Lean Transformation: Insights and Lessons Learned

Darwin John Moises

Lexmark

© 2015 Lexmark International, Inc. All rights reserved. 2

Lexmark delivers printing and imaging hardware as well as end to end solutions to customers worldwide. Our shared services center opened in Cebu in 2006, and was named the Best Company, Best Global In-house Center, Best Company Outside NCR and Most Innovative Company at the international ICT Awards, and Best Shared Services Team and Best Process Innovation by SSON.

A powerful combination of technique and attitude to improve business performance.

Lean Transformation

Actual Experience

Current State of Lean in the World

SOURCE: 2014 Shingo Prize Institute

Current State of Lean in the World

Path A • Love of tools, methods and ways • Lack of understanding of why and how • Limited problem solving ability • Endless training and workshops

Path B • Top leader driven but few key people • Problems solved by experts and outsiders • Limited team development • Lack of comprehensive tool, method and

system approach

Lean Transformation

TECHNICAL

LEADERSHIP

CAPABILITY

TOOLS

VALUE

Three Essentials

Let’s begin with the end in mind: Business Results.

Value.

TECHNICAL

LEADERSHIP

CAPABILITY

TOOLS

VALUE

Value

What problem are we trying to solve?

To begin with the end in mind means to start with a clear understanding of the destination. It means you need to know where you want to go, where you are today … so that the steps you take are always in the right direction. Stephen Covey

Value

Quality

Customer Satisfaction

Lead Time

Inventory

Cost

Value

Grasp of the situation

Actual vs. Standard

Actual vs. Ideal

Value

Extraordinary results are directly determined by how narrow we can make our focus. Gary Keller, “The One Thing”

Value

Vital few, trivial many. The 80/20 Principle.

Value

The 80/20 Principle assets that a minority of causes, inputs or effort usually led to a majority of the results, outputs or rewards.

Just the right causes, inputs or effort create most of the result, output or rewards.

Grasp of the situation

Actual vs. Standard

Actual vs. Ideal

Value

For two years, the organization that I led in Lexmark increasing number of priorities. But when I stepped back, I can state the three that if done wrong will cause us headaches but when done right will cause us a great sense of fulfillment – CSAT Top 2 Box, X Lead Time and Y timing and accuracy.

Value

CSAT Top 2 Box

Value

X Lead Time

Y Accuracy

Y Timing

TECHNICAL

LEADERSHIP

CAPABILITY

TOOLS

VALUE

Three Essentials

What problem are we trying to solve?

What do we do to improve results?

What tools do we need?

TECHNICAL

LEADERSHIP

CAPABILITY

TOOLS

VALUE

Tools

What problem are we trying to solve?

What tools do we need?

Tools

The term Six Sigma originated from terminology associated with statistical modeling of manufacturing processes. The maturity of a manufacturing process can be described by a sigma rating indicating its yield or the percentage of defect-free products it creates. A six sigma process is one in which 99.99966%

Six Sigma

Tools

Six Sigma is a set of techniques and tools for process improvement. It was introduced by engineer Bill Smith while working at Motorola in 1986. Jack Welch made it central to his business strategy at General Electric in 1995. Today, it is used in many industrial and business sectors

Six Sigma

Tools

Phases of Six Sigma

Tools

Six Sigma is a set of techniques and tools applied in each phase.

Tools

Is there a role for Six Sigma in Lean Transformation?

Common Six Sigma pitfalls …

Tools

Essential Planning Tools

Tree Diagram. Breaks down broad categories.

Relations Diagram. Shows cause and effect relationships.

Essential Quality Tools

Cause and Effect Diagram. Fishbone diagram + 5 Whys.

Pareto Chart. Vital few and trivial many.

Run Chart. Trends and shifts.

Histogram. Distribution.

Regression Analysis. Input relationship to the output of the process.

Tools

Just like when we’re playing golf!

Tools

Tools

Lean manufacturing or lean production, often simply "lean", is a systematic method for the elimination of waste “muda” within a manufacturing system. Working from the perspective of the client who consumes a product or service, “value” is any action or process that a customer would be willing to pay for.

Lean

Tools

Lean

Tools

Lean Six Sigma is a methodology that relies on a collaborative team effort to improve performance by systematically removing waste; combining lean and Six Sigma to eliminate the eight kinds of waste: Defects, Overproduction, Waiting, Non-utilization, Transportation, Inventory, Motion and Extra Processing.

Lean Six Sigma

Tools

That’s what your in-house Black Belt and Lean experts are for.

Be Selective of your Tools

Recommendation …

Problem

CAUSE

KNOWN UNKNOWN

QUALITY PRODUCTIVITY

Delays Lead Time Wastes

CSAT Accuracy Errors

Lower Cost/Desired Business Result

Recommendation …

Quality

Customer Satisfaction

Lead Time

Inventory

Cost

Recommendation

CSAT

Tools

X LEAD TIME

Y TIMING & ACCURACY

• Define

• MSA

• Fishbone

• Histogram

• Run Chart

• Regression Analysis

• Define

• Value Stream Map

• VA/NVA Analysis

• JDI

• Define

• JDI

• Automate

90% of its success is about value and capability.

Tools

Those who know HOW will always have a job.

Those who know WHY will always be the leader.

Tools

TECHNICAL

LEADERSHIP

CAPABILITY

TOOLS

VALUE

Three Essentials

What problem are we trying to solve?

What do we do to improve results?

What tools do we need?

TECHNICAL

LEADERSHIP

CAPABILITY

TOOLS

VALUE

Capability

What problem are we trying to solve?

What do we do to improve results?

What leadership behavior should we develop?

What tools do we need?

1. Start with top management

2. Work with middle managers

3. Engage the operational teams

Capability

1. Start with top management

Capability

1. Start with top management

Capability

1. Start with top management

Capability

Leadership Process Excellence, Singapore, 2015

3. Engage the operational teams

Capability

Capability

Capability

Capability

Broken Window Principle

Capability

1

2

3

4

"Everybody in a company behaves the way their leader does"

Capability

"Everybody in a company behaves the way their leader does"

Capability

1. Start with top management

Capability

Act your way to the thinking you want. In short, walk the talk.

John Shook

2. Work with middle managers

Capability

2. Work with middle managers

Capability

2. Work with middle managers

Capability

1. Start with top management

Capability

Research states that 46% of all improvement initiatives fail due to lack of leadership.

PEX Network: Insight and Inspiration for Process Professionals

2. Work with middle managers

Capability

Three Fundamental Behavioral Shifts

3. Engage the operational teams

Capability

3. Engage the operational teams

Capability

3. Engage the operational teams

Capability

3. Engage the operational teams

Capability

3. Engage the operational teams

Capability

Capability

CSAT Top 2 Box

Capability

X Lead Time

Lean Transformation

TECHNICAL

LEADERSHIP

CAPABILITY

TOOLS

VALUE

Three Essentials

What problem are we trying to solve?

What do we do to improve results?

What leadership behavior should we develop?

What tools do we need?

Change Implementation Success Factors

Value People Tools Lean Transformation

No Change

Anxiety

Frustration

Lexmark Confidential

People Tools

Value Tools

Value People

Value People Tools Real Transformation

Lean Transformation

We are what we repeatedly do. Lean transformation is not an act but a habit. Aritotle

Lean Transformation