1 00:00:00,000 --> 00:00:02,430 The following content is provided under a Creative 2 00:00:02,430 --> 00:00:03,730 Commons License. 3 00:00:03,730 --> 00:00:06,060 Your support will help MIT OpenCourseWare 4 00:00:06,060 --> 00:00:10,090 continue to offer high quality educational resources for free. 5 00:00:10,090 --> 00:00:12,690 To make a donation or to view additional materials 6 00:00:12,690 --> 00:00:16,560 from hundreds of MIT courses, visit MIT OpenCourseWare 7 00:00:16,560 --> 00:00:17,744 at ocw.mit.edu. 8 00:00:25,790 --> 00:00:29,600 HUGH MCMANUS: Earl introduced to you the concept of Lean 9 00:00:29,600 --> 00:00:33,020 and made the assertion that lean isn't 10 00:00:33,020 --> 00:00:37,560 so much a collection of tools as a way of thinking about things. 11 00:00:37,560 --> 00:00:40,070 So what we're going to do now, actually, 12 00:00:40,070 --> 00:00:43,370 in two parts, one before lunch, one after, 13 00:00:43,370 --> 00:00:47,960 is introduce you to the basics of that way of thinking. 14 00:00:47,960 --> 00:00:50,570 So that's why we call this module Lean Thinking. 15 00:00:50,570 --> 00:00:54,210 What we're going to do first is talk about processes. 16 00:00:54,210 --> 00:00:59,090 And if Lean thinking has one really important component, 17 00:00:59,090 --> 00:01:01,730 if you walk away from here with one idea in your head, 18 00:01:01,730 --> 00:01:04,760 it's to think about work as a process which 19 00:01:04,760 --> 00:01:08,030 can be improved, so we're going to spend a little bit of time 20 00:01:08,030 --> 00:01:10,590 thinking about what is a process, 21 00:01:10,590 --> 00:01:12,950 how can we think about processes, how can we map 22 00:01:12,950 --> 00:01:17,090 processes, how can we create visual representations of them, 23 00:01:17,090 --> 00:01:20,150 and how we can think about value in that context. 24 00:01:20,150 --> 00:01:22,310 We're going to look at the fundamental Lean 25 00:01:22,310 --> 00:01:25,610 principles of Womack and Jones, which are essentially 26 00:01:25,610 --> 00:01:29,000 how can we think about improving the process in kind 27 00:01:29,000 --> 00:01:30,410 of an organized way. 28 00:01:30,410 --> 00:01:33,320 And then we're going to walk through a set of tools 29 00:01:33,320 --> 00:01:36,290 which, over the course of the next couple of days, 30 00:01:36,290 --> 00:01:38,660 we will dive deeper into. 31 00:01:38,660 --> 00:01:41,760 For now, with the exception of mapping, 32 00:01:41,760 --> 00:01:44,960 which we're actually going to do in some detail, 33 00:01:44,960 --> 00:01:46,730 we'll walk through the tools relatively 34 00:01:46,730 --> 00:01:49,820 quickly just to sort of give you an introduction to them. 35 00:01:49,820 --> 00:01:55,340 Again, those will be reinforced as the course goes on. 36 00:01:55,340 --> 00:01:58,970 So what do we mean by a process? 37 00:01:58,970 --> 00:02:03,410 Simply put, it's an action or a series of actions 38 00:02:03,410 --> 00:02:05,750 that transforms something. 39 00:02:05,750 --> 00:02:08,120 We have an input, some kind of process that 40 00:02:08,120 --> 00:02:10,820 transforms it into an output. 41 00:02:10,820 --> 00:02:13,250 If we want to expand the definition a little bit more, 42 00:02:13,250 --> 00:02:16,310 we can also think about where the inputs come from. 43 00:02:16,310 --> 00:02:20,390 A manufacturing-derived terminology is suppliers. 44 00:02:20,390 --> 00:02:21,980 That's actually kind of dangerous 45 00:02:21,980 --> 00:02:24,500 because in a service thing, that may actually 46 00:02:24,500 --> 00:02:26,810 be the customer that has a request, 47 00:02:26,810 --> 00:02:28,160 or it may be somebody else. 48 00:02:28,160 --> 00:02:31,940 It may not necessarily be a supplier in the material sense. 49 00:02:31,940 --> 00:02:34,940 But there is a place where the inputs come from, 50 00:02:34,940 --> 00:02:38,510 a set of defined inputs, instead of defined transformations, 51 00:02:38,510 --> 00:02:42,000 and the outputs go to a customer. 52 00:02:42,000 --> 00:02:46,990 So let's talk about a customer a little bit. 53 00:02:46,990 --> 00:02:49,240 What happens to the outputs of a process? 54 00:02:49,240 --> 00:02:51,270 They go to a customer. 55 00:02:51,270 --> 00:02:54,240 Again, just like supplier, the terminology, 56 00:02:54,240 --> 00:02:56,640 we've got to be careful not to get too hung up on. 57 00:02:56,640 --> 00:03:00,900 Customer may be customer in the sort of retail sense, somebody 58 00:03:00,900 --> 00:03:02,340 who buys something. 59 00:03:02,340 --> 00:03:07,300 Or it may be somebody else who gets value out of the process. 60 00:03:07,300 --> 00:03:10,980 So external customers are really that retail customer. 61 00:03:10,980 --> 00:03:13,830 The customer is the people who pay 62 00:03:13,830 --> 00:03:16,800 for the process to take place. 63 00:03:16,800 --> 00:03:19,938 They may or may not be the end user. 64 00:03:19,938 --> 00:03:22,230 There are plenty of examples in the aerospace business, 65 00:03:22,230 --> 00:03:24,450 for the engineering side of the room, 66 00:03:24,450 --> 00:03:27,600 of customers, for example, government acquisition, 67 00:03:27,600 --> 00:03:30,960 the people who buy things are not the people who use them. 68 00:03:30,960 --> 00:03:33,390 So there's even there a distinction 69 00:03:33,390 --> 00:03:38,200 between the purchasing customer and the end user customer. 70 00:03:38,200 --> 00:03:41,910 In addition, in many complex processes, 71 00:03:41,910 --> 00:03:44,770 you may actually be working for an internal customer. 72 00:03:44,770 --> 00:03:48,060 So a given step in a more complicated process 73 00:03:48,060 --> 00:03:49,650 may actually be working for somebody 74 00:03:49,650 --> 00:03:50,950 inside the organization. 75 00:03:50,950 --> 00:03:55,170 A classic case of that in aerospace engineering 76 00:03:55,170 --> 00:03:56,800 operations. 77 00:03:56,800 --> 00:03:59,260 Sometimes you do engineering for outside customers. 78 00:03:59,260 --> 00:04:01,990 Most of the time you do it for customers 79 00:04:01,990 --> 00:04:04,190 within your organization. 80 00:04:04,190 --> 00:04:06,260 In the health care side, there's an awful lot 81 00:04:06,260 --> 00:04:08,990 of service provision which are not directly 82 00:04:08,990 --> 00:04:13,190 affecting the patient but that are necessary, say, 83 00:04:13,190 --> 00:04:14,780 to keep the hospital going. 84 00:04:14,780 --> 00:04:19,250 So thinking about customers with a little bit of nuance 85 00:04:19,250 --> 00:04:20,550 is necessary. 86 00:04:20,550 --> 00:04:23,210 The other thing that we want to make sure we don't get too 87 00:04:23,210 --> 00:04:26,120 caught up in the words is the fact 88 00:04:26,120 --> 00:04:29,000 that our customers also often provide some 89 00:04:29,000 --> 00:04:30,950 of the inputs to our process. 90 00:04:30,950 --> 00:04:33,230 So actually, in a classic retail transaction, 91 00:04:33,230 --> 00:04:36,800 the customer has a need, which is an input to our process, 92 00:04:36,800 --> 00:04:39,830 as well as being the ones who receive 93 00:04:39,830 --> 00:04:42,290 the output of the process. 94 00:04:42,290 --> 00:04:44,500 So how do we visualize a process? 95 00:04:44,500 --> 00:04:46,330 Very general question. 96 00:04:46,330 --> 00:04:49,590 A good method is process mapping, 97 00:04:49,590 --> 00:04:52,110 is to try to get our brains wrapped 98 00:04:52,110 --> 00:04:55,740 around what goes on inside our work process 99 00:04:55,740 --> 00:04:57,990 through a simple map. 100 00:04:57,990 --> 00:05:00,130 There's a couple of examples here. 101 00:05:00,130 --> 00:05:01,660 This one is close to my heart. 102 00:05:01,660 --> 00:05:06,180 This is an aerospace engineering drawing release process. 103 00:05:06,180 --> 00:05:08,413 This is a before Lean. 104 00:05:08,413 --> 00:05:10,080 It's actually, from an engineering point 105 00:05:10,080 --> 00:05:12,460 of view, a simple process. 106 00:05:12,460 --> 00:05:15,540 But when you map it out in the sort of legacy state, 107 00:05:15,540 --> 00:05:16,870 it doesn't look so simple. 108 00:05:16,870 --> 00:05:18,600 In fact, it looks very confusing. 109 00:05:18,600 --> 00:05:20,340 And this is near and dear to my heart 110 00:05:20,340 --> 00:05:23,490 because I spent 10 years working in that box. 111 00:05:23,490 --> 00:05:24,240 You can't read it. 112 00:05:24,240 --> 00:05:25,890 That's stress analysis. 113 00:05:25,890 --> 00:05:27,990 And notice that's the one that all the lines come 114 00:05:27,990 --> 00:05:29,580 in and out of. 115 00:05:29,580 --> 00:05:32,338 So the task actually turned out to be very simple there, 116 00:05:32,338 --> 00:05:34,380 but the interactions with the rest of the process 117 00:05:34,380 --> 00:05:39,780 were very confusing in the old, pre-Lean state. 118 00:05:39,780 --> 00:05:42,720 Here, interestingly, is a before picture, 119 00:05:42,720 --> 00:05:45,180 and Earl can probably comment on this a little more, 120 00:05:45,180 --> 00:05:48,195 for heart attack treatment. 121 00:05:48,195 --> 00:05:50,320 This one doesn't look too bad compared to that one. 122 00:05:50,320 --> 00:05:52,080 It's sort of more or less linear. 123 00:05:52,080 --> 00:05:54,060 There seems to be some sort of steps, 124 00:05:54,060 --> 00:05:57,550 probably involving different people working on the patient. 125 00:05:57,550 --> 00:05:59,310 But apparently that was pre-Lean. 126 00:05:59,310 --> 00:06:01,830 So apparently that process could be improved. 127 00:06:01,830 --> 00:06:04,410 AUDIENCE: Problem with that process was it took too long. 128 00:06:04,410 --> 00:06:06,060 HUGH MCMANUS: OK, too many steps. 129 00:06:06,060 --> 00:06:07,410 So it's organized here. 130 00:06:07,410 --> 00:06:10,140 We can see a pretty clear path. 131 00:06:10,140 --> 00:06:12,810 But lots and lots of steps. 132 00:06:12,810 --> 00:06:14,520 So took too long. 133 00:06:14,520 --> 00:06:16,770 That's easy to understand. 134 00:06:16,770 --> 00:06:22,780 This one, yeah, more complex set of problems with that process. 135 00:06:22,780 --> 00:06:25,690 In any case, the point here is not 136 00:06:25,690 --> 00:06:28,360 to is not to go too deep on the individual processes, 137 00:06:28,360 --> 00:06:31,870 but to get the point across that in order to improve a process, 138 00:06:31,870 --> 00:06:35,440 you have to understand it, and that one good way to understand 139 00:06:35,440 --> 00:06:40,000 it is visually, and maps help us with that. 140 00:06:40,000 --> 00:06:41,680 So here's an example. 141 00:06:41,680 --> 00:06:43,420 It's not even a very good example, 142 00:06:43,420 --> 00:06:45,320 but it's an intuitive example. 143 00:06:45,320 --> 00:06:47,440 Most people would understand it. 144 00:06:47,440 --> 00:06:48,970 I want a hot dog. 145 00:06:48,970 --> 00:06:50,290 Or my kids want a hot dog. 146 00:06:50,290 --> 00:06:52,510 That's usually what happens on the weekends. 147 00:06:52,510 --> 00:06:53,840 Dad, can we have a hot dog? 148 00:06:53,840 --> 00:06:58,960 So my customer, the kids, order a hot dog. 149 00:06:58,960 --> 00:07:00,970 So they're providing input to the process 150 00:07:00,970 --> 00:07:03,410 as well as being the output customer. 151 00:07:03,410 --> 00:07:05,260 They're kind of in a loop there. 152 00:07:05,260 --> 00:07:07,810 So then the question is, do I have hot dogs? 153 00:07:07,810 --> 00:07:09,333 So I go look in the pantry. 154 00:07:09,333 --> 00:07:10,750 Why the hot dogs are in the pantry 155 00:07:10,750 --> 00:07:11,770 I've still not figured out. 156 00:07:11,770 --> 00:07:13,603 They should probably be in the refrigerator. 157 00:07:13,603 --> 00:07:15,760 Apparently this is not a perfected process, 158 00:07:15,760 --> 00:07:17,680 but that's OK. 159 00:07:17,680 --> 00:07:22,570 And if there is hot dogs in the pantry, I'm all set. 160 00:07:22,570 --> 00:07:24,350 If there's not, I have to go to the store. 161 00:07:24,350 --> 00:07:26,290 So there's a little bit of a decision here. 162 00:07:26,290 --> 00:07:30,220 Here's another supplier, which is the store. 163 00:07:30,220 --> 00:07:33,490 If I have everything I need, I cook the hot dog, 164 00:07:33,490 --> 00:07:34,450 I put it in the bun. 165 00:07:34,450 --> 00:07:35,710 I give it to the kids. 166 00:07:35,710 --> 00:07:36,730 We're all set. 167 00:07:36,730 --> 00:07:39,100 There's a little bit of an extra sort of tail end loop 168 00:07:39,100 --> 00:07:40,720 here, which is I got to clean up. 169 00:07:40,720 --> 00:07:43,060 And if I'm smart about it, I'll actually 170 00:07:43,060 --> 00:07:47,560 save myself some front end work by putting 171 00:07:47,560 --> 00:07:50,350 hot dogs on the shopping list if I used them all up. 172 00:07:50,350 --> 00:07:52,660 Not the greatest not the greatest process 173 00:07:52,660 --> 00:07:55,210 map, but it's one everyone can understand. 174 00:07:55,210 --> 00:07:57,160 You could probably do better, and we're 175 00:07:57,160 --> 00:08:00,830 going to give you an opportunity to do exactly that. 176 00:08:00,830 --> 00:08:03,650 We're going to do a little bit more complicated process. 177 00:08:03,650 --> 00:08:06,340 It's not just kids ordering from me. 178 00:08:06,340 --> 00:08:08,090 But it's not that much more complicated, 179 00:08:08,090 --> 00:08:10,300 and it does, in fact, involve fixing hot dogs. 180 00:08:10,300 --> 00:08:15,730 In your blue folder you have a little story about Sasha 181 00:08:15,730 --> 00:08:18,970 and Andy's hot dog stand, and the stuff in the front 182 00:08:18,970 --> 00:08:22,930 give you an introduction to Sasha and Andy, 183 00:08:22,930 --> 00:08:24,910 who have a hot dog stand. 184 00:08:24,910 --> 00:08:28,180 And they're doing fine, but they find that they 185 00:08:28,180 --> 00:08:29,350 are a little bit swamped. 186 00:08:29,350 --> 00:08:31,990 They have more customers than they can deal with, 187 00:08:31,990 --> 00:08:35,150 and they want to improve their process. 188 00:08:35,150 --> 00:08:37,429 So we're going to help them do that. 189 00:08:37,429 --> 00:08:41,900 And so we're going to help them do that with a direct exercise 190 00:08:41,900 --> 00:08:42,400 here. 191 00:08:42,400 --> 00:08:43,570 Read the sheet here. 192 00:08:43,570 --> 00:08:45,520 For you, their process is actually 193 00:08:45,520 --> 00:08:46,840 already been broken down. 194 00:08:46,840 --> 00:08:49,900 If you were doing this with your own process from start, 195 00:08:49,900 --> 00:08:52,150 you'd have to do the little exercise of figuring out 196 00:08:52,150 --> 00:08:54,340 what are the steps, what are the inputs 197 00:08:54,340 --> 00:08:55,900 and outputs to the steps. 198 00:08:55,900 --> 00:08:58,720 Don't even worry about the data yet, just the first column. 199 00:08:58,720 --> 00:09:01,360 That's the steps that they take. 200 00:09:01,360 --> 00:09:03,790 That's been done for you, and we're going to map this. 201 00:09:03,790 --> 00:09:08,620 So give you a second to look at that. 202 00:09:08,620 --> 00:09:11,740 Think about the steps, their inputs and outputs. 203 00:09:11,740 --> 00:09:14,440 And then we're going to create a map using 204 00:09:14,440 --> 00:09:19,670 the post-it notes which are out on the table with the sharpies. 205 00:09:19,670 --> 00:09:22,140 For each of the process elements, make a post-it. 206 00:09:22,140 --> 00:09:24,300 And this is not supposed to be complicated. 207 00:09:24,300 --> 00:09:27,650 The first one is, let's see, take order. 208 00:09:27,650 --> 00:09:29,240 So let's make it easy. 209 00:09:29,240 --> 00:09:30,545 Take order. 210 00:09:34,387 --> 00:09:35,220 Who takes the order? 211 00:09:35,220 --> 00:09:36,290 Sasha takes the order. 212 00:09:36,290 --> 00:09:40,910 We could add that information, or we could use color. 213 00:09:40,910 --> 00:09:44,973 Perhaps this color implies Sasha. 214 00:09:44,973 --> 00:09:47,390 And we'll put that on our thing, and we're using a sticky. 215 00:09:47,390 --> 00:09:47,890 Why? 216 00:09:50,460 --> 00:09:54,240 We can move it around because a priori, 217 00:09:54,240 --> 00:09:56,760 we're not really sure how these things should be arranged 218 00:09:56,760 --> 00:09:58,230 to make the most sense. 219 00:09:58,230 --> 00:10:00,770 Let's think about inputs and outputs who gives the input? 220 00:10:03,660 --> 00:10:05,670 Customer, OK. 221 00:10:05,670 --> 00:10:08,858 So there's another one. 222 00:10:08,858 --> 00:10:10,650 So we might want to do something like that. 223 00:10:10,650 --> 00:10:11,823 And you get the picture. 224 00:10:11,823 --> 00:10:13,740 We're not going to do the whole thing for you. 225 00:10:13,740 --> 00:10:15,060 You're going to do it. 226 00:10:15,060 --> 00:10:15,930 Get the stickies. 227 00:10:15,930 --> 00:10:17,520 Arrange them on the board. 228 00:10:17,520 --> 00:10:19,980 Don't start drawing lines yet because that 229 00:10:19,980 --> 00:10:23,940 would kind of ruin the point of having the stickies there. 230 00:10:23,940 --> 00:10:27,360 When you think you have everything puzzled out, 231 00:10:27,360 --> 00:10:30,970 there might be some other details that are necessary. 232 00:10:30,970 --> 00:10:35,040 One of them is that there might be waiting or inventory. 233 00:10:35,040 --> 00:10:38,640 There may be places where the process waits. 234 00:10:38,640 --> 00:10:41,010 And the traditional symbol for that is a triangle. 235 00:10:41,010 --> 00:10:43,500 We don't have any triangle-shaped stickies, 236 00:10:43,500 --> 00:10:45,960 so we are going to use something like this. 237 00:10:45,960 --> 00:10:48,700 Perhaps there is a line of customers. 238 00:10:48,700 --> 00:10:52,048 So there's kind of an inventory waiting box in front of them. 239 00:10:52,048 --> 00:10:52,590 I don't know. 240 00:10:52,590 --> 00:10:54,210 I'm making this up as I go along. 241 00:10:54,210 --> 00:10:56,970 And perhaps a decision has to be made at that point. 242 00:10:56,970 --> 00:10:59,370 Do we take the order or tell them no, I'm sorry, 243 00:10:59,370 --> 00:11:01,320 we don't sell that? 244 00:11:01,320 --> 00:11:02,490 Decisions are diamonds. 245 00:11:02,490 --> 00:11:07,270 You can do a diamond by just putting a square sideways. 246 00:11:07,270 --> 00:11:11,800 When all that is done, then it's time to draw the lines. 247 00:11:11,800 --> 00:11:14,170 You can actually even make that temporary 248 00:11:14,170 --> 00:11:17,230 and use stickies with arrows on them, or use string. 249 00:11:17,230 --> 00:11:20,115 I've participated in exercises where you do that. 250 00:11:20,115 --> 00:11:21,740 That's getting a little bit too clever. 251 00:11:21,740 --> 00:11:22,780 It gets a bit messy. 252 00:11:22,780 --> 00:11:24,638 Best thing to do is arrange everything 253 00:11:24,638 --> 00:11:25,930 on the board with the stickies. 254 00:11:25,930 --> 00:11:28,100 When you think you got everything lined up, 255 00:11:28,100 --> 00:11:31,780 then draw lines to show how the process is flowing. 256 00:11:31,780 --> 00:11:34,030 This is a speed exercise. 257 00:11:34,030 --> 00:11:37,160 You only have 10 minutes, so get with your groups. 258 00:11:37,160 --> 00:11:41,980 Here are the basic mapping symbols, triangle, rectangle, 259 00:11:41,980 --> 00:11:43,060 diamond. 260 00:11:43,060 --> 00:11:44,290 Don't worry about issues yet. 261 00:11:44,290 --> 00:11:45,490 We're going to get to that. 262 00:11:45,490 --> 00:11:49,150 Map out this process. 263 00:11:49,150 --> 00:12:09,160 [INTERPOSING VOICES] 264 00:12:09,160 --> 00:12:11,120 HUGH MCMANUS: So time's up. 265 00:12:11,120 --> 00:12:12,640 I think everybody's got something 266 00:12:12,640 --> 00:12:14,620 that approximates a map here. 267 00:12:14,620 --> 00:12:16,450 And don't worry, you'll get that chance 268 00:12:16,450 --> 00:12:20,420 to play with it more in the near future. 269 00:12:20,420 --> 00:12:21,820 So let's see what we have. 270 00:12:21,820 --> 00:12:23,860 Let's have the folks in the back, 271 00:12:23,860 --> 00:12:25,970 who have a map that looks kind of different, 272 00:12:25,970 --> 00:12:28,490 let us know what they have. 273 00:12:28,490 --> 00:12:31,810 AUDIENCE: So we had the [INAUDIBLE] colors as well, 274 00:12:31,810 --> 00:12:36,830 and it starts at the upper left and goes down here. 275 00:12:36,830 --> 00:12:39,590 We don't actually have the process line, 276 00:12:39,590 --> 00:12:45,250 but essentially the time next to each post-it 277 00:12:45,250 --> 00:12:49,210 referred to how long that is suggested to take. 278 00:12:49,210 --> 00:12:54,620 And then we have this loop-interlook process here 279 00:12:54,620 --> 00:12:58,280 where Andy will need to prepare the hot dog, and potentially 280 00:12:58,280 --> 00:12:59,630 multiple hot dogs. 281 00:12:59,630 --> 00:13:02,810 And coming up here, Sasha checking the order 282 00:13:02,810 --> 00:13:07,615 and completing that process, as well as ending with 283 00:13:07,615 --> 00:13:11,905 a 10-minute-per-hour makes sense. 284 00:13:11,905 --> 00:13:13,280 HUGH MCMANUS: And you've got sort 285 00:13:13,280 --> 00:13:15,540 of a different physical arrangement. 286 00:13:15,540 --> 00:13:17,340 Comes down and then back up again, 287 00:13:17,340 --> 00:13:20,060 which is sort of enforced by the geometry of that board. 288 00:13:20,060 --> 00:13:23,420 So that's fine. 289 00:13:23,420 --> 00:13:25,732 And I guess because maybe you didn't have time 290 00:13:25,732 --> 00:13:28,190 to finish with the lines, it's a little bit less clear kind 291 00:13:28,190 --> 00:13:29,480 of what the rework is. 292 00:13:29,480 --> 00:13:32,240 It looks a little more linear. 293 00:13:32,240 --> 00:13:33,047 That's fine. 294 00:13:33,047 --> 00:13:34,880 And I don't think we're going to go through. 295 00:13:34,880 --> 00:13:37,880 It looks like everybody else also did a nice job. 296 00:13:37,880 --> 00:13:40,490 The point, though, is not to go through each individual one 297 00:13:40,490 --> 00:13:41,800 and give you a grade. 298 00:13:41,800 --> 00:13:45,290 The point actually is that I think all of these maps 299 00:13:45,290 --> 00:13:47,450 are successful in visually representing 300 00:13:47,450 --> 00:13:50,780 the process and some of its difficulties, the fact 301 00:13:50,780 --> 00:13:54,530 that it is fairly long, that it has reworks and decisions, 302 00:13:54,530 --> 00:13:57,200 that it has weights and times. 303 00:13:57,200 --> 00:13:58,220 Those are all captured. 304 00:13:58,220 --> 00:14:02,420 And there's no real right answer because that's 305 00:14:02,420 --> 00:14:05,480 the point of our next slide. 306 00:14:05,480 --> 00:14:07,580 It's a 2D visualization. 307 00:14:07,580 --> 00:14:11,450 It's something that's actually taking place in 3D space. 308 00:14:11,450 --> 00:14:13,610 Plus there's time issues. 309 00:14:13,610 --> 00:14:16,820 There's issues of these processes 310 00:14:16,820 --> 00:14:18,290 that are not on the main loop. 311 00:14:18,290 --> 00:14:20,210 You can't basically get everything 312 00:14:20,210 --> 00:14:21,620 into a two-dimensional map. 313 00:14:21,620 --> 00:14:22,880 You do the best you can. 314 00:14:22,880 --> 00:14:27,490 You use it as a way of communicating the process. 315 00:14:27,490 --> 00:14:30,680 So capturing and communicating the key features of the process 316 00:14:30,680 --> 00:14:32,540 is what you want to do. 317 00:14:32,540 --> 00:14:34,400 One thing that you do have to be careful of, 318 00:14:34,400 --> 00:14:37,580 and this exercise is actually fairly carefully designed 319 00:14:37,580 --> 00:14:39,470 this way, you have to capture-- 320 00:14:39,470 --> 00:14:41,840 I actually shouldn't say avoid unneeded details. 321 00:14:41,840 --> 00:14:44,240 You have to capture the right level of detail. 322 00:14:44,240 --> 00:14:46,940 If we just said, make the hot dog, 323 00:14:46,940 --> 00:14:49,670 we'd miss all of this interesting stuff. 324 00:14:49,670 --> 00:14:52,768 On the other hand, if we went through--and some people did, 325 00:14:52,768 --> 00:14:55,310 and that's OK because I didn't tell you not to-- went through 326 00:14:55,310 --> 00:14:58,280 the individual, OK, take the order, chat with the customer, 327 00:14:58,280 --> 00:14:59,930 take the money. 328 00:14:59,930 --> 00:15:05,135 At some level of detail we might actually want to do that. 329 00:15:05,135 --> 00:15:07,010 At the level of detail of this whole process, 330 00:15:07,010 --> 00:15:09,200 if we get into those individual things, 331 00:15:09,200 --> 00:15:10,910 it gets too complicated. 332 00:15:10,910 --> 00:15:16,190 so most folks did capture that level of detail about right. 333 00:15:20,870 --> 00:15:23,930 So I think we've all succeeded in doing 334 00:15:23,930 --> 00:15:25,460 the key thing, which is capturing 335 00:15:25,460 --> 00:15:27,615 the features of the process. 336 00:15:27,615 --> 00:15:29,240 We're going to come back to these maps. 337 00:15:29,240 --> 00:15:32,900 But for now, that's it for processes. 338 00:15:32,900 --> 00:15:35,420 Like I said, if there's one thing you take away from here, 339 00:15:35,420 --> 00:15:37,880 it's thinking about work as processes 340 00:15:37,880 --> 00:15:41,150 because once you think of something as a process, 341 00:15:41,150 --> 00:15:44,990 you can understand and improve it, often fairly intuitively. 342 00:15:44,990 --> 00:15:49,970 Often it really is application of common sense to the process 343 00:15:49,970 --> 00:15:52,890 to make it better. 344 00:15:52,890 --> 00:15:54,870 So a little bit of a transition now. 345 00:15:54,870 --> 00:16:00,190 We're going to get into the five Lean thinking fundamentals. 346 00:16:00,190 --> 00:16:03,240 Earl introduced you a little earlier to the origins of Lean, 347 00:16:03,240 --> 00:16:08,100 how it came out of a study of Japanese practices 348 00:16:08,100 --> 00:16:10,020 by Jim Womack and his team. 349 00:16:10,020 --> 00:16:13,930 And Womack and Jones wrote a book in 1995, 350 00:16:13,930 --> 00:16:17,140 where they basically took the base, the ideas, 351 00:16:17,140 --> 00:16:20,430 the concepts of the Japanese system 352 00:16:20,430 --> 00:16:25,970 and captured them not so much as a system, 353 00:16:25,970 --> 00:16:31,530 but as a way of transforming existing processes into better 354 00:16:31,530 --> 00:16:32,030 ones. 355 00:16:32,030 --> 00:16:33,680 They said, let's take these principles 356 00:16:33,680 --> 00:16:35,690 and figure out how they can be used 357 00:16:35,690 --> 00:16:38,840 to take existing processes, which are maybe not so great, 358 00:16:38,840 --> 00:16:40,970 and transform them into better ones. 359 00:16:40,970 --> 00:16:43,340 And that's kind of the essence of Lean 360 00:16:43,340 --> 00:16:46,940 as practiced in North America and Europe, at least. 361 00:16:46,940 --> 00:16:47,690 And here they are. 362 00:16:47,690 --> 00:16:51,110 Here are the fundamental principles. 363 00:16:51,110 --> 00:16:52,850 First of all, specify value. 364 00:16:52,850 --> 00:16:55,960 Understand what we want to accomplish because if we don't 365 00:16:55,960 --> 00:16:59,830 do that, we can't really think clearly 366 00:16:59,830 --> 00:17:01,640 about any of the other steps. 367 00:17:01,640 --> 00:17:05,930 So what is the value of our hot dog stand? 368 00:17:05,930 --> 00:17:08,150 What is the value of a hot dog stand? 369 00:17:08,150 --> 00:17:09,230 Hot dogs, right? 370 00:17:09,230 --> 00:17:14,480 Hot dogs for customers, warm, safe, no diseases or bugs. 371 00:17:14,480 --> 00:17:17,750 You can think of a couple of the quality issues. 372 00:17:17,750 --> 00:17:19,530 You can think of some nuance to it. 373 00:17:19,530 --> 00:17:21,619 But basically, we want to make hot dogs. 374 00:17:21,619 --> 00:17:23,660 Identify the value stream. 375 00:17:23,660 --> 00:17:25,310 We've sort of done that. 376 00:17:25,310 --> 00:17:31,630 If we think about the process and take a process map, 377 00:17:31,630 --> 00:17:34,370 but a rather specific kind of process map, which 378 00:17:34,370 --> 00:17:37,820 is a process map that follows the value 379 00:17:37,820 --> 00:17:40,400 added product through the process, 380 00:17:40,400 --> 00:17:45,050 and then think about how value is added to that product 381 00:17:45,050 --> 00:17:48,260 as it moves through the process, that's a value stream map. 382 00:17:48,260 --> 00:17:49,550 We're pretty close on this. 383 00:17:49,550 --> 00:17:51,380 We figured out the value is the hot dog, 384 00:17:51,380 --> 00:17:53,240 and we're following the hot dog pretty much. 385 00:17:53,240 --> 00:17:56,820 We're following a hot dog order through there. 386 00:17:56,820 --> 00:18:00,200 So all of ours are approaching value stream. 387 00:18:00,200 --> 00:18:01,730 Not all process maps are. 388 00:18:01,730 --> 00:18:04,130 We could have followed Sasha around, right? 389 00:18:04,130 --> 00:18:06,000 What does that person do? 390 00:18:06,000 --> 00:18:07,670 That's not a value stream map. 391 00:18:07,670 --> 00:18:08,690 It's a process map. 392 00:18:08,690 --> 00:18:10,820 It's following that person's work process. 393 00:18:10,820 --> 00:18:13,850 But value stream map follows the product, 394 00:18:13,850 --> 00:18:15,290 the value added product. 395 00:18:15,290 --> 00:18:16,790 Make value flow. 396 00:18:16,790 --> 00:18:18,200 Saw a couple of maps earlier. 397 00:18:18,200 --> 00:18:20,000 There was that engineering map. 398 00:18:20,000 --> 00:18:22,010 Didn't look like a lot of flow in that map. 399 00:18:22,010 --> 00:18:24,870 The lines are all over the place. 400 00:18:24,870 --> 00:18:26,420 The heart attack map was better. 401 00:18:26,420 --> 00:18:29,660 At least there was some coherent patient 402 00:18:29,660 --> 00:18:32,700 comes in to patient is resolved, in some way. 403 00:18:32,700 --> 00:18:35,300 So there was a potential there for flow, at least. 404 00:18:35,300 --> 00:18:37,205 But Earl was saying that in the old state, 405 00:18:37,205 --> 00:18:39,080 it wasn't really being achieved because there 406 00:18:39,080 --> 00:18:40,520 was too many steps. 407 00:18:40,520 --> 00:18:42,030 It was too slow. 408 00:18:42,030 --> 00:18:44,990 So what we would like to do is have value flow 409 00:18:44,990 --> 00:18:47,930 through the value stream as continuously as 410 00:18:47,930 --> 00:18:50,960 possible, not necessarily as fast as possible, a low speed. 411 00:18:50,960 --> 00:18:53,840 Usually processes are too slow, so it's 412 00:18:53,840 --> 00:18:56,570 reasonable to say we would like it to flow quickly 413 00:18:56,570 --> 00:18:58,130 through the process. 414 00:18:58,130 --> 00:19:01,093 Then we get a little bit more sophisticated, 415 00:19:01,093 --> 00:19:02,510 and by the end of the class, we'll 416 00:19:02,510 --> 00:19:04,850 get to what this concept means. 417 00:19:04,850 --> 00:19:07,160 It may not be intuitive right away. 418 00:19:07,160 --> 00:19:09,950 If we have a system that flows and creates 419 00:19:09,950 --> 00:19:12,590 value for the customer, there's the potential 420 00:19:12,590 --> 00:19:16,820 that we can allow the customers to pull value from that system. 421 00:19:16,820 --> 00:19:19,340 Like Lean, that's a slightly fraught word. 422 00:19:19,340 --> 00:19:20,990 What does that mean, especially when 423 00:19:20,990 --> 00:19:23,450 we're pulling on something that flows or pulling on water? 424 00:19:23,450 --> 00:19:25,742 I don't know, the metaphor's getting kind of messed up. 425 00:19:25,742 --> 00:19:30,890 But the idea here is that essentially if the system flows 426 00:19:30,890 --> 00:19:33,380 continuously and creates value, from the customer's 427 00:19:33,380 --> 00:19:36,170 point of view, when they want something, they get it. 428 00:19:36,170 --> 00:19:38,900 They can come up to the hot dog stand, say, I want a hot dog. 429 00:19:38,900 --> 00:19:39,980 The hot dog comes. 430 00:19:39,980 --> 00:19:42,140 They're happy. 431 00:19:42,140 --> 00:19:47,810 And this act of satisfying the customer actually 432 00:19:47,810 --> 00:19:52,100 controls the process all the way back to the lowest levels. 433 00:19:52,100 --> 00:19:54,110 The customer gets their hot dog. 434 00:19:54,110 --> 00:19:56,123 We essentially have a process that 435 00:19:56,123 --> 00:19:58,040 doesn't require a whole lot of decision making 436 00:19:58,040 --> 00:20:01,460 that isn't complicated, that flows, that creates 437 00:20:01,460 --> 00:20:05,000 the hot dogs, that orders the buns, that cleans up the grill, 438 00:20:05,000 --> 00:20:05,810 whatever. 439 00:20:05,810 --> 00:20:10,190 The whole system is set up so that the customer desire 440 00:20:10,190 --> 00:20:14,600 activates the system to satisfy that desire in a way that's 441 00:20:14,600 --> 00:20:17,510 continuous and easy and creates value 442 00:20:17,510 --> 00:20:19,610 with the minimum of waste. 443 00:20:19,610 --> 00:20:21,260 And finally, pursuing perfection. 444 00:20:21,260 --> 00:20:23,150 If we can do all of this, we're not 445 00:20:23,150 --> 00:20:25,730 done because we can always do better. 446 00:20:25,730 --> 00:20:29,660 Earl mentioned the F18, how they identified them 447 00:20:29,660 --> 00:20:31,747 as a Lean enterprise. 448 00:20:31,747 --> 00:20:33,830 And the first thing they said is, that's not true. 449 00:20:33,830 --> 00:20:35,570 We have so much more to do. 450 00:20:35,570 --> 00:20:37,130 Right attitude. 451 00:20:37,130 --> 00:20:39,500 They knew that they weren't perfect. 452 00:20:39,500 --> 00:20:41,660 An external observer said you're pretty good. 453 00:20:41,660 --> 00:20:43,400 But they knew that they weren't perfect. 454 00:20:43,400 --> 00:20:46,580 They were, in fact, pursuing perfection. 455 00:20:46,580 --> 00:20:48,900 So this is a continuous process. 456 00:20:48,900 --> 00:20:49,400 All right. 457 00:20:49,400 --> 00:20:52,220 So we're going to spend the rest of both this unit, 458 00:20:52,220 --> 00:20:54,530 and then after lunch, the second unit, essentially 459 00:20:54,530 --> 00:20:57,530 walking through these concepts, going a little deeper 460 00:20:57,530 --> 00:21:00,830 and also giving you some tools on each one of these levels. 461 00:21:00,830 --> 00:21:03,750 First thing we're going to talk about is value. 462 00:21:03,750 --> 00:21:06,560 This one is fraught. 463 00:21:06,560 --> 00:21:10,510 It's fairly easy to define value-- 464 00:21:10,510 --> 00:21:11,112 not always. 465 00:21:11,112 --> 00:21:12,820 You have to be a little bit careful- But? 466 00:21:12,820 --> 00:21:14,320 It's fairly easy to define the value 467 00:21:14,320 --> 00:21:16,880 of the output of a process. 468 00:21:16,880 --> 00:21:17,850 We want hot dogs. 469 00:21:17,850 --> 00:21:19,220 That's our value. 470 00:21:19,220 --> 00:21:21,350 When we start looking in more detail, 471 00:21:21,350 --> 00:21:24,410 what's the value of the individual process steps? 472 00:21:24,410 --> 00:21:28,100 Is cooking the hot dog valuable? 473 00:21:28,100 --> 00:21:31,270 I hope so, assuming you want it cooked. 474 00:21:31,270 --> 00:21:37,730 But is cleaning the grill valuable? 475 00:21:37,730 --> 00:21:38,927 Maybe. 476 00:21:38,927 --> 00:21:40,760 We have to think about that a little harder. 477 00:21:40,760 --> 00:21:45,210 And in a real workplace, this can get very difficult, 478 00:21:45,210 --> 00:21:48,740 especially if you start attaching 479 00:21:48,740 --> 00:21:53,170 personal self-worth issues. 480 00:21:53,170 --> 00:21:55,455 If you're told you are non-value added, 481 00:21:55,455 --> 00:21:56,830 what does that do to your morale? 482 00:22:00,040 --> 00:22:03,050 And it's not just a morale issue. 483 00:22:03,050 --> 00:22:04,330 It's also a motivation issue. 484 00:22:04,330 --> 00:22:10,030 When we first started applying Lean to product development 485 00:22:10,030 --> 00:22:14,800 activities, we got things completely up and down 486 00:22:14,800 --> 00:22:20,440 the scale from people arguing that their work was valuable 487 00:22:20,440 --> 00:22:23,800 because they knew it was without really any context to what it 488 00:22:23,800 --> 00:22:26,080 did for the customer, all the way to the other side, 489 00:22:26,080 --> 00:22:27,730 where we had some Lean experts come in 490 00:22:27,730 --> 00:22:31,930 and say, well, analysis isn't valuable because it doesn't add 491 00:22:31,930 --> 00:22:35,350 anything directly to the customer, which, as an analyst, 492 00:22:35,350 --> 00:22:37,120 I sort of had problems with. 493 00:22:37,120 --> 00:22:40,090 It took me a while to figure out exactly what the problem was 494 00:22:40,090 --> 00:22:40,930 with that. 495 00:22:40,930 --> 00:22:46,840 But people that were too eager to essentially say 496 00:22:46,840 --> 00:22:49,870 that activities, and by implication, people 497 00:22:49,870 --> 00:22:50,950 were non-value added. 498 00:22:50,950 --> 00:22:53,310 The point is that you have to think about it. 499 00:22:53,310 --> 00:22:55,600 So there's some guides on here. 500 00:22:55,600 --> 00:22:59,020 We can think about value as like cooking the hot dog, things 501 00:22:59,020 --> 00:23:04,480 that directly transform material or information in the direction 502 00:23:04,480 --> 00:23:09,220 of the customer's desire and done correctly, no mistakes. 503 00:23:09,220 --> 00:23:14,690 That's unambiguously valuable. 504 00:23:14,690 --> 00:23:18,310 The other end's kind of easy to think about, too, pure waste. 505 00:23:18,310 --> 00:23:20,660 Consumes resources but creates no value. 506 00:23:20,660 --> 00:23:22,180 So waiting. 507 00:23:22,180 --> 00:23:24,520 Inventory, stuff that's just sitting around. 508 00:23:24,520 --> 00:23:26,770 Mistakes. 509 00:23:26,770 --> 00:23:31,150 Reworking things in a creative sense can be good. 510 00:23:31,150 --> 00:23:34,300 But if it's because you're fixing a mistake, no value 511 00:23:34,300 --> 00:23:35,560 there. 512 00:23:35,560 --> 00:23:36,888 Things like that. 513 00:23:36,888 --> 00:23:38,680 And then in the middle, there may be things 514 00:23:38,680 --> 00:23:42,950 that we know don't really add value but we simply have to do. 515 00:23:42,950 --> 00:23:44,860 There may be setup and tear down issues 516 00:23:44,860 --> 00:23:46,510 with our current technologies. 517 00:23:46,510 --> 00:23:49,930 There may be the necessity to do project coordination. 518 00:23:49,930 --> 00:23:53,720 We may have to satisfy regulations or laws. 519 00:23:53,720 --> 00:23:57,780 So there may be things that we got to do. 520 00:23:57,780 --> 00:23:59,508 Like I said, t the individual task level, 521 00:23:59,508 --> 00:24:01,050 that's not necessarily an easy thing, 522 00:24:01,050 --> 00:24:03,250 and here's a great example. 523 00:24:03,250 --> 00:24:04,780 Does inspection add value? 524 00:24:04,780 --> 00:24:07,200 A couple of little brainteasers here. 525 00:24:07,200 --> 00:24:09,490 Inspect those. 526 00:24:09,490 --> 00:24:13,230 Everybody got them, maybe? 527 00:24:13,230 --> 00:24:14,520 Yeah. 528 00:24:14,520 --> 00:24:15,570 This one's funny. 529 00:24:15,570 --> 00:24:17,590 One of my colleagues in the back, 530 00:24:17,590 --> 00:24:19,440 we have a mark-up copy of our slides 531 00:24:19,440 --> 00:24:23,320 because we are always doing continuous improvement. 532 00:24:23,320 --> 00:24:25,480 She found one of these double word things. 533 00:24:25,480 --> 00:24:27,120 See the two V's? 534 00:24:27,120 --> 00:24:28,522 She found a double word error. 535 00:24:28,522 --> 00:24:29,730 It wasn't even a line jumper. 536 00:24:29,730 --> 00:24:31,920 They were right next to each other on a slide we've 537 00:24:31,920 --> 00:24:34,980 been using for five years. 538 00:24:34,980 --> 00:24:38,330 So people are not very good at this. 539 00:24:38,330 --> 00:24:43,750 People are not very good at inspecting in quality. 540 00:24:43,750 --> 00:24:47,280 So is it value added or not? 541 00:24:47,280 --> 00:24:49,410 And you could have a lively argument about. 542 00:24:49,410 --> 00:24:50,190 We're not now. 543 00:24:50,190 --> 00:24:52,022 Actually, anybody have any ideas? 544 00:24:52,022 --> 00:24:53,730 What's your gut feeling about inspection? 545 00:24:53,730 --> 00:24:56,875 Value added or not? 546 00:24:56,875 --> 00:24:59,000 AUDIENCE: It depends on where it is in the process. 547 00:24:59,000 --> 00:25:00,710 HUGH MCMANUS: Depends on where it is in the process. 548 00:25:00,710 --> 00:25:01,640 Very good. 549 00:25:01,640 --> 00:25:03,980 Very good answer, actually, nice general answer. 550 00:25:03,980 --> 00:25:07,530 But a very good answer. 551 00:25:07,530 --> 00:25:09,300 Yeah. aren't are very good at inspecting. 552 00:25:09,300 --> 00:25:12,735 And inspecting in quality is actually known not to work. 553 00:25:12,735 --> 00:25:14,610 On the other hand, you might have to do that. 554 00:25:14,610 --> 00:25:16,242 If something is super safety critical 555 00:25:16,242 --> 00:25:18,450 and it's just really hard to do right the first time, 556 00:25:18,450 --> 00:25:19,950 you might have to inspect it. 557 00:25:19,950 --> 00:25:23,580 Also, continuous inspection of the work process 558 00:25:23,580 --> 00:25:25,860 is known to be quite valuable. 559 00:25:25,860 --> 00:25:28,050 Inspecting in quality at the end of something 560 00:25:28,050 --> 00:25:31,080 that should go right the first time, probably not. 561 00:25:31,080 --> 00:25:33,600 And unfortunately a lot of traditional, especially 562 00:25:33,600 --> 00:25:36,180 manufacturing-type processes lean on that a little too 563 00:25:36,180 --> 00:25:37,020 heavily. 564 00:25:37,020 --> 00:25:41,700 So context dependent, an interesting case 565 00:25:41,700 --> 00:25:44,100 where you have to be careful that you don't 566 00:25:44,100 --> 00:25:46,810 assume something either way. 567 00:25:46,810 --> 00:25:48,060 Inspection is non-value added. 568 00:25:48,060 --> 00:25:49,380 No, no, no, it's super safety critical. 569 00:25:49,380 --> 00:25:49,920 We got to do it. 570 00:25:49,920 --> 00:25:51,545 I don't want to fly in an airplane that 571 00:25:51,545 --> 00:25:53,490 hasn't been inspected. 572 00:25:53,490 --> 00:25:56,100 But inspecting something that's coming off a line that you're 573 00:25:56,100 --> 00:25:59,190 making a million of, given that you know inspection 574 00:25:59,190 --> 00:26:02,880 doesn't work very well as a quality method, not so good. 575 00:26:02,880 --> 00:26:04,478 So that's value. 576 00:26:04,478 --> 00:26:06,270 We're going to do a little exercise in that 577 00:26:06,270 --> 00:26:09,450 before the day is over, before this class is over. 578 00:26:09,450 --> 00:26:12,030 Identifying value stream. 579 00:26:12,030 --> 00:26:13,470 What is the value stream? 580 00:26:13,470 --> 00:26:17,580 It's the end- to-end activities that 581 00:26:17,580 --> 00:26:19,020 take place to deliver value. 582 00:26:19,020 --> 00:26:22,230 Said this already against that first slide, starting 583 00:26:22,230 --> 00:26:24,730 with the raw material or the initial information, 584 00:26:24,730 --> 00:26:26,700 ending with the customer, or user. 585 00:26:26,700 --> 00:26:28,890 From the beginning to the end, the material, 586 00:26:28,890 --> 00:26:33,960 the product flows is often a backwards flow of information. 587 00:26:33,960 --> 00:26:37,410 Customer needs, schedules, inventory information, 588 00:26:37,410 --> 00:26:38,280 et cetera. 589 00:26:38,280 --> 00:26:41,610 So is the main flow of the value from raw material 590 00:26:41,610 --> 00:26:45,630 or raw information to something the customer wants, often 591 00:26:45,630 --> 00:26:49,820 a backwards flow of information. 592 00:26:49,820 --> 00:26:52,100 What moves in a value stream? 593 00:26:52,100 --> 00:26:53,390 Manufacturing, it's easy. 594 00:26:53,390 --> 00:26:55,160 Stuff. 595 00:26:55,160 --> 00:26:58,420 In design and services, less easy. 596 00:26:58,420 --> 00:27:01,410 Some kind of information flows. 597 00:27:01,410 --> 00:27:02,410 I call it the help line. 598 00:27:02,410 --> 00:27:03,730 I have a question. 599 00:27:03,730 --> 00:27:04,960 I want an answer. 600 00:27:04,960 --> 00:27:06,970 It's all information. 601 00:27:06,970 --> 00:27:07,758 It's not physical. 602 00:27:07,758 --> 00:27:10,300 It makes it a little bit harder to track, a little bit harder 603 00:27:10,300 --> 00:27:11,320 to think about. 604 00:27:11,320 --> 00:27:13,210 But there is a flow of information 605 00:27:13,210 --> 00:27:15,220 that is satisfying the customer. 606 00:27:15,220 --> 00:27:18,670 In human services, medical, for example, it may be people. 607 00:27:18,670 --> 00:27:22,730 It may be the actual customer flowing through the system. 608 00:27:22,730 --> 00:27:24,220 And that could be in medicine. 609 00:27:24,220 --> 00:27:28,330 It could also be great Lean company, Disneyland. 610 00:27:28,330 --> 00:27:31,450 They process people and make them happy. 611 00:27:31,450 --> 00:27:34,780 But they think of it very much as a process. 612 00:27:34,780 --> 00:27:37,690 So there's a flow of people coming in sad and grumpy 613 00:27:37,690 --> 00:27:44,080 and going out sad, grumpy, and hot and poor, at least in my-- 614 00:27:44,080 --> 00:27:45,023 no, I joke. 615 00:27:45,023 --> 00:27:45,940 They have a good time. 616 00:27:45,940 --> 00:27:50,880 And the process is set up so they do. 617 00:27:50,880 --> 00:27:54,150 So thinking about value streams the definition of the value 618 00:27:54,150 --> 00:27:56,640 stream is the set of activities that 619 00:27:56,640 --> 00:28:00,820 adds value to the work product to satisfy the customer. 620 00:28:00,820 --> 00:28:03,960 So the first order analysis of the value stream 621 00:28:03,960 --> 00:28:07,740 is to look for things that don't do that, look for waste. 622 00:28:07,740 --> 00:28:10,290 This is called waste hunting, and it's actually a lot of fun 623 00:28:10,290 --> 00:28:11,820 because it's easy. 624 00:28:11,820 --> 00:28:14,160 Most processes, once you've defined them, 625 00:28:14,160 --> 00:28:16,910 it's very easy to find wasteful steps. 626 00:28:16,910 --> 00:28:18,660 May be a little harder to get rid of them, 627 00:28:18,660 --> 00:28:20,960 but it's really easy to find them. 628 00:28:20,960 --> 00:28:23,280 And waste comes in a couple of different flavors. 629 00:28:23,280 --> 00:28:25,340 We're actually going to be talking mostly 630 00:28:25,340 --> 00:28:28,010 about muda, about just looking at stuff 631 00:28:28,010 --> 00:28:31,160 that doesn't add value. 632 00:28:31,160 --> 00:28:36,200 So cleaning the grill or waiting or throwing away 633 00:28:36,200 --> 00:28:39,560 the unused hot dogs at the end of the day, or stuff that 634 00:28:39,560 --> 00:28:41,603 just is clearly not valuable. 635 00:28:41,603 --> 00:28:43,770 Something to keep in the back of your mind, though-- 636 00:28:43,770 --> 00:28:46,370 and we'll come back to this later, 637 00:28:46,370 --> 00:28:48,710 especially the health care folks, 638 00:28:48,710 --> 00:28:52,810 you're going to get a good dose of this tomorrow-- 639 00:28:52,810 --> 00:28:56,500 are issues that can cause muda. 640 00:28:56,500 --> 00:28:59,470 And there's some Japanese words associated with this that 641 00:28:59,470 --> 00:29:01,490 don't have good translations. 642 00:29:01,490 --> 00:29:05,500 So we like to use the Japanese muri, overburden 643 00:29:05,500 --> 00:29:08,350 or unreasonableness. 644 00:29:08,350 --> 00:29:11,950 Essentially, there's somebody in the process that 645 00:29:11,950 --> 00:29:14,700 too much is being asked of. 646 00:29:14,700 --> 00:29:18,108 Telling them to work harder doesn't do very much good. 647 00:29:18,108 --> 00:29:18,900 This can be people. 648 00:29:18,900 --> 00:29:20,550 It can be machines. 649 00:29:20,550 --> 00:29:22,410 We've got to run this machine 24/7. 650 00:29:22,410 --> 00:29:26,090 How good is that process? 651 00:29:26,090 --> 00:29:27,347 How long is it going to work? 652 00:29:27,347 --> 00:29:29,180 It's going to work until the machine breaks, 653 00:29:29,180 --> 00:29:31,170 and then it's not going to work at all anymore. 654 00:29:31,170 --> 00:29:35,420 So being unreasonable, overburdening things 655 00:29:35,420 --> 00:29:39,260 tends to spawn muda waste. 656 00:29:39,260 --> 00:29:44,930 Even more dynamic as is mura, unevenness, instability. 657 00:29:44,930 --> 00:29:49,310 Again, there aren't particularly good translations. 658 00:29:49,310 --> 00:29:52,610 But the idea here is that if the process is uneven, 659 00:29:52,610 --> 00:29:56,480 if it's irregular or fluctuating, it can't flow. 660 00:29:56,480 --> 00:30:00,320 Again, our metaphor there, our sort of fluid flow metaphor, 661 00:30:00,320 --> 00:30:04,040 if the stream is turbulent, if it has back flows, if it 662 00:30:04,040 --> 00:30:06,050 has backwaters where it's not flowing, 663 00:30:06,050 --> 00:30:10,550 it has fast parts where it is flowing, if it's uneven, 664 00:30:10,550 --> 00:30:13,400 it's not going to be an efficient process. 665 00:30:13,400 --> 00:30:16,970 And so these are also kinds of wastes 666 00:30:16,970 --> 00:30:20,510 that one should look for. 667 00:30:20,510 --> 00:30:24,560 And often, these are the root causes of the musa, 668 00:30:24,560 --> 00:30:26,030 of the obvious waste. 669 00:30:26,030 --> 00:30:29,660 Here are seven or eight mudas. 670 00:30:29,660 --> 00:30:33,500 These are sort of classic, right out of Toyota and Womack. 671 00:30:33,500 --> 00:30:35,250 There are lots of lists like this. 672 00:30:35,250 --> 00:30:37,830 In fact, most fields-- if you're in health care, engineering, 673 00:30:37,830 --> 00:30:40,230 whatever, you look up the latest book, 674 00:30:40,230 --> 00:30:41,480 they'll have a list like this. 675 00:30:41,480 --> 00:30:43,790 It won't be the same because everybody likes to make up 676 00:30:43,790 --> 00:30:46,170 lists for their own field. 677 00:30:46,170 --> 00:30:47,930 That's fine, actually. 678 00:30:47,930 --> 00:30:49,790 These actually are kind of fundamental. 679 00:30:49,790 --> 00:30:52,370 You can translate these into almost any field. 680 00:30:52,370 --> 00:30:55,160 But if you want to make up your own, that's good, too. 681 00:30:55,160 --> 00:30:57,410 The whole point is to categorize. 682 00:30:57,410 --> 00:30:59,750 Categorizing waste makes it easier to spot. 683 00:30:59,750 --> 00:31:02,677 So things like waiting. 684 00:31:02,677 --> 00:31:03,760 That's pretty fundamental. 685 00:31:03,760 --> 00:31:06,340 Stuff that's not moving, people that aren't working, 686 00:31:06,340 --> 00:31:08,290 it's a waste. 687 00:31:08,290 --> 00:31:10,000 Moving stuff around. 688 00:31:10,000 --> 00:31:13,870 Moving employees or moving the material or information. 689 00:31:13,870 --> 00:31:16,900 This is essentially movement of the value added stuff. 690 00:31:16,900 --> 00:31:18,970 This is movement of the resources, 691 00:31:18,970 --> 00:31:22,220 the employees, and the stuff necessary to do the work. 692 00:31:22,220 --> 00:31:24,210 Either of those is a waste. 693 00:31:24,210 --> 00:31:27,400 If your stuff is moving around, it's not being worked on, 694 00:31:27,400 --> 00:31:29,260 and that costs money or something. 695 00:31:29,260 --> 00:31:30,220 It costs people's time. 696 00:31:30,220 --> 00:31:33,210 It costs money to move around inventory. 697 00:31:33,210 --> 00:31:34,188 Stuff that's sitting. 698 00:31:34,188 --> 00:31:35,730 It's kind of the converse of waiting. 699 00:31:35,730 --> 00:31:39,050 People are waiting, stuff is waiting. 700 00:31:39,050 --> 00:31:40,640 Producing too much. 701 00:31:40,640 --> 00:31:43,100 It's efficient to produce large batches of things. 702 00:31:43,100 --> 00:31:45,750 That's still true even in our Lean world. 703 00:31:45,750 --> 00:31:49,070 However, if you don't need them, it's a waste. 704 00:31:49,070 --> 00:31:52,520 It's tempting, in Earl's analogy, to buy what's on sale, 705 00:31:52,520 --> 00:31:56,030 but if it goes bad, that's a waste, having too much. 706 00:31:56,030 --> 00:31:58,220 Defects, always bad. 707 00:31:58,220 --> 00:32:01,910 Doing more work than you need to affect the transformation. 708 00:32:01,910 --> 00:32:05,200 Engineers are great at that. 709 00:32:05,200 --> 00:32:08,710 There's some question about whether our health care system 710 00:32:08,710 --> 00:32:10,900 over processes these things. 711 00:32:10,900 --> 00:32:15,740 That's a controversy, but all of these things don't add value. 712 00:32:15,740 --> 00:32:20,860 And they're fairly easy to spot. 713 00:32:20,860 --> 00:32:23,590 Unused employee creativity is often 714 00:32:23,590 --> 00:32:25,810 added as the eighth waste. 715 00:32:25,810 --> 00:32:27,620 Essentially, it's missed opportunities. 716 00:32:27,620 --> 00:32:29,290 It may be just missed work. 717 00:32:29,290 --> 00:32:31,960 But if they're just not working, that's waiting. 718 00:32:31,960 --> 00:32:34,400 But if they're working at a sort of mental level 719 00:32:34,400 --> 00:32:36,940 that's beneath them, if you're losing opportunities 720 00:32:36,940 --> 00:32:39,520 to take advantage of the employee's creativity 721 00:32:39,520 --> 00:32:43,700 and capability, that, too, is a waste. 722 00:32:43,700 --> 00:32:46,880 Here's a really simple example of unnecessary movement 723 00:32:46,880 --> 00:32:48,770 from the health care world. 724 00:32:48,770 --> 00:32:50,470 This is called a spaghetti chart. 725 00:32:50,470 --> 00:32:52,118 It's actually a kind of process chart. 726 00:32:52,118 --> 00:32:53,285 It's not a value stream map. 727 00:32:53,285 --> 00:32:55,240 It's completely different. 728 00:32:55,240 --> 00:32:59,200 You have a physical layout that's a hospital floor. 729 00:32:59,200 --> 00:33:00,820 And you trace something. 730 00:33:00,820 --> 00:33:02,180 It could be the patient. 731 00:33:02,180 --> 00:33:03,100 It could be the nurse. 732 00:33:03,100 --> 00:33:05,830 In this case it's the nurse doing their work. 733 00:33:05,830 --> 00:33:10,980 And this nurse is all over the place 734 00:33:10,980 --> 00:33:12,730 just because things are badly arranged. 735 00:33:12,730 --> 00:33:15,280 To get the work done, she actually 736 00:33:15,280 --> 00:33:21,098 ends up walking 1250 feet to do something trivial. 737 00:33:21,098 --> 00:33:23,640 Hopefully the patient is going from the elevator to the room, 738 00:33:23,640 --> 00:33:25,890 but the nurse, to get the patient checked in, 739 00:33:25,890 --> 00:33:28,270 has to run all over the place to do their job. 740 00:33:28,270 --> 00:33:34,430 So it's a great visual way of finding waste of movement. 741 00:33:34,430 --> 00:33:38,480 And here's some tools at this value stream level to help. 742 00:33:38,480 --> 00:33:39,950 One of them is called kitting. 743 00:33:39,950 --> 00:33:43,790 This is kind of the active version of 5S. 744 00:33:43,790 --> 00:33:47,310 If we need to move materials to the place of work, 745 00:33:47,310 --> 00:33:49,190 why don't we move them laid out the way 746 00:33:49,190 --> 00:33:52,150 they're going to be used? 747 00:33:52,150 --> 00:33:54,348 So here's a aerospace example. 748 00:33:54,348 --> 00:33:56,890 We had a beautiful picture that we didn't have copyright for, 749 00:33:56,890 --> 00:33:58,730 so now we have a bad diagram. 750 00:33:58,730 --> 00:34:01,740 But if you have a complicated mechanical assembly that 751 00:34:01,740 --> 00:34:03,790 uses lots of tubes and wires, why not 752 00:34:03,790 --> 00:34:06,423 just deliver all the tubes and wires you need in a box 753 00:34:06,423 --> 00:34:08,590 where they're laid out nice and easy for the workers 754 00:34:08,590 --> 00:34:09,420 to get them? 755 00:34:09,420 --> 00:34:10,929 Likewise for a medical procedure, 756 00:34:10,929 --> 00:34:17,139 having everything laid out nice and neat is a good practice. 757 00:34:17,139 --> 00:34:18,010 Not new, right? 758 00:34:18,010 --> 00:34:20,800 I mean, a good OR doctor is going 759 00:34:20,800 --> 00:34:22,989 to have a tray that looks like that. 760 00:34:22,989 --> 00:34:24,699 But why isn't that standard practice? 761 00:34:24,699 --> 00:34:27,250 Why isn't that just done everywhere? 762 00:34:27,250 --> 00:34:28,510 Mistake proofing. 763 00:34:28,510 --> 00:34:31,780 Mistakes in a process are waste. 764 00:34:31,780 --> 00:34:36,610 And relying on people to fix mistakes is dicey. 765 00:34:36,610 --> 00:34:39,221 People are good at some things, but not so good at others. 766 00:34:39,221 --> 00:34:40,929 And one of the things they're not so good 767 00:34:40,929 --> 00:34:45,790 is getting things right on a really consistent basis 768 00:34:45,790 --> 00:34:48,380 over many, many repeats. 769 00:34:48,380 --> 00:34:51,790 So why not make the process itself mistake-proof? 770 00:34:51,790 --> 00:34:52,989 This is a great example. 771 00:34:52,989 --> 00:34:55,989 It makes me feel much better about being in a hospital. 772 00:34:55,989 --> 00:35:01,570 This is vacuum, and this is oxygen. Now 773 00:35:01,570 --> 00:35:04,270 some things you want to hook up to vacuum, and some things you 774 00:35:04,270 --> 00:35:08,260 want to hook up to oxygen. And those look the same. 775 00:35:08,260 --> 00:35:10,390 And in fact, the business end is the same. 776 00:35:10,390 --> 00:35:12,850 The coupler is the same. 777 00:35:12,850 --> 00:35:14,320 Obviously, hooking the breather up 778 00:35:14,320 --> 00:35:17,920 to vacuum or the sort of waste disposal thing up 779 00:35:17,920 --> 00:35:22,280 to pure oxygen that will light it on fire, not a good idea. 780 00:35:22,280 --> 00:35:27,160 So there's a little stud so that when you hook the thing up, 781 00:35:27,160 --> 00:35:30,620 it won't go into the wrong one. 782 00:35:30,620 --> 00:35:32,600 Very simple, very effective. 783 00:35:32,600 --> 00:35:37,640 That basic idea applies across an amazing number of fields. 784 00:35:37,640 --> 00:35:40,310 Make it so you can't hook it up wrong. 785 00:35:40,310 --> 00:35:44,690 There's a possibly apocryphal story about airplanes. 786 00:35:44,690 --> 00:35:46,940 A lot of airplanes these days fly by wire. 787 00:35:46,940 --> 00:35:49,850 Most of the controls go through electronic components. 788 00:35:49,850 --> 00:35:53,840 They use the same couplers because it's cheaper that way, 789 00:35:53,840 --> 00:35:55,370 so it's perfectly possible to hook 790 00:35:55,370 --> 00:36:01,080 up the right-hand controls to the left wing and vice versa. 791 00:36:01,080 --> 00:36:01,920 That's news, right? 792 00:36:01,920 --> 00:36:03,450 No, it's not possible anymore. 793 00:36:03,450 --> 00:36:06,570 That is something that has been mistake-proofed, fortunately, 794 00:36:06,570 --> 00:36:08,220 long ago. 795 00:36:08,220 --> 00:36:11,700 Mistake-proofing the process. 796 00:36:11,700 --> 00:36:12,330 Checklist. 797 00:36:12,330 --> 00:36:13,950 This is a no brainer. 798 00:36:13,950 --> 00:36:17,790 But there's a great book out in the medical field 799 00:36:17,790 --> 00:36:20,430 called Checklist Revolution because it's 800 00:36:20,430 --> 00:36:22,680 revolutionary to use checklists. 801 00:36:22,680 --> 00:36:24,600 This, as a patient, scares the heck out of me 802 00:36:24,600 --> 00:36:28,440 because in the aerospace field, commercial airliners 803 00:36:28,440 --> 00:36:30,840 are astonishingly safe. 804 00:36:30,840 --> 00:36:33,270 They're probably the safest complicated thing 805 00:36:33,270 --> 00:36:36,630 any civilization has ever come up with. 806 00:36:36,630 --> 00:36:38,640 I'm sure they are, in fact. 807 00:36:38,640 --> 00:36:41,490 And one of the reasons is that they 808 00:36:41,490 --> 00:36:43,980 are completely anal retentive about checklists. 809 00:36:43,980 --> 00:36:45,060 Maintenance people do it. 810 00:36:45,060 --> 00:36:46,110 The pilots do it. 811 00:36:46,110 --> 00:36:48,760 Everybody operates off of lists. 812 00:36:48,760 --> 00:36:52,140 So you're not relying on fallible human memory 813 00:36:52,140 --> 00:36:56,273 to make sure that the flaps work before you take off. 814 00:36:56,273 --> 00:36:57,690 There's actually a famous accident 815 00:36:57,690 --> 00:37:00,810 where they didn't bother to do the checklist. 816 00:37:00,810 --> 00:37:03,660 And the flaps were not working, and they took off, 817 00:37:03,660 --> 00:37:05,110 and it didn't work out so well. 818 00:37:05,110 --> 00:37:09,540 So very simple way of making sure that complex processes 819 00:37:09,540 --> 00:37:13,490 are actually executed correctly by fallible people. 820 00:37:13,490 --> 00:37:14,040 OK. 821 00:37:14,040 --> 00:37:17,040 We're going to do a quick exercise in waste walking. 822 00:37:17,040 --> 00:37:19,800 I have handed out some dots. 823 00:37:19,800 --> 00:37:22,410 And we're going to look at our map 824 00:37:22,410 --> 00:37:26,138 and decide if each one of the steps and decisions-- 825 00:37:26,138 --> 00:37:27,930 don't bother with the weights because we're 826 00:37:27,930 --> 00:37:30,138 pretty sure those are non-value added-- but the steps 827 00:37:30,138 --> 00:37:31,380 and decisions, for sure. 828 00:37:31,380 --> 00:37:33,360 Are they value added, green? 829 00:37:33,360 --> 00:37:34,950 Do something for the customer. 830 00:37:34,950 --> 00:37:36,450 Are they necessary waste? 831 00:37:36,450 --> 00:37:38,190 We got to do them, but they don't really 832 00:37:38,190 --> 00:37:41,550 help the customer, but maybe the health board 833 00:37:41,550 --> 00:37:43,950 or whatever would be unhappy if we didn't do them. 834 00:37:43,950 --> 00:37:44,920 Or are they pure waste? 835 00:37:44,920 --> 00:37:47,050 Are they something we should try to get rid of? 836 00:37:47,050 --> 00:37:47,550 And 837 00:37:47,550 --> 00:37:49,425 There's no right answer, and we're only going 838 00:37:49,425 --> 00:37:52,660 to take about five minutes. 839 00:37:52,660 --> 00:37:55,290 But we want you to, as a group, think about these 840 00:37:55,290 --> 00:38:00,510 issues against the process map that you've already done there. 841 00:38:00,510 --> 00:38:03,720 Here is your guide of wastes, if that's 842 00:38:03,720 --> 00:38:05,970 helpful to your discussion. 843 00:38:05,970 --> 00:38:08,700 Take about five minutes, and that will actually 844 00:38:08,700 --> 00:38:10,410 conclude our exercise. 845 00:38:10,410 --> 00:38:11,160 But don't go away. 846 00:38:11,160 --> 00:38:13,493 We'll have a couple words before we let you go to lunch. 847 00:38:13,493 --> 00:38:15,750 [INTERPOSING VOICES] 848 00:38:27,877 --> 00:38:29,460 HUGH MCMANUS: Everybody's had a chance 849 00:38:29,460 --> 00:38:31,080 to at least argue about this. 850 00:38:31,080 --> 00:38:34,170 A lot of times the value isn't so much in the answer. 851 00:38:34,170 --> 00:38:36,450 It's in the debating. 852 00:38:36,450 --> 00:38:39,720 Trying to find out, maybe you never 853 00:38:39,720 --> 00:38:41,880 do decide whether it's valuable or not, 854 00:38:41,880 --> 00:38:45,130 but you do understand the issues. 855 00:38:45,130 --> 00:38:48,390 So let's have one group that hadn't done 856 00:38:48,390 --> 00:38:52,370 it before, maybe you folks. 857 00:38:52,370 --> 00:38:57,150 Tell us your conclusions against your map there. 858 00:38:57,150 --> 00:38:58,950 So you're on camera. 859 00:38:58,950 --> 00:39:02,310 Do a good job here of explaining to us 860 00:39:02,310 --> 00:39:04,530 the value and non-value added that you guys 861 00:39:04,530 --> 00:39:07,560 found for the processes. 862 00:39:07,560 --> 00:39:09,115 AUDIENCE: [INAUDIBLE] customer, we 863 00:39:09,115 --> 00:39:10,740 figured that, well, it's not essential. 864 00:39:10,740 --> 00:39:12,810 People expect it to happen. 865 00:39:12,810 --> 00:39:15,300 [INAUDIBLE] people get happy. 866 00:39:15,300 --> 00:39:17,538 Packing order on the board and getting the order we 867 00:39:17,538 --> 00:39:18,330 [INAUDIBLE] yellow. 868 00:39:18,330 --> 00:39:21,090 We think obviously was not value added. 869 00:39:21,090 --> 00:39:23,118 Then decision, when you add dots, again, 870 00:39:23,118 --> 00:39:24,660 it doesn't add value to the customer, 871 00:39:24,660 --> 00:39:27,510 but it needs to be done. 872 00:39:27,510 --> 00:39:28,960 [INAUDIBLE] the order all the way 873 00:39:28,960 --> 00:39:33,070 was is quite straightforward that adds value. 874 00:39:33,070 --> 00:39:36,120 And then after that, checking the order is one of those-- 875 00:39:36,120 --> 00:39:38,453 I guess it doesn't add value to me as a customer. 876 00:39:38,453 --> 00:39:39,870 But if it's not done [INAUDIBLE],, 877 00:39:39,870 --> 00:39:41,520 I'll be very happy. 878 00:39:41,520 --> 00:39:42,960 Adding beverage adds value. 879 00:39:42,960 --> 00:39:44,377 [INAUDIBLE] customer [INAUDIBLE].. 880 00:39:44,377 --> 00:39:46,900 Ideally customer would have just been [INAUDIBLE] 881 00:39:46,900 --> 00:39:49,020 waste time [INAUDIBLE] come up. 882 00:39:49,020 --> 00:39:51,510 And delivering order obviously adds value. 883 00:39:51,510 --> 00:39:54,180 The rest of the general things like setting up the work area, 884 00:39:54,180 --> 00:39:55,890 cleaning, service, stuff like that, 885 00:39:55,890 --> 00:39:59,970 is all regulatory requirements and necessary evils. 886 00:39:59,970 --> 00:40:00,930 HUGH MCMANUS: OK. 887 00:40:00,930 --> 00:40:04,472 See if we get any compare and contrast with, say, this group. 888 00:40:04,472 --> 00:40:06,180 You guys didn't read the report, did you? 889 00:40:09,710 --> 00:40:12,550 What do you guys have here? 890 00:40:12,550 --> 00:40:16,080 AUDIENCE: So we have taking the order, collecting money, 891 00:40:16,080 --> 00:40:17,700 it's all very important. 892 00:40:17,700 --> 00:40:22,050 Tracking order is something that doesn't really add value to it, 893 00:40:22,050 --> 00:40:24,060 or putting it on the board. 894 00:40:24,060 --> 00:40:25,582 Then of course, getting the order, 895 00:40:25,582 --> 00:40:29,400 making it, cooking the hot dogs, that's all important. 896 00:40:29,400 --> 00:40:31,020 Checking if the order is complete 897 00:40:31,020 --> 00:40:32,100 doesn't really add value. 898 00:40:32,100 --> 00:40:35,820 But we need to do that so that you know what 899 00:40:35,820 --> 00:40:38,030 you're giving to the customer. 900 00:40:38,030 --> 00:40:43,230 Of course you have to give them their beverage and [INAUDIBLE] 901 00:40:43,230 --> 00:40:44,300 their order. 902 00:40:44,300 --> 00:40:47,420 And then setting up and cleaning the back area where you're 903 00:40:47,420 --> 00:40:50,480 working, that's not really value added to the customer 904 00:40:50,480 --> 00:40:53,034 because they're not interacting with that space. 905 00:40:53,034 --> 00:40:54,951 But the place where they put on the condiments 906 00:40:54,951 --> 00:41:00,340 is important because it's part of their simple process. 907 00:41:00,340 --> 00:41:01,930 HUGH MCMANUS: OK, so that's good. 908 00:41:01,930 --> 00:41:05,800 So we see some of the possibilities here. 909 00:41:05,800 --> 00:41:08,000 The thing that I noticed that actually 910 00:41:08,000 --> 00:41:10,305 is often one of the more controversial ones 911 00:41:10,305 --> 00:41:11,350 that you had different. 912 00:41:11,350 --> 00:41:15,220 You guys called it customer relations and gave it a green. 913 00:41:15,220 --> 00:41:21,280 And those folks chat with customer and gave it a yellow. 914 00:41:21,280 --> 00:41:23,112 And some people give it a red. 915 00:41:23,112 --> 00:41:24,320 Now there's a red over there. 916 00:41:24,320 --> 00:41:26,620 There's a yellow to red over there. 917 00:41:26,620 --> 00:41:27,970 Right. 918 00:41:27,970 --> 00:41:32,240 So there's some judgment calls in there. 919 00:41:32,240 --> 00:41:35,920 And if this was a real exercise, what would 920 00:41:35,920 --> 00:41:41,570 we need to make that call before we told Sasha, no, sit down. 921 00:41:41,570 --> 00:41:42,920 Stop talking to the customers. 922 00:41:42,920 --> 00:41:44,300 No talking. 923 00:41:44,300 --> 00:41:48,320 Before we made that call, what would we need? 924 00:41:48,320 --> 00:41:50,852 AUDIENCE: They ask the customer what they value. 925 00:41:50,852 --> 00:41:51,560 HUGH MCMANUS: OK. 926 00:41:51,560 --> 00:41:52,457 Ask the customer. 927 00:41:52,457 --> 00:41:55,040 AUDIENCE: I was going to say you could kind of do the analysis 928 00:41:55,040 --> 00:41:57,873 and see your profit over time versus chattering. 929 00:41:57,873 --> 00:41:59,290 HUGH MCMANUS: See the chat versus, 930 00:41:59,290 --> 00:42:01,760 OK, we can get some data. 931 00:42:01,760 --> 00:42:04,517 AUDIENCE: Decide what our mission is as a company. 932 00:42:04,517 --> 00:42:05,600 HUGH MCMANUS: There we go. 933 00:42:05,600 --> 00:42:06,840 Yeah. 934 00:42:06,840 --> 00:42:08,390 Are we all about customer service, 935 00:42:08,390 --> 00:42:10,610 or are we just about hot dogs and nothing else? 936 00:42:10,610 --> 00:42:12,410 Are we the hot dog Nazis? 937 00:42:12,410 --> 00:42:15,620 We're just not nice to people but have great hot dogs. 938 00:42:15,620 --> 00:42:18,890 Yeah, there's a bunch of there's a bunch of different factors 939 00:42:18,890 --> 00:42:22,120 that aren't on this piece of paper. 940 00:42:22,120 --> 00:42:23,690 That's the key thing. 941 00:42:23,690 --> 00:42:25,970 If we're sitting in our classroom here, 942 00:42:25,970 --> 00:42:29,340 we can't know these things. 943 00:42:29,340 --> 00:42:30,620 Here's another Japanese word. 944 00:42:30,620 --> 00:42:34,220 We have to go to the gemba, which is the actual place. 945 00:42:34,220 --> 00:42:37,880 That's the literal translation of gemba, the actual place 946 00:42:37,880 --> 00:42:39,200 where the work happens. 947 00:42:42,110 --> 00:42:45,260 And this is another basic idea in Lean. 948 00:42:45,260 --> 00:42:48,350 We have to go to the place where the work happens. 949 00:42:48,350 --> 00:42:50,240 Sadly, we can't go visit Sasha and Andy 950 00:42:50,240 --> 00:42:52,040 because they're imaginary. 951 00:42:52,040 --> 00:42:56,330 Unfortunately, we also can't visit our shoe factory 952 00:42:56,330 --> 00:43:00,290 because of schedule and budget constraints this year. 953 00:43:00,290 --> 00:43:02,510 But after we come back from lunch, 954 00:43:02,510 --> 00:43:05,870 Earl will be taking us through a video factory tour 955 00:43:05,870 --> 00:43:09,520 so we can see real work in action.