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Our approach to kaizen, lean it summit, prochazka, chmelar
- 1. Copyright © Institut Lean France 2011
Our Approach to Kaizen
Lean@Tieto
Jaroslav Prochazka
Martin Chmelar
Tieto
- 2. Copyright © Institut Lean France 2011
• Net sales approximately EUR
Tieto • 18 000 IT professionals in close to 30 countries
• Customers on all continents
1.8 billion
• Listed in NASDAQ OMX Helsinki
today • One of the leading IT service companies in Northern
Europe and global leader in selected segments
and Stockholm
• Founded in 1968
Our Approach to Kaizen – Prochazka, Chmelar 2
- 3. Copyright © Institut Lean France 2011
Who we are
• Delivery Mentor Network
Core of the network
8 Agile and Lean coaches
• 11 years in IT (developers, architects, PMs)
• Have been supporting transformations in different industries
in last 5 years in Tieto
• Representing Tieto at international IT conferences
Our Approach to Kaizen – Prochazka, Chmelar 3
- 4. Copyright © Institut Lean France 2011
Why Lean@Tieto?
• Customer satisfaction
• Financial results
© Tieto 2010 Annual Report
Our Approach to Kaizen – Prochazka, Chmelar 4
- 5. Copyright © Institut Lean France 2011
Customers demand more
We want to have
better visibility
of our orders
We want you to
help us to solve
We expect you to help us our challenges
to run our business
(to have partnership)
Our Approach to Kaizen – Prochazka, Chmelar 5
- 6. Copyright © Institut Lean France 2011
Tieto employees want to
contribute more…
I want to work in such an
I wanted to propose environment where I feel
multiple improvements to my work brings value to
our customer but I didn’t the customer
know how …
… but do not
know how …
Our Approach to Kaizen – Prochazka, Chmelar 6
- 7. Copyright © Institut Lean France 2011
Lean Transformation
Lean@Tieto
Short term thinking Long term thinking
Solving symptoms Solving root causes
Firefighting Balanced workload
“Give a man a fish;
you have fed him for today.
Teach a man to fish;
and you have fed him for a lifetime”
[Chinese proverb]
Our Approach to Kaizen – Prochazka, Chmelar 7
- 8. Copyright © Institut Lean France 2011
Lean@Tieto Strategy
Our Approach to Kaizen – Prochazka, Chmelar 8
- 9. Copyright © Institut Lean France 2011
1 2 3 4 5 6 7 8 9 10 11 12 13 14
14 weeks framework to make a change
LEAN@TIETO FRAMEWORK
Our Approach to Kaizen – Prochazka, Chmelar 9
- 10. Copyright © Institut Lean France 2011
Lean@Tieto Transformation
Framework
A proven approach where key persons optimize (and learn to optimize)
end-to-end value chain to deliver better value to customer.
Typical long-term benefits:
• Increased customer and
employee satisfaction
14 weeks
Lean Transformation • 15-30% improvement of
Framework productivity
• 15% EBIT increase
Our Approach to Kaizen – Prochazka, Chmelar 10
- 11. Copyright © Institut Lean France 2011
Continuous improvement Independence
• Improvement (A3) discussion and • Team self-improvement
implementation • On demand consultancy
• Internal coach education
• Hands-on support
Focus / Kick-off
• Common understanding of
situation, motivation
• Top issues captured
(Kaizen workshop)
Introduction
• Transformation goals
• Lean Awareness / Game
• Key terms and tools • Investment: 6 man-days extra time in 14 weeks for
each core team member
• Components:
• Lean Awareness workshops
• Kaizen workshop
• Bi-weekly follow-ups
• Additional tools and materials
Our Approach to Kaizen – Prochazka, Chmelar 11
- 12. Copyright © Institut Lean France 2011
Team gets …
Value Stream Map
Mapped services
(documented end-to-end process)
Our Approach to Kaizen – Prochazka, Chmelar 12
- 13. Copyright © Institut Lean France 2011
Team gets …
Documented (A5) and elaborated
(A3) issues
Our Approach to Kaizen – Prochazka, Chmelar 13
- 14. Copyright © Institut Lean France 2011
A3/A5 concept
Our Approach to Kaizen – Prochazka, Chmelar 14
- 15. Copyright © Institut Lean France 2011
Intangible outcomes
• Common understanding of problems, root
causes, solutions
• Clear focus along the whole value delivery chain
• “Sharpening of axe” built into daily way of
working
Our Approach to Kaizen – Prochazka, Chmelar 15
- 16. Copyright © Institut Lean France 2011
Ripple effect through internal
coaches
Local Lean
Coaches
Whole Tieto
Transformed
One case (14 weeks approach)
Continuous Independent New
Intro Kick-off team
improvement coaches
Our Approach to Kaizen – Prochazka, Chmelar 16
- 17. Copyright © Institut Lean France 2011
Lean@Tieto Framework
INTRODUCTION
Our Approach to Kaizen – Prochazka, Chmelar 17
- 18. Copyright © Institut Lean France 2011
Introduction
• Multiple entry points
Teasers and teasing discussions
Agile training course
Lean awareness
Mentoring
• Goal
Make people interested
Make people care
Make people to pull for more
Our Approach to Kaizen – Prochazka, Chmelar 18
- 19. Copyright © Institut Lean France 2011
Lean Game/Awareness
workshop
• Playing with Lego
• Key Lean principles in
practice
• Drum-Buffer-Rope
concept
• Key Lean principles
• Practical experience with
Lean tools
Our Approach to Kaizen – Prochazka, Chmelar 19
- 20. Copyright © Institut Lean France 2011
Lean@Tieto Framework
FOCUS / KICK-OFF
Our Approach to Kaizen – Prochazka, Chmelar 20
- 21. Copyright © Institut Lean France 2011
Kaizen workshop – Day 1
• Goal, Agenda, People, Expectations
Intro • William Wallace speech
Value • Value Stream Mapping
Stream
Mapping
• Issue identification and prioritization across the whole value chain
Issues
Root • 5 why's or Current Reality Mapping (ToC CRT)
cause
Sociali- • Social event (usually dinner)
zing
Our Approach to Kaizen – Prochazka, Chmelar 21
- 22. Copyright © Institut Lean France 2011
Common goal: Value for
Customer
?
Team X
NEED !
C C
Customer
Do we all pull the same end of the same rope?
Our Approach to Kaizen – Prochazka, Chmelar 22
- 23. Copyright © Institut Lean France 2011
How do we work nowadays?
X
C C
Do we all have the same map?
Our Approach to Kaizen – Prochazka, Chmelar 23
- 24. Copyright © Institut Lean France 2011
How do we really work
nowadays?
X
C C
Team is better than one expert
Our Approach to Kaizen – Prochazka, Chmelar 24
- 25. Copyright © Institut Lean France 2011
Value Stream Map
Intro
Value
Stream
Mapping
Issues
Root
cause
Sociali-
zing
Our Approach to Kaizen – Prochazka, Chmelar 25
- 26. Copyright © Institut Lean France 2011
I can’t believe a single
feature delivery takes
Intro so long…
Value
Stream
Mapping
Wow, this value
stream is different
Issues than we thought it is
These group works
Root are great. I do not
cause
feel sleepy and I am
much more involved
Sociali-
zing
Our Approach to Kaizen – Prochazka, Chmelar 26
- 27. Copyright © Institut Lean France 2011
Problems & obstacles
X
C C
!
!
!
Problem
Different people see different problems.
But what is the real bottleneck?
Our Approach to Kaizen – Prochazka, Chmelar 27
- 28. Copyright © Institut Lean France 2011
Recurring issues
• Stress, firefighting
• Unsatisfied customers
• Red numbers
• Rework
• Everything takes too long
Our Approach to Kaizen – Prochazka, Chmelar 28
- 29. Copyright © Institut Lean France 2011
Root Causes X
C C
!
!
!
!
Root
cause Cause
!
Do not fight with symptoms only!
Our Approach to Kaizen – Prochazka, Chmelar 29
- 30. Copyright © Institut Lean France 2011
5 WHYs
• Delays in server implementation process
Weak information sharing between shifts
Insufficient information for task handover
Work Log (WL) not filled
Not recognized impact of missing WL description
(others cannot process it)
• Not seen big picture and value for the customer
• Missing end-to-end process description
• Assumptions (“it’s obvious”)
Our Approach to Kaizen – Prochazka, Chmelar 30
- 31. Copyright © Institut Lean France 2011
Evening dinner
Intro Now I see that you are
humans guys, not just
roles:-)
Value
Stream
Mapping
Issues
Root
cause I can see faces behind all
these names…
Sociali-
zing
Our Approach to Kaizen – Prochazka, Chmelar 31
- 32. Copyright © Institut Lean France 2011
Kaizen workshop – Day 2
Day 1 • Day 1 recapitulation
recap.
Problem • Solution brainstorming
solving
• Kaizen steps A3s
Plan
• Heroes group (including internal coaches)
Groups • 14 weeks framework sessions planned
• Wrap-up & feedback
Wrap-up
Our Approach to Kaizen – Prochazka, Chmelar 32
- 33. Copyright © Institut Lean France 2011
Solution
!
OK !
!
!
Solution
!
Remove root causes once and forever
Our Approach to Kaizen – Prochazka, Chmelar 33
- 34. Copyright © Institut Lean France 2011
Long Term Solution
OK
OK
OK
2011
… Jul Sep Oct …
Solutions “invented here” & solving “my problems”
Our Approach to Kaizen – Prochazka, Chmelar 34
- 35. Copyright © Institut Lean France 2011
Short term next (Kaizen) steps
2011
...
Mon Tue Wed Thu Fri
W#28
Mon Tue Wed Thu Fri
W#29
Mon Tue Wed Thu Fri
W#30
Mon Tue Wed Thu Fri
Do not just plan, act now!
Our Approach to Kaizen – Prochazka, Chmelar 35
- 36. Copyright © Institut Lean France 2011
Improvement formalization
Day 1
recap
Problem
• A5
solving
Issue description
Plan • A3
Plan-Do-Check-Act cycle driven solution
Groups
Wrap-up
Our Approach to Kaizen – Prochazka, Chmelar 36
- 37. Copyright © Institut Lean France 2011
Kaizen Workshop outcomes:
context & focus
• Visual value stream map
• Sustainable solutions & next steps
Problem Root Solution Next step Responsible Deadline
cause
• Synchronized people over the whole value chain
Everyone knows how we work together
• People are motivated and committed to changes
Because they know how it solves their problems
And they invented the solution themselves
Our Approach to Kaizen – Prochazka, Chmelar 37
- 38. Copyright © Institut Lean France 2011
Lean@Tieto Framework
CONTINUOUS IMPROVEMENT
Our Approach to Kaizen – Prochazka, Chmelar 38
- 39. Copyright © Institut Lean France 2011
Plan
Implementation Act
Check
Do
• Everyone can create a new A5/A3
• Implementation driven by A3s’ owners
Core Team
• Regular follow-up and prioritization of Internal
Lean
A5s/A3s by Core Team coaches
Weekly or bi-weekly Other team
members
• Alignment of actions ensured by Core
Team
Our Approach to Kaizen – Prochazka, Chmelar 39
- 40. Copyright © Institut Lean France 2011
Prioritization Low investment
Possibilities Perform
Low High
customer customer
value value
Wait Challenge
High investment
Our Approach to Kaizen – Prochazka, Chmelar 40
- 41. Copyright © Institut Lean France 2011
Lean@Tieto Framework
INDEPENDENCE
Our Approach to Kaizen – Prochazka, Chmelar 41
- 42. Copyright © Institut Lean France 2011
Independence
• Continuous improvement in place
Built into daily way of working
• Internal Lean coaches keep the continuity and teach others
Indepen-
Continuous New
Intro Kick-off dent
improvement coaches
team
Our Approach to Kaizen – Prochazka, Chmelar 42
- 43. Copyright © Institut Lean France 2011
Lean@Tieto in practice: Server implementation process
A STORY
Our Approach to Kaizen – Prochazka, Chmelar 43
- 44. Copyright © Institut Lean France 2011
Server implementation team
• Process efficiency: 56% Come on, it is not so
• Mean Lead time: 12 days long time to deliver
server
• Big variance in special orders
We would like to improve the
situation with delays and rework But for sure, there
in Networking teams as well as is a room for
problematic handovers between improvement, so
shifts let’s start!
Our Approach to Kaizen – Prochazka, Chmelar 44
- 45. Copyright © Institut Lean France 2011
So we started with Lean …
Our Approach to Kaizen – Prochazka, Chmelar 45
- 46. Copyright © Institut Lean France 2011
… and identified issues (A5)
Our Approach to Kaizen – Prochazka, Chmelar 46
- 47. Copyright © Institut Lean France 2011
Root causes and solutions (A3)
Our Approach to Kaizen – Prochazka, Chmelar 47
- 48. Copyright © Institut Lean France 2011
Improvements implemented
• Implementation period: 7 weeks
Our Approach to Kaizen – Prochazka, Chmelar 48
- 49. Copyright © Institut Lean France 2011
Achievements
• In 7 weeks team:
Improved process efficiency by 12% Wow, we are
Shortened Lead time by 20% great team ;)
Financial impact 67000 EUR/monthly
Let’s continue with
other areas as well. I
like this approach!
Our Approach to Kaizen – Prochazka, Chmelar 49
- 50. Copyright © Institut Lean France 2011
Lean@Tieto
RESULTS
Our Approach to Kaizen – Prochazka, Chmelar 50
- 51. Copyright © Institut Lean France 2011
Long-term results
• Service in telco sector:
70% incident decrease in 5 month
• Another service in telco sector:
2M SEK new business: proposed improvements
• Product development in energy sector:
20% EBIT improvement in one year
• Conversion in banking and insurance sector:
Shortened lead time by 60% in 4 month
Our Approach to Kaizen – Prochazka, Chmelar 51
- 52. Copyright © Institut Lean France 2011
Service level results
A3s with its impact
Our Approach to Kaizen – Prochazka, Chmelar 52
- 53. Copyright © Institut Lean France 2011
Service level results
• 70% incident decrease in 5 months
• Changed nature of incidents
Our Approach to Kaizen – Prochazka, Chmelar 53
- 54. Copyright © Institut Lean France 2011
How do people see it?
• Lean Awareness workshops
21 sessions conducted in 2011 (avg. rating: 4.36/5)
• Kaizen workshops
20 sessions conducted in 2010/11 (avg. rating: 4.2/5)
Jarmo (Project owner): “Very useful workshop. Good
method! I was originally a little bit skeptic about using 2 days
of our heavily burdened professionals time to this. Now I am
convinced that it was worth while! The meaning is to find
productivity and quality increasing actions through finding
bottlenecks, their root causes, making priorities and
agreeing on actions.”
Our Approach to Kaizen – Prochazka, Chmelar 54
- 55. Copyright © Institut Lean France 2011
Lean@Tieto
CHALLENGES
Our Approach to Kaizen – Prochazka, Chmelar 55
- 56. Copyright © Institut Lean France 2011
Typical challenges:
corporate level
• Disconnected (and/or sub-optimized) goals
• People protecting their comfort zone (natural human
behavior)
“They have to start first...”
“Someone else’s problem”
Our Approach to Kaizen – Prochazka, Chmelar 56
- 57. Copyright © Institut Lean France 2011
Typical challenges:
service/project level
• Lacking leadership/ownership
Even more visible in distributed
environment
• No time to improve
“No time to sharpen the axe, we have to
cut the trees…”
Our Approach to Kaizen – Prochazka, Chmelar 57
- 58. Copyright © Institut Lean France 2011
Lean@Tieto
CRITICAL SUCCESS FACTORS
Our Approach to Kaizen – Prochazka, Chmelar 58
- 59. Copyright © Institut Lean France 2011
Lean@Tieto Strategy
Our Approach to Kaizen – Prochazka, Chmelar 59
- 60. Copyright © Institut Lean France 2011
Bottom-up approach…
• Team ownership
Delivery teams own the change (drivers)
• On-job learning
Plan-Do-Check-Act life cycle in practice
Our Approach to Kaizen – Prochazka, Chmelar 60
- 61. Copyright © Institut Lean France 2011
…with top-down support…
• Executive management as role models
Managers are the first to adopt Lean thinking
Direct involvement in Lean activities
• Prioritization of Lean@Tieto as a long term
investment
Slow down to speed up
• Focus on long-term results (prevent firefighting)
• Solving systemic constraints (e.g. goal setting)
Our Approach to Kaizen – Prochazka, Chmelar 61
- 62. Copyright © Institut Lean France 2011
…with coaching as the glue
• Lean coaches as role models (navigators)
• Internal coaches
Local support of teams
(especially in distributed environment)
• Delivery Mentor Network
For organizational learning (ripple effect)
Our Approach to Kaizen – Prochazka, Chmelar 62
- 63. Copyright © Institut Lean France 2011
Selling the initiative
• Packaged solution/service
How many people, costs, time period, frequency of sessions
• Printed takeaway marketing and selling material
• Success stories to create pull
Videos
Our Approach to Kaizen – Prochazka, Chmelar 63
- 64. Copyright © Institut Lean France 2011
Thank you!
QUESTIONS?
Our Approach to Kaizen – Prochazka, Chmelar 64