The Challenge of LeanThe Challenge of Lean

Let’s put the Lean challenge in Let’s put the Lean challenge in perspective.perspective.

Some typical descriptions of Some typical descriptions of work areas prior to the work areas prior to the

implementation of the 5S implementation of the 5S System.System.

““Leave me alone. This area works Leave me alone. This area works just fine for me.” just fine for me.”

““Leave me alone. This area works Leave me alone. This area works just fine for me.” just fine for me.”

What was happening was What was happening was

Lean ManufacturingLean Manufacturing

• “ “How do you know what’s in a How do you know what’s in a drawer?”drawer?”• “ “I have to open the drawer and look to see I have to open the drawer and look to see what’s inside.”what’s inside.”• “ “Are the same items located in the Are the same items located in the same drawer in each examining area?”same drawer in each examining area?”• “ “No.”No.”

What was happening was What was happening was

Lean ManufacturingLean Manufacturing

• These comments despite studies that These comments despite studies that show the dramatic impact Lean show the dramatic impact Lean processes have on medical outcomes.processes have on medical outcomes.

What was happening was What was happening was

Lean ManufacturingLean Manufacturing

• Impact of 5S in an Emergency RoomImpact of 5S in an Emergency Room• 37% decrease in mortality rate37% decrease in mortality rate

What does this mean?What does this mean?

Human beings can work in highly Human beings can work in highly dysfunctional work spaces and dysfunctional work spaces and view them as normal.view them as normal.

What does this mean?What does this mean?

Human beings can work in highly Human beings can work in highly dysfunctional work spaces and dysfunctional work spaces and resist changing them.resist changing them.

What does this have to do with What does this have to do with implementing Lean? implementing Lean?

From The Machine that Changed the World…

“Lean production is fragile. Mass production is designed with buffers everywhere---extra inventory, extra space, extra workers---in order to make it function. Even when parts don’t arrive on time or many workers call in sick or other workers fail to detect a problem before the product is mass-produced, the system still runs. However, to make a lean system with no slack---no safety net---work at all, it is essential that every worker try very hard.”

““It is essential that every It is essential that every worker try very hard.”worker try very hard.”

LeanLean requires that workers be requires that workers be engaged. Are they?engaged. Are they?

U.S. Workers: Degrees of engagement

Gallup Poll: 2004• 65% receive no recognition• 85% have ideas for improvement

• 15% offer them

• 20% actively disengaged• 54% warm chair attrition “presenteeism”• 26% engaged for 6 months• 33% of days lost are stress related

• $300 billion in productivity lost

The basic goal of Lean…

Performance

Potential

Unlocking human potential How is human potential

unlocked?How do individuals move from disengagement to engagement?

Lean unlocks human potential and drives engagement

Unlocking the Unlocking the full potential full potential of a of a workforce will spell the workforce will spell the

difference between difference between successsuccess and and failurefailure in today’s global in today’s global

marketplace.marketplace.

So this is a very big dealSo this is a very big deal

Everybody’s talking lean.Everybody’s talking lean.

How often does it stick?How often does it stick?

How often does lean stick?How often does lean stick?

• From an Industry Week survey:• 25% reported some progress• Only 2% reported achieving World Class

manufacturing status

A 75% failure rate.A 75% failure rate.

Why?Why?

What is Lean?What is Lean?

• Is it 5S, Value Stream Mapping, Kanban, Kaizen, JIT, etc.?

Yes• Are these processes the engines that drives lean?

Only very partially

• What are the engines that drive Lean?

Lean transformations depend upon…Lean transformations depend upon…

An integrated, continuing effort…An integrated, continuing effort…

“Many good American companies have respect for individuals, and practice kaizen and other TPS tools. But what is important is having all the elements together as a system. It must be practiced every day in a very consistent manner—not in spurts—in a concrete way on the shop floor.”

Fujio ChoPresident,Toyota Motor Corporation

BeliefsBeliefs

A conversation a new college A conversation a new college graduate had with a Toyota graduate had with a Toyota

plant manager. The setting was plant manager. The setting was a staff meeting and the new a staff meeting and the new

manager was reporting on his manager was reporting on his successes…successes…

The Core Belief of Lean…“Dave, I know you’re intelligent and I believe you’re a hard worker but from now on at our staff meetings, I only want to hear about mistakes you and your team made. And I’m going to tell you about my mistakes. And, working together, we’re going to figure out how to eliminate these mistakes.”

“And at that moment I figured out what Lean manufacturing was about. The relentless pursuit of perfection.”

An Ernst & Young Seminar in 1986An Ernst & Young Seminar in 1986

Why haven’t any of you asked about Why haven’t any of you asked about what we believe?what we believe?

I don’t think you understand what I don’t think you understand what we’ve been talking about. we’ve been talking about.

Americans grab tools. At Toyota Americans grab tools. At Toyota we concentrate on a philosophy.we concentrate on a philosophy.

Do I buy my company’s vision?Do I buy my company’s vision?

The John Deere story…The John Deere story…

• In the early 90s, John Deere’s top management decided to implement lean.

• A year after they started, little improvement had been made. Top management wondered why.

• Here’s what they found out. Supervisors and middle managers who had said “yes” to lean in meetings and training went back to their work areas and said, “no, no, we are doing it the way we’ve always done it.”

• A Solution: Deere eliminated these two levels of management on their organizational chart. In some cases they made UAW members team leaders to fill in for the missing supervisor.

LeadershipLeadership

The primary responsibility of leadership…The primary responsibility of leadership…

Unleashing this knowledge and creativity of all members of the workforce is the primary responsibility of leadership; no other responsibility trumps this one.

SupervisionSupervision

How do supervisors spend their time?How do supervisors spend their time?

0 10 20 30 40 50 60

Fighting Fires

Managing

Training

Coaching

Fighting fires and “managing”

Raising the Bar

Treading Water

It’s all about coaching and training

Raising

the Bar

Treading Water

Time %

Are supervisors part of the Are supervisors part of the problemproblem or part of the or part of the solutionsolution??

Supervisors have to be part of Supervisors have to be part of the the solutionsolution

They have to be a They have to be a knowledgeableknowledgeable part of the part of the

solutionsolution

They have to be an They have to be an enthusiasticenthusiastic part of the part of the solutionsolution

Are they? What’s your Are they? What’s your experience?experience?

Degrees of lean enthusiasm…

Roadblock

Challenge

This is where they need to be…

So, what needs to be done?So, what needs to be done?

Supervisors need to be Supervisors need to be transformed into being transformed into being

Lean ChampionsLean Champions

Training Lean Champions…

• Introduction to Lean• The 5S System• Value Stream Mapping• Essentials of Leadership• Coaching for Success• Working as a Team• Communicating and Listening• Reaching Agreement• Leading Change

Developing Managers and Supervisors who:Developing Managers and Supervisors who:

• Know what workers Know what workers valuevalue• Understand why Understand why Lean worksLean works• Know how to be good Know how to be good coachescoaches• Believe in their companies Believe in their companies visionvision• Know how to Know how to get out of the wayget out of the way

The SLCC Lean Leadership Certificate ProgramThe SLCC Lean Leadership Certificate Program

Work ProcessesWork Processes

Work Processes: 5SWork Processes: 5S

Work Processes: KanbanWork Processes: Kanban

Work Processes: Pull ProductionWork Processes: Pull Production

Work Processes: Standardized WorkWork Processes: Standardized Work

Work Processes: KaizenWork Processes: Kaizen

Work Processes: Work Cell RedesignWork Processes: Work Cell Redesign

Work Processes: Value Stream MappingWork Processes: Value Stream Mapping

Lean transformations depend upon…Lean transformations depend upon…

• Lean is about developing a work environment in which everybody is continually looking for ways to improve work processes

• Lean is about developing a work environment in which everybody is continually generating ideas about how to eliminate waste from work processes

• Lean is about fully engaging the creativity, imagination, and energy of everybody

Lean is about degrees of engagement…Lean is about degrees of engagement…

Finally, think about this…

• For the first three months of 2008, Toyota sold 160,000 more cars than General Motors.

• Here’s how they did it:• Toyota implements a million new ideas a year.• Most of them come from ordinary workers• Most of them are simple ideas…put this item in this

position on the shelf rather than this one.• Progress is made up of millions of small steps, done

through continuous improvement…kaizen.

A great book…A great book…

Questions?Questions?Comments?Comments?