ILC RoundtableAligning Performance MeasuresJESSE DEPRIEST

13 NOVEMBER 2018

Big Idea

Align company goals (Strategy)

with the plans of middle management

(Tactics)

and work performed by employees (Processes)

(Operations)

to ensure that everyone is pulling in the same direction

at the same time.

VALUE to CUSTOMER

JUST IN TIMEFLOW / PULL

(TPS)

JIDOKAQuality at the Source

ZERO DEFECTS ACCEPTEDABNORMALITY CONTROL

ANDON / LINE STOP(TPQ)

STANDARDIZATION + PROBLEM SOLVING4C and A3 Thinking. KATA. Visual Management / Order / 5S

TEAMS

DAILY MANAGEMENT SYSTEM

LEADERSHIP BEHAVIORS

KAIZEN

STABILITY in the 4M’s… Man / Woman, Machine, Method, MaterialTotal Productive Maintenance (TPM)

Leadership Commitment & Adaptation

THE HOUSE OF LEAN

Highest QualityLowest CostShortest Lead TimeReliable Delivery

BEST SAFETYHigh Morale

HEIJUNKA (LEVELING)S&OP or SIOP

Value Stream Mapping

TAKT TIMESMED

KANBANWIP regulation

Man / MachineseparationPOKA YOKE

PROCESS CONTROLY=Fx

Standardized Work

The

wor

ld o

f pro

blem

solv

ing.

.. … to im

prove the ‘systems’

KPI’s

KPI’s

KPI’s

SPC

TQM

DMAIC

Big Picture1. What are we trying to achieve?

(the Challenge, Target, Goal, Objective)and WHY? …

2. With what method?3. How will you know?

A couple of ideas… or methods …

to help get aligned.

20 Keys of Lean Iwao Kobayashi

HOSHIN KANRI (aka, Strategy, or Policy Deployment)

Hoshin Kanrithe X-Matrix

CASCADING A3’s

CASCADING KPI’s (SQDCP)Safety Quality Delivery Cost

ProductivityPeople

MAIN MAIN MAIN MAIN MAIN

SUB SUB SUB SUB SUB

PROCESS PROCESS PROCESS PROCESS PROCESS

A3, A3 A3, A3 A3, A3 A3, A3 A3, A3

Safety Quality Delivery CostProductivity

People

MAIN MAIN MAIN MAIN MAIN

SUB SUB SUB SUB SUB

PROCESS PROCESS PROCESS PROCESS PROCESS

A3, A3 A3, A3 A3, A3 A3, A3 A3, A3

Safety Quality Delivery CostProductivity

People

MAIN MAIN MAIN MAIN MAIN

SUB SUB SUB SUB SUB

PROCESS PROCESS PROCESS PROCESS PROCESS

A3, A3 A3, A3 A3, A3 A3, A3 A3, A3

TIER 3, CO LEADERSHIP

TIER 2, Management

Tier 1, Value CreatorsProcess

CASCADING KPI’s

CASCADING KATA

Conduct Experimentsto get there

Grasp the Current

Condition

Establish your Next

TargetCondition

Get the Direction orChallenge

1

2

3

4

The VisionTrue North

Kata1 (方) – Suffix Meaning "Way of Doing"

The Improvement Kata model comes from research into how Toyota manages people, which is summarized in the book “Toyota Kata”

VisionNext

TargetCondition

CurrentCondition Obstacles Challenge

CONNECTING STRATEGY & EXECUTION

BY MIKE ROTHER 15

Execution Strategy

Leaders establish the organizationʼs strategic concept (the “rallying point” or overall direction)

Managers develop people by coaching application practice of the Improvement Kata in the direction of the challenge

The role of Challenge in an organization

PLANNING EXECUTING

Understandthe Directionor Challenge(from level above)

Grasp theCurrent

Condition

Establish the Next Target Condition

ExperimentToward the

Target Condition

Current StateValue Stream

Mapping

Future State Value Stream

Mapping

Value StreamLevel

ProcessLevel

Company orOrganizationLevel

THE IK PATTERN CONNECTS THE LEVELSA Target Condition at one level is the Direction for the next level

Longer-Cycle Experiments

Short-Cycle Experiments

BY MIKE ROTHER 16

1 2 3 4

~3-5 year

1-2 year

90-day cycles

Process Team A

Process Team B

Process Team C

VisionNext

TargetCondition

BY MIKE ROTHER 17

TargetCondition

NextTarget

ConditionTarget

Condition

NextTarget

ConditionTarget

ConditionTypically a6-monthto 3-yeartime frame

Challenge

THE ROLE OFVALUE STREAM MAPPINGThis is a main intended role for VSM

https://www.slideshare.net/KarenMartinGroup/clarity-first-process-performance

CLARITYSimple, easy to understand –

PurposeProcessMetrics

SO we can see the truth.

behaviors

VALUE to CUSTOMER

JUST IN TIMEFLOW / PULL

(TPS)

JIDOKAQuality at the Source

ZERO DEFECTS ACCEPTEDABNORMALITY CONTROL

ANDON / LINE STOP(TPQ)

STANDARDIZATION + PROBLEM SOLVING4C and A3 Thinking. KATA. Visual Management / Order / 5S

TEAMS

DAILY MANAGEMENT SYSTEM

LEADERSHIP BEHAVIORS

KAIZEN

STABILITY in the 4M’s… Man / Woman, Machine, Method, MaterialTotal Productive Maintenance (TPM)

Leadership Commitment & Adaptation

THE HOUSE OF LEAN

Highest QualityLowest CostShortest Lead TimeReliable Delivery

BEST SAFETYHigh Morale

HEIJUNKA (LEVELING)S&OP or SIOP

Value Stream Mapping

TAKT TIMESMED

KANBANWIP regulation

Man / MachineseparationPOKA YOKE

PROCESS CONTROLY=Fx

Standardized Work

23