The Toyota Way, also known as Lean, was born from hardship and survival. It is an approach that does not rely on the accidental fortunate circumstance of being in a positive business climate. The system that propelled Toyota to the top of the global automotive industry is designed to succeed in both good times and bad.
Lean thinking fundamentally changes the engagement model between IT and the business, challenging traditional relationships with staff,customers and partners.
This session, presented by a partnership between ThoughtWorks and KM&T, explains the Lean approach to challenges, continuous improvement, productivity, and quality, and how these principles can help you deliver high-value,high-quality software solutions to reduce operational costs, increase profitability, and survive.
With presenters bringing deep expertise from Toyota, Lean and Agile principles, learn how to:
-Identify and eliminate non-value adding work and cost (i.e., waste)
-Build quality into processes to remove unnecessary rework
-Apply Just-in-Time (JIT) principles to software delivery
-Build processes that optimise use of resources and productivity for the entire end-to-end value stream
-Engage everyone to continuously improve your team and practices
-Understand the differences between repetitive processes, product development and software development
Join us to discover how to do more with less.
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BRISBANE
Tuesday 17 March, 2009
8am –- 9.30am
Hilton
190 Elizabeth Street, Brisbane
SYDNEY
Tuesday 24 March, 2009
8am –- 9.30am
Hilton
488 George Street, Sydney
MELBOURNE
Tuesday 31 March, 2009
8am –- 9.30am
Marriott
Cnr Exhibition & Lonsdale
Streets, Melbourne
PERTH
Tuesday 7 April, 2009
8am –- 9.30am
Hilton
14 Mill Street, Perth
A light buffet breakfast will be provided *
*
2. Lean Times Require Lean Thinking
Jason Yip
ThoughtWorks
Paul Heaton
KM&T
Image from http://www.bluefountainmedia.com/blog/?
3. steep recession in
that year, the Toyota Motor Company ran out of cash, which was
“As the Japanese economy entered a
tied up in inventory for products customers no longer wanted. The
company fell under the control of bankers who chopped the company in
two, creating separate firms to divide the marketing and sale functions from
the product development and production functions. (These firms were only
recombined in 1982 to create the current Toyota Motor Corporation.)
Founding president Kiichiro Toyoda (new president Akio
Toyoda’s grandfather) was driven out in the
process. The pursuit of what became the Toyota
Production System, along with the product development,
supplier management, and customer support systems, was the
creative response to this crisis.”
James Womack, Respect Science Especially in a Crisis,
http://www.manufacturingnews.com/news/09/0309/womack.html
4. Lean was born from hardship and
survival
• Free up scarce cash
• Reduce costs while
enhancing quality
• And very little time to
do this
http://www.flickr.com/photos/jtcatbagan/2420624616
/
6. Toyota and Honda lead in J.D Power
quality ratings
In 2008, Toyota surpasses
GM as the world’s largest
auto maker
7. “Our recurring losses from operations,
stockholders' deficit and inability to
generate sufficient cash flow to meet
our obligations and sustain our operations
raise substantial doubt about our ability
to continue as a going concern”
General Motors SEC filing, 2009
11. Toyota success with the Prius
• Developed within 18
months.
• A typical competitor will
take 4 years
• Toyota used 150
engineers during
development.
• A typical competitor will
use 600 engineers.
Note: this includes designing
the Plant to produce it!!
Source - National Center for Manufacturing Sciences report
12. What message do I want to give?
• Lean Thinking is now becoming a
recognised world wide business model in
multiple sectors.
• It is not just all about Toyota Cars..!
16. Stop The Line
“stop and fix problems
as they occur rather
than pushing them
down the line to be
resolved later”
Jeffrey Liker and David
Meier, Toyota Way
Fieldbook
17. The essence of Lean is engaging
everyone in identifying and solving
problems
18. Waste
Un-Evenness
workload that is
not balanced
Activities that do not
add value
Overburden
work that creates burden for the
team members or processes
Picture Source – Toyota Motor Company Australia
19. 8 WASTES
In LEAN 8 types of waste have been identified
These classifications have been adopted globally - for any process.
They apply equally to any process.
Not using
People
Resource
Waiting
Overproduction
Transport or
Conveyance
Motion
Stock &
Materials
Overprocessing
Rework
All of these 8 can be either
“Necessary Waste” or
“Un-necessary Waste”
Depending on circumstance
20. Waiting
Waiting is where people or materials are not being utilised because they are waiting
for another person or process to complete before work can resume.
Waiting
Examples:
Waiting for patient records
Waiting for medical staff
Waiting for test results
21. Overproduction
Overproduction is where an excess of processes, or services are being created,
without there being any real requirement for them.
Overproduction
Examples:
Sending the same letter to the
patient more than once
Re-writing notes or forms because
of their illegibility
22. Transport or Conveyance
Unnecessary transportation of patients, stock, patient records and equipment which
is not reaching its end goal, adds no value. Too much transportation should be
avoided and is often the result of departments spaced far apart, or resources not
being closely linked.
Transport
or
Conveyance
Examples:
Moving patients unnecessarily
from ward-to-ward
Moving documents/patient records
from one department to another
23. Over-processing
Over-processing is where a process or person works hard, but not necessarily smart,
creating a waste which is not always easy to see, and can often be mistaken as part
of the process.
Overprocessing
Examples:
Producing documents/charts/notes
which are never to be seen or used
Performing more tests then are
necessary for a patient
24. Rework
Rework is where a process or procedure is not completed correctly the first time and
therefore needs to be re-done, or adjusted before it is deemed completed.
Examples:
Rework
Producing multiple documents due
to incorrect information or errors
Multiple tests or clinic dates for a
patient as correct information was not
collected or noted upon initial visit or
test
25. Stock
Stock = Materials in Stores (Medical equipment, Work-In-Process (WIP) & Finished Work)
Excess Stock = Cost (Cash)
Stock
Examples:
Too many drugs at ward
Uncontrolled material ordering
26. Motion
Motion is related to human movement. Good work area layout and process design
minimises the amount of movement and saves time & effort when finding or fetching
material or documents.
Motion
Example:
Poor work area design, causing
unnecessary:
• Walking
• Bending
• Stretching
27. Resource
Resource is the most valuable asset in any business, without it, no business can
function or succeed successfully. The trick is to use the resource as they are the local
experts.
Examples:
Resource
• Not Listening
• Not Asking
• Not Empowering
• Not doing anything with generated /
suggested ideas
29. Understanding
of problem
space
Understanding
of solution
space
Focus
Business as
Usual
+++
(specification as
input)
+++
(focus on task
efficiency)
Cycle time +
cost reduction
Typical
projects
+
(iterative
specification)
++
(control what
needs to be
learned)
Earlier ROI
New Product
Development
?
(specification as
output)
?
(focus on
learning
efficiency)
Acquire and
exploit
knowledge
faster than
competitors
30. “Put yourself in the position of the customer
and ask if you would pay less for the product
or be less satisfied with it if a given step and its
necessary time were left out.”
Mike Rother and John Shook, Learning to See
31. Software development waste
1. Extra features (overproduction)
2. Delays (waiting)
3. Hand-offs (source of delays and defects, loss
of information)
4. Re-learning
5. Partially done work (obsolescence, not JIT)
6. Task switching (reduces throughput)
7. Defects (unnecessary rework)
8. Unused employee creativity
32. Non Value Add
“unnecessary wastes”
Waste to Eliminate!
Non Value Add
“necessary waste”
Waste to Reduce!
Value Add
Increase!
33. RENAL patients going through a Hospital Process
What is added
value to the
Customer
Look at End to End
Value Chain
Pictures provided courtesy of Agility Healthcare Solutions
35. 1
36 process steps
Who thinks that of the 36 steps:
2
3
4
5
6
10
7
8
9
100% -12
75% was added value activity?
11
13
14
15
16
17
18
19
75% - 50% was added value activity?
20
21
22
23
24
25
26
27
28
50% - 25% was added value activity?
29
30
31
32
33
34
Less than 25% was added value?
35
36
7 value add
29 process steps were non-value add or waste
36. •
•
•
•
•
•
•
Drive Cultural Change
People Engagement
Raise Problems in the moment
Cross Functional Team
Tracking Problems
Regular Disciplined Meetings
Responsibilities assigned
45. Authority-focus
• “Whose job is this?”
• “Not my problem”
Responsibility-focus
• “What is the right thing
to do?”
• “How can I help?”
“Managing to Learn” by John Shook
47. Heartbeat retrospectives
• What did we do well, that if we don’t
discuss we might forget?
• What did we learn?
• What should we do differently next time?
• What still puzzles us?
http://www.retrospectives.com/pages/RetrospectiveKeyQuestions.html
48. Technique
Pairing
Test Driven
Development
Time to detect problem
Seconds
Seconds to minutes
Co-location
Seconds to minutes
Continuous Integration
~20 minutes to a couple
hours
User Stories
A couple days
Timeboxed development 1 – 4 weeks
Small releases
1 – 3 months
53. McKinsey on Lean IT
“In our experience, applying the principles of
lean manufacturing to [application development
and maintenance] can increase productivity
by 20 to 40 percent while improving the
quality and speed of execution.”
N. Kindler, V. Krishnakanthan, R. Tinaikar,
“Applying lean to application development and
maintenance”, McKinsey on IT, Spring 2007
54. Forrester Research on
ThoughtWorks Agile/Lean
Category
Total defects
Critical defects
Effort
Duration
Improvement
63% less
79% less
62% less
69% less
55. So…what is required?
•
•
•
•
•
•
•
•
A Clear Customer Focused Vision
Sustained Leadership Commitment
People Engagement / Role Clarity / Skills Developed
Structure Process & Project Management
Change Champions
A Sense of Urgency
Appropriate Activity Monitoring
Appropriate HR Policies
58. For Further Information please contact:
ThoughtWorks – Jason Yip
Email
Web
jcyip@thoughtworks.com
www.thoughtworks.com.au
KM&T – Paul Heaton
mail
pheaton@kmandt.com.au
Web
www.kmandt.com.au
Notas do Editor
Imagine this situation. A steep recession, the company is out of cash, on the verge of collapse. The president of the company resigns in shame after having to lay-off 1600 people.
And this is the context from which you will create the world’s most successful production system.
We are in a similar crisis to what Toyota faced in 1950. We need to free up scarce cash, we need to reduce costs while at the same time enhancing quality (our customers are just as unforgiving of products and services that don’t serve their interests, perhaps even more so), and we have very little time to do this.
The point is that this system, this Toyota Way, now also known as Lean was born from an origin of crisis, of hardship and survival and perhaps it has something to teach us about how to face what we see today.
I recently visited Japan on a Lean tour and I was told a story that back in the beginning, there was a joke that if you bought Toyota trucks you would always need to buy 5. One for work while the remaining 4 were in the shop for repairs.
Today, most people would not understand the joke at all. Toyota, and their long-time competitor, Honda lead in quality ratings.
Beyond quality ratings, in 2008, Toyota surpassed GM as world’s largest auto maker. And what of GM?
GM is now on the verge of collapse. Learned last night that the CEO was just fired. There was a time when GM was invincible. There was a phrase that was used “What’s good for GM is good for the country”. Now, GM’s survival is very much in doubt.
Meanwhile, although Toyota is suffering losses, as is most auto makers these days, there really isn’t any question of their survival.
So who would you rather be?
Crises tend to be a period where the weaker organisations topple and are weeded out. They also tend to be a period where the survivors become the next generation of leaders. I think we can all agree that we would prefer to be the ones left, the ones that remain and drive the next generation rather than the ones that become an curiosity of history.
The objection always shows up. We don’t build cars, we don’t do manufacturing so this Toyota stuff is not relevant to us. To answer this, we’d like to make a few points…
Agile software development was influenced by Lean in the beginning and is now returning to it for more ideas on how to improve
.
And a whole lot of other things but…
I want you all to take a moment now. Put yourself back into a day at work. Think about the issues you face, especially the most annoying ones. The one that may have just flitted across your consciousness and you immediately suppressed OR perhaps the one you can see clearly but know you can’t do anything about. That’s the one you need to deal with.
Now you don’t want to react immediately to this problem. Understand it first. Go and see to truly understand, don’t just trust your instinct.
Use what we’ve talked about today to inspire but think about the situation. At some point we cannot rely on borrowed wisdom and we have to think for ourselves.
But ask for help. To understand, to think, to implement. I don’t just mean external consultants like us but especially within your own organisations. In the end, we’re all in it together and we have a better chance if we’re all dedicated to clearing all the issues that prevent us from reaching our greatest potential.