Lean leadership preview
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© Lean & Mean Consulting. All rights reserved. 2015 © Lean & Mean Consulting. All rights reserved. 2016
16 / 16 World-Class Standards & Best Practices of Operational Excellence
Lean Leadership & Management System For Lean Leaders
2
Training Objectives
1. Understanding the role and function of Management System in Lean Transformation
2. Providing knowledge on the four key elements of the Lean Management System
3. Providing Leaders with hands-on tools, standards and best practices to effectively manage Lean change on daily basis
3
Agenda
1. Leader Standard Work
2. Visual Controls & Management
3. Daily Accountability
4. Leadership Discipline
5. Supporting Elements of a Lean Management System for Lean Leaders
1
Management System for Lean Leaders
Module. 16
5
The Missing Link in Lean: The Management System
Most Lean organizations are missing a critical ingredient: a Lean Management System TO SUSTAIN IT
Lean organizations are mostly focused on finding waste and eliminating them using Lean “tools”
To sustain Lean practices, we need a Lean management system
Lean cultures grow from powerful Lean management systems
6
Areas of responsibility in Lean Culture
Who? Tool/System Lean Role
Leadership Lean Management System
Lead and sustain Lean initiative
Middle Management & Workforce
Lean Production Methods & Tools
Implement Lean and manage Lean
operations
Stra
tegi
c Ta
ctic
al
7
Lean Culture grows from powerful Lean Management System
Work Systems & Processes
Behavior
Attitude
Culture
THE WAY WE ACT
THE WAY WE THINK
WASTE ELIMINATION
THE WAY WE BEHAVE
8
Lean Management System Creates Process Focus and Drives Improvement
(1) Frequent focus on process health:
Visual Controls
(2) Improvement standard:
Visual Accountability
(3) Sustained
improvement: Leader Standard Work
PROCESS FOCUS
9
Four Key Elements of the Lean Management System
1.
Leader Standard Work
2.
Visual Controls
3.
Daily Accountability
4.
Leadership Discipline
© Lean & Mean Consulting. All rights reserved.
11
What is Leader Standard Work?
A list of the tasks that must be done to sustain the Lean management system
Tasks typically include:
Audits
Meetings (daily accountability)
Continuous improvement projects
Focuses on the production/delivery process
12
What is Leader Standard Work?
Leader standard work is a
Visual daily performance management system
that is:
Visual Drive Action
& Learning Timely
13
Leader Standard Work Sustains and Extends Lean’s Gains
Lean gains
Leader Standard Work
Imp
rove
me
nt
14
Why Leader Standard Work?
Leader Standard Work is often the“missing link” to sustaining improvement
Leader Standard Work
Continuous Improvement Ability
Ability to Sustain Improvements
15
LSW Example: Supervisor
Once Daily
Shift to shift communication
Monitor production start up
Post KPI tracking sheets
Lead KPI board meeting in department
Attend KPI board meeting in value stream level
Audit standard work for one station
Gemba walk with a Team Leader
Set next day’s plans
Multiple Times Daily • Walk through the department
• Review visual boards and take action as needed
• Coach Team Leaders as needed
• Monitor stop and start times
Standard work for Supervisors is roughly 50% of their day
© Lean & Mean Consulting. All rights reserved.
17
Attributes of Visual Management Tools
Provides “understanding at a glance”
Emphasize graphics rather than numbers and words
Clear information actionable at the point of communication
Maintained by those carrying out the work
The first who detect abnormalities are those who perform the work
Linked to high level business metrics and objectives
18
Example: Visual Control Metrics
Monthly Trend Chart
Shift-to-Shift Trend Chart
Pareto Chart
Cause & Effect
Gantt Chart
Monthly Trend Chart
Shift-to-Shift Trend Chart
Pareto Chart
Cause & Effect
Gantt Chart
Monthly Trend Chart
Shift-to-Shift Trend Chart
Pareto Chart
Cause & Effect
Gantt Chart
Safety Delivery Cost Quality
Note: Start with existing data and build up over time measures that your team is accountable for
19
• Gaps? Trends? What is happening?
• Root causes? Why?
• Correct the problem –
implement containment
action?
• Prevent the problem –
permanent corrective action?
What needs to be done?
• Who does what?
• Any support needed? Who is going to do it?
• Prioritization?
• Deadline?
• Milestones?
When is it going to be done?
Visual metrics facilitates communication and identification of areas that need improvement
Productivity
Delivery
Quality
Customer Satisfaction
Sales per Employee
Cost Per Employee
First Call Resolution
SLA Metrics Met
Actual $3,200
Target $3,500
Actual $91.50
Target $78.39
Actual 80%
Target 95%
Actual 4.8
Target > 4 of 5
Actual 7.0
Target 9.0
Actual 5.0 hrs
Target 4.5 hrs
Actual 2 hr
Target 1 hrs
Customer Complaints
Actual 2.0
Target 1.0
Turnaround Time
Response Time
Overall Satisfaction
12108642
USL
Process Data
Sample N 100
StDev (Within) 2.25841
StDev (O v erall) 2.39212
LSL *
Target *
USL 9
Sample Mean 6.21762
Potential (Within) C apability
O v erall C apability
Pp *
PPL *
PPU 0.39
Ppk 0.39
C pm
C p
*
*
C PL *
C PU 0.41
C pk 0.41
O bserv ed Performance
PPM < LSL *
PPM > USL 130000.00
PPM Total 130000.00
Exp. Within Performance
PPM < LSL *
PPM > USL 108973.12
PPM Total 108973.12
Exp. O v erall Performance
PPM < LSL *
PPM > USL 122385.02
PPM Total 122385.02
Within
Overall
Process Capability of C2
12108642
USL
Process Data
Sample N 100
StDev (Within) 2.25841
StDev (O v erall) 2.39212
LSL *
Target *
USL 9
Sample Mean 6.21762
Potential (Within) C apability
O v erall C apability
Pp *
PPL *
PPU 0.39
Ppk 0.39
C pm
C p
*
*
C PL *
C PU 0.41
C pk 0.41
O bserv ed Performance
PPM < LSL *
PPM > USL 130000.00
PPM Total 130000.00
Exp. Within Performance
PPM < LSL *
PPM > USL 108973.12
PPM Total 108973.12
Exp. O v erall Performance
PPM < LSL *
PPM > USL 122385.02
PPM Total 122385.02
Within
Overall
Process Capability of C2
12108642
USL
Process Data
Sample N 100
StDev (Within) 2.25841
StDev (O v erall) 2.39212
LSL *
Target *
USL 9
Sample Mean 6.21762
Potential (Within) C apability
O v erall C apability
Pp *
PPL *
PPU 0.39
Ppk 0.39
C pm
C p
*
*
C PL *
C PU 0.41
C pk 0.41
O bserv ed Performance
PPM < LSL *
PPM > USL 130000.00
PPM Total 130000.00
Exp. Within Performance
PPM < LSL *
PPM > USL 108973.12
PPM Total 108973.12
Exp. O v erall Performance
PPM < LSL *
PPM > USL 122385.02
PPM Total 122385.02
Within
Overall
Process Capability of C2
Example of a visual metrics board
20
Why do we use Activity Boards?
It is based on the belief that if significant information is shared with everybody, all people in the organization can participate in managing and improving the business collectively
It provides a means to further tie people’s creative resources together
21
Example: Team Activity Board
Inventory
Cost/Productivity
Delivery
Quality
Safety
Daily / Weekly / Monthly Trend
Pareto Charts
6-Month Lean Business Plan
Problem Solving
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23
What is the Daily Accountability Process?
A series of brief review sessions (tier meetings)
Taking action to close gaps
Visualization of accountability - use of:
Visual controls
Activity boards
What are we
accountable
for each day?
24
Example: Daily Accountability Steps
Review tasks which are due yesterday or today Completed = add green dot
Incomplete = add red dot, write new date, record reasons for the delay on the back of post-it
© Lean & Mean Consulting. All rights reserved.
26
Leadership Discipline
Disciplined leaders constantly have the PURPOSE in mind, and use the management systems to drive teams toward the next future state
Disciplined leaders are comfortable with taking chances and DESIRE the pressure to lead (in a humble manner)
Disciplined leaders are constantly LEARNING, coaching teams and looking for ways to improve the current state
Disciplined leaders harmonize the Lean Management System with Lean Production for maximum effectiveness
27
Breakthrough
Breakthrough means improvement to a significantly higher level of performance
Lack of breakthrough for a business organization would place it in a position of regression in a competitive environment
Think BIG: Boldly Important Goals
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29
What Is Gemba?
The term Gemba means “the real place”
A gemba is literally any direct location where the action is taking place
Within the Lean culture it refers to the location where value is created and ultimately improved
The idea of gemba is simple: Go to the place
Observe the process
Talk with the people
30
Objective of Gemba Walk (1)
The objective of Gemba walk is learning to assess the health of the Lean Management System
It is not to draw a map, or to solve a specific problem, or to Plan or Do or Check or Act
It is to understand the situation by involving everyone touching the process to understand purpose, process, and people
Once the situation is understood, improvement is possible and more likely to succeed
31
Your Approach is Key
Show respect.
Your direct interaction with the employee(s) is important to the Gemba.
Make sure they feel respected to get the most out of your Gemba.
Great opportunity to strengthen your Lean culture.
32 © Lean & Mean Consulting. All rights reserved. 2016