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Lean Webinar Series:
5S & Visual Management for
Non-Manufacturing
December 2, 2010

Company

LOGO
You will learn…
 Why 5S & Visual Management are critical to establishing
a Lean Enterprise.
 How to implement 5S in an office, department, or
organization-wide.
 How a visual workplace creates the clarity necessary for
efficient and effective operations.
 Methods for creating a visual workplace.

© 2010 Karen Martin & Associates

2
Your Instructor
 Early career as a scientist; migrated to
quality & operations design and
management in the mid-80’s.
 Launched Karen Martin & Associates in
1993.
 Specialize in Lean transformations in nonmanufacturing environments.
 Co-author of The Kaizen Event Planner;
co-developer of Metrics-Based Process
Mapping: An Excel-Based Solution.
 Instructor in University of California, San
Diego’s Lean Enterprise program.
© 2010 Karen Martin & Associates

Karen Martin,
Principal
Karen Martin &
Associates

3
Building a Lean Enterprise

Process
Stabilization
Tools
Building a Lean Enterprise
5S Elements
 Sort
 Set in Order
 Shine
 Standardize
 Sustain

Seiri
Seiton
Seiso
Seiketsu
Shitsuke

Tidiness
Orderliness
Cleanliness
Standards
Discipline

… and SAFETY above all else
© 2010 Karen Martin & Associates

6
5S: The Concept
 An organized and clean environment:












Simplifies work
Increases productivity (less time looking and waiting)
Reduces expenses
Increases the speed at which services can be delivered
Creates a safer workplace
Reduces workforce frustration; improves morale
Builds pride in the workplace
Builds customer confidence
Reduces exposure to risk (legal, financial, accreditation)
Makes it easier to train new staff
Makes problems visible

© 2010 Karen Martin & Associates

7
Looking for Stuff: Time is Money
Organization with 1,500 employees



Earn average of $22 per hour
Work 250 days per year

Each employee spends an average of 10 minutes
per day looking or waiting for equipment or material


Individual impact
 = 41.7 hours wasted time per year
 = Over a week of frustrating, unfulfilling, nonproductive time



Organizational impact
 = 62,550 hours of nonproductive time
 30 FTEs worth of valuable resources doing non-value-adding
work
 = $1.4 Million unnecessary direct expense per year (unloaded)

© 2010 Karen Martin & Associates

8
Why doesn’t every work environment look like this?
Which Office Feels Better?
Office 5S
BEFORE

AFTER

BEFORE

AFTER

11
Morale Implications of Messy Workplaces

12
Conference
Room 5S

Before
After –
Standard
Supplies;
Ownership
5S Forms
Storage Area Before

5S Forms
Storage Area After
Healthcare 5S: Before / After
Expired and mixed
items

© 2010 Karen Martin & Associates

Forced rotation; A place
for everything and
everything in its place.

15
What should you 5S?
Offices & work areas
Hallways, lobbies, common areas
Break rooms
Storage areas
Drawers, shelves, cupboards
Hard drives; shared drives!!!!!!

© 2010 Karen Martin & Associates

16
5S Process

© 2010 Karen Martin & Associates

17
5S Event Planning
 Formal charter may be necessary



Form team
Plan report outs and/or an “open house”

 Measure the current state


To establish a baseline from which to measure improvement
 E.g. Audits, staff surveys
 Take before photos
 Gather data, if relevant

 Plan your approach



If in active work area, how to best at least intrusive as possible
Define your sort area

 Gather cleaning, labeling and other supplies


If also implementing kanban, greater planning needed!

© 2010 Karen Martin & Associates

18
Perform Pre-Audit
Visual Inventory Management Audit
Department: _________________________________
Date: ________________________________________
Auditors: ____________________________________
1

Attribute
Material doesn't exceed kanban bin
1 quantities
2 No stockouts (both bins empty)
3 Stock has been rotated
4 No expired items
5 Materials properly identified
6 Each item has a specific place
Bin sizes are appropriate for daily
7 demand
Standard work for supplies
8 replenishment and use is posted
Accountability for supplies
9 management is clearly identified
10 No material in unidentified locations
11 Evidence of root cause analysis
12 Storage areas are clean and tidy
General Comments:

0-30%

2

3

4

5

31-55% 56-75% 76-95% 95-100%

Root Cause

Corrective Action
Consider Pre- and Post-5S Staff Surveys

© 2009 Karen Martin & Associates

20
5S & Visual Management in Office & Service Environments
22
5S Resources
www.5Ssupply.com
www.the5Sstore.com
www.visualworkplace.com
Grainger industrial supply

© 2010 Karen Martin & Associates

© 2008 Karen Martin &
5S Process

© 2010 Karen Martin & Associates

24
5S Process: Step 1

Sort
What is the “mininum
necessary” to produce
“maximum outcomes”?
© 2010 Karen Martin & Associates

25
Sort
Objective: Reduce clutter


Desks, drawers, counters, storage areas, hallways,
walls, break rooms, treatment areas, offices, waiting
areas, patient rooms, etc.

Keep only essential items
Evaluate every item




Need – is it used frequently?
Functionality – does it work optimally?
Compliance – does it meet accreditation standards and
statutes?

© 2010 Karen Martin & Associates

26
Red Tag what is not needed on a
regular basis

Description /
Item Number
Quantity
Reason
Written by
Date

Area

(or place item in a “red tag” area)
Cleve with Garbage Bin #10
5S Process

© 2010 Karen Martin & Associates

29
5S Process: Step 2

Set in Order
Shine
Create designated locations
Clean everything
© 2010 Karen Martin & Associates

30
Set in Order
Objective: A place for everything and everything
in its place




Staff should be able to find what they need without
asking anyone
Everything should be in optimum working order

Determine the best location for remaining items
(so they’re easy to find and use)
Relocate out-of-place items
Arrange and label items and storage areas so
items are easy to find and to put away
Set inventory limits
© 2010 Karen Martin & Associates

31
Storage Guidelines
Frequency of Use

Storage Proximity

Hourly

Within arm’s reach

Every shift

Within a short walk

Daily

Further away

Monthly

Department storage

Annually

Hospital or offsite storage
Mark Graban, Lean Hospitals, 2009
32
Clean everything!

Implement “Cord
Management”
5S Process

© 2010 Karen Martin & Associates

34
5S Process: Step 4

Standardize
Maintain the Organized
Workplace

© 2010 Karen Martin & Associates

35
Standardize
Create a method (rules) for monitoring and
maintaining the first three elements (sort, set in
order, shine).


What’s the process for deciding where new material
will be stored?
 Potential rule – if something new comes in, something must
leave.




Who cleans? How frequently?
Who measures? How frequently?

Heavy use of audits and visual controls.
Must have an owner!


Can be rotating
36
5S Process

© 2010 Karen Martin & Associates

37
5S Process: Step 5

Sustain
“Bake” 5S into the
Organization’s DNA

© 2010 Karen Martin & Associates

38
Sustain
Ensure adherence to 5S standards through:



Assigned accountability (may be rotating)
Consistency
 Regularly scheduled 5S “periods”









Communicate expectations and results
Training
Measurement
Rewards
Self-discipline; habit
Monitoring one another
Modeling

Conduct weekly or monthly 5S audits
© 2010 Karen Martin & Associates

39
Post-5S Audit
Visual Inventory Management Audit
Department: _________________________________
Date: ________________________________________
Auditors: ____________________________________
1

Attribute
Material doesn't exceed kanban bin
1 quantities
2 No stockouts (both bins empty)
3 Stock has been rotated
4 No expired items
5 Materials properly identified
6 Each item has a specific place
Bin sizes are appropriate for daily
7 demand
Standard work for supplies
8 replenishment and use is posted
Accountability for supplies
9 management is clearly identified
10 No material in unidentified locations
11 Evidence of root cause analysis
12 Storage areas are clean and tidy
General Comments:

0-30%

2

3

4

5

31-55% 56-75% 76-95% 95-100%

Root Cause

Corrective Action
Visual
Management

© 2009 Karen Martin & Associates

41
Visual Management

Make
problems
visible

Communicate
status
Improve
productivity
Improve
confidence

© 2010 Karen Martin & Associates

42
Visual Management Tenets
Make information physical; get it out of the
computer!


Progress – Work tracking / status
 Volume; WIP (work-in-process); bottlenecks
 Types
 Actual vs. Estimated/Target Key Performance Indicators





Problems – What needs attention?
Results – How did we do?

Anyone should be able to go into a work area
and know what’s going on within a few minutes
without asking many questions.
© 2010 Karen Martin & Associates

43
Make
Problems
Visual

Communicate
Who, What,
Where and
What if?
5S & Visual Management in Office & Service Environments
How are we
performing?

46
Communicating Data:
Which is more effective?
A.
Numbers
only

Quarter/FY

Q1-08

Q2-08

Q3-08

Q4-08

Q1-09

Q2-09

Q3-09

Q4-09

Q1-10

Q2-10

Q3-10

Score

4.1

3.5

3.2

4.5

3.2

2.6

3

2.9

3.1

3.2

2.7

Benchmark

3.5

3.2

3.4

3.5

3.3

3.1

3.3

3.4

3.4

3.4

3.6

Best

4.9

4.5

4.4

5.0

4.6

4.7

4.6

4.6

4.6

4.6

4.8

OR
sss

FY 2008

FY 2009

B.
Shows the
relationship
between the
numbers
FY 2010

Gray – highest industry quality scores
Purple – average industry quality scores (benchmark)
Blue – client quality scores
47
Use white boards
to communicate
status

Use magnetic
boards to
tracking
activities
Visual Job Aids to Standardize Work &
Reduce Errors
Pre-improvement –
40% errors
Post-improvement –
10% errors

Pre-improvement –
15% errors
Post-improvement –
5% errors

49
Visual Feedback - Make It Harder
to Make Errors

© 2009 Karen Martin & Associates

50
Visual Management Tool for
Reducing Interruptions During
Medication Administration

51
Standardize Work - Visually
Label Everything
Stage 1:
5S / Visual Management
Label Everything
Stage 2:
Open shelving
Heijunka
Wheel –
Visual
Management
of Incoming
Work

56
57
Heijunka for the Office

58
Strong Use of Color: File Storage
Improved File System
Anesthesia and Surgery Two-Bin System
(Front and Back w/ Color)

Blue & Red Bins –
Material Management
Managed

Yellow Bins –
Special Orders;
Department Managed

Green Bins –
Managed by Other
Departments (e.g.
Pharmacy, SPD, etc.)
The A3 Report – A Visual Story Board that
Reflects the Problem-Solving Process

62
Do your visuals
provide clear
direction?
For Further Learning

The Master:
Edward Tufte,
Professor Emeritus,
Yale University
(Political Science,
Statistics &
Computer Science)
64
You will learn…
 Why 5S & Visual Management are critical to establishing
a Lean Enterprise.
 How to implement 5S in an office, department, or
organization-wide.
 How a visual workplace creates the clarity necessary for
efficient and effective operations.
 Method for creating a visual workplace.
Next Webinar – Thursday, January 6
Making it Stick:
The Four Elements for Creating Sustainable Improvements

www.ksmartin.com/webinars
© 2010 Karen Martin & Associates

65
For Further Questions

7770 Regents Road #635
San Diego, CA 92122
858.677.6799
ksm@ksmartin.com
Free webinars and monthly newsletter:
www.ksmartin.com/subscribe
Connect with us:

66

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5S & Visual Management in Office & Service Environments

  • 1. Lean Webinar Series: 5S & Visual Management for Non-Manufacturing December 2, 2010 Company LOGO
  • 2. You will learn…  Why 5S & Visual Management are critical to establishing a Lean Enterprise.  How to implement 5S in an office, department, or organization-wide.  How a visual workplace creates the clarity necessary for efficient and effective operations.  Methods for creating a visual workplace. © 2010 Karen Martin & Associates 2
  • 3. Your Instructor  Early career as a scientist; migrated to quality & operations design and management in the mid-80’s.  Launched Karen Martin & Associates in 1993.  Specialize in Lean transformations in nonmanufacturing environments.  Co-author of The Kaizen Event Planner; co-developer of Metrics-Based Process Mapping: An Excel-Based Solution.  Instructor in University of California, San Diego’s Lean Enterprise program. © 2010 Karen Martin & Associates Karen Martin, Principal Karen Martin & Associates 3
  • 4. Building a Lean Enterprise Process Stabilization Tools
  • 5. Building a Lean Enterprise
  • 6. 5S Elements  Sort  Set in Order  Shine  Standardize  Sustain Seiri Seiton Seiso Seiketsu Shitsuke Tidiness Orderliness Cleanliness Standards Discipline … and SAFETY above all else © 2010 Karen Martin & Associates 6
  • 7. 5S: The Concept  An organized and clean environment:            Simplifies work Increases productivity (less time looking and waiting) Reduces expenses Increases the speed at which services can be delivered Creates a safer workplace Reduces workforce frustration; improves morale Builds pride in the workplace Builds customer confidence Reduces exposure to risk (legal, financial, accreditation) Makes it easier to train new staff Makes problems visible © 2010 Karen Martin & Associates 7
  • 8. Looking for Stuff: Time is Money Organization with 1,500 employees   Earn average of $22 per hour Work 250 days per year Each employee spends an average of 10 minutes per day looking or waiting for equipment or material  Individual impact  = 41.7 hours wasted time per year  = Over a week of frustrating, unfulfilling, nonproductive time  Organizational impact  = 62,550 hours of nonproductive time  30 FTEs worth of valuable resources doing non-value-adding work  = $1.4 Million unnecessary direct expense per year (unloaded) © 2010 Karen Martin & Associates 8
  • 9. Why doesn’t every work environment look like this?
  • 12. Morale Implications of Messy Workplaces 12
  • 14. 5S Forms Storage Area Before 5S Forms Storage Area After
  • 15. Healthcare 5S: Before / After Expired and mixed items © 2010 Karen Martin & Associates Forced rotation; A place for everything and everything in its place. 15
  • 16. What should you 5S? Offices & work areas Hallways, lobbies, common areas Break rooms Storage areas Drawers, shelves, cupboards Hard drives; shared drives!!!!!! © 2010 Karen Martin & Associates 16
  • 17. 5S Process © 2010 Karen Martin & Associates 17
  • 18. 5S Event Planning  Formal charter may be necessary   Form team Plan report outs and/or an “open house”  Measure the current state  To establish a baseline from which to measure improvement  E.g. Audits, staff surveys  Take before photos  Gather data, if relevant  Plan your approach   If in active work area, how to best at least intrusive as possible Define your sort area  Gather cleaning, labeling and other supplies  If also implementing kanban, greater planning needed! © 2010 Karen Martin & Associates 18
  • 19. Perform Pre-Audit Visual Inventory Management Audit Department: _________________________________ Date: ________________________________________ Auditors: ____________________________________ 1 Attribute Material doesn't exceed kanban bin 1 quantities 2 No stockouts (both bins empty) 3 Stock has been rotated 4 No expired items 5 Materials properly identified 6 Each item has a specific place Bin sizes are appropriate for daily 7 demand Standard work for supplies 8 replenishment and use is posted Accountability for supplies 9 management is clearly identified 10 No material in unidentified locations 11 Evidence of root cause analysis 12 Storage areas are clean and tidy General Comments: 0-30% 2 3 4 5 31-55% 56-75% 76-95% 95-100% Root Cause Corrective Action
  • 20. Consider Pre- and Post-5S Staff Surveys © 2009 Karen Martin & Associates 20
  • 22. 22
  • 24. 5S Process © 2010 Karen Martin & Associates 24
  • 25. 5S Process: Step 1 Sort What is the “mininum necessary” to produce “maximum outcomes”? © 2010 Karen Martin & Associates 25
  • 26. Sort Objective: Reduce clutter  Desks, drawers, counters, storage areas, hallways, walls, break rooms, treatment areas, offices, waiting areas, patient rooms, etc. Keep only essential items Evaluate every item    Need – is it used frequently? Functionality – does it work optimally? Compliance – does it meet accreditation standards and statutes? © 2010 Karen Martin & Associates 26
  • 27. Red Tag what is not needed on a regular basis Description / Item Number Quantity Reason Written by Date Area (or place item in a “red tag” area)
  • 29. 5S Process © 2010 Karen Martin & Associates 29
  • 30. 5S Process: Step 2 Set in Order Shine Create designated locations Clean everything © 2010 Karen Martin & Associates 30
  • 31. Set in Order Objective: A place for everything and everything in its place   Staff should be able to find what they need without asking anyone Everything should be in optimum working order Determine the best location for remaining items (so they’re easy to find and use) Relocate out-of-place items Arrange and label items and storage areas so items are easy to find and to put away Set inventory limits © 2010 Karen Martin & Associates 31
  • 32. Storage Guidelines Frequency of Use Storage Proximity Hourly Within arm’s reach Every shift Within a short walk Daily Further away Monthly Department storage Annually Hospital or offsite storage Mark Graban, Lean Hospitals, 2009 32
  • 34. 5S Process © 2010 Karen Martin & Associates 34
  • 35. 5S Process: Step 4 Standardize Maintain the Organized Workplace © 2010 Karen Martin & Associates 35
  • 36. Standardize Create a method (rules) for monitoring and maintaining the first three elements (sort, set in order, shine).  What’s the process for deciding where new material will be stored?  Potential rule – if something new comes in, something must leave.   Who cleans? How frequently? Who measures? How frequently? Heavy use of audits and visual controls. Must have an owner!  Can be rotating 36
  • 37. 5S Process © 2010 Karen Martin & Associates 37
  • 38. 5S Process: Step 5 Sustain “Bake” 5S into the Organization’s DNA © 2010 Karen Martin & Associates 38
  • 39. Sustain Ensure adherence to 5S standards through:   Assigned accountability (may be rotating) Consistency  Regularly scheduled 5S “periods”        Communicate expectations and results Training Measurement Rewards Self-discipline; habit Monitoring one another Modeling Conduct weekly or monthly 5S audits © 2010 Karen Martin & Associates 39
  • 40. Post-5S Audit Visual Inventory Management Audit Department: _________________________________ Date: ________________________________________ Auditors: ____________________________________ 1 Attribute Material doesn't exceed kanban bin 1 quantities 2 No stockouts (both bins empty) 3 Stock has been rotated 4 No expired items 5 Materials properly identified 6 Each item has a specific place Bin sizes are appropriate for daily 7 demand Standard work for supplies 8 replenishment and use is posted Accountability for supplies 9 management is clearly identified 10 No material in unidentified locations 11 Evidence of root cause analysis 12 Storage areas are clean and tidy General Comments: 0-30% 2 3 4 5 31-55% 56-75% 76-95% 95-100% Root Cause Corrective Action
  • 41. Visual Management © 2009 Karen Martin & Associates 41
  • 43. Visual Management Tenets Make information physical; get it out of the computer!  Progress – Work tracking / status  Volume; WIP (work-in-process); bottlenecks  Types  Actual vs. Estimated/Target Key Performance Indicators   Problems – What needs attention? Results – How did we do? Anyone should be able to go into a work area and know what’s going on within a few minutes without asking many questions. © 2010 Karen Martin & Associates 43
  • 47. Communicating Data: Which is more effective? A. Numbers only Quarter/FY Q1-08 Q2-08 Q3-08 Q4-08 Q1-09 Q2-09 Q3-09 Q4-09 Q1-10 Q2-10 Q3-10 Score 4.1 3.5 3.2 4.5 3.2 2.6 3 2.9 3.1 3.2 2.7 Benchmark 3.5 3.2 3.4 3.5 3.3 3.1 3.3 3.4 3.4 3.4 3.6 Best 4.9 4.5 4.4 5.0 4.6 4.7 4.6 4.6 4.6 4.6 4.8 OR sss FY 2008 FY 2009 B. Shows the relationship between the numbers FY 2010 Gray – highest industry quality scores Purple – average industry quality scores (benchmark) Blue – client quality scores 47
  • 48. Use white boards to communicate status Use magnetic boards to tracking activities
  • 49. Visual Job Aids to Standardize Work & Reduce Errors Pre-improvement – 40% errors Post-improvement – 10% errors Pre-improvement – 15% errors Post-improvement – 5% errors 49
  • 50. Visual Feedback - Make It Harder to Make Errors © 2009 Karen Martin & Associates 50
  • 51. Visual Management Tool for Reducing Interruptions During Medication Administration 51
  • 52. Standardize Work - Visually
  • 54. Stage 1: 5S / Visual Management Label Everything
  • 57. 57
  • 58. Heijunka for the Office 58
  • 59. Strong Use of Color: File Storage
  • 61. Anesthesia and Surgery Two-Bin System (Front and Back w/ Color) Blue & Red Bins – Material Management Managed Yellow Bins – Special Orders; Department Managed Green Bins – Managed by Other Departments (e.g. Pharmacy, SPD, etc.)
  • 62. The A3 Report – A Visual Story Board that Reflects the Problem-Solving Process 62
  • 63. Do your visuals provide clear direction?
  • 64. For Further Learning The Master: Edward Tufte, Professor Emeritus, Yale University (Political Science, Statistics & Computer Science) 64
  • 65. You will learn…  Why 5S & Visual Management are critical to establishing a Lean Enterprise.  How to implement 5S in an office, department, or organization-wide.  How a visual workplace creates the clarity necessary for efficient and effective operations.  Method for creating a visual workplace. Next Webinar – Thursday, January 6 Making it Stick: The Four Elements for Creating Sustainable Improvements www.ksmartin.com/webinars © 2010 Karen Martin & Associates 65
  • 66. For Further Questions 7770 Regents Road #635 San Diego, CA 92122 858.677.6799 ksm@ksmartin.com Free webinars and monthly newsletter: www.ksmartin.com/subscribe Connect with us: 66