Lean Thinking Applied to Information Processes

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Manufacturing News, Source : The Manufacturer US
Published : 07 May 2007 16:06

By Ron Holcomb, Partner, Lean Learning Center
In general, people tend to think that lean applies only to process improvement and waste elimination within discrete manufacturing or the delivery of services.

However, lean thinking can be equally powerful when applied to information processes within an organization. We frequently overlook the inherent waste that emerges when information systems evolve from initially simple, direct and manually produced data into computerized, complicated and broadly distributed streams of data.

The irony that occurs is that companies often install very expensive database systems to improve access to large centralized piles of data only to discover that getting the information they want exactly when and where they want it actually becomes a barrier in process improvement initiatives. For example, recently a team that was working on sequenced delivery of components to an assembly line was told that their IT department wouldn’t and/or couldn’t provide key reports due to workload and limited resources. In other words, they were unable to provide access to "their data". What’s wrong with this picture?

Information should be delivered in efficient and effective ways exactly when and where it is needed. (E.g. in the same way goods should be supplied to customers.) Some years ago, while managing the Information Technology department at an engine plant; I compiled a list of 10 questions that any information system must be able to answer affirmatively as a test of its functionality and customer appeal.

These are, is the information --

* Accessible? Can the information be retrieved quickly and easily where it is needed?

* Available? Is it where it is supposed to be when it is needed?

* Timely? Is it up-to-date? Is it obvious if it is not?

* Pertinent? Does the user get just what is required or everything available?

* Concise? Is it embedded in a lot of unwanted information?

* Complete? Is everything that is needed in one place or does the user have to explore?

* Legible? Can it be read easily without a microscope or a telescope?

* Accurate? Can it be wrong? How would the user know?

* Consistent in access method/path? Or, is every inquiry an "adventure"?

* Consistent in presentation form and terminology? Is data always called the same thing? Does any other data have the same name?

These may seem somewhat obvious and self-explanatory. Feel free to interpret or add to them, but do not delete any. To use them, just critically evaluate the delivery of information (E.g. a particular report or computer screen) against each question. A simple yes or no will provide adequate assessment. Then set about fixing the "no’s".

You may now be asking yourself what this has to do with Lean Thinking. Let’s take a look. It is the epitome of Lean Rule #2 (See 4 Lean Rules and 5 Lean Principles below), which is "Clearly connect every customer and supplier". In this instance, IT is the supplier (of information) to the customer (the user of the information needed to manage their process).

Rule #3 also applies. "Specify and simplify every flow (path)". If information must be "mined" from many different sources and then "refined" to produce the required data, the flow needs improvement. Customers of data should get it at the same time in the same way every time they go after it. Finally, the principle of "Directly observe work as activities, connection and flows" is a call to action for IT professionals to go out and "observe" where and how information is being used. They might be surprised.

In defense of the IT department, remember you, as the customer, get to say "what" information you need. They, as the data process owners, get to determine "how" to best provide it. In other words, ask for information, not a spreadsheet.

Efficient and effective information systems that score well against the 10 hurdles can be a significant competitive advantage for an organization. Alternatively, poor information systems can create incredible waste and inhibit or prohibit the application of lean thinking.

Here’s a suggestion for you. Pick a data set (e.g., some report, screen etc.) needed to make decisions or manage processes and assess it against the ten questions. Staple a copy of this article along with your assessment and forward it to your IT department. Once they get done storming, ask them to sit down and jointly identify improvement plans.

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Lean Rules

Lean rules are a guide, helping us as we design, operate and improve our organizations. They help us understand in which direction to go when looking at our processes. These rules were originally articulated through the research of H. Kent Bowen and Steven Spears but are modified for ease of use and memory.

1. Structure every ACTIVITY

2. Clearly CONNECT every customer-supplier

3. Specify and simplify every FLOW path

4. IMPROVE through experimentation at the lowest level possible towards the ideal state.

Lean Principles

Lean Principles guide our thinking, our decisions making and the way we see things. It is important in a lean environment to have shared thinking, and these lean principles are the foundation for that shared thinking. Missing this element is the cause of many lean failures.

1. Directly observe work as activities, connections and flows

2. Systematic waste elimination

3. Systematic problem solving

4. Establish high agreement of both what and how

5. Create a learning organization

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