professor peter hines - s a partners - s a partners
TRANSCRIPT
30 April, 2013 © S A Partners
Achieve Lean Excellence
Learn-Share-Grow Webinar Series
Professor Peter Hines
30 April, 2013 © S A Partners
• Welcome
• Webinar will last about 1 hour
• We will invite you to complete
a few Polls
• Q&A session
Our Webinar
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Professor Peter Hines
• Co-founder Lean
Enterprise Research
Centre, Cardiff University
• Chairman, S A Partners
• Adjunct Professor,
University of South
Australia
Welcome!
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Muda, Mura and Muri
Mura
(unevenness)
Muda
(waste)
Muri
(overburden)
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• Lack of a clear executive vision
• Lack of an effective communication strategy
• Failure to create and communicate a real sense of urgency
• Poor consultation with stakeholders
• Lack of structured methodology and project management
• Failure to monitor and evaluate the outcome
• Failure to mobilise change champions
• Failure to engage employees
• Absence of a dedicated and fully resourced implementation team
• Lack of sympathetic and supportive Human Resources policies
Top 10 Reasons for Failure
Source: Lucey, Bateman & Hines, 2005
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•
Kaizen Blitz vs. Lean
Management
Imp
rove
me
nt
Op
po
rtu
nit
y
Time
Short term gains made
Lost and repeated results due to no sustainability
Results could be lost entirely if organizational structure not aligned to support and education level of all employees not increased.
Improvement leveled off and eventually stopped due to lack of realizing “true” lean opportunity
Greater, sustained results achieved
Awareness, education, organisation structure created to support lean Source: C. Craycraft, Whirlpool
Utilization of Lean tools will deliver performance improvement. However,
behaviors focused on Continuous Improvement / Pursuit of Perfection will
provide sustainable long term improvement
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• Is your lean programme closer to the kaizen blitz
approach or true lean approach?
• Please select one or the other
Poll
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Sustainable Lean Management
Lean Management
Source: P. Hines, P. Found, G. Griffiths & R. Harrison, Staying Lean, 2008
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Cogent Power Case
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An urgent need for change
• Substantial Pre-tax losses in 2003 from Global operations
• Business was losing cash from a number of it’s Operating
Plants – Seven Global Operating units
• Relatively Static order book with emphasis towards lower
margin products
• New CEO put in place to Lead the business TURNAROUND
strategy
• Experienced Senior Management Lean Team appointed to
support
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Internal Value Stream focus
© Hines, Found, Griffiths & Harrison, 2008
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The roadmap to sustainability
4
3
1
2
Roadmap 1
Launched Jan 2004
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Roadmap 1: Strategy
Formation & Deployment
• Leadership structure confirmed and aligned to the turnaround
• Kicked-off with top level awareness & Strategy sessions
• International & regional management teams – CSF’s & KPI’s
• Lean message communicated from the top – to help
deployment
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Roadmap 1: People Skills and
Value Stream Mgt
• Selection process to ensure that the right coaches chosen
• Extensive Lean coach programme – theory & practical
• Lean coaches developed hands-on experience in tools
• Steering team meeting and best practice sharing events
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Roadmap 1: Internal VSM and
Lean Toolkit
• Visual Impact with 5S, TPM & SMED at all sites
• High levels of engagement with site cross-functional teams
• Process stability being used to help introduced pull systems
• Gold Star standards using 6 Sigma set for heavy industry
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Roadmap 1: Basic Customer Value
& Office Lean
• Customer Value assessments for all businesses
• Sales acquisition mapping used to improve order creation process
• Office 5S used to improve sales requisition process time
• Lean tools and deployment evident in many support areas
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Maturity Assessment
Business to business benchmark
Stage 1
Reactive
1. Reactive Approach
2. 2. Little / No
Involvement
3. Adhoc Learning
Stage 4
Autonomous
Stage 5
Way of Life
Stage 2
Formal
Stage 3
Deployed
1. Formal Structure
2. Only Specialists
3. Team Learning
1. Goal Oriented
2. Selected Team
3. Value Stream
Learning
1. Autonomous
habit
2. Full
Empowerment
3. External Learning 1. Driven Deployment
2. Majority
Involvement
3. X-process Learning
Key Characteristics 1. Ways of Working
2. Employee Engagement
3. Learning Best Practice
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A Sustainable Journey
Re
active
Fo
rma
l
De
plo
yed
Au
ton
om
ou
s
Wa
y of life
Mo
bilis
atio
n
Be
ne
fit
Time
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• Which stage of this journey do you think you are?
• Please select one answer
Poll
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Organisational Learning
Lean Maturity Assessment
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Organisational Learning
Lean Maturity Assessment
• The coaches have become the leaders of Lean
• Real Lean management is still an exception
• LEAN is too cosmetic and not fully impacting profit
• LEAN still seen as an initiative and not given priority
• OEE and Pareto are hardly used to drive improvement
• Lean is not driving changes in management behaviour
• Responsibility and accountability not fully deployed
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Maturity Assessment: Under the
Waterline
Unstable Iceberg
Model
Technology, tools and
techniques
ABOVE WATERLINE - VISIBLE ABOVE WATERLINE - VISIBLE
Supply chain
integration
Process
management
UNDERWATER - ENABLING UNDERWATER - ENABLING
Behaviour and engagement
Strategy and alignment
Leadership
Enabling Features Not Fully Addressed
NARROWING UNDER WATERLINENARROWING UNDER WATERLINE
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The Roadmap to Sustainability
Roadmap 2
Reviewed July 2005
3
2
1
4 5
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Roadmap 2: Multi-level Leadership
& Deployment
• Leadership developed at every level of the organisation (7
Values)
• Clearly defined roles & behaviours for self-managed
teamworking
• Re-deployed targets aligning OF / OC / NPI processes
• Full “line of sight” deployment locked into key processes
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Roadmap 2:
Lean and the Extended Enterprise
• Focus on sustained profitability in strategically selected areas
• Sustained operational performance metrics on key Value
Streams
• Aligning supplier and customer processes via “CAMBAN”
technology
• Operational capability now leading to sales growth opportunities
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Roadmap 2: Customer Value &
Supplier Integration
• Detailed Customer Value extending throughout the supply chain
• Adapting process to meet with Customer & business needs
• Product / process development exceeding Customer expectations
• Extending the offering and bridging the supply-chain
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Lesson: Focus Under the
Waterline
Focus below the waterline in order to deliver the sustainable business results required to keep you continuously above the waterline
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Lowering the Water Level
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Lowering the Water Level
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• Which elements of the Lean Iceberg do you need to pay more attention to?
• Strategy & Alignment
• Leadership
• Behaviour & Engagement
• Tools & Techniques
• Processes
• Multiple choice with multiple answers
Poll
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Success Factors for Sustainable
Change
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Lean Maturity and
Organisational Learning
Ad-hoc Formal Goal
oriented Managed
Autonomy Way of Life
Ach
ieve
me
nt
Knowing
Organisation
Understanding
Organisation
Single loop
learning
Double loop
learning
Step change in learning occurs
where the organisation can achieve
higher results than previously imagined
due to lack of knowledge of what was
possible
Bessant
& Caffyn
McGill &
Slocum
Senge
Push
Lean Pull
Lean
Thinking
Organisation
Learning
Organisation
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• What further activity would you like?
• Please select one or more answers
Poll
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• If you would like to discuss anything coming out of
the webinar please contact me at:
or +44 (0)7974 416660
• Please also link up with me at
uk.linkedin.com/in/profpeterhines/
Further Questions
30 April, 2013 © S A Partners
New Ways to Drive Profitability
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June 25, 2013
Chicago
Greening your business is not just a “nice to have”— It is NO
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Has your organization thought about identifying the shared
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