lean overview recap - apics · lean is a culture that: • eliminates waste, • through continuous...
TRANSCRIPT
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Lean Enterprise Overview Supply ChainPart 2 of 2
Instructor / Facilitator:Ed Hanker, Jr.EEBMS, LLC
Tonight’s Outline• Quick recap of the Lean Tools.• Lean Management System – An Overiew.
- Focus on Process.- Steering Committee.- Change Management.- Leader Standard Work.- Rapid Response Teams.- Problem Solving.- Gemba Walks.- A3- Leadership.
• A Brief Case Study.• In Closing.
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Lean Overview Recap
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Which paradigm is Lean:
•“If it ain’t broke don’t fix it”.
•“There is always room for improvement”.
“There is always room for improvement”• Everyone typically agrees immediately with that statement.
• However, there are 2 critical challenges.
- Challenge 1: I must improve also!
- Challenge 2: I must not get defensive.
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5 Minutes
Every Hourof
of
Every Work Day
If you could save…
for
One Typical Year
(of 2040 hours)
That’s 10,200 minutes saved170 hours
4.25 weeksor
1 Month
ED’S 5 Minute Challenge
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What to do with the time saved?Don’t let it fritter away:
• Proficiency Training.
• Cross Training.
• Workplace Organization (i.e. 5S).
• PM’s & Repairs.
• Additional Process Improvements.
• Make more product only if ….?
“If you have time to lean, then you have time to be
lean.”
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Reduced Lead Time
“ One of the most noteworthy accomplishments in keeping the
price of Ford products low is the gradual shortening of the
production cycle.
The longer an article is in the process of manufacture and the
more it is moved about, the greater is its ultimate cost.”
—Henry Ford, 1926
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Reduced Lead Time
“ One of the most noteworthy accomplishments in keeping the
price of Ford products low is the gradual shortening of the
production cycle.
The longer an article is in the process of manufacture and the
more it is moved about, the greater is its ultimate cost.”
—Henry Ford, 1926
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Lean is Market Driven
Every morning in Africa:
a gazelle wakes up and it knows it must run faster than the fastest lion or it will be killed.
a lion wakes up and it knows it must outrun the slowest gazelle or it will starve to death.
It doesn’t matter whether you are a lion or a gazelle — when the sun comes up, you had better be running.
(African Parable)
Everything is a Process…
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then you don't know what you're doing.”
William Edwards Deming
“If you can't describe what you are doing as a process,…
Manpower,
Machines,
Methods,
Materials,
Mother Nature,
Management Info.
The 6M’s of any Process
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Defining Lean
Lean is:
“A systematic approach to identifying and
eliminating waste (non-value added activities)
while maximizing Value Add
through continuous improvement by flowing the
product at the pull of the customer(s) in
pursuit of perfection.”
Value Added - Clarified
Value is added any time we physically change our raw materials towards what the customer is buying.
(These are activities the customer is willing to pay for.)
If we are not adding value, we are adding cost or time i.e. waste.
Lean drives toward the systematic elimination of waste.
Lean = Eliminating Waste
Value-Added Non-Value-Added
• Defects
• Overproduction
• Waiting
• Not Using Employees Talents A,S,K
• Transportation
• Inventory (Excess)
• Motion (Excess)
• Excess Processing
Typically 95% of all lead time is non-value-added.
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Kaizen Process Steps = Acts of Continuous Improvement
DocumentReality
PlanCountermeasures
IdentifyWaste
RealityCheck
Make Changes Verify Change
Measure Results
Make thisthe Standard
Celebrate
Do It AgainStart
Here
Avoid Analysis Paralysis75% is Good Enough – WHY?
Kaizen Process Steps = Acts of Continuous Improvement
DocumentReality
PlanCountermeasures
IdentifyWaste
RealityCheck
Make Changes Verify Change
Measure Results
Make thisthe Standard
Celebrate
Do It AgainStart
Here
Avoid Analysis Paralysis75% is Good Enough – WHY?
Reality Check:Resources?
Trained?
Are the 6M’s addressed?
Does it work…for whom?
Does it impact downstream?
Is it worth it?
“Perfect is the enemy of excellence.”
When it comes to process improvements…
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Why are we here everyday?
Why do we come to this facility everyday?
Are we here to work?
NO! We are here to produce RESULTS!
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Lean Building Blocks – the “House of Lean”.
Quick Changeover
Standardized Work Batch Reduction Teams
Quality at Source
5S SystemVisual Plant Layout
POUS
Cellular/FlowPull/Kanban TPM
Continuous Improvement
ValueStreamMapping
“The way people think
is far more important…..
than the tools they use.”
Dennis PawleyFormer Chrysler Executive
The Challenge…..
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Lean Thinking
• Five lean principles:
- Specify value from the customer’s point of view. - Identify the value stream, the complete set of
activities required to create the output valued by the customer.
- Make value flow through the value stream by eliminating non-value added activities and streamlining the remaining value added steps.
- Have the customer pull value through the value stream.
- Pursue perfection.
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Lean is a culture that:
• Eliminates Waste,
• Through Continuous Improvement,
• And Continuous Learning,
• With Total Employee involvement,
• Thus helping the employees to “do more with less”,
• All to better satisfy the Customer (proviso),
• Ultimately allowing the company to grow.
Lean Management System
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Focus on Process not Just Results
Lean is about much more than just results. For Lean to work managers and employees must
change their focus: From the habitual focus on Results. To a focus on process and all it entails.
Instead of just focusing on whether we “hit the numbers”. Need to focus on “HOW” we hit the numbers.
Start by making sure that every process is “DESIGNED” to produce specific results. Then create a real world system which provides: Periodic maintenance, Occasional intervention and repair.
Focusing on Process Produces Results If you want a process to produce results for which it
was designed you have to pay attention to it. One of the first rules of process focus in lean
operations is to regularly see the process operating with your own eyes.
The closer your position to the “floor” the more time you should be spending:
Watching the process, Verifying execution consistent with design, Intervening when non‐standard or abnormal conditions occur.
Production Team leaders should spend virtually all of their time:
Training operators in the process, Or improving it
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Steering Committee
Where Are We Going?
“You got to be careful if you don’t know where you're going, because you might not get
there”.
‐‐Yogi Berra
People need to know the “WHY” and “WHAT” behind change. Ambiguity is the enemy.
Lean Steering Committee
Provide Guidance for Teams that want to improve.
Hold Teams accountable for results and / or Lessons Learned.
Facilitate sharing of knowledge and experiences.
Very visible and great communications.
Cross Functional Team.
Empowered to deploy company resources.
Select projects aligned with Strategic Goals.
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Committee Ensures Customer Focus
• Projects focus on what the customer values.
• It deals with the processes that produce outputs not areas of functional responsibility.
• It seeks to eliminate non value adding activities from the processes.
• It uses measures to drive the desired organizational behaviors.
• It understands customer demands
• It uses data to develop improvement actions
Project Chartering
For More Involved Tasks / Projects.
Create a Team Charter or Mission Statement:
What Process or Problem to study.
Project Sponsor.
Team Members.
Why is it important to the Customers / Company.
What boundaries or limits‐ esp. time and money.
What magnitude of improvements are expected.
When is the project expected to start.
What is the target date for completion.
What authority to call in coworkers or outside experts.
What resources are available for additional info or data.
What are the deliverables and Expected Outputs / Results.
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Project CharterBusiness Case:
Problem Statement:
Goal Statement:
Start / Stop Boundaries:
In Scope:
Out of Scope:
Project Plan:
Constraints & Assumptions:Sponsor: Process Owner:;Project Leaders:Team:
Project Team:
Team Charter is a “Living” Document.
Most Teams / Projects can’t anticipate all possible contingencies at the outset.
As more or updated information is received the Charter must be updated. Constraints may be tightened or loosened. Team members may come and go. Expected Outputs / Results will need to be adjusted. Timelines and schedules will be updated.
When Teams get bogged down debating a particular point use the Charter to provide guidance as to whether it is really germane to the main objective. Sometimes it reveals a breakthrough that must be captured.
Next Stop –The Twilight Zone!
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…..eliminating waste through
continuous improvement….
Lean is:
Constant Change
… But Continuous Improvement Means….
Are You A Change Agent?
Or Are You A Change Blocker?
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Why is change necessary in business? Survival – the competition is relentless.
Customers Needs Change.
Regulations Change.
Technology Changes.
Headcount Changes.
Need for Flexibility.
Boss / Owner Said So!
Other reasons…?
An Unwitting Choice
“It is not necessary to change…
‐ Edwards Deming
Survival is optional.”
The people will change.”
‐ Jack Welch
An explicit message
“The people will change or
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Types of Change Gradual Change:
Company‐wide changes are implemented at a steady rate over a prolonged period of time.
Crisis Management:
In the absence of being proactive and developing a plan, change shows a roller‐coaster pattern.
Dramatic action in response to a crisis and is followed by a marked fall‐off until the next crisis is triggered.
Radical Change:
After a relatively stable, even slow period, one or more major changes are introduced at a single stroke.
Types of Change
Types of Change:
Gradual Change.
Crisis Management.
Radical Change.
Which Change is more likely to be effective and stick?
Need to know your audience
In order to lead change…
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People React to Change Differently?
• Change has a considerable psychological impact on thehuman mind.
• To the fearful it is threatening because it means thingsmight get worse.
• To the hopeful it is encouraging because things may getbetter.
• To the confident it is inspiring because the challenge exists to make things better.’
# of people
Time
Innovators
Early Adopters
Early Majority
Late Majority
Late Adopters
Diehards
Different Types of Respondents
Small Steps to Big Leaps
“The secret of getting ahead is getting started.
The secret of getting started is breaking complex overwhelming tasks into small manageable tasks, and then starting on the first one.”
MarkTwain
Lean is a practical and engaging way of breaking the overwhelming tasks into manageable ones and
delivering the improvement
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People and Change
• For an organization to change successfully the people within it have to make the transition associated with the change.
• Estimated that 80% of change projects that do fail -because “leaders” fail to manage the people issues associated with the change.
• To minimise the risks of failure leaders need to understand how people react to change but …
• more importantly if change is to be successful people need to be given the opportunity to be involved.
‘People responsible for planning andimplementingchange often forget that while the first task ofchange management is to understand the destination and how to get there.
The first task of transition management is to convince people to leave home.’
William Bridges
Lean encourages people to “leave home” by allowing them to determine the route and design the
destination.
You cannot change the
direction of the wind, but you can change the direction of your
sails.
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Leader Standard Work
Sample Leader Standard Work
A list of the normal tasks that must be done to sustain the lean management system
Tasks typically include audits, meetings (daily accountability) and continuous improvement projects
Focuses on the production process
Directs the leader to check on the visual controls
Expected to be continually improved
Time each task should be completed (frequency)
What is Leader Standard Work?
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Why Leader Standard Work?
Clearly Documents the Management System
Documents the current state of the best practices in lean management
A baseline for further lean management system improvement
Defines expected behavior for leaders (what they should do)
Who Should Have Standard Work?
ROLE % of Work (time) that should be Standard
Executives 10-15%
Value Stream Manager 25%
Support Department Managers
50%
Supervisors 50%
Team Leaders 80%
Operators (Associates) 95+%
In Lean Management, EVERYONE!
Layers of Standard Work
Leaders standard work should be layered (developed) from the bottom up
Team LeadersMaintain operations / production and
ensure standard work is followed
SupervisorsMonitor and support team leaders in their
ability to carry out their standard work
Value Stream managersMonitor and support supervisors in their ability to carry out their standard work
ExecutivesTime on the floor to verify the chain of standard work is upheld and production process is stable and improving
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Key Points for LSW
Check because You Care – each level of LSW has some overlap and redundancy to provide linkage –make sure they are logical and meaningful to you.
Learn by Doing – excellence is more about what you do than about what you know – and learning comes from action – follow the LSW process.
Improve the Standard – as the processes change and as people learn, Leader Standard Work needs to change with it.
Metrics i.e. Data –Key to Driving Change.
Sample Tracking Table
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Working the Critical KPI’s
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0%
20%
40%
60%
80%
100%
120%
1/2/14 2/2/14 3/2/14 4/2/14 5/2/14 6/2/14 7/2/14 8/2/14 9/2/14 10/2/14 11/2/14 12/2/14
% of job shipped
On Tim
e
On Time Delivery ‐ %TimeTotal Orders
OTD
Target ‐ Lo
Target ‐ Hi
Score needs to be “Real Time”…to make Real Time Decisions.
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After the fact may be too late…
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Visual Controls using Metrics and Data How do you know if something is under Control
if you are not measuring it? Serves as an early warning system.
Same for Improvements? Is the organization growing or stagnant?
Some info MUST be real time. Imagine playing a baseball game without knowing the
score until tomorrow’s paper comes out.
Metrics need to be based on valid data. Metrics need to be Customer Centric. Faster – Cheaper – Better.
Rapid Response Team
Stop and Fix ‐ Rapid Response Teams
Critical skills need to be on call: Engineering.
Quality.
Maintenance.
Facilities.
Subject Matter Expert.
Operators.
Management (Decision Makers).
Hone your Triage and Root Cause Skills to get to the root cause quickly. Testing and diagnostic abilities.
Product and Equipment awareness.
Used data to confirm your diagnosis.
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Stop and Fix ‐ Rapid Response Teams
Develop a signaling process with agreed upon response times when the RRT is summoned.
Define clear criteria when to summon the RRT
Don’t abuse the privilege.
Don’t rely on it as a crutch.
Stop and Fix ‐ Rapid Response Teams
Take Actions Immediately to SOLVE the problem at the ROOT.
EVERYONE solves problems.
If can’t be solved at the root immediately: Implement a Stop Gap Solution.
Identify a longer term solution and record it on the Daily Accountability List.
If it is bigger in scope than that then create a Project Charter and / or an A3 to track until complete.
Stop and Fix ‐ Rapid Response Teams
If similar problems keep re‐occurring then you need to improve: Manpower: Your Training and Onboarding process.
Machines: Your Total Productive Maintenance Program (TPM).
Materials: Your Supplier Quality Program.
Methods:Your Product and Process Development Skills.
What is the definition of “Insanity”?
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Problem Solving & Root Cause Analysis.
Importance of the root cause
Not knowing the root cause can lead to costly band aids.
The Washington Monuments were degrading
Why? Use of harsh chemicals to keep it clean.
Why? To clean up after a lot of bird droppings.
Why so many birds? They eat spiders and there are a lot of spiders at the monument.
Why so many spiders? They eat gnats and lots of gnats at the monument.
Why so many gnats? They are attracted to the light at dusk.
Solution: Turn on the lights at a later time – approximately 30 minutes after dusk each night.
Problem Solving Process
Validate
Follow Up Plan
Execute Plan
Action Plan
Root Cause
Immediate Action
Identify Team
Identify Problem
Problem Solving Process
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ACCOUNTABILITY
Daily Accountability Meetings
Tiered Status Meetings: Frontline Supervisors – attendance, priorities, equipment status, etc.
Department Heads – get status from Supervisors. Obstacles, Additional resources needed. Priority confirmations.
Division Head – get status from All Department heads. Within 2 hours of the shift change the Division Head should be aware of any and all issues.
Deploy resources as needed.
GEMBA WALKS
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Gemba Walks
Gemba means “the real place”...
Or “where the action is”.
The Socratic method is a form of cooperative argumentative dialogue between individuals, based on asking and answering questions to stimulate critical thinking and to draw out ideas and underlying presuppositions.
Gemba Walks Continued.
Intention of Gemba walks: Primary means for teaching lean tools and lean
management.
Teacher and student(s) walk the “floor”.
Teacher asks the student: What do they see?
What don’t they see?
Ask questions to stimulate the student to think differently about what they see.
Assign action items.
Follow up – typically weekly.
Eventually the student should no longer need the teacher.
Gemba Walks Continued.
Go see the process in operation.
Talk to everyone involved in the process.
Assess what issues are not being addressed.
Assess if every employee is looking for ways to improve the work flow.
Make sure you follow through or follow‐up on “every” suggestion. Don’t discount people’s ideas – won’t get any more.
Open Items become part of Daily Accountability Meetings as appropriate.
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A3
A3 Report
Is a one‐page reporting format, named for the international paper size i.e. B‐size.
It contains, on one page, critical information about an issue, such as description, cost, timing, data, planned solutions and planed resolution.
Spawned by the fact that most employees / managers do not have the time or the inclination to read lengthy, wordy reports.
It is succinct and to the point and Standardized.
The A3 Format is Typically Laid out:
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A Sample A3 Report
A3 is much more than just a report
Preparing an A3 Report:
Requires a deeper understanding of the problem or opportunity.
Gives better insight how to address the problem.
Fosters cohesion and alignment in the organization.
Focus on the intellectual development of employees.
Fosters collaboration and teamwork –A3’s are never drafted in isolation and always “visible”.
Problem Solving A3’s
Provides complete visibility of the status and direction of each project.
Standard format fosters quick information transfer.
Posting and sharing A3’s ensures alignment between all functions and departments within the organization. Discussion and debate are encouraged.
A3’s are simply a summary of all the work being done or that has been done on a project. More information may be captured / presented outside of the A3 as needed.
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LEADERSHIP
Continuous Improvement requires solid ….
Lean Leader Traits
Leadership has become a cliché. Has almost lost all of its meaning.
Has become synonymous with “executive” or “management”.
Leadership is NOT a title or a job – it is an ACT.
Leadership is an act that anyone in the organization can conduct at any level.
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Leadership vs. Management
Managers maintain the status quo i.e. the current reality. An organization’s current reality does not plod along on its
own. Takes a significant amount of effort from management.
Leaders, in contrast, move a company toward the ideal state. Any behavior that moves a company toward the ideal state
is an act of leadership. Regardless of: The individual’s title or position. Whether anyone notices the act. How the act fits into any leadership framework.
Leadership requires ACTION.
Classic traits that characterize Leadership: Motivation.
Communication.
Vision.
Calmness, etc.
But Traits do not constitute Leadership alone.
If ACTIONS do not move things forward there is no leadership.
Leadership by its very definition requires leading people somewhere. Cannot lead people if people remain fixed in place.
Leadership…
Leadership is NOT a title or a job – it is an ACT.
If ACTIONS do not move things forward there is no Leadership.
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Key Leadership Moves to Grow the Organization.
Four Essential Actions a Lean Leader can perform to help provide Leadership toward the ideal state:
1‐ Leaders must be teachers.
2‐ Build tension not stress.
3‐ Eliminate comfortAND fear.
4‐ Lead through visible participation, not
proclamation.
Human resource aspects of a lean enterprise
Training is a Key Element
Good Training and Cross Training Records are critical. By Employee.
By Procedure or Process.
Must be kept current.
Must reflect some form of expiration when not used for an extended period of time or after each change.
Must have fool‐proof discipline to not allow an employee to perform work if they are not “current” in their training. Forces you to rotate.
Use Daily Assignment Boards – let the team manage it.
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Human Resources
Changing Work Force Requirements
More versatile employees are required.
Job Descriptions and Qualifications will change.
Work well with others –Teamwork is critical.
Contribute and participate actively i.e. takes initiative.
Willing to speak up and make constructive comments.
Human Resources Continued Compensation, Reward and Recognition… For Versatility over Specialized Skills. Specialized skills embedded in Standard Work Procedures.
Job Grades or Classifications change accordingly.
MBO’s, bonuses, raises.
Break and Start Times may need to be adjusted.
For making effective changes.
For attempting change even if you failed…and learned.
For process improvements.
As well as results.
Lean must acknowledge the right groups.
Teams.
Individuals.
Leaders.
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Impact at Every Level
Employee: empowered and more engaged.
Supervisors: empowered and more engaged with emphasis on process as much as results.
Mid Management: no longer fire fighting and just trying to hold status quo – actually looking ahead.
Sr. Management:Asking how they can helpbreak down barriers more than telling what to do and leading by EXAMPLE.
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Use Rewards and Recognition
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Use Rewards and Recognition
Be sure to Reward Teams as well as
Individuals; especially Cross‐Functional Teams.
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Have Fun with Recognition
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Just do a little everyday !
Other Examples
Eagle Eye Program.
Lean / 5S Tee Shirts with custom logo – recognition for demonstrating lean practices.
Lean / 5$ Gift Cards –Target, Wawa. Home Depot, Quick‐check.
Employee Shout‐Outs – Peer to peer recognition.
Lean / 5S Survivor.
Etc.110
Lean Management System Leads to a Lean Culture? Steering Committee.
Leader Standard Work.
Project Charters.
Daily Accountability Process.
Gemba Walks.
Stop and Fix Problems w/ Rapid Response System.
Visual Controls.
A3 Report.
Human Resource Aspects of a Lean Enterprise.
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Lean Improvement andCulture
• Lean challenges command and control management behaviors.
• It encourages all staff to developimprovements.
• It encourages the organization to try improvements in a controlled environment.
• It is action orientated not report orientated.
“The way people think
is far more important…..
than the tools they use.”
Dennis PawleyFormer Chrysler Executive
The Challenge…..
The key challenge
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How long will it take?
FOREVER……
BECAUSE YOU ARE NEVER REALLY “DONE”.
How long will it take?
Practically speaking:
Typically takes 3 – 5 iterations.
Can be 2 – 7 years enterprise wide.
Everyonemust get involved in earnest.
Need internal Champions to help drive it throughout.
Be wary of “Event Lean”.
“The people will change or the people will change”
(Welch).
How long will it take?
Depends on the energy you can generate around
Lean:
Celebrate successes no matter how small.
Celebrate “failures” as lessons learned.
Reward and acknowledge thoughtful experimentation.
“Make” time available to develop the Lean culture.
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MAKING TIME FOR CONTINUOUS IMPROVEMENTS.
Making time requires extra effort in the beginning. Initial Process Improvements require extra
effort: “Squeeze it in” before end of the week, etc. “Block out time” for Process Improvements. Delegate non critical task to others. Eliminate Non‐value added activities.
Overtime, maybe even personal time.
You have to be COMMITTED to making it happen. Set interim goals with milestones. Celebrate successes and lessons learned to energize
yourself for future efforts.
Making Time Continued.
The Ongoing Process Improvements must be improving something or it is not a true improvement.
Save time – FASTER!
Save effort –CHEAPER!
Improve quality – BETTER!
If not then nothing has really changed.
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In Closing
Lean is a culture that:
Eliminates Waste,
Through Continuous Improvement,
And Continuous Learning,
With Total Employee involvement,
Thus helping the employees to “do more with less”,
All to better satisfy the Customer,
Ultimately allowing the company to grow.
Three Main Points to take away from today’s session: LEAN is a PHILOSOPHY of “CONTINOUS
IMPROVEMENT” throughout the entire Enterprise.
Lean TOOLS have “an app for that”. Learn what and how to use them.
Lean tools without a LEAN MANAGEMENT system will not be as effective. Make sure you have a strong support system.
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Food For Thought…
Why is a Culture of Continuous Improvement required in business….
“Because complexity and chaos creep into our daily workflow one rational decision at a time.”
Before you know it you’re drowning in waste.
Lean Resources
• Countless Books – here are some favorites:
– “Creating a Lean Culture”, David Mann, 2010, Productivity Press.
– “The Hitchhiker’s Guide to Lean”, Jamie Flinchbaugh and Andy Carlino, 2006, Society of Manufacturing Engineers.
– “Lean Thinking”, James P. Womack and Daniel T. Jones, 2003, Free Press .
– “The Machine That Changed The World” James P. Womack and Daniel T. Jones, 2007, Free Press .
– “The Toyota Way Handbook”, Jeffrey K. Liker and David Meier, 2006, McGraw‐Hill.
– “Office Kaizen 2”, William Lareau, 2011, ASQ Quality Press.
Suggested Reading (continued)
• Countless Books – here are some favorites:
– “Leading the Lean Enterprise Transformation”, George Koenigsaecker, 2009, Productivity Press.
– “Lean for Dummies”, Natalie J. Sayer and Bruce Williams, 2007, Wiley Publishing, Inc.
– “Using Lean for Faster Six Sigma Results, Mark A. Nash, Sheila Poling, Sophronia Ward, 2006, Productivity Press.
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Lean Resources
• Various Websites
– Lean Enterprise Institute.
– The Lean Library.
– Society of Manufacturing Engineers.
– Daily Kaizen.
– The 5S Store.
– The Lean Store
Today’s Presentation
Ed Hanker, Independent Consultant, Facilitator, Trainer.
EJH Executive Business Management Consultant, LLC. [EEBMS,LLC]
Cell: 609‐501‐0197.
Email: [email protected]
WHAT ONE THING JUMPED OUT AT YOU – GOOD OR BAD – AS:
Revealing.
Thought provoking.
Contradictory.
Interesting.
Reinforcing.
Other?
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