Lean Mindsets and Behaviors

Lean Mindsets & BehaviorsCreating a High-Performance Climate for

Sustained Transformation

AMEChicago2012October 15, 2012

Mike Osterling & Karen Martin

Learning Objectives• The macro‐ and micro‐behaviors that are at the core of excellence.

• How to identify the gaps between “what is” and “what needs to be.”

• How to create an operational climate that enables people to grow and succeed.

• How to develop Lean mindsets and behaviors throughout your organization.

• How to instill and reinforce the new ways of operating.

2

Success with Improvement

0%

10%

20%

30%

40%

50%

60%

70%

2001 – The Economist

Temporary LastingNone

17%

63%

20%

3

…A Decade Later

2010 – Accenture

0%

10%

20%

30%

40%

50%

60%

70%

80%

Minimal financial impact

Needs re‐evaluation, restart or complete

makeover

“Mixed” to “disappointing”

results

33%

58%69%

4

98,000 lives lost

Improvement Goal:Reduce by 50% in 5 years.

To Err is HumanInstitute of Medicine, 1999

5

Something Is Terribly Wrong…

7

2005

2010

2011

Progress has been slow.

Journal of the American Medical Association

180,000 Medicare patients die annually from medical errors.Office of the Inspector

General

33% hospitalized patients are harmed; 7% result in permanent

injury or death.Health Affairs

1999

Up to 98,000 people die from medical

errors.To Error is Human, Institute of Medicine

8

We need to

improvehow we improve.

Self‐inflicted

9

10

A Chaos‐Cracked Foundation Can’t Support Excellence

Mindsets & Behaviors that Reduce

Chaos

Problem Solving

Continuous Im

provement

Innovation

Agility

ResilienceBusiness Results

11

Engagement

Clarity

Focus

Discipline

12

13

“Effectiveness is a habit.”

— Peter Drucker

Group Discussion

1. Clarity

2. Focus

3. Discipline

4. Engagement

14

Group Activity ‐ Behavioral Gaps

• Part 1 – Rate your organization (company, facility, department, etc.). 2 minutes– Which of the four behaviors is it weakest in?

• Part 2 –Move to the appropriate corner for your weakest org behavior. 15 minutes– Give examples of the lack of that behavior– Which metric(s) do they affect (hard impact)?– How do they affect customers, employees and/or suppliers (soft impact)?

– Select one example & its impact to share with the full group.

• Part 3 – Report out. 10 minutes

15

Activity: Behavioral GapsHard Costs Soft Costs

Lack of Clarity

Lack of Focus

Lack of Discipline

Lack of Engagement

16

Problem Solving

Continuous Im

provement

Innovation

Agility

Resilience

Business Results

17

Junk Words* (10 mins)

• The line at Starbucks is long. _________________

• That car is expensive. ______________________

• That would be a long commute. ______________

* Conceptualized by Sammy Obara, Toyota by Toyota19

Seek Unbridled Clarity Around…

1. The direction your organization is heading in.2. Who your customers truly are and what needs

they have.3. What value you deliver.4. How specifically you deliver and support the

delivery of value.5. Who delivers and supports the delivery of

value.6. How you’re performing.7. The language you use.

20

21

“Going to the gemba has been life changing for me as a leader.”

‐ Ginny Cattaneo, Sr. VP, FranklinTempleton Investor Services

Lean Management System

22

Team Leader Standard Work

Supervisor Standard Work

Value Stream Manager Standard Work

Plant Manager Standard Work

Standardized Processes

TruthTruth

TruthTruth

TruthTruth

TruthTruth

Truth23

Problem Solving

Continuous Im

provement

Innovation

Agility

Resilience

Business Results

24

Distraction Kills

25

Focus Needs1. Priorities – What are you striving for? What’s

important to accomplish THIS year?– Products– Processes– Marketplace– Margins– People

2. Meetings – What’s the purpose of the meeting?

26

Booz & Company Findings

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

No writtenpriorities

Conflictingpriorities

Competingdemands

82%

64%

49%

27

There is no such thing as multitasking.*

* For cognitive tasks.

28

The Myth of Multi‐tasking

• It’s not possible to do two conscious activities at once.

• You are “switch‐tasking.”• David Meyer – University of Michigan

– Engineers switched between projects 5‐8 times per day

– Each switch added 20 minutes of process time– If switch only 5x per day, adds 1.7 hrs per day or 407 hours (10 weeks) of process time per engineer

– In company w/ 15 engineers = 3 FTEs* worth of labor.

29

* FTE = Full Time Equivalent

A Key to Apple’s Success?

30

“…saying no to 1,000 things to make sure we don’t get on the wrong track or try to do too much. We’re always thinking about new markets we could enter, but it’s only by saying no that you can concentrate on the things that are really important.”

— Steve Jobs

Round 1Task 1: Lack of focus causes chaos

Task 2: 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22

31

Round 1 – Letter, number, letter, number: L, 1, A, 2, C, 3, etc.

_________________________________________________

_________________________________________________

Round 2

Task 1: Lack of focus causes chaos

Task 2: 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22

32

Round 2 – full sentence, followed by numbers 1‐22.

_________________________________________________

_________________________________________________

The Countermeasure: Strategy Deployment

Aka Hoshin kanri; policy deployment Hoshin – Direction; compass; shining needle Kanri – Management

Two key parts: Creating the plan itself & and fanatic management to that plan.

Purpose: Organizational focus & alignment Aligns everyone toward a few high impact objectives while also keeping them accountable for their commitments through visual management and review.

33

Strategy Deployment Key Feature: Catchball

34

Executive Team

What?How?Who?When?

Senior Mgmt

What?How?Who?When?

Middle Mgmt

What?How?Who?When?

FrontlinesWhat?How?Who?When?

84.886.3

90.693.0

95.2

105.9

80.0

87.0

94.0

101.0

108.0

115.0

FY '06 FY '07 FY '08 FY '09 FY '10 YTD '11

Productivity (Pounds Produced / Hr Worked)

PactivImplements

Strategy Deployment

35

Improve Productivity through Greater Focus

Activity: Achieving Focus List Potential Projects

36

Project / Priority

Lean Mindsets & BehaviorsAchieving Focus: Project Prioritization

“Hoshin‐Lite” Annual Work Plan

PRE ‐ Gain clarity around overarching business needs.

1. List everything you could do (and that you are doing and you plan to do).

2. Categorize into:– Must‐do, can’t fail– Maybe– Eliminate– Delay (next fiscal year)

3. Decide what you will do; gain consensus.4. Prioritize and create plan.

POST ‐Manage plan via weekly updates (may be able to reduce to monthly reviews – but be careful!).

37

Achieving FocusCategorize project list

38

Project / Priority Must Do Eliminate Delay Maybe

Project A XProject B XProject C XProject D XProject E XProject F XProject G XProject H XProject I X


39

To create new ideas is a gift, but to choose wisely is a skill.

‐ Ryan Morgan

Achieving FocusMove “Maybe’s” into Other Categories

40

Project / Priority Must Do Eliminate Delay Maybe

Project A XProject B XProject C XProject D XProject E XProject F XProject G XProject H XProject I X


41

Must do

Eliminate

Maybe

Delay

1. List what you could do on 3x6” post‐its (active or planned initiatives, projects & improvement activities). Gain consensus.

2. Categorize them (place post‐it on appropriate page. Gain consensus.

3. Decide what you will do. (Move “maybe’s” onto one of the other three pages.) Gain consensus.

Label Four Flip Chart Pages & Hang on Wall

42

Must do

Eliminate

Maybe

Delay

Step 4Prioritize must‐do’s; Create Plan

PACE Improvement Prioritization Grid

Low HighAnticipated Benefit

Ease

of

Imp

lem

enta

tion

Difficult

Easy

20

7

513 4

23

1

228

9

2

10

16

11

6

12

14

19

15

173 21

18

43

Achieving FocusPrioritize Must‐Do’s

Low HighAnticipated Benefit

Ease of Implem

entatio

nDifficult

Easy

44

Annual Improvement Plan

45

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Integrate DHR Begin MS‐1Ops

MS‐2 Acct

CompleteBrad P

Complete New Travel Program

Roll‐outBegin Complete Scott R Fred S

Roll‐out Tablets to Installation

Begin & Complete

Brad P

Complete 360 Roll‐out

Begin Complete Justin C Steve R

Lisa D, Marina,SM, Tech,Hal, Doug

Create Line‐item P.O.s

Begin Complete Lisa B Mark C

Refinance credit facil ity

Begin Scott R

Complete ADP Roll‐out

Begin Complete Gary O

Develop & Roll‐out Handheld 2.2

Begin MS‐1Clean Code

MS‐2Pilot

MS‐3Go l ive

Not complete until 2013

Steve C TBD

Complete GPS Roll‐out

Begin Complete Steve C RDs Cons., HR, Fleet

Complete "River" (One Soft) Roll‐out

Begin Complete Lisa B

Develop Safety Program

Begin Complete Gary O

Tactical Owner

Others

Company ABCPriorities

FY 2012 FY 2013Priority Exec Owner

46

X

# Action Item Owner Deliverable Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

Status(Red, Yellow, Green)

Core work team: Input/Review needed by:

Annual Improvement Plan

TimelineRelationship to Annual Business Goal(s):

Due Date 2012

= Original Plan = Complete

Tier 1 Priority:

Tier 2 Priority:

Measurable Objective(s):

% Complete

Date Created:

Next Review:

Executive Owner:

Tactical Owner:

Background/Scope:

47

Frequent Status Meetings Assure Ongoing Alignment & Distraction Avoidance

Sporting Goods ManufacturerProduct Launches Per Year

48

0

10

20

30

40

50

60

70

80

Pre‐Focus Post‐Focus

73

24

No additional resources; higher quality products launched

Rockwell Automation

49

0

5

10

15

20

25

Pre‐Focus Post‐Focus

ProjectsStarted

ProjectsCompleted

3

12 12

20

Avoiding the Shiny Ball Syndrome (Organizational ADD) Requires…

50

• Clarity – about what really matters & organizational direction.

• Consensus – about how best to get there.

• Courage – to actively choose to “not do” or “not do now.”

• Commitment – to stick with the plan.

From The Outstanding Organization, Karen Martin

Problem Solving

Continuous Im

provement

Innovation

Agility

Resilience

Business Results

51

52

Greatness results fromDisciplined people engaged in disciplined

thinking that leads to disciplined

action.

— Jim Collins, Good to Great

Building Mastery Requires Deliberate Practice

53

How much deliberate practice?

10,000 hours(10 Years)

Tied deliberate practice to myelin development

54

Practice vs. Performance

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Athletes Businesses

TrainPerform

55

Train90%

Train1%

Perform 99%

Perform 10%

Jim Loehr & Tony Schwartz, The Power of Full Engagement

Building Mastery

56© 2012 Karen Martin & Associates, LLC

57

MASTERY

Discipline is Needed…

• Planning• Decision making• Executing• Problem Solving & Improving• Managing processes

58

59

“It takes a different kind of thinking to solve a problem than the kind of thinking

that produced the problem.”

—Albert Einstein

60

“Most people spend more time and

energy going around problems

than in trying to solve them.”— Henry Ford

61

The Scientific Method for Problem Solving and Improving

62

Detailed Steps

1. Define and break down the problem.

2. Grasp the current condition.

3. Set a target condition.

4. Conduct root cause & gap analysis.

5. Identify potential countermeasures.

6. Develop & test countermeasure(s)

7. Refine and finalize countermeasure(s).

8. Implement countermeasure(s).

StudyEvaluate Results

9. Measure process performance.

10. Refine, standardize, & stabilize the process.

11. Monitor process performance.

12. Reflect & share learning.

Adjust

Do

Clarifying the PDSA Cycle

PlanDevelop

Hypothesis

Conduct Experiment

Refine Standardize Stabilize

Phase

Continuous Improvement

New Problem

50‐80% of the total time

Developing PDSA Capabilities

• A3 Management

• Kaizen Events

• Daily Kaizen

63

Complex

Simple

Group Discussion

• How many of you are familiar with A3 Management?

• How many of you have a disciplined A3 development program across your organization (including coach development)?

• If it’s a good idea, why aren’t more organizations doing it?

• What can you do about it?

64

Discipline is Needed…

• Planning• Decision making• Executing• Problem Solving & Improving• Managing Processes

65

Every key process…

Clearly documented

2‐5 Key Performance Indicators

Continually monitored & improved

66

67

How are you performing?

Gray – Highest industry quality scoresPurple – Median industry quality scoresBlue – Our quality scores

Value Stream Maps: Gaining Clarity around Process Performance

Activity PT LT %C&A Activity PT LT %C&A Activity PT LT %C&A Activity PT LT

Approve PO 15 240 100% Fax PO to Account Manager 5 20 100%

Notify customer when they can expect delivery

15 300 95%

Review and approve PO; send

to Order Entry 5 240 100%

Enter order into SAP 10 240

Step # ? 986

Finance / Credit

Function / Department

LT UnitsHours Worked per Day

37,500Paul Dampier

Occurrences per Year

Current State Metrics-Based Process Map

26-Nov-078

Sam Parks

Date Mapped Michael Prichard

Order FulfillmentProcess NameSpecific Conditions Domestic orders through sales force

PT Units Process Details

Mary TownsendSean MichaelsRyan AustinDianne O'Shea

7

Mapping Team

Order Entry

Account Manager

Sales Rep

Customer

Seconds

Minutes

Hours

Days

Seconds

Minutes

Hours

Days

Processes MUST be Clearly Documented, Monitored & Improved

69

70

We need to shift our focus from

managing peopleto managing processes.

71

Non‐standard Processes Yield Inconsistent Results

PeopleStandardized Processes

R3R2

R4

R1

PeopleInconsistentResults

InconsistentProcesses

Standard Processes Yield Predictable Results

DesiredResults

Process Ownership:Working On The Business

• All processes MUST have a process owner.– Closer than farther from the work.– Recognized as having the authority to lead improvement.

• Accountable for process performance.– Frequent measurement and review.– Lead/organize cross‐functional problem solving.

72

Don’t Look Away. Ever.

73

74

Before improving a process, understand –

really understand –how it is being performed

today.

75

Traditional Mapping Method:Process Flow Chart

How long does the process take? How well is the process performing?

Where are the problems?

76

October 2012

The Genesis of MBPM

August 2008

Second Edition

77

What is Metrics‐Based Process Mapping (MBPM)?

• A visual process analysis tool, which integrates:– Functional orientation of traditional swim lane process maps

– Key Lean metrics:• Lead Time• Process Time• Quality (Percent Complete and Accurate)

Metrics‐Based Process Mapping (MBPM)

79

Why Create an MBPM?

• To map admin / office processes• Understand the steps, disconnects, waste, and delays – at a micro level

• Measure process performance in terms of:– Time (lead time and process time)– Quality

• Visualizes the steps and flow• Use as standard work for training and process monitoring

80

Islands of value‐adding activities.Shift the focus to the NVA elements.

Adding Value

Rework

First Step Last Step

Typical Current State Findings

Lead Time

81

MBPM Results

Process Before After % Improvement

New Hire Logistics LT = 25.75 days LT = 17.5 days 32%

Purchase Requisition LT = 21 days LT = 8 days 62%

Sales Order Change PT = 2.7 hours PT = 1.3 hours 52%

Supplies replenishment 17 steps 11 steps 35%

Product Demo %C&A = 2% %C&A = 20% 900%

82

MBPM – Getting Started• Define a clear scope – narrow and deep

– Define the first and last steps for the process to be improved– Lay out the specific conditions for the process to be mapped

Briefing Dates/Times

12 13 24 35 4

51 62 73 84 95 10

12 13 24 35 4

1234 Date: Date:

Executive Sponsor

Contact Information

Possible Obstacles

Signature:Date:

FacilitatorValue Stream Champion

FunctionPotential Deliverables On-Call Support

Improvement Goals & Measurable Objectives

FunctionImprovement Drivers / Current State Issues Mapping Team

Logistics Coordinator

Required Briefing Attendees

Boundaries & Limitations

FS Implementation Timeframe

Metrics-Based Process Mapping CharterImprovement Scope Leadership Mapping Schedule

Start/End Times

Trigger

Specific Conditions

Customer Demand

Last StepFirst Step

Executive Sponsor

Process Owner

Date(s)

Mapping Team Lead

Name

Facilitator

Food Provided

Location

Signature: Signature:

Approvals

Name

Process NameValue Stream

Scope: Refining the Focus

Order Fulfillment

Domestic

Units

Consumables

Service Parts

Warranty

Non‐Warranty

International

Units

Consumables

Service Parts

Warranty

Non‐Warranty

83

84

MBPM – Getting Started (continued)

• Select the team (most effective within a kaizen event)– Highly cross‐functional – workers, upstream suppliers, downstream customers, outside eyes, etc.

• Those who currently do the job– No more than 10 individuals– Don’t avoid the “difficult” people– Include “outside eyes” if possible

• Use a skilled, objective facilitator• Have a room with (long) wall space for 36” wide butcher paper

• Map on consecutive days

85

Steps in Creating the Current State MBPM

1. Label the map (process, date, team or facilitator)2. List the functions involved3. Document all activities / steps4. Review the map for completeness5. Number the activities6. Add activity‐specific information (metrics, etc.)7. Determine the timeline critical path8. Create the timeline9. Calculate the summary metrics10. Identify value‐adding (VA) and necessary non‐value‐adding

(N) activities

86

Documenting the Current StateStep 1 – Label the map in the upper right hand corner.– Include process name, conditions mapped, date, and facilitator name and/or team members.

Document the Current State

Step 2 – Label the swim lanes with the functions involved.– Include external functions, if appropriate (e.g. customers, suppliers/contractors, etc.)

– Sequence in which functions are listed is not important

87

88


Step 3 – Document all activities/steps on 3” x 6” post‐its. Don’t include metrics yet!– Use verb/noun format; clear and concise– Include function.– Separate tasks that have different quality outputs or timeframes; combine tasks otherwise.

– Place post‐its in appropriate swim lane, sequentially.

89

Activity (Verb / Noun) Function that

performs the task

Document Each Activity

Best to use 3 x 6” Post‐its

Step1

Step2

Ticking clock 90

Concurrent Activities

91


Step 4 – Review map for completeness (someone other than the facilitator)

– Walk through the map, reading aloud.– Verify sequence– Add missing steps and barriers to flow (“flow‐

stoppers”) if any.


Step 5 ‐ Number the activities– Number the activities sequentially from left to right.– For parallel (concurrent) activities, add “A,” “B,” etc.

• Example: Step 8A, Step 8B, etc.

– Don’t number the post‐its until the map is “final.”

92

93


Step 6 – Add activity‐specific information– LT – Lead time– PT – Process time– %C&A – Percent Complete & Accurate– Number of people who perform the work– Barriers to flow

• Batches• Equipment downtime• Shared resources, etc.

94

Key Metrics: Time• Process time (PT)

– The time it takes to actually perform the work to complete one item, if it could be worked on uninterrupted.

• Lead time (LT)– The elapsed time from when work is available to be worked on until it’s completed and made available to the next person or department in the process

95

Key Metrics: Quality

• %Complete and Accurate (%C&A)–% of the time the downstream customer can perform task without having to “CAC”:• Correct information or material that was supplied

• Add missing information that should have been supplied

• Clarify information provided that should have been clear

96

# Staff (if relevant)

Barriers to flow (if relevant)

Additional Information

% Complete & Accurate

PTLT

Add Activity‐Specific Information

97

Adding Metrics: Tips

• LT, PT and %C&A are typically acquired via interviews – ask high‐quality questions.

• Usually looking for the “typical” LT and PT; what happens 80% of the time?

• Select units of measure that are easiest to comprehend (e.g. 6 hours instead of 360 minutes).

• PT is the time required to complete one “thing”• If your LT is 4 hours, don’t debate a PT of 5 vs.

7 minutes.

98

• May be OK to group the LT for a series of activities performed by the same function (rather than each individual step).

• Place %C&A value on the post‐it of the source step.– If %C&A issues are identified by multiple downstream customers, record each of the %C&As on the Post‐it of the source step (can also indicate on the Post‐it which step reported the problem).

– 0% C&A is not uncommon

Adding Metrics: Tips (continued)

99

Barriers to Flow

• Look at the process from “the thing’s” perspective

• Identify issues that prevent one‐piece‐flow of the work– Batching / periodic processing– Rework– Bottlenecks– Handoffs– Inventory– Setup / changeover– Physical layout


Step 7 – Determine the “timeline critical path” of the process– For parallel activities:

• Don’t include “dead end activities”– Steps / path which don’t move the process forward (e.g. filing a document)

• If both paths are required to move forward, select the path with the longest total lead time

100

Timeline Critical Path

Critical Path

101

102

Document the Current StateStep 8 – Create the timeline

– Bring down the PT & LT from the critical path steps.

Timeline

103


Step 9 ‐ Calculate Summary Metrics– Critical Path PT– Critical Path LT– Activity Ratio (AR)– Rolled Percent Complete and Accurate

(R%C&A)– Total PT– Labor Requirements– Number of Activities

104

Summary Metrics: Time

• Timeline Critical Path PT– Quantifies how much of the response time (LT) is spent actually working on the “thing”

• Timeline Critical Path LT– Measures speed of delivery to customer & an indicator of cash flow

• Activity Ratio (AR)– The percentage of time work is being done to the patient/item/data passing through the process

– AR = (Σ PT ÷ Σ LT) × 100– 100 – AR = Idle time

105

Summary Metrics: Quality

• Rolled Percent Complete and Accurate (R%C&A) = –%C&A × %C&A × %C&A × … –Out of 100 occurrences, the number of times the data/material/people pass through the entire process with no rework required (expressed as a percentage).

106

• Total PT– Sum of all activities, not just critical path– Factor in determining labor requirements

• # FTEs* Required (Total Labor Effort)

Summary Metrics: Labor Requirements

Total PT (in hrs) X # occurrences/year# FTEs Required Available work hrs/year

=

* FTE = Full‐time Equivalent(2 half time employees = 1 FTE)

Summary Metrics: Labor Effort

• Total PT– Sum of all activities, not just timeline

• Labor Effort

107

Total PT (in hrs) x # occurrences/year# FTEs*

Available work hrs/year/employee**=

* FTE = Full‐time Equivalent (2 half time employees = 1 FTE)** Available work hrs/year = 2,080 ‐ paid holidays and vacations

Freed Capacity

= Current State FTEs – Future State FTEs

Total PT (in hrs) x # occurrences/yearTime =

108

Documenting the Current State

Step 10 – Identify Value‐adding (VA) &Necessary Non‐value‐adding (N) activities

– Use small post‐its in different colors to differentiate VA and N

– Monitor time allowed for debate– Unlabelled activities = waste

Value‐adding activity

Necessary non‐value‐adding activities

110

Metrics‐Based Process Mapping (MBPM)

Simulation

Order Fulfillment Process:Demand = 2,500 orders per year

Available work hours per employee per year = 1,800

111

1. Label the map in upper right corner.• Process name, date, facilitator and/or team members

2. List the functions involved in left column.3. Document all activities/steps. No metrics yet!

• Verb/noun; concise language; include function as well.

4. Review the map for completeness.5. Number the activities. One number per column; concurrent activities are labeled A, B, C, etc.

6. Add activity‐specific metrics (PT, LT, %C&A). (We are not considering number of workers and barriers to flow in this simulation.)

Create the Current State MBPMPhase I

112

Create the Current State MBPMPhase II

7. Define the critical timeline path.• Longest LT unless “dead‐end” step; use colored marker

8. Create the timeline.9. Calculate the summary metrics

• CP PT Sum, CP LT Sum, AR, R%C&A, Total PT, Labor Required

10. Identify the VA and necessary NVA activities• Use small colored post‐it labeled with “VA” and “N.”

11. Circle the step‐specific metrics that indicate the greatest opportunity for improvement.

• Use red marker.• Long LTs, low %C&As, high PTs, low step‐specific ARs

Metric Current StateProjected

Future StateProjected % Improvement

Timeline Critical Path PTTimeline Critical Path LTActivity Ratio

Rolled %C&A

Total Process TimeFreed capacity

Document Summary Metrics

Future State Design• Goals

– Reduce overall LT & PT– Improve quality (increase RFPY)– Increase % activity– Improve LT, PT, and %C&A at individual steps

• May need to perform root cause analysis before determining countermeasures to realize the future state

• Mapping steps– Clean sheet or modify current state map– Same steps as current state– Calculate projected metrics

114

Future State Design Considerations

• Eliminate steps / handoffs• Combine steps• Create parallel paths• Alter task sequencing and/or

timing• Implement pull• Reduce / eliminate batches• Improve quality• Create an organized, visual

workplace• Reduce changeover

• Eliminate motion & transportation

• Standardize work• Eliminate unnecessary

approvals / authorizations• Stop performing non‐value

adding (NVA) tasks• Co‐locate functions based

on flow; create cells (teams of cross‐functional staff)

• Balance work to meet takttime requirements

115

Problem Solving

Continuous Im

provement

Innovation

Agility

Resilience

Business Results

116

117

Energy Crisis: Widespread Disengagement

Engagement Drivers: The Three C’s

118

Connection

ControlCreativity

Engagement Drivers

• Connection ‐ to mission, annual goals, immediate supervisor, people within the organization, customers.

• Control – heavy involvement in decisions that influence their work life.

• Creativity – Full use of talents, capacities, potentialities, and skills

119

It’s disrespectful to…1. Not engage employees in work design and

improvement.2. First blame people instead of systems and processes.3. Not help employees develop skills.4. Not coach employees through problem solving – on an

ongoing basis.5. Have poorly designed processes which inhibit

performance.6. Fail to create and clearly communicate organizational

goals and priorities.7. Lack honesty and omit relevant information.

120

Group Activity – Driving Engagement

• Three groups:– Connection– Control– Creativity

• Each group: – Identify activities and practices within your organization that engage or disengage employees in that area.

• Report out

121

Activity: Engage or Disengage?Engage Disengage

Connection

Control

Creativity

122

123

Reducing Self‐Inflicted Chaos: Where Should You Start?

Places to Start…1. Develop an intolerance for ambiguity.2. Prioritize your work; reduce the number of

active projects at once.3. Ban electronic devices from meetings.4. Adopt a problem‐solving methodology and

deploy it broadly; get a coach!5. Document, standardize and improve all major

processes with significant involvement of the workers themselves.

6. Identify process owners and KPIs for each.

124

Group Activity – Closing the Gap• Go back to your “weakest corner” (Clarity, Focus, Discipline or Engagement)– List the lean practices/methods/tools that can be used to improve your organizations’ behaviors

– Report out to the class• Next, look at your “self‐assessment” notecard, select one of your organization’s weakest areas, and begin creating a plan for how to start moving the needle (what’s the problem, what are potential root causes, what are potential countermeasures, who needs to be involved, etc.)

125

Discipline

126

As Outstanding as They Come…

Karen Martin, Principal7770 Regents Road #635San Diego, CA 92122

858.677.6799

[email protected]: @karenmartinopex

Subscribe: www.ksmartin.com/subscribe127

Mike Osterling, President4320 Woodland DriveLa Mesa, CA 91941

619.572.3632

[email protected]

Our Books

128Contributing Author

October 2012

Just released

Lean Mindsets and Behaviors

Business

Transcript of Lean Mindsets and Behaviors