1. Lean Introduction

2. 2 Agenda History of Lean Lean Principles Wastes and tools Value Stream approach Case – Lean in Mexico Where to find more

3. 3 Lean Six Sigma (00’s) Just in Time (‘80s) Lean Manufacturing (‘90s) (Kanbans, Pull systems, Visual management) (“Machine that changed the world”,“Lean Thinking”, Value Stream Mapping) Total Quality Management (’80s) BPR (‘90s) Deming/Juran(‘50s) Ohno(’60/‘70s) (culture change/benchmarking,Baldridge/EFQM, ISO9000) (SPC,QualityCircles, Kaizen) (down-sizing, “to be“processes, process owners) Motorola –Six Sigma (‘80s) (Allied Signal) (14 points,statisticalquality) (ToyotaProductionSystem) GE (‘80s – ‘90s) Intensity of Change Kotter etc. Transformation & Leadership Six Sigma(applied method for growth and productivity) Customer Partnering(GE Toolkit, QMI, Customer CAP Change Acceleration Process – CAP (Change method and tools) Process Improvement (NPI, Supply Chain, Suppliers) Best Practices(benchmarking, across and outside of GE, ending NIH) Work-out (Kaizen type, cross functional teams, boundarylessness, values) StrategyNo 1 or No 2 in each business. Fix, close or sell Lean & Six Sigma is based on over 50 years of improvement thinking and experience

4. 4 Value Stream Value Flow Perfection Pull Lean Principles Map all of the steps… value added & non-value added… that bring a product or service to the customer Define value from the customers perspective and express value in terms of a specific product or service The complete elimination of waste so all activities create value for the customer by breakthrough and continuous improvement projects The continuous flow of products, services and information from end to end through the process Nothing is done by the upstream process until the downstream customer signals the need, actual demand pulls product/service through the value stream

5. 5 Lean Basis of action Constancy of Purpose – the leadership drive the change accondingly with the long term goals Respect for People – every individual is a unique set of experiences and improvement ideas may come from anyone Proactive Behavior – looking for improvement opportunities every day Voice of the Customer – listen to the customer consistently ensure the focus on the right thing System Thinking – understanding the whole value stream enables creating smooth flow of value

6. 6 The goal of Lean is to flow more value to the customer for less resource by eliminating waste and reducing end-to-end time Before Lean project A service value stream: e.g. processing an application Customer Requirement‘as fast as possible’‘no mistakes’ ‘easy transaction’ lead time (LT) day 1 day 30 After Lean project Value demand better handled Failure demand removed processing an application lead time (LT) day 1 day 8 Where the gains come from Small Adds value to the customer Small to medium No value; needs to be done Large No value; no need to be done The bottom line: better customer service costs less not more!

8. Emotional fatigue

9. Increased frustration

10. Increased stress

11. Placement of blame

12. Decreased self-worth

13. IndecisivenessIn Lean terms, waste is anything that adds costs or time without adding value. The ultimate Lean target is the total elimination of waste

14. 8 Lean Tools A3 Thinking Value Stream Mapping Quality at Source Standardised Work 5S: Sort; Set-in-order; Shine; Standardise; Sustain Visual Control & Management Cellular/Team Concepts Levelling, Management Timeframe and Takt Time

15. 9 Each Value Stream is launched with the following workshop program Mobilisation Assess Phase Test Cell Phase Impl. 1d 1d 4d 3d 2d 2w 4w 2w 2w RO RO RO RO RO Prepare Test Cell Prepare Roll out Run Test Cell W0 – Kick off Mobilisation Workshop 2 Workshop 3 Workshop 4 Workshop 1 Analyze TC RO Report Out to Stakeholders

17. Appointing suitable Value Stream Managers and mentoring them

18. Steering value streams through Assessment, Implementation and Ongoing Management to realise benefits

19. Attending the report out meetings

21. Implementing short, sharp improvements in the value stream that bring lasting change

23. Co-running short, sharp improvements in the value stream that bring lasting change

26. 5 year contract (until Nov 2013)

27. Single contract covering both Strategic Outsourcing and Application Services

28. Application support for day to day operations (levels 1.5, 2, and 3)

29. Application Maintenance of 900 applications

30. Analysis and key concepts implemented

31. Group teams in Cells facilitating the communication among the team members

32. Adoption of visual display to make the targets and the actual performance clear

33. Work on a single ticket at a time instead of multi-tasking among several tickets

34. Clear prioritization of tickets

35. Conversion to an improved flow of operations

36. Standardized work

37. Current Conditions

38. Backlog was increasing 10% monthly

39. More then 1500 Tickets on Backlog

40. Customer pressure to reduce backlog

41. Client provided a daily list of “prioritized tickets”. It was one of the causes of backlog increase, as tickets not finished would be switched to "new prioritized ones“.

42. Low Team Morale 6.4 (scale 0-10) – August/2010

44. Tickets open – New tickets opened by Client. Demand of tickets open per day

45. Tickets resolved – tickets solved, but not closed every day

46. Tickets closed – tickets solved and closed every day

47. Tickets in backlog – all tickets that are not closed

48. Results

49. Backlog reduction and USD 340k Benefits on cost avoidance up to April/2011

51. Reduce Backlog from –10% to 5% monthly;

52. Improve Ticket Lead Time from 85 to 72 hours;

54. 13 Contacts e-mail: andre_andreazzi@yahoo.com.br #Twitter – LeanAndreazzi

55. Thank you