Use your work from PartA of the Project to identify improvement opportunities in the value stream that are suitable for Kaizen events or Work-Outs. 1)List the potential Kaizen events, select the one t
Kaizen Event - 10 |
Assignment 2 - Kaizen Event
Part B
Potential Kaizen Events
Contact Customer (#2) – Lead Time is far more than the Process Time. This gap may be reduced through better contact lists, but adjustments would be better suited to occur in the prior phase of Prospecting/Lead Generation. Within the Sales Conversion phase, this step is heavily dependent on external factors (i.e. customer’s action of responding) and is therefore, likely not a good Kaizen event.
Conduct Sales Mtg/Demo (#3) & Conduct POC (#4) – Lead Time is far more than Process Time. This gap is largely a result of customer schedules / availability. Internal tweaks could be made that may have slight improvements but do not warrant a Kaizen event.
Review Special Bid (#6a) – Not only is the Lead Time greater than the Process Time, but this is the lowest %C&A of the whole process. This step is also completely internal and therefore can be controlled to make the process more efficient and improve accuracy. The Kaizen Event would have the most impact here.
Kaizen Event Target / Rationale
Kaizen Event Target: Review Special Bid (#6a)
Rationale: This step is the primary bottleneck in the process. It is very manual and is completely internally owned; therefore, has the best opportunity for improvement. The Process Time is only 13% of the Lead Time. The gap is caused by a lot of wasted time as bids sit in queues, the reviewer waits on email for support of discount rates, etc. This step can benefit from an analysis to determine value add vs. wasteful steps.
Kaizen Objective
The objective is to transform the Special Bid Review process to reduce the lead time and improve accuracy. This will be supported through the identification of the value add and wasteful steps within the Special Bid Review process and plan for the implementation of changes.
Kaizen Scope
The scope is limited to the Special Bid process within the quote approval phase and will involve the steps under the Pricer’s responsibility. The Standard Review process, while likely could benefit from tweaks, is running within acceptable ranges of time and accuracy and will not be reviewed as a part of this effort.
Kaizen Agenda
Kaizen Event (2.5 days)
The event will be 2.5 days in duration. Materials to educate the participants will be provided ahead of time. This helps the team become familiar with the concept and process while limiting the amount of time they are taken away from their jobs. Using the DMAIC methodology, Day 1 will consist of Measure & Analyze as the team works through validation of the current state process, brainstorming and value analysis. Day 2 will continue to Analyze and move into the Improve/Control phase to which will help brainstorm solution improvements and ultimately define the future state. Standard Operating Procedures will also be addressed. For Day 3, the Control phase will be completed with final reports developed. This will culminate in a presentation to executive management for approval to move forward with implementation. With the prep work, it is believed that 2.5 days will be sufficient.
Sequence for Session Topics
The initial sessions are meant to acquaint the team with the process and answer any questions related to the process itself. From there, they will be educated on the overall process and why the Kaizen event for the Special Bid process is important. The remainder of the sessions are based on the DMAIC methodology flow. The team will understand the current state so that they can then identify where there is value vs non-value and determine what can be done to improve the process. Solution ideas will be assessed based on cost, impact, etc. and then a future state will be developed based on the various inputs. The sequence of the sessions lays the groundwork in the beginning and then builds on that foundation to determine a more efficient process.
Lean Tools Used during the Event*
VSM – Captures the key steps in the Sales Conversion process; viewed from higher level
Process Mapping – Identifies basic steps in the process and will help map both the current state and future states
Swim Lane Flowcharts – Identifies who/what; easier to determine hand-offs in the process to identify time traps
Value Analysis – identifies value-add vs non-value-add and helps determine waste areas
Brainstorming – generates variety of ideas, stimulates creative thinking, engages all participants
Affinity Diagrams – helps organize facts, opinions, issues into natural groups – organizes brainstorming ideas into categories
TIM WOODS – model for the 8 wastes commonly found in business: Transportation, Inventory, Motion, Waiting, Over Processing, Over Production, Defects, Staff
Multivoting – prioritizes ideas / solutions & narrows down options
Basic Checksheets – lists what is being tracked and identifies what is missing; Ultimately will become part of the solution
Poka-yoke – helps avoid mistakes by eliminating product defects by preventing, correcting, or drawing attention to human errors as they occur
FMEA – Failure Modes and Effects Analysis – analyzes a process, product or service design to understand how it can fail
Control Plan - formalizes and documents the system of control that will be utilized to ensure that quality standards are met
5 Whys – Method to encourage team to think about root causes; eliminates superficial solutions
Process Cycle Efficiency (PCE) – Metric of time efficiency; measures overall process health
Time Traps – Metric of time efficiency; identifies steps that insert delays
Cost Evaluation – Evaluates solutions based on the cost of implementation
Impact/Effort Matrix – Evaluates solutions based on the impact to the overall flow of the work, job role changes, etc.
*(George, Rowlands, Price, & Maxey, 2005)
Session Outputs
Session outputs represent what has occurred in the corresponding session. For instance, when mapping the current state, the process map will be the output that will allow the team to see the process and agree to the steps as outlined, ensuring that everyone is agreeing to the same thing. The process map for the future state is created for the same reason. Other outputs, like the list of solution ideas that will be the result of the brainstorming session, allows the team to capture all ideas, regardless of what is selected. There is value in capturing the work at each session so that it can be referenced later. New information or new ideas may come up so prior deliverables are a record of what has occurred. These deliverables will also be compiled into one document that will become the official record of what has occurred during the Kaizen event and will ultimately become the content for the Executive presentation. These deliverables will provide the executives with information that is easily consumed and actionable. The various outputs will help them better understand the current process, where the time traps are and what can be done to resolve it. By creating written outputs, the team and the executives can then take the final deliverable to others who may need to be involved. It will also serve as a reference while implementing any changes as well as for continuous improvement monitoring after implementation.
Agenda in Support of Kaizen Objective / Scope
The Kaizen Event is directly targeting the Special Bid Review process which has been identified as the primary bottleneck in the Sales Conversion process. The objective of the event is to transform this step so that it can be more efficient and accurate. The event sessions are geared to understanding the process within this step, as well as the inefficiencies and then develop a future state that will reduce lead times and improve accuracy. While the agenda includes a short session of the high-level process, this is intended only as background to support the transformation this step will have on the overall process. Thus, all sessions focus on the narrow scope of this Special Bid Review step.
Appendix
Adams, S. (2018, August). Dilbert. Retrieved from Dilbert.com: www.dilbert.com
George, M. L., Rowlands, D., Price, M., & Maxey, J. (2005). The Lean Six Sigma Pocket Toolbook. New York: McGraw-Hill.
JWMI Students. (2018, August). Course Announcements Assignment 2 Examples. Retrieved from JWMI 550 Operations Management: https://blackboard.strayer.edu/webapps/blackboard/execute/announcement?method=search&context=mybb&course_id=_229576_1&viewChoice=3
Operational Excellence Consulting. (2018, August). Kaizen Event Agenda. Retrieved from Pinterest: http://free-stock-illustration.com/kaizen+event+examples?image=1290261494
Student. (2018). Assignment 1 Value Stream Mapping Part A. Cincinnati: JWMI 550 Operations Management.