the challenge of lean

The Challenge of Lean

Lets put the Lean challenge in perspective.

Some typical descriptions of work areas prior to the implementation of the 5S System.

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

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

What was happening was Lean Manufacturing

How do you know whats in a drawer? I have to open the drawer and look to see whats inside. Are the same items located in the same drawer in each examining area? No.

What was happening was Lean Manufacturing

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

What was happening was Lean Manufacturing

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

What does this mean?Human beings can work in highly dysfunctional work spaces and view them as normal.

What does this mean?Human beings can work in highly dysfunctional work spaces and resist changing them.

What does this have to do with implementing Lean?

From The Machine that Changed the WorldLean 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 dont 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 worker try very hard.

Lean requires that workers be engaged. Are they?

U.S. Workers: Degrees of engagement

Gallup Poll: 200465% receive no recognition85% have ideas for improvement15% offer them20% actively disengaged54% warm chair attrition presenteeism26% engaged for 6 months33% of days lost are stress related$300 billion in productivity lost

The basic goal of LeanPerformancePotentialUnlocking human potentialHow is human potential unlocked?How do individuals move from disengagement to engagement?Lean unlocks human potential and drives engagement

Unlocking the full potential of a workforce will spell the difference between success and failure in todays global marketplace.

So this is a very big deal

Everybodys talking lean.How often does it 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.Why?

What is Lean?Is it 5S, Value Stream Mapping, Kanban, Kaizen, JIT, etc.?YesAre these processes the engines that drives lean?Only very partially

What are the engines that drive Lean?

Lean transformations depend upon

An integrated, continuing effortMany 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 mannernot in spurtsin a concrete way on the shop floor.

Fujio ChoPresident,Toyota Motor Corporation

Beliefs

A conversation a new college graduate had with a Toyota plant manager. The setting was a staff meeting and the new manager was reporting on his successes

The Core Belief of LeanDave, I know youre intelligent and I believe youre a hard worker but from now on at our staff meetings, I only want to hear about mistakes you and your team made. And Im going to tell you about my mistakes. And, working together, were 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 1986Why havent any of you asked about what we believe?I dont think you understand what weve been talking about.

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

Do I buy my companys vision?

The John Deere story In the early 90s, John Deeres top management decided to implement lean. A year after they started, little improvement had been made. Top management wondered why. Heres 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 weve 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.

Leadership

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

Supervision

How do supervisors spend their time?

Fighting fires and managingRaising the BarTreading Water

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Its all about coaching and trainingRaising the BarTreading WaterTime %

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Are supervisors part of the problem or part of the solution?

Supervisors have to be part of the solution

They have to be a knowledgeable part of the solution

They have to be an enthusiastic part of the solution

Are they? Whats your experience?

Degrees of lean enthusiasmRoadblockChallenge

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This is where they need to be

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So, what needs to be done?

Supervisors need to be transformed into being Lean 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:

Know what workers value Understand why Lean works Know how to be good coaches Believe in their companies vision Know how to get out of the wayThe SLCC Lean Leadership Certificate Program

Work Processes

Work Processes: 5S

Work Processes: Kanban

Work Processes: Pull Production

Work Processes: Standardized Work

Work Processes: Kaizen

Work Processes: Work Cell Redesign

Work Processes: Value Stream Mapping

Lean transformations depend upon

Lean is about developing a work environment in which everybody is continually looking for ways to improve work processesLean is about developing a work environment in which everybody is continually generating ideas about how to eliminate waste from work processesLean is about fully engaging the creativity, imagination, and energy of everybodyLean 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. Heres how they did it: Toyota implements a million new ideas a year. Most of them come from ordinary workers Most of them are simple ideasput this item in this position on the shelf rather than this one. Progress is made up of millions of small steps, done through continuous improvementkaizen.

A great book

Questions?Comments?

*For the first three months of this year, Toyota sold 160,000 more cars than General Motors, ending GMs seventy-seven year reign as the worlds largest automotive manufacturer.Heres how they did it:One million ideas from line workers.Most come from line workersMost are simple ideasput this item in this position on the shelf rather than this oneProgress is made up of millions of small steps, done through continuous improvementkaizen

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