Equifax Lean Training 2013

The fundamental goal of Lean is to reduce the time and resources needed to convert customer orders into high quality/low-cost deliverables. This means streamlining processes and eliminating waste to improve efficiency and deliver products or services that meet customer expectations at a lower cost.

The Fishbone Diagram and The Five Whys approach are two tools used for Root Cause Analysis. The Fishbone Diagram, also known as the Ishikawa diagram, helps identify the potential causes of a problem by visually organizing them into categories. The Five Whys approach involves repeatedly asking "why" to uncover the underlying cause of a problem, allowing for a deeper understanding of the root cause. Both tools are effective in identifying and addressing the underlying causes of an issue.

To gather data around agent-level performance when there is no agent-level call detail available, the best approach would be to determine a representative sample of agents and manually collect call-type data, call duration, and monitor a sample of calls. This approach allows for a comprehensive understanding of agent performance by analyzing different call types, durations, and identifying any performance issues. It provides a cost-effective solution without the need for modifying the IT system or relying on external sources for data.

The requirements for Lean Certification at Equifax include attending Lean training, passing the certification test with a score of 85% or better, completing two projects, presenting the findings to a board, and continuing with two projects per year.

The reason why the lack of action or attention was received is because other people were not involved in the process early on and a coalition of people suffering from the bad boarding process was not built. This means that there was a lack of data and input from others who could have provided valuable insights and suggestions for improvements.

A one-piece flow process is more efficient compared to a batch process because it reduces wait time, compresses lead time, and allows work to run in parallel. By eliminating the need for waiting between steps, the process becomes faster and more streamlined. This results in shorter lead times, allowing products to be delivered to customers more quickly. Additionally, work can be divided and completed simultaneously, increasing productivity and efficiency.

The given statement is true. When initiating a performance improvement effort, it is crucial to understand and prioritize the needs and expectations of the customer. By identifying value from the customer's perspective, organizations can focus their efforts on delivering products or services that meet or exceed customer expectations, ultimately leading to improved performance and customer satisfaction.

The recommended approach of highlighting how the changes support the shared values of the sales organization is important because it helps to address the resistance from the sales managers. By emphasizing how the new strategic objective aligns with the values and goals of the sales organization, the sales managers are more likely to understand the rationale behind the changes and be more receptive to them. This approach also helps to create a sense of unity and collaboration within the sales team, which is crucial for successfully implementing any changes and achieving the objective of doubling revenue.

The given statement is false. While a GPI mentor can provide guidance and support throughout the certification process, ultimately, the responsibility for success lies with the individual seeking certification. The mentor can offer advice, resources, and feedback, but it is up to the individual to put in the effort and dedication required to complete the certification process successfully.

The explanation for the given correct answer is that despite implementing several recommended improvements and assigning focused action items evenly, the person missed out on effectively communicating the change and ensuring that the people impacted had knowledge of the change. This lack of communication has resulted in people expressing anxiety about the improvement, indicating that they were not adequately informed or prepared for the changes that were implemented.

The Lean practitioner has made the mistake of not establishing the rigor for the improved processes to be standardized and sustained. This means that even though temporary gains were achieved initially, the lack of a proper framework or system to ensure the continued success and standardization of these processes has resulted in the recurrence of the same problems. Without a standardized and sustained approach, the improvements made during the Lean events are not effectively implemented and maintained in the long term.

The item not done prior to a Lean Kaizen event or project is defining the solution. This means that before the event or project takes place, the solution to the problem or improvement opportunity has not been identified or determined. This step is crucial in order to have a clear understanding of what needs to be achieved and how it will be accomplished during the event or project.

Pareto Analysis is the appropriate tool to use in this situation because it helps to identify and prioritize the vital few variables that have the most significant impact on the problem. By using the Pareto principle, which states that a small number of causes typically account for a large percentage of the effects, Pareto Analysis allows you to focus on the key variables that are driving the majority of the impact. This tool enables you to make informed decisions and allocate resources effectively by addressing the most influential factors first.

To prepare for a Lean event, it is important to have a project charter in place. This document outlines the project's objectives, scope, and deliverables, providing a clear direction for the event. Additionally, meeting with Subject Matter Experts (SMEs) is crucial as they possess specialized knowledge and expertise relevant to the project. Their insights can help in understanding the current processes, identifying areas for improvement, and developing effective solutions. By having a project charter and consulting with SMEs, the team can ensure a well-defined and informed approach to the Lean event.

The statement implies that certification is mandatory for everyone who takes the Lean Training course. However, the correct answer is False because not everyone who takes the course is required to certify. Some individuals may choose to take the course without pursuing certification for various reasons.

To gain certification, it is necessary to successfully complete two projects. This implies that completing only one project or not completing any projects would not be sufficient to obtain certification. Therefore, the correct answer is True.

The explanation for the given answer (False) is that it is not always better to scope an initiative as "one and done" and not waste people's time on iterative improvements. In many cases, iterative improvements are necessary and can lead to better outcomes in the long run. Scoping an initiative as "one and done" may overlook the potential for continuous improvement and learning from feedback and data. It is important to consider the specific context and goals of the initiative before deciding on the scope.

The statement suggests that once we achieve 80% of available gains on a particular process, we should consider the LEAN journey complete. However, this is not true. Perfection is impossible to attain, and the LEAN journey is an ongoing process of continuous improvement. It is important to strive for continuous improvement and not settle for 80% gains, as there is always room for further improvement and optimization.

RACI stands for Responsible, Accountable, Consulted, Informed. This tool is used to clarify and define roles and responsibilities within a project or organization. The "Responsible" role is responsible for completing the task or activity. The "Accountable" role is the one ultimately answerable for the correct and thorough completion of the task. The "Consulted" role is those who provide input and expertise to the task. The "Informed" role is those who are kept informed of the progress and outcomes of the task.

When there isn't much documentation for a process and stakeholders need a visual representation of a process to identify wastes, a Lean practitioner should develop a process map (or flow) or value stream map. This visual representation will help to understand the current state of the process, identify areas of waste, and provide a basis for improvement.

The missing element in the classmate's charter is the baseline metrics, current performance, expected results, and gap analysis. These elements are important in order to assess the current state of the project, set targets for improvement, and measure the success of the project. Without these elements, it would be difficult to track progress and determine the impact of the project.

The given answer includes two examples of S.M.A.R.T goals. The first goal is to reduce the cost per customer service call from 10% to 5% by June, which is specific, measurable, achievable, relevant, and time-bound. The second goal is to reduce the product engineering cycle time from 30 to 10 days by Q3, which also meets the criteria of being specific, measurable, achievable, relevant, and time-bound. These goals are well-defined and have clear metrics and deadlines, making them good examples of S.M.A.R.T goals.

The improvement implemented in the data entry system that prevents people from entering the wrong format is an example of mistake proofing, also known as poka-yoke. This technique aims to eliminate errors or mistakes by designing processes or systems in a way that makes it difficult for errors to occur. By implementing this improvement, the system is designed to detect and prevent incorrect data formats, reducing the chances of data quality issues and improving overall accuracy.

A stakeholder analysis is a tool that would be used in this situation to identify and assess the stakeholders involved in the project idea. It helps to determine who may be in favor of the idea, who may be neutral, and who may be moderately supportive or opposed to it. This analysis allows for a better understanding of the stakeholders' interests, concerns, and influence, which can help in developing strategies to engage and manage them effectively throughout the project.

The statement suggests that the correct course of action to decrease handle time is to first attack the time spent on value-added tasks. However, the answer is false because attacking the time spent on value-added tasks may not necessarily decrease handle time. It is possible that other factors, such as improving efficiency or streamlining processes, could have a greater impact on reducing handle time.

A spaghetti diagram is a tool used to visually represent the flow of materials, information, or people within a process. It involves drawing a line on a floor plan or layout to show the movement and interactions between different points. This diagram helps identify inefficiencies, bottlenecks, and unnecessary movements in a process, allowing for improvements to be made.

The given answer options demonstrate the characteristics of S.M.A.R.T goals. Both options specify a specific and measurable outcome (increase revenue growth from 5% to 8% and reduce processing time from 15 to 5 days), have a clear timeline (end of Q4 and by July 1), and are achievable within the given time frame. These goals are also relevant to the overall objective of improving business performance.

The explanation for the given answer is that establishing flow and implementing pull is not only for manufacturing cells and production lines but can also be applied to transaction environments. The statement that transaction environments are best set up as batch and queue is incorrect.

The non-value activity in this case is "Reworking a product to meet a customer's requirement." This activity involves additional work and resources that are not directly adding value to the customer. It suggests that the product was not initially designed or manufactured to meet the customer's requirement, leading to rework and potentially increased costs. The other activities mentioned, changing raw data into a score that a customer pays for and delivering a batch credit file at the exact time specified by a customer, are directly related to providing the desired product or service to the customer and can be considered value-adding activities.

A Data Collection Plan is a tool that can help Lean practitioners think ahead about what kind of data elements they would want to gather around a process, what sources may be involved, how frequently, what units, etc. It helps in organizing and documenting the data collection process by specifying the objectives, methods, and tools to be used for data collection. This plan ensures that the necessary data is collected in a systematic and efficient manner, enabling practitioners to make informed decisions and improvements based on the data collected.

A Lean/Kaizen event is a process improvement activity that focuses on eliminating waste and improving efficiency. The event should result in recommendations and a solution to test or prototype, a control plan to ensure the sustainability of the improvements, and action items with a communication plan to implement the changes effectively. However, a meeting to determine why a solution didn't get resources or didn't work is not a typical outcome of a Lean/Kaizen event. This type of meeting would be more appropriate for addressing issues related to resource allocation or problem-solving after the event has taken place.

A Lean Kaizen Event is focused on taking action and solving a defined problem. This means that the event aims to identify a specific problem or challenge within a process or system, and then implement actions to address and resolve it. The event is not about getting in the queue for scarce resources, obtaining qualitative feedback, or creating a long list of action items. Instead, it is centered on actively taking steps to solve a specific problem and improve efficiency and effectiveness.

A Value Stream Map differs from a simple Process Flow or Process Map by providing a high-level summary of the activities from order to delivery, including the time taken to complete each activity step and wait times. While a Process Flow or Process Map offers a step-by-step view of process steps and major wastes, a Value Stream Map goes further by focusing on identifying wastes like rework loops. It provides a comprehensive overview of the entire value stream, allowing organizations to identify areas for improvement and optimize their processes.

The three wastes identified in the given example are defects, overproduction, and over processing. Defects are present when the developer has to recode some of her work due to a misunderstanding of the requirement. Overproduction occurs when the developer includes additional features that were not requested by the customer. Over processing happens when the developer builds extra features that she thought the customer might appreciate, even though they were not part of the requirement. These wastes indicate inefficiencies in the development process and can lead to unnecessary work and resource utilization.

The control plan should measure the same metrics as the baseline on the charter. This means that the metrics identified as important in the initial project plan should also be measured in the control plan to ensure that the project is progressing as expected and meeting its goals. By measuring the same metrics, the team can compare the current performance to the baseline and identify any deviations or areas for improvement. This allows for effective monitoring and control of the project.

The three examples provided in the answer all contribute to defining value in different ways. The transformation of raw material into a finished product adds value by creating a usable and marketable item. Adding a feature that customers are willing to pay for increases the product's value by meeting their specific needs or desires. A process that produces output meeting the customer's quality specifications without the need for rework ensures that the product is of high quality, which adds value.

Regulatory compliance and the Accounting & Tax department can be considered non-value added, but necessary to business operations. Regulatory compliance involves ensuring that the business complies with laws and regulations, which does not directly add value to the product or service but is necessary to avoid legal issues. The Accounting & Tax department handles financial transactions and tax obligations, which are necessary for the business to operate but do not directly contribute to the value of the product or service.

Lean thinking emphasizes the importance of engaging directly with stakeholders at the real place they're experiencing a problem. This approach allows for a deeper understanding of the process by gathering firsthand information and insights. By being present at the problem location, valuable context and details can be observed and considered. This information can then guide the data requests, analysis, and hypotheses, leading to more accurate and effective problem-solving. This approach also promotes a customer-centric perspective, ensuring that the solutions are aligned with the needs and experiences of the stakeholders.

A control chart is used when mistake proofing is not feasible because it helps to monitor and control a process to ensure it is within acceptable limits. It is also used after an event to monitor the progress of improvements made to the process. By analyzing the data on the control chart, any deviations or variations from the desired outcome can be identified and corrective actions can be taken. Therefore, these situations require the use of a control chart to effectively manage and improve the process.

After an event, a Lean practitioner should follow through on several actions. These include closing out the remaining items on the action list, tracking metrics to ensure goals are met, and meeting with a Lean Leader to review progress. These actions are important to ensure that all tasks are completed, goals are achieved, and progress is evaluated and discussed with a leader in order to continuously improve and implement Lean practices effectively.

The three wastes identified in this scenario are defects, waiting, and behavioral. Defects are present in the employee's struggle to produce the desired marketing communication material. Waiting is evident in the delay caused by the open position on the VP of Marketing Analytics' team. Behavioral waste refers to the employee's inability to meet the specified requirements, which may be attributed to a lack of skills or motivation. These wastes contribute to inefficiency and hinder the smooth flow of work in the marketing department.

The statement "The GPI team monitors and measures annual recertification" is false. The given sentence suggests that the GPI team is responsible for monitoring and measuring the process of annual recertification. However, without any further context or information, it is not possible to determine the accuracy of this statement. It is important to consider factors such as who the GPI team is, what their role is, and what the process of annual recertification entails. Therefore, the answer is false as the statement lacks clarity and completeness.

The advice to continue building on the sense of urgency until 75% of the upper management staff is supportive of the change is the most appropriate recommendation. This approach acknowledges the resistance to change and aims to address it by gradually increasing support among the management team. By emphasizing the importance and benefits of the new workforce model, leadership can effectively communicate the value of the change to employees and encourage their buy-in. This strategy allows for a smoother transition and ensures a higher likelihood of successful implementation.

In a matrixed organization, implementing change can be challenging when you have no direct authority over the people affected. Consensus is an effective approach because it involves gaining agreement and support from all parties involved, ensuring that everyone is on board with the change. Alignment to strategic goals is also important as it helps to ensure that the change is in line with the organization's overall objectives and direction. Coercion, which involves forcing people to comply with the change, is not a recommended approach as it can create resistance and negative outcomes. Adherence to the chain of command may not be as effective in this situation as it does not necessarily involve gaining buy-in and support from those affected by the change.

The given problem statement has several problems. Firstly, it has a root cause embedded, as it assumes that the low morale of the Russian Space Program is solely due to a non-performing pencil vendor. Secondly, it assigns blame by implying that the pencil vendor is responsible for the low morale. Thirdly, it includes a solution by suggesting a switch to the Space Pen. Lastly, the statement is too vague, lacking specific details and information.

Contracting is a prevention technique that involves setting clear expectations and guidelines for the event. By establishing ground rules and outlining the purpose and objectives of the discussion, participants are more likely to understand the boundaries and behave appropriately. The use of an agenda can also help in preventing issues by providing a structured framework for the event and ensuring that topics are covered in an organized manner.