Principle #1: Design lean value streams
We need to design on paper an end-to-end lean value stream flow, starting from the time we receive an order or request for service from the customer until the time we deliver it. On our future-state map, information is given to only one process in the value stream. All other processes know what to do next because the information will flow with the product through the connections created from that one point. The key is that each process is connected, and material and information moves only when the next process needs it
Principle #2: Make lean value streams flow
Next, we take our design from paper to the real world of our operation and implement a self-healing value stream that creates Operational Excellence. The first step in going from paper to performance is to provide formal training, including a review of the current-state value stream map, the eight guidelines for flow, application of these guidelines to the target value stream, and finally the implementation plan. Most importantly, all employees are taught the destination of Operational Excellence and the common goal of business growth.
Principle #3: Make flow visual
Once we have taken the design from paper and physically created the framework for flow, the next step is to make flow visual so that each employee can see how the processes are connected to one another and to the customer. In Operational Excellence, just about any visual indicator in the operation should have something to do with the flow or the progression of the flow of product to the customer.
Principle #4: Create standard work for flow
Once we’ve created a good visual lean flow that lets employees see how the flow should normally work, our next step is to apply the concept of standard work to that flow. While the typical application of standard work is applied at the processes, in this principle, we will establish standard work between the processes, specifically targeting the connections that have been established between them. By applying standard work both at the processes and between the processes, we stabilize the complete end-to-end flow to reduce variation and create normalcy for the entire flow.
Principle #5: Make abnormal flow visual
In Operational Excellence, we want every employee to see when or before abnormal flow happens. The idea is that if we rigidly define what normal flow is (as we have done in the first four principles), then we should be able to see when or before abnormal flow happens. That way, we can learn not just how to correct it but how to prevent it from occurring in the future without management.
Principle #6: Create standard work for abnormal flow
Even though employees have been taught how to adjust the flow to maintain it, eventually, the flow will break down. The key is to have a course of action that an operator would take before calling a supervisor to get the flow back on track. To do that, we create standard work for when abnormal flow occurs by first determining when management has to jump in. We record the top responses management usually gives then create a menu of responses so that the people who are in the flow take these actions automatically, without seeking the approval.
Principle #7: Have employees in the flow improve the flow
Once we have turned over the delivery of product—the part that delivers value to the customer—to the employees who work in the flow, we want to maintain and improve a level of performance using some proven continuous improvement tools. But this is not an endless journey of eliminating waste; this is about the operations side of the business attaining a level of performance that affects business growth and then maintaining and improving that performance to support further growth.To do that, the correct application of these tools is to have them prevent abnormal flow from happening.
Principle #8: Perform Offense Activities
Operational Excellence is about business growth. It gives management the ability to take time away from running the operation and put it into growing the business. This is done by reducing or perhaps even eliminating the activities that operations management performs when delivering the product to the customer. By changing their role, operations management can now be involved in sales, engineering, and innovation – up front – to become part of the process that will evolve us from being a parts supplier to a solution provider.
