Students in a classroom are not customers - it's the taxpayer or whoever is paying the tuition
- The department receiving internal project management services is not the customer - it's the people buying the company's products and services
- The department receiving the new software upgrade of internal systems is not the customer - it's the people buying the company's products and services
- The employee receiving feedback on a standard Human Resources form is not the customer - it's the people buying the company's products and services
- The production department receiving the test results from Quality Assurance is not the customer - it's the people buying the company's products and services
.....you get the idea
Step Two: Have your customer define Value
Again to anyone outside of the Organizational Improvement industry this will seem very obvious. But I will guarantee you that right now there are thousands of Value Stream Maps, complete with Fortune 100 consulting firm logos, proudly posted on boardroom walls that classify tasks such as the following as Value-Add activities:
- Update project schedule
- Fill in status report
- Perform quality inspection
- Set up CNC machine
- Back up critical data
- Perform preventative maintenance
(I'm not kidding, look for yourself if you do not believe me). And you and I both know there isn't a soul on the planet who ever gave a single thought to the person replacing oil filters on snow ploughs each time they signed the cheque for their property taxes.
The right way to have a customer assign Value is to ask them. This can be as simple as a face-to-face interview where you ask them "can you please tell me some things you Value about our product or service?" To more complex surveys designed to have customers rank the relative Importance (Value) of as many attributes (Price, Quality, Appearance, etc.) of your product or service as you can.
Do not skip these steps. Everything else is a shot in the dark if you do.
Step Three: Value Stream Mapping
This is the point where most "improvement" gurus love to jump in. In fact business schools churn out thousands of eager young professionals every month who live for this stuff. And for good reason - its fun. The idea is to capture on as big a sheet of paper as possible every single task that is performed within your organization to ultimately deliver your product or service. The key is don't be stingy. Put everything on there - preferable in little boxes connected by arrows representing the Flow of things.
What is critical is that you capture EVERY TASK from as far up the Value Stream as possible all the way to the customer. Here again Lean initiatives usually make the mistake of focusing on a tiny subset of the overall Value Chain. The first risk here is you immediately lose sight of, or never even think of who your customer is. And the second risk is ..... well never mind any other risk. That one is bad enough.
The acid test for knowing whether your Value Stream is complete is that
everyone in the organization is accounted for. That includes not only the people in Sales and Marketing, but also the people in Finance, Admin, HR, Facilities, IT.....everyone. If you find you are unsure how some tasks fit into the overall Value Stream Map don't worry, that means you are doing it correctly. Just write them down.
Step Four: Task Evaluation
As with Step Three, if you have, like so many others, decided to skip Steps One and Two then stop now and go back. For unless you have found your (paying) customer and you thoroughly understand what it is they Value about your products and services there is NO WAY for you to properly evaluate each task within your Value Stream Map.
What you want to do is consider each and every task in your Value Stream Map and classify it into one of the following two categories:
- Value Added
- Waste
Until you and your organization truly embrace the concept of Value I find the easiest way to do this is pretend to phone your customer and ask them questions like the following:
- "Do you Value the fact that we hold daily status meetings?"
- "Do you Value the fact that we unload material from trucks that deliver things to our back door?"
- "Do you Value the fact that we spend a lot of time moving things from one area within our facility to another?"
- "Do you Value the fact that we key your order into our complicated computer system?"
- "Do you Value the fact that we test our software in multiple lower environments?"
- "Do you Value the fact that we spend hours each day responding to emails?"
And so on. As you can see you will find almost nothing you do actually adds Value for your customer. And trust me, this is a good thing.
It is important at this stage to keep in mind a few common pitfalls that could cause you to incorrectly classifying tasks as Value that are actually Waste:
- A task is not Value add to your customer just because you are good at it
- A task is not Value add to your customer just because you've always done it
- A task is not Value add to your customer just because you like doing it
- A task is not Value add to your customer just because you can't figure out how to stop doing it
Organizational improvement can not be personal. And unfortunately almost all improvement efforts get caught in this trap which is why I can not emphasize enough the importance of Steps One and Two.
That being said there will undoubetly be a handful of things you do that will add Value for your customers. To identify Value I like to use the following general rule:
Customers Value tasks that get them what they want or need, but they can't or won't do
For example:
- Helping me select the right options for my insurance policy (not processing the paperwork)
- Selecting the right components for my inground sprinkler system (not stocking the DIY store shelves)
- Writing software that allows me to check Twitter on my phone (not testing and debugging the code to fix their own mistakes)
- Cleaning the windows outside my highrise office (not setting up the ropes)
In each case above it is easy to imagine your hypothetical customer saying "why yes, thanks for asking. I absolutely find Value in you doing those things for me."
Step Five: Identify Opportunities to improve
At long last we are getting to the good part. But hopefully you can see how critical it was to carefully go through the previous four steps in order to know what to improve. For without knowing what you do that adds Value for your customers, and therefor what you do that is Waste, it would be impossible to consider the following guidelines for identifying Improvement Opportunities. The rule for Identifying Opportunities is to find ideas that do one or more of the following:
- Optimize Value
- Minimize Waste
As with any idea generating or brainstorming exercise the key here is to identify as many ideas as possible. The the best way to do that is to include as many people as possible without putting any limits on their imagination. You will be be amazed at what they will come up with when they truly accept the concepts of Waste and Value
as defined by the customer. All of a sudden you are not trying to eliminate a few steps here and there. Rather you are looking to gouge out (or minimize) huge chunks of your Value Stream.
Step Six: Prioritize Opportunities to improve
Things are pretty basic here. You want to consider the dozens and dozens (hundreds) of ideas that people have come up with and start to figure out what you want to do first. In general you want to evaluate your Opportunities based on the following:
- Ease of Implementation
- Impact of Change
An improvement with relatively little impact on Waste or Value might make sense if it is straightforward to implement. Likewise a change that is more challenging might make sense if the Impact is great.
Step Seven: Implement Changes
There are excellent improvement techniques such as Kaizen and 5S that help you do this. But no matter which methodology you select the key is to involve the people directly associated with the process. I can not stress this enough. I like to refer to the following mathematical forumula to demonstrate the power of a group:
1 + 1 = 5
Or to put it another way, one person can accomplish the work of one person. But two or more people working together can accomplish more than the sum of their parts. Ok maybe its not so scientific but it works.
Step Eight: Measure your results
This aspect of Organizational Change could (and probably will) fill its own blog. For these purposes it is important just to say that as part of the process of selecting which changes to implement it is just as important to quantitatively measure your results. This should NEVER require the use of a complex computer system. In fact it is usually best to use a simple white board or log sheet. The key is for the measurement to be simple and highly visible.
Step Nine: Communicate and celebrate your achievements
Nothing new here. However making your results and achievements visible is a great way to recognize peoples' efforts by supporting the "1 + 1 = 5" concept. Plus it is a great way to allow your organization to share ideas and build on the success of others.
Step Ten: Repeat forever
Anyone who tells you they know how to
make an organization Lean is missing the point. Just as someone who tells you "oh we're already Lean" is also sadly mistaken. Lean is not about the destination, its about the journey. Now that you've made it to Step Ten it's time to go back to Step One and start again.
Happy trails :)