lean leadership: part 2 of 3

Lean Management Components

Core Values / Principles / Philosophy

• Analytical tools• Value stream analysis & mapping• Metrics-based process mapping• Root cause analysis: Five Why’s, Fishbone,

Pareto, Problem tree, FMEA• Waste Countermeasures

• Standard work• Quality at the Source / Error proofing• 5S / Visuals• Pull systems: One-piece flow, FIFO lanes,

Kanban• Cells / co-location• Level loading• Work balancing• Batch size reduction• Setup & changeover reduction• Work segmentation• Autonomation• Cross-training / multi-functional workers

• Strategy deployment (hoshin planning)• Value stream management• Key performance indicators (three levels,

including customer & operational metrics)• Disciplined process management via clear

owners & KPIs• Daily kaizen• PDSA Problem Solving (& A3 management) • Performance dialogues / huddles / standups• Go & see (gemba) management• Humble inquiry• Continuously seeking voice of the customer• Purposeful meetings & reporting• Lean accounting• Consensus management

• Humility• Respect• Curiosity• Transparency• Relentless pursuit for

perfection

• Customer value • Flow / waste elimination• Just in time• Visual management• Work standardization

Lean Management


Lean Leadership Webinar – Part 1


• Analytical tools• Value stream mapping• Metrics-based process mapping• Root cause analysis: Five Why’s, Fishbone,








perfection


Lean Management


Lean Leadership Webinar – Part 2








owners & KPIs• Daily kaizen• PDSA Problem Solving (& A3 management)• Performance dialogues / huddles / standups• Go & see (gemba) management• Humble inquiry• Continuously seeking voice of the customer• Purposeful meetings & reporting• Lean accounting• Consensus management


perfection


Lean Management


Lean Leadership Webinar – Part 3Thursday, October 27 –

https://attendee.gotowebinar.com/register/2039217314521750529










perfection


Lean Management



There are many problems to solve.

Many processes to improve.

Many opportunities to explore.

Distraction Kills


There is no such thing as multitasking.*

* For cognitive tasks.

Focus Law #1:STOP DOING

Focus Law #2:DO FEWER THINGS

AT ONCE© 2016 The Karen Martin Group, Inc. 11

The Power of Focus:Organization A – Projects Completed

12

20

12

3

12

Pre-Focus Post-Focus

ProjectsStartedProjectsCompleted

Organization B:Completed Projects Per Year

13

24

73

Pre-Focus Post-Focus

• No additional resources

• Higher quality products launched

A Key to Apple’s Success?

14

“…saying no to 1,000 things to make sure we don’t get on the wrong track or try to do too much.

…it’s only by saying no (or not now) that you can concentrate on the things that are really important.”

— Steve Jobs

Task #1: Focus Reduces Chaos.Task #2: 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17

Round 1 – Alternate between tasks : letter, number, letter, number, etc.

Sentence:

Numbers:

The Cost of Switch Tasking

Round 2 – No switch tasking. Write the full sentence and then the numbers 1-17.

Sentence:

Numbers:

Annual Hoshin Planning (Strategy Deployment)

• Builds consensus around TRUE NORTH• Creates organizational focus on solving what matters most

Strategy Deployment Key Feature: Catchball

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Executive Team

What?Who?

When?

Senior Mgmt

What?Who?

When?

Middle Mgmt

What?Who?

When?

FrontlineWhat?Who?

When?

Year 1

Year 2

Year 3

Strategy Deployment Plan DevelopmentPre-work

19

Gather lists of:• All active projects and initiatives• All stalled projects and initiatives• All planned projects and initiatives• All desired projects and initiatives• All “stealth/rogue” projects and initiatives

20

Must do

Eliminate

Maybe

Delay

1. List what you could do on 3x6” post-its (active or planned initiatives, projects & improvement activities). Gain consensus.

2. Categorize them (place post-it on appropriate page. Gain consensus.

3. Decide what you will do. (Move “maybe’s” onto one of the other three pages.) Gain consensus.

Label Four Flip Chart Pages & Hang on Wall

Step 4Create Action Plan for What

You Will Do

21

Must do

Eliminate

Maybe

Delay

The Overly Complicated X-Matrix

22

23

1. Increase sales 5%.3. Achieve 10% profit.

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec IT Mktg Ops HR Bob Fin PE Pario COM Direct

CDs / AMs

PD Rec

PD Mgmt

BMD SWS

23,500 uni ts sold by 12/31/2013 through a l l channels (approx. $700K)

X X X X X X X X X X X X Bob Dana 2 3 3 3 2 3 3 1 1 3 3 1 3

11 Develop & del iver tra ining to top 50 Dealers X X X X X X Bob Rex/Tim 3 3 3

21 Revised course materia ls by 6/30/2013 X X X Bob Josh R? 2 3 3 2 2

5Education: 1 school dis trict spec'd/underperforming COM dis tributor (25) by 12/31 va lued at min $35K each

X X X X X X X X X X X X Howard Michael S 1 3 2 3 3

810 new dealers on board (net) ($500K per dealer this year)

X X X X X X X X X X X X Howard Mike B 2 3

95 new dis tributors bringing $200K annual rev (& 5 terminated)

X X X X X X X X X X X X Howard Howard 1 1 1 2 3

17 10 projects spec'd by 12/31; $300K rev by 12/31 X X X X X X X X X X Howard Dana 1 3 3 3

29 20 by year-end X X X X X X X X X X X X Howard Mark H 2 3 3 3

32 TBD X X X Howard Howard

33 TBD X X X X X X X X X Howard Howard

10Useful reporting and metrics are establ i shed and in place

X X Jim Randal l 3 1 1 1 1 1 1

30 TBD X X X X X Jim Josh 3

31 TBD X X X X X X Jim Josh 1 1 1 3 1 1 1 1 1 1 1 1 1 1

25 TBD Jim Shannon 3 3 1 1 1 1 1

26 System 7.0's in place X X X Jim Randal l 3 2 1 2 1

15100% accurate payrol l ; 100% management satis faction at Apri l mgmt. meeting

X X X Josh Phyl l i s 1 3

20Internet task l i s t i s s impl i fied and s treaml ined for PDs then plan i s rol led out to PDs

X X X X Michael M Michael M 2 3 2 3

22Des ign Ca lculator i s updated success ful ly and rol led out

X X X Neal l Matt D 3 1 1 3 2 2 3

24 Competi tive Analys is complete and dis tributed for use X X X Neal l Dana 2 3 3 3 3 3 3

1 Des ign changed to solve delam issue long-term X X X X X Susan David R 3 2 3

1230 parts sourced in U.S.; completed plan for managing China-sourced parts

X X X X X X Susan Shannon 3 3 2 2

13Warehouse la id out; kanban revised; Syspro implemented

X X X Susan Shannon 3

14 Lay out complete; equipment insta l led X X X Susan David R 3 3

X = Planned

2013 Priorities

2013 Goals & Objectives4. Improve morale (metric TBD).2. Achieve 50% gross margin. Created: 01-14-13

Revised: Level of Effort/Involvement Required

Priority Goal or Measurable Objective Exec Owner

Plan review dates:

Tactical Owner

● = Actual

< Company Name >

Cont

entr

emov

ed fo

r con

fiden

tialit

y

Modified Strategy Deployment Annual Plan

POST: Plan Management

24

• Weekly status meetings to start, then 2x a month, then monthly (required attendance).• Focus: how to turn red items into green• Expectation: Full team helps remove obstacles• Tone: supportive but tough

• Visibility matters: post progress physically!• Modify plan for changing conditions, but avoid

Organizational ADD


Problems are the irritants that produce pearls.

28

Scientific Problem Solving

30

Detailed Steps

1. Define and break down the problem.

2. Grasp the current condition.

3. Set a target condition.

4. Conduct root cause & gap analysis.

5. Identify potential countermeasures.

6. Develop & test countermeasure(s)

7. Refine and finalize countermeasure(s).

8. Implement countermeasure(s).

StudyEvaluate Results

9. Measure process performance.

10. Refine, standardize, & stabilize the process.

11. Monitor process performance.

12. Reflect & share learning.

Adjust

Do

Clarifying the PDSA Cycle

PlanDevelop

Hypothesis

Conduct Experiment

Refine Standardize

Stabilize

Phase

Nailing the Plan stageof PDSA is the most

important element inthe entire cycle.

TruthTruth

TruthTruth

TruthTruth

Truth

CLARITY31

Investigation Takes Many Forms

32

P/U

AFrame

Power Pole

o st g Up Spag ett ag ae o e a e t p o e e ts

st ated d sta ce a ed du g g Up 3095 tag a o o s t e oo a d a d does ot c ude o g t e a e

g Up e 90 utes

Water

33

Detailed Steps

1. Define and break down the problem.

2. Grasp the current condition.

3. Set a target condition.

4. Conduct root cause & gap analysis.

5. Identify potential countermeasures.

6. Develop & test countermeasure(s)

7. Refine and finalize countermeasure(s).

8. Implement countermeasure(s).

StudyEvaluate Results

9. Measure process performance.

10. Refine, standardize, & stabilize the process.

11. Monitor process performance.

12. Reflect & share learning.

Adjust

Do

Clarifying the PDSA Cycle

PlanDevelop

Hypothesis

Conduct Experiment

Refine Standardize

Stabilize

Phase

Iterative ProblemDefinition &

Scoping

Example: “Data integrity problem”Says who? What are they saying SPECIFICALLY? Go interview!Are we talking about inaccurate data, missing data, incomplete data, data in wrong location, similar but slightly different data stored in different locations, incorrect conclusions about accurate data, or…?

Example: “No control of refrigerant inventory (controlled substance)”

Is this true in all locations? All types of refrigerant? Is physical inventory quantity higher, lower, or both when compared to computer numbers?

© 2015 The

34

1. Define and Breakdown the Problem

© 2015 The

35

Problem Definition: Clarify, Qualify, Justify, Quantify

1. Is the problem clear and focused or vague and diffuse?

2. Why is this a problem?3. How do we know it’s a problem?

What evidence or proof exists?4. How big is the problem?5. Which aspect of the problem are

we going to address?

36

2. Grasp the Current Condition• Understand the

details behind the problem.

• Options– OBSERVATION– Interview– Data analysis– Video analysis– Document review– Value stream or

process mapping,– Etc.

Describe the future. How does “better” look and feel?From/to: “If not this, then what?”Must be measurable

Surveys enable you to convert anecdotal feedback into quantifiable data

Should stretch the organization/team/problem owner (improvement is largely a mind game)Level of aggressiveness depends on :

UrgencyTimeframeAvailable resourcesConsensus around the problemDegree of focus

© 2015 The

37

3. Set a Target Condition

What’s stopping you from performing at the target condition NOW?Consider all obstacles:

Physical / EnvironmentalMechanicalProcess-relatedPsychological / culturalResource-related


4. Conduct Root Cause & Gap AnalysisCauseCause--andand--Effect DiagramEffect Diagram

Machine Measurement Environment

People Material / Info Method

Budgets Submitted Late

Lack of experience

Time availability

No sense of import

No stnd spread sheet

Email vs. FedEx

No standard work

Input rec’d late

Forecast in other system

Manual vs. PC

System avail.

No milestones

$ vs. units

Weather delays

Dispersed sales force

Changing schedule

Machine Measurement Environment

People Material / Info Method

Budgets Submitted Late

Lack of experience

Time availability

No sense of import

No stnd spread sheet

Email vs. FedEx

No standard work

Input rec’d late

Forecast in other system

Manual vs. PC

System avail.

No milestones

$ vs. units

Weather delays

Dispersed sales force

Changing schedule

5 Why’sWhy?

Why?

Why?

Why?

Why?

• Standard work• Quality at the Source

/ Error proofing• 5S / Visuals• Pull systems

•One-piece flow•FIFO lanes•Kanban

• Cells / co-location


5. Identify Potential Countermeasures• Level loading• Work/line balancing• Batch size reduction• Setup reduction /

changeover• Work segmentation• Autonomation• Cross-training / multi-

functional workers

A3 Reports are used as:

Coaching aid

Consensus-building tool

Communication tool

Organizational learning device

Problem Countermeasures / Implementation Plan- �32% of customers dissatis fied with office space cleanl ines- 80% of emergency service requests are to wrong contact - Standard work for restroom cleaning

- Standard work checklist for non-routine items- Service levels vary by bui lding - Standard process for measuring & mixing chemicals- 10% of da i ly s taffing ava i lable i s a l located to travel/check in time - Restroom cleaning log

- Standard facil ity service plan (Plan A & Plan B)

Current Condition - Modify & standardize process for unplanned absences- 31 Facil ity areas require custodial services - Modify starting points and schedules to reduce transportation waste

- Evaluate fleet availabil ity to reduce waiting waste

Effect Confirmation

Target Conditions/Measurable Objectives- 80% Daily staffing availabil ity- 50% Improvement - customer satisfaction with restroom cleanliness- Defined standard work (for custodial staff and customers)

Follow Up Actions

Root Cause & Gap Analysis- Undefined level of service (office parties, special events)- No defined process for unplanned absences (call ing in, redistribute work, etc.)- Inconsistent availabil ity of communication tools (vary by building)- No defined process for requesting/responding to emergencies- Variation in cleaning schedules versus facil ity operating schedules- Unpredictable daily staffing- Travel time + Check in Time = 16.00 hrs/day = 2 FTE- Customer requested personalized service (newspaper delivery, parties, trash)

CUSTODIAL SERVICESA3

Plan Do, Check, Act

- 22% of customers dissatis fied with restroom cleanl iness

8%

20%

8%14%

17%

33%

0%5%

10%15%20%25%30%35%

Phone Callto

Custodian

Phone Callto CustodialSupervisor

Phone Callto Custodial

Manager

Phone Callto PublicWorks

Dispatch(x6000)

Emai l NotifyCustodial

Staff On Site

Survey: When you require emergency services, how do you request them?

32%

22% 19% 18%

6%

0%

10%

20%

30%

40%

Office Spaces Restrooms CommonAreas

Overall ConferenceRooms

Survey: Custodial Services - Areas of Dissatisfaction

Travel/ Check In Time

16.00 10%

Absent Staff 24.00 15%

Vacancies 24.00 15%

Special Events2.00 1%

Staff Available94.00 59%

Daily Staffing Availability(Hours)

41% of daily staffing is

unavailable for custodial tasks

Title # Staff Hrs/Wk Hrs/Day

Lead Custodian 4 160 32

FT Custodian 8 520 64

FT Custodian (Vacant) 2 80 16

PT/Perm (avg 30 hrs each) 3 90 24

PT/Temp (avg 20 hrs each) 3 60 24

Total 20 910 160

Current Actual Result

State (+ 60 days)

Customers dissatis fied with restroom cleanl iness 22% <10%

Avg minutes per restroom cleaning 35 30

Avg hours per day cleaning restrooms (184 restrooms) 107 92

Dai ly s taffing ava i labi l i ty 59% 80%

Dai ly travel/check in time (hours/day) 16 8

Travel mi les per day 139 <70

Metric Projected

Remaining Actions Owner 1 2 3 4 5 6 7 8 9 10 11 12

Explore options to improve cell phone availability Mark R.

Define process for requesting and responding to emergencies Custodial Supvs

Equip carts for recycling Mark R.

Process mapping for specialized facilities Mark R.

Standardize Cart Equipment & Supplies Custodial SupvsProcess improvement for other facility types, e.g. offices, common areas, etc.

Mark R.

Consider alternative staffing models (floaters, modified shifts) Mark R.

Actively manage vacancies Mark R.

Implementation Schedule (Months)

42

Alignment of A3s

Senior Leadership

MiddleManagement

Front Lines

Focus A3s

How are we going to grow the business?

Micro A3s

How do we reduce setup time at workstation XYZ?

Problem A3s

How are we going to reduce lead time tobetter meet customer demand?

43

GROWTH (TOP LINE)

CUSTOMER EXPERIENCE PEOPLE EXPENSE

MGMT

PERFORMANCE CATEGORIES

FOCUS A3 FOCUS A3 FOCUS A3 FOCUS A3

MEASURE 1

MEASURE 2

MEASURE 3

MEASURE 1

MEASURE 2

MEASURE 1

MEASURE 1

MEASURE 2

MEASURE 3

FOCUS A3

MEASURE 1

MEASURE 2

Visual Management via “True North Wall”

FOCUS A3

MEASURE 1

MEASURE 2

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QUALITY IMPROVEMENT

DELIVERY IMPROVEMENT

COST IMPROVEMENT

HUMAN DEVELOPMENT

PERFORMANCE CATEGORIES

FOCUS A3 FOCUS A3 FOCUS A3 FOCUS A3

MEASURE 1

MEASURE 2

MEASURE 3

MEASURE 1

MEASURE 2

MEASURE 1

MEASURE 1

MEASURE 2

MEASURE 3

FOCUS A3

MEASURE 1

MEASURE 2

Visual Management via “True North Wall”Example 2 (Different Categories)

FOCUS A3

MEASURE 1

MEASURE 2

45

PROBLEM A3 #1

PROBLEM A3 #2

PROBLEM A3 #3

PROBLEM A3 #4

PROBLEM A3 #5

FY17 PRIORITIES

PROBLEM A3 #6

PROBLEM A3 #7

PROBLEM A3 #8

PROBLEM A3 #9

PROBLEM A3 #10

PROBLEM A3 #11

PROBLEM A3 #12

PROBLEM A3 #13

PROBLEM A3 #14

PROBLEM A3 #15

PROBLEM A3 #16

PROBLEM A3 #17

PROBLEM A3 #18

PROBLEM A3 #19

PROBLEM A3 #20

Visual Management of Key Priorities

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To Learn More…• Books

• Getting the Right Things Done (Dennis)• Hoshin Kanri for the Lean Enterprise (Jackson)• The Outstanding Organization (Martin)• Managing to Learn (Shook)• Understanding A3 Thinking (Sobek & Smalley)

• Public Workshops & Conferences• Association for Manufacturing Excellence• Lean Enterprise Institute• Shingo Institute

• Tours – especially outside your industry• Practice, practice, and more practice!

Questions or comments?

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Karen Martin, [email protected]@karenmartinopex

Blog & newsletter: www.ksmartin.com/subscribe

49

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