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The Role of Human Resources in Cultivating a Problem

Solving Culture with Effective Team Member Onboarding

2016 Lean HR Summit, San Antonio, TX.

Presented By Ernest Kandilige and Bruce Lawson

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• Genie starts with one location (Bushnell’s

garage) and quickly grows to two employees.

• In 2003 Genie becomes part of global

equipment manufacturer, Terex, with a

global workforce of 20,080 Team Members

Where it all began…

1966 • Seattle, Washington

• Founder Bud Bushnell introduces the Genie® Hoist, a

portable pneumatic material lift

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Terex Business Segments

• Aerial Work Platforms

Aerial Work

Platforms

24%

Construction

24%

Cranes

40%

Aerial Work

Platforms

26%

Construction

26%

Cranes

36%

• Construction

• Cranes

• Material Handling & Port Solutions

• Materials Processing

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Problem Solving Background

• Terex Operating System (Based on Toyota Principles)

• To create a Problem Solving culture at all levels and functions of the

organization

• A reliable method to identify the root cause(s) of problems at the Gemba

• Make our work easier and easier for our customers to do business with us

Support a Culture of Daily Continuous Improvement

People Based Management System

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Lean Journey Timeline

Creation of KPO

• Begin Shop Floor

Kaizen

(over 250 Events)

• Genie Production

System

Education

• TQM

• World Class

Competitiveness

• Lean

Japan Studies

• Shingijutsu, Ltd.

• Nakao Sensei Visit

- No Money

- No People

- No Space

Grow and Stabilize

•Rapid Growth

- 2000+ new TM’s

- Four new business

units

• Prepare to Globalize

Production

Current Situation

•Introduce Foundations

- Hands-On Training

- TBS Basics

• Learning Organization

- Re-build TBS

Infrastructure

1993 - 1995 1996 - 1998 1999 - 2004 2005 - 2007 2008 – 2010 2011 – Present

Re- Energize

• Focus on Forecast-to-

Cash Cycle

• Continue to train and

develop TM’s

“The factory prides itself in practicing the kaizen methods of continuous

improvement made famous by Toyota.” - The Seattle Times , April 18, 2012

Training, Coaching, and Leading for Organizational Development & Financial Growth

2014

Restore Learning

Infrastructure&

Define Learning

Portfolio

AWP TBS Training Strategy Map

• Needs Analysis, Direct Team

Member Training

• Identify Critical Staffing Needs &

Fill Them

• Revise and Design Training with

engaging Instructional design

tools

• 90 day Onboarding

• Explore Learning Strategies to

support Organizational learning.

e.g. coach, Leaders as Teachers

• Daily Training Bits

• Ten Minute Training Modules

• Expand Training Capabilities of

Organization and align with Terex

• Resource for TWI/JI coaching

2016

• Systems thinking-The

conceptual Framework that

allows Team Members to

study TBS

• Personal mastery-

Continuous self-

development and daily

practice of TBS

• Mental models-Daily practice

of the Terex Way Values

• Shared vision-Long term

focus on the culture of

continuous improvement

• Team learning-Ability to

use Problem Solving tools

at all levels of the

organization to drive

continuous improvements

• Organizational Learning driven by

leaders at all levels

• TBS trainers coaching for

consistency / skill enhancement

• Problem Solving is in the fabric

of our organization

• Learning supports a Terex Way

value driven organization

• Learning portfolio support Team

Member IDPs (OPS, Tech,

Ldrshp, Office)

• Leaders as Coaches allows for

expanded teaching/learning

• Exploring new technologies for

Global Learning

• Expanding course offerings based

on Needs Assessment

2015

Leading the

Development of a

Learning

Organization

Learning

Organization,

Leaders as

Teachers

End State

An Advanced

Learning

Organization to

Support AWP

Vision

• Foundations & TL training across

AWP(N.A. Italy, China)

• Launch AWP Academy 101

• Operationalize training through TBS

Leadership -rotations

• Problem Solving tools for Lean

Leaders

• Coaching Methods intentionally built

into TBS Training- Big 5 (Drive

Results)

• AWP OPS Leader Development

Path - Leader Readiness

• JI Implementation Plan.

• Increase basic skill training

capability at all AWP sites

• Benchmarking Industry Lean

Strategies / Practices

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Learning Objectives

• How to initiate Problem Solving culture in

your organization

• The critical elements that support a Problem

Solving Culture in your organization

• Introduce 5 Whys iterative questioning techniques during basic skill training

• How Human Resources can influence leadership to embrace Problem Solving

Brainstorming

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Examples of workplace problems

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No Problem, Big Problem

Problem:

A discrepancy between the current situation and a

known standard

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10

Myths About Problem Solving

• It’s too expensive and time consuming to

eliminate every little problem

• Hey, Things Happen!

• Every leader understands and coaches

Problem Solving

• Past performance influences the future

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What is Problem Solving

Problem solving is:

•Properly identifying a problem /

opportunity

•Understanding its root cause

•Developing a sustainable,

permanent way to address the root

cause (countermeasure)

•Being proactive

Problem solving is not:

• Treating symptoms

• Putting on a band-aid

• Finding a work around

• Fire fighting

• Reacting to what’s not working

• Passing a problem along

• Blaming others

Attributes of a Good Problem Statement

A useful problem statement indicates:

•The standard

•The current situation relating to the standard

•The discrepancy between the current situation and the standard

•Point of cause/location of problem occurrence

•The extent of the problem

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Example: Team Member X at station 1 has gone over his takt

time an average of 6 seconds every day this week.

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Initiate Problem Solving in Your Organization

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AWP Foundations: New Hire Experience

• Our response to the cyclical and seasonal nature of our Business

• The Foundations course incorporates teaching and hands-on laboratory

experience

• Introduce standards and performance expectations for full engagement

• Sows the seed to becoming a learning organization

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Critical Elements that Support a Problem

Solving Culture in Your Organization

•Standards established / technical proficiency

•Respect for Team Members

• (provide a reliable method and training, support trials, and learn by doing)

•Acknowledge the need for coaching skills from leadership

•Leadership confirmation (leader standard work)

•Long term vision - process stability and daily improvement

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• “We do not admonish Team Members who make mistakes or fail, but

those who fail to learn from their failures.”

• Ron DeFeo, former Terex CEO

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Terex AWP– Why TWI/JI

• Proven teaching methodology… Job instruction

• Had instructors certified by the a Master Trainer on site

• Total of 7 certified JI instructors

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JI/5Whys Video?

Problem Solving Tools Stratified

A3

8D

Method

5 Why

Method

CO

MP

LE

XIT

Y

T IME

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5 Whys

Why

?

Why

?

Why

?

Why

?

Why

?

5 Whys Approach

Iterative questioning technique used to explore the cause-

and-effect relationship underlying a particular problem

"5" derives from research on the number of iterations typically required to identify a root cause

Problem Statement

4th Why?

3rd Why?

1st Why?

2nd Why?

Root Cause

5th Why?

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Symptoms vs. Root Cause

Symptom: A sign of the existence of something, especially of an undesirable situation

Root Cause:

A factor that caused a nonconformance and should be permanently eliminated

through process improvement

“True problem solving requires identifying root cause rather than source. The root cause lies hidden beyond the source.” - Taiichi Ohno

Check Logic

• Challenge the root cause to confirm logic

• Involves trying to reproduce the problem

• If you can, move on to the next step

• If you cannot, continue asking “why”

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5 Whys Example

Practical problem Solving as a

practice Situation

5 Whys Problem Statement

1st Why?

2nd Why?

5th Why?

4th Why?

3rd Why?

Root Cause

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AWP Experience

Problem Solving Starts with known standards

• Reliable method to follow standards

• Escalation process

• Providing support

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Continuous Cost Reduction Through The Elimination of Waste Eliminate waste as it is revealed through inconsistent or unexpected results.

5S / Visual Management

OBJECTIVES METHODS PRINCIPLES

Level Production

JUST IN TIME

Operate with the

minimum resources

required to consistently

deliver:

• Just what is needed.

• In just the required

amount.

• Just where it is needed.

• Just when it is needed. Pull System

•Andon

•Operational

Availability

Appropriate

and Optimal

use of

Machines

One - Piece

Flow

•Standard

Work in

Process

•Kanban

Appropriate

and Minimal

levels of WIP

Takt Time

Production

Standard

Work

Appropriate

and Efficient

use of

People’s Skills

JIDOKA

Stop and respond to every abnormality.

Separate machine work from human work. Enable machines to detect abnormalities and stop autonomously.

One-by-one confirmation to detect abnormalities.

TEREX

Operating System Assure Delivery

& Minimum Cost Assure Safety and Morale

Assure

Product & Process

Quality

How Can HR Influence Leadership to Embrace

Problem Solving?

• Set the tone for Problem Solving through effective job descriptions/Interview

process

• Basic Skill Training- AWP Foundations

• Intentional with immersion plans with emphasis on Problem Solving for all

levels of organization

• Training, coaching, and a healthy dose of learn / do on the Gemba

• Attract, Train and Retain (Human Value Stream) long-term perspective. A full

understanding of the skills we desire in a long term of Team Members.

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Setting Standards

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• Safety

• Quality

• Delivery

• Cost

• Morale

• Everyone is a problem detector

• Raising problems is an

expectation

• Team members can and should

be involved in problem solving

Work Standards Behavioral Standards

Initiate Problem Solving in Your Organization

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Develop standards

(safety, quality, cost, delivery,

morale) Identify and manage

out of standard conditions (problems)

Compare actual to standard

Identify and manage opportunities to change standard (improvement)

P P

P

P

D D

D

D

C

C C

C

A A

A

A

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Leader Role

Solving problems means you must:

•Provide a means to identify problems

•Evaluate problems to determine priority

•Initiate problem solving without concern about problem ownership

•Find root cause(s) to determine if you have ability to address the cause(s)

•Consider the impact of responding to problems in other groups and sections as well as

the impact of delaying a response

Managers, Supervisors and Team Leads must coach problem solving and

help Team Members solve problems

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Positioning Ourselves For The Future

• Continuous Leadership education on

Problem Solving (AWP Academy, Gemba

Coaching on problem Solving)

• Explore appropriate Problem Solving tools

for all groups including Toyota Kata, 8D, A3

• Problem Solving champions through Leader

Standard Work

• Be the Best. Do it Right, Every Time

Where do we go from here?

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Bruce Lawson

TBS Director

E: bruce.lawson@terex.com

P: +1 425 498 7621

Ernest Kandilige, PHR, SHRM-CP

TBS Training Manager

E: ernest.kandilige@terex.com

P: +1 425 749 2986

Thank you!