Staying lean professor peter hines

Staying Lean - Thriving, Not Just SurvivingProfessor Peter Hines, Chairmanwww.LeanBusinessSystem.com

Muda Mura & MuriMuda, Mura & Muri

Muda (Waste) Mura (Unevenness) Muri (Burden)

LeanBusinessSystem.com 2011

Top 10 Reasons for FailureTop 10 Reasons for Failure

1. Lack of a clear executive vision.

2. Lack of an effective communication strategy.2. Lack of an effective communication strategy.

3. Failure to create and communicate a real sense of urgency.

4. Poor consultation with stakeholders.

5. Lack of structured methodology and project management.

6. Failure to monitor and evaluate the outcome.

7. Failure to mobilise change champions.

8. Failure to engage employees.

9. Absence of a dedicated and fully resourced implementation team.

10. Lack of sympathetic and supportive Human Resources policies.

Source: Lucey, Bateman & Hines, 2005

Kaizen Blitz vs Lean ManagementKaizen Blitz vs. Lean Managementyy

Opp

ortu

nity

Opp

ortu

nity

Greater, sustainedresults achieved

vem

ent O

vem

ent O Improvement leveled off and

eventually stopped due to lack of realizing “true” lean

Impr

oIm

pro

Short termgains made

Lost and repeated results due to no sustainability

opportunity

gains made

Results could be lost entirelyResults could be lost entirelyif organizational structure not

aligned to support and education level of all employees not increased.

TimeTimeAwareness, education, organisation structure

created to support lean Source: C. Craycraft, Whirlpool

Sustainable Lean ManagementSustainable Lean Management

Lean Management

Source: P. Hines, P. Found, G. Griffiths & R. Harrison, Staying Lean, 2008

Staying Lean 2008

Cogent Power Case

An urgent need for changeAn urgent need for change

• Substantial Pre-tax losses in 2003 from Global operations

• Business was losing cash from a number of it’s Operating Plants – Seven Global Operating units

• Relatively Static order book with emphasis towards lower margin products

• New CEO put in place to Lead the business TURNAROUND strategy• New CEO put in place to Lead the business TURNAROUND strategy

• Experienced Senior Management Lean Team appointed to support

Staying Lean 2008

Internal Value Stream FocusInternal Value Stream Focus

Materials, People, Machinery, Resources





IRON OREIRON ORE

TRANSFORMERTRANSFORMERTRANSFORMERTRANSFORMERCORE & WINDING CORE & WINDING

SLIT COILSLIT COILSLITTINGSLITTINGSTEEL COILSTEEL COIL

STEEL SLABSTEEL SLAB

TRANSFORMER TRANSFORMER IN SERVICEIN SERVICEASSYASSY

STEEL CORESTEEL CORE


Materials, People, Machinery Resources Materials People


The Roadmap to sustainability

R d 1Roadmap 1

Lean Iceberg Model

Technology, tools and techniques

Supply chain integration4

ProcessmanagementABOVE WATERLINE - VISIBLE

UNDERWATER - ENABLINGABOVE WATERLINE - VISIBLE

UNDERWATER - ENABLING

3

Strategy and alignment

Leadership

Behaviour and engagement2

1

Launched

g g2Source Hines, Found & Griffiths, Staying Lean, 2008Source Hines, Found & Griffiths, Staying Lean, 2008

Jan 2004

Staying Lean 2008

Roadmap 1Roadmap 1

Strategy Formation and Deployment

• Leadership Structure confirmed and aligned to the Turnaround• Kicked-off with Top Level Awareness & Strategy Sessions• International & Regional Management Teams CSF’s & K P I’s• International & Regional Management Teams – CSF s & K.P.I s• Lean Message Communicated from the TOP – To help Deployment

Staying Lean 2008

Roadmap 1People Skills and Value StreamPeople Skills and Value Stream Management

• Selection Process to ensure that the RIGHT Coaches chosen• Extensive Lean Coach Programme – theory and practical• Lean Coaches developed hands-on experience in Tools• Steering Team Meeting and Best Practice Sharing Events

Staying Lean 2008

Roadmap 1Roadmap 1Internal VSM and Lean Toolkit

• Visual Impact with 5S, TPM & SMED at all sites• High levels of engagement with site cross-functional teams• Process stability being used to help introduced PULL systemsProcess stability being used to help introduced PULL systems• GOLD STAR standards using 6 Sigma set for heavy industry

Staying Lean 2008

Roadmap 1B i C t V l dBasic Customer Value and Office Lean

• Customer Value assessments for all businesses• Sales Acquisition Mapping used to improve order creation process• Office 5S used to improve sales requisition process time• Lean Tools and deployment evident in many support areas

“Value Criteria” Rank Product XX Performance Vs

Your Expec tati ons Our Competi tors Your bes t Other Supplier

Better than

Same as

Worse than

Better than

Same as

Worse than

Better than

Same as

Worse than

Responsiveness 4

Price 5

Quality of people 1

Innovation 2

Lean Management Training GG v 1.2 ppt© S A Partners 2005

Expertise in subject areas

3

Staying Lean 2008

Maturity AssessmentMaturity AssessmentBusiness to business benchmark

Lean Iceberg Model

Technology, tools and t h i

Supply chain integration

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Stage 4

Stage 5Way 0f Life

1 Autonomous Habit

Processmanagement

techniques


NE - VISIBLENABLING

ABOVE WATERUNDERWAT

integration

Stage 2

Autonomous

Stage 3Deployed

1 Autonomous Habit2 Full Empowerment3 External Learning

1 Driven Deployment 2 Majority Involvement3 X-Process learning

gy g

Leadership

Behaviour and engagement

Stage 1Reactive

Stage 2Formal

1 Formal Structure2 Only Specialists3 Team Learning

Key Characteristics1 Ways of Working

1 Goal Orientated2 Selected Teams3 Value Stream Learning

1 Reactive Approach2 Little/No involvement3 Adhoc Learning

3 Team Learning 1. Ways of Working2. Employee Engagement3. Learning Best Practice

Staying Lean 2008,

Organisational LearningOrganisational LearningLean Maturity Assessment

100EXPECTED

CE

WHY?

FOR

MAN

C WHY?

PER

F

ACTUAL

TIME0

TIME

Staying Lean 2008

Organisational LearningOrganisational LearningLean Maturity Assessment

• The Coaches have become the LEADERS of LEAN

R l LEAN MANAGEMENT i ill i• Real LEAN MANAGEMENT is still an exception

• LEAN is too cosmetic and NOT fully impacting profit

• LEAN still seen as an initiative and NOT given priority

OEE and Pareto are hardly used to drive improvement• OEE and Pareto are hardly used to drive improvement

• LEAN is NOT driving changes in management behaviour

• Responsibility and accountability NOT fully deployed

Staying Lean 2008

Early Lessons: Below the WaterlineEarly Lessons: Below the Waterline

Unstable Iceberg Model

Enabling


Supply chain integration

Enabling Features Not

Fully Addressed

ABOVE WATERLINE - VISIBLE ABOVE WATERLINE - VISIBLE

ProcessmanagementABOVE WATERLINE - VISIBLE ABOVE WATERLINE - VISIBLEg

UNDERWATER - ENABLING UNDERWATER - ENABLING


Behaviour and engagement

LeadershipNARROWING UNDER WATERLINENARROWING UNDER WATERLINE

g g

Source Hines, Found & Griffiths, Staying Lean, 2008

The Roadmap to Sustainability

Roadmap 2

Lean Iceberg Model


Supply chain integration4 5

Processmanagement

techniques

ABOVE WATERLINE - VISIBLE ABOVE WATERLINE - VISIBLE

integration

3


Leadership

UNDERWATER - ENABLING UNDERWATER - ENABLING

21

Re ie ed

Behaviour and engagementSource Hines, Found & Griffiths, Staying Lean, 2008

ReviewedJuly 2005

Staying Lean 2008

Roadmap 2M lti l l L d hi dMulti-level Leadership and Deployment

• Leadership developed at EVERY level of the organisation (7 Values)• Clearly defined roles and behaviours for self-managed teamworking• Re-deployed targets aligning OF / OC / NPI ProcessesRe deployed targets aligning OF / OC / NPI Processes• Full ‘line of sight’ deployment locked into key processes

Staying Lean 2008

Roadmap 2Roadmap 2Lean and the Extended Enterprise

• Focus on sustained profitability in strategically selected areas• Operational performance metrics focus on key value streams• Aligning supplier and customer processes via ‘CAMBAN’ technology• Operational capability now leading to sales growth opportunities

Taux de service de (Somfy)au de se ce de (So y)

40%

50%

60%

70%

80%

90%

100%

taux

0%

10%

20%

30%

Jan-03

Feb-03

Mar-03

Apr-03

May-03

Jun-03

Jul-03

Aug-03

Sep-03

Oct-

03

Nov-03

Dec-03

Jan-04

Feb-04

Mar-04

Apr-04

May-04

Jun-04

Jul-04

Aug-04

Sep-04

Oct-

04

Nov-04

Dec-04

global objectif

global 72% 100% 92% 60% 47% 85% 67% 67% 56% 20% 25% 10% 24% 61% 76% 76% 75% 83% 100%

objecti f 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100%

Jan-03 Feb-03 Mar -03 Apr -03 May-03 Jun-03 Jul -03 Aug-03 Sep-03 Oct-03 Nov-03 Dec-03 Jan-04 Feb-04 Mar -04 Apr -04 May-04 Jun-04 Jul-04 Aug-04 Sep-04 Oct-04 Nov-04 Dec-04Smal Coil 117,5 mm (M940-65A ISOL 20)

200,000Obergrenze

60 000

80,000

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120,000

140,000

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180,000

Bes

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pro

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g

Untergenze

Bestand pro Tag

0

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40,000

60,000

19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41

Datum

Staying Lean 2008

Roadmap 2Customer Value and SupplierCustomer Value and Supplier Integration

• Detailed Customer Value extending throughout the Supply Chain• Adapting process to meet with customer and business needs• Product / Process Development exceeding customer expectations• Product / Process Development exceeding customer expectations• Extending the offering and bridging the gap in the Supply Chain

Strategy Formation & Deployment

Products

VOC Insight Survey Folllow-up Opportunities

Steel Makers

g y p pp

05

10152025

Engi

neer

ing

Del

iver

y/Le

adTi

me

Sale

sC

omm

unic

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n

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ice/

Pkg.

Pric

ing/

Cos

ting

Lean

Mis

c

Services Direct VOC Feedback Action Plan Customer Labels

12th International Symposium on Logistics

Transformer Makers

Staying Lean 2008

Lowering the Water LevelLowering the Water Level

Staying Lean 2008

Key Lessons: Integrated IcebergKey Lessons: Integrated Iceberg

Below the waterline Above the waterline

AlignedStrategy

DeployedLeadership

ProcessDiagnosis &Management

TechnologyTools &

Techniques

Behaviour&

Engagement

Below the waterline Above the waterline

Sustainable LeanManagement TechniquesEngagement


TechnologyTools &

Techniques

Behaviour&

EngagementDoing the wrong things right

DeployedLeadership

AlignedStrategy


TechnologyTools &

Techniques

Behaviour&

EngagementLack of vision and inspiration

g g

AlignedStrategy

DeployedLeadership


TechnologyTools &

Techniques

p

Unrealised human potential & habit

AlignedStrategy

DeployedLeadership

TechnologyTools &

Techniques

Behaviour&

EngagementSub-optimised & narrow CI

AlignedStrategy

DeployedLeadership


Behaviour&

Engagement

No incremental or step improvement

Staying Lean 2008

Lean Maturity and OrganisationalLean Maturity and Organisational Learning

KnowingOrganisation

UnderstandingOrganisation

ThinkingOrganisation

LearningOrganisation

McGill & Slocum

Double looplearning

PushLean Pull

men

t

Single looplearningSenge

Lean LearningLean

Ach

ieve

m

Step change in learning occurswhere the organisation can achieve higher results than previously imagined due

Ad-hoc FormalGoali t d

Managed Way of Life

A higher results than previously imagined due to lack of knowledge of what was possible

Bessant & Caffyn Ad hoc Formal oriented Autonomy Way of Life& Caffyn

LeanBusinessSystem.com 2011

Further InformationFurther Information

• You can reach Peter at:P t Hi @L B i S t– [email protected]

O S• Or visit him at www.LeanBusinessSystem.com

• For a full video on Staying Lean see: http://www.leanbusinesssystem.com/en/LBS%20Product%20Repositories/Master/KnowledgeAndResources/Webinar13StayingLean

Staying lean professor peter hines

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