Implementation Specialists
KCG
implementation.com1
DESIRED OUTCOMES FROM THIS SESSION
• Understand Some Of The Background Of Lean/Kaizen Based Systems
• Learn About The KCG 20 Keys Approach • Learn About The Supporting Lean Daily
Management System That Supports Use Of The 20 Keys
• Practice Constructing Elements Of A 20 Keys “Set”
• Discuss 20 Keys Implementation Planning And Issues
• Leave With A Firm Resolve To Launch A Trail 20 Keys Implementation When You Return To Your Organization
Implementation Specialists
KCG
implementation.com2
WHAT IS LEAN?
• A Leadership Approach AND• A Management Philosophy AND• A Set Of Tactical Methods
– That, As A Complete System, Creates and Sustains:
– Decreasing Waste, Cost and Cycle Time– Increasing Capacity Potential– Increasing Quality– Low Absenteeism/voluntary Turnover– Extensive Measurement of Key Processes– High Levels of Worker Involvement, Ownership
and Commitment
Implementation Specialists
KCG
implementation.com3
WHERE DID LEAN COME FROM?
Current “State of the art” Lean/Office KaizenSM
. . . .. . . .
Mass ProductionApproaches
Constraint Management
Chrysler Operating System
Ford Production System
Toyoda’s, Ohno’s and
Shingo’sUnique Insights
Toyota Production System(SMED, kanbans, JIT, TPM,etc.)
KCG SLIM-ITSM
KCG 20 KeysSM
KCG LDMSSM
“Low Tech”
Mid-1980s
Mid-1980s
Mid-1980s
1950s
1950s
Mid-1990s
Early 1950s1950-1970
Shingo’sPoka-yoke
(error proofing)
Shingo’s SMED(fast
die changes)
Late1980s
SixSigma
Taguchi’sDesign of
Experiments SPC
1941-1945and
1980-19901960s
1960s
Implementation Specialists
KCG
implementation.com4
LEAN IS "LOW-TECH"
• Technology Is A Product, Not A Business Process• Computer Systems, New Machines, PCs, E-mail
And/or The “Web” Will NOT PUT YOU, OR KEEP YOU, AHEAD Of The Competition
• Technology Is A Given - Everyone Has It• Technology That Everyone Possesses Bestows A
Competitive Advantage On No One• If You Look To Technology To Save You, You Will Be
Caught From Behind, Overrun And Butchered By The Competition When They Turn To Lean First
Low Tech Forces The Involvement Of Everyone!
LOW TECH Means That Before All Else, You Realize That:
Implementation Specialists
KCG
implementation.com5
THE "LOW-TECH" APPROACH
• Focus Fervently On The Elimination Of All Waste• Focus First On Processes That Produce Products
And Services Through Direct Employee Actions• Maximize Yields And Cost Returns From Existing
Equipment And Systems Before "Buying" Solutions• Optimize Manual, Low-tech Systems Before
Automating• Comprehensively Understand Processes Before
Making Changes (No "Tampering")• Continually Pursue Improvement (Kaizen)
Low Tech Forces Involvement Of Everyone!
Implementation Specialists
KCG
implementation.com6
PROCESSTYPE EXAMPLE OPTIMUM LEVERAGE POINT
MEGA Manufacturing RATIONALIZING Credit Cards Is this a business we should
be in?
MACRO Machining MAKE - BUY Processing Bills Who best does it - us or a
supplier?
MICRO Machining A Part PROCESS IMPROVEMENTSStatement Accuracy How can we do it better
than any of our competitors?
DIFFERENT LEVELS -DIFFERENT STRATEGIES
LEAN LIVES HERE!!!!
Implementation Specialists
KCG
implementation.com7
THIS IS WHERELEAN
OPERATESDAY-TO-DAY
THE MAIN ISSUE
BEHAVIORS
PRACTICES
MICRO Machining A Part PROCESS IMPROVEMENTSStatement Accuracy How can we do it better
than any of our competitors?
Implementation Specialists
KCG
implementation.com8
PRE-LEAN SWINGS FOR THE FENCESy
stem
Perfo
rman
ce
Time
Desiredimpact ofbold, newtechnology
systems andideas
Expectedtime required
to obtain benefits
50
1
And Everybody Is Doing The Same Thing!
Implementation Specialists
KCG
implementation.com9
PRE-LEAN ACTIONS OFTEN TAKESLONGER OR STRIKE OUTSy
stem
Perfo
rman
ce
Time
Permanentdamage
50
1
Expectedtime required
to obtain benefits
Disasterrecoveryperiod
Actualimplementation
timerequired
Desiredimpact
Typical “good”
Typicaltraditional
1
Implementation Specialists
KCG
implementation.com10
THE TRADITIONAL APPROACH TO COMPETITIVENESS
Com
petit
iven
ess
Implementation Specialists
KCG
implementation.com11
WORK IN THE WORLD OFPRE-LEAN
EXECUTIVES
SENIOR MANAGERS
MIDDLE MANAGERS
SUPER./TECHNICAL
MICRO-PROCESSERS
RESPONSIBILITIY
INNOVATION
MAINTENANCE
Macro & Mega-process Improvements
Percent Of Total Work Time0 25 50 75 100
Mega-processes
Macro-processes
Micro-processes
Implementation Specialists
KCG
implementation.com12
KAIZEN
• “Kai” = Small, Continuous, Ongoing, Good• “Zen” = Ongoing Change For The Better• Not A Suggestion Program• Not Just A Philosophy• It Is A Structured, Focused, Coached, Mandated
And Required Set Of Procedures To Compel Every Employee To Participate In Developing Ways To Improve The Quality And Efficiency Of Their Day-to-day Micro-processes
Implementation Specialists
KCG
implementation.com13
Time
50
LEAN BUILDS A FOUNDATION ON MANY SMALL IMPROVEMENTS
Syst
emPe
rform
ance
Time
Impact of many small process improvements
Time requiredand expected
Few Traditional Organizations Have The Patience!
1
Implementation Specialists
KCG
implementation.com14
THE LOW TECH/OFFICE KAIZENSM
APPROACH TO COMPETITIVENESSC
ompe
titiv
enes
s
Implementation Specialists
KCG
implementation.com15
WORK IN A “LEAN” ORGANIZATION
The System Treats Employees As If They Were:
HUMAN BEINGS
HUMAN BEINGS
HUMAN BEINGS
HUMAN BEINGS
HUMAN BEINGS
HOW THINGS GET BETTER
Micro-process Improvement Focus
INNOVATION
MAINTENANCE
Macro & Mega-process Improvements
Percent Of Total Work Time0 25 50 75 100
Mega-processes
Macro-processes
Micro-processes
KAIZEN
Implementation Specialists
KCG
implementation.com16
TRADITIONAL APPROACHES CANNOT COMPETE WITH LEAN
The Lean AdvantageLe
an
Pre-
lean
InnovationsKaizen
Implementation Specialists
KCG
implementation.com17
THE CARROT DIET
• One Pound Of Raw Carrots 30 Minutes Before Each Meal
• Then, At Mealtime, You Can Eat Anything You Want
Implementation Specialists
KCG
implementation.com18
THE SECRET?
YOU GOTTA EAT A LOT OF CARROTS!
• Every Day - Day In And Day Out
• Raw - Not Cooked, Not Juice, Not Sticks, But RAW
• You Must Never Be Without A Mouthful Of Carrot And Another Waiting In Your Hand
And It Doesn’t Matter Whether Or Not You Like Them
Implementation Specialists
KCG
implementation.com19
TAIICHI OHNO’S ORIGINAL WASTES (MUDA)
TAIICHI OHNO, ARCHITECT OF THE TOYOTA PRODUCTION SYSTEM
PEOPLE
TYPESOF
WASTE
Processing
Motion
Waiting
FixingDefects
Making TooMuch
MovingThings
Inventory
QUANTITY
QUALITY
Implementation Specialists
KCG
implementation.com20
A “BOW” TO SIX SIGMA
PEOPLE
Processing
Motion
FixingDefects
Making Too
Much
MovingThings
Inventory
QUANTITYQUALITY
Waiting
ProcessStability &Reliability
TYPESOF SURACE
WASTE
Implementation Specialists
KCG
implementation.com21
“UNIVERSAL” SURFACE WASTES
Processing
Motion
Waiting
Han
d-of
f
StandardizationStra
tegicAssignment
Tran
slat
ion
Uneven Flow
Mis
sing
Alignment
Irrelevancy
CheckingVa
riabi
lity
Tam
perin
gControl
Suboptimization
Work-aroundWork-in-process
Inaccuracy
Inventory
Fixed
Moving Things
Reliability
Error
SchedulingTYPES
OF SURFACEWASTE
Process
Information
People
Asset
Implementation Specialists
KCG
implementation.com22
LEAN RESTS COMPLETELY ON LEADERSHIP
• There Are Few Natural Lean Leaders• Without Lean Leaders, Management’s Proclamations
And Exhortations To “Go Lean” Or “Become World-class” Will Accomplish Very Little
• Lean Leaders Do Not Develop Through Osmosis In Traditionally Managed Organizations
• Lean Leaders Can Be Made By Creating The Necessary Structure And Behaviors
• There Is A Methodology For Creating Lean Leaders And A Lean, World-class Environment Rapidly
• SLM2T3 = “SLIM-IT” Creates Lean Conditions And Lean Results Fast
Implementation Specialists
KCG
implementation.com23
LEADERSHIP WASTES
Focus Waste Is the Loss That Arises When Management and Employees at All Levels Are Not Consistently Aligned and Energized to Address Critical IssuesStructure Waste Is the Loss of Value That Arises When There Is Not a Formal System of Behaviors and Processes in Place to Require Focus on ImprovementDiscipline Waste Is the Loss Caused by Failure to Maintain the Behaviors and Processes of the StructureOwnership Waste Is the Loss That Occurs When Employees Are Not Inclined/permitted/allowed to View Their Work Areas As Direct Extensions of Themselves
Arise From a Failure to Harness the Potential That Resides in All Work Groups
Implementation Specialists
KCG
implementation.com24
Focu
sSt
ruct
ure
Owne
rshi
p
Disc
iplin
e
LEADERSHIPWASTES
Processing
Motion
Waiting
Han
d-of
f
StandardizationStra
tegicAssignment
Tran
slat
ion
Uneven Flow
Mis
sing
Alignment
Irrelevancy
Checking
Varia
bilit
yTa
mpe
ringControl
Suboptimization
Work-aroundWork-in-process
Inaccuracy
Inventory
Fixed
Moving Things
Reliability
Error
SchedulingTYPES
OF SURFACEWASTE
Process
Information
People
Asset
THE KEY ROLE OF LEADERSHIP
Implementation Specialists
KCG
implementation.com25
THE OFFICE KAIZEN CUBE
Processing
Motion
Waiting
Han
d-of
f
StandardizationStra
tegicAssignment
Tran
slat
ion
Uneven FlowM
issi
ng
Alignment
Irrelevancy
Checking
Varia
bilit
yTa
mpe
ringControl
Suboptimization
Work-aroundWork-in-process
Inaccuracy
Inventory
Fixed
Moving Things
Reliability
Error
SchedulingTYPES
OF SURFACEWASTE
Ownership
StructureDiscipline
Focus
People Process
SLIM-IT SM
Site Structure•Management Champions
•Site Leadership Team
Lean Daily Management
System
•New Things Teams
•Fixing Things Teams
•Weekly Action Review
•Team Charters
•Short-interval Coaching SM
•Intact Work Group “CNN” MeetingsKCG 20 Keys SM
•Primary Visual Displays
•Kaizen Action Sheet System
LEADERSHIPWASTES
InformationAsset
•Improvement Teams
Implementation Specialists
KCG
implementation.com26
THE FULL CUBESM
• “Brown Paper” analysis (“as is” & “To be”)
• Box and wire diagram dynamic analysis
• Waste checklist• 7 Management Tools• Advanced statistical
process control methods• Office Kaizen
reengineering blitzes• Asset optimization• DILO analysis • RACI analyses• Kaizen work sheets • The 5 “S”• Kanban• Error proofing• Structured problem
solving• Work loading analysis
• Key Goals Visual Focus ChartSM
• 7 Quality Control Tools• Value chain analysis• Workplace organization• Scheduling analyses• Benchmarking analysis• Work leveling studies• Core competency
analyses• Skill versatility matrices• Data integrity checklist• Red-yellow-green
analysis• Exposition participation• Financial
decomposition/analysis• Visual displays• Unsafe behavior analysis• Autonomation/jidoka
SURFACE WASTE REDUCTION METHODS
Processing
Motion
Waiting
Han
d-of
f
StandardizationStra
tegicAssignment
Tran
slat
ion
Uneven Flow
Mis
sing
Alignment
Irrelevancy
Checking
Varia
bilit
yTa
mpe
ringControl
Suboptimization
Work-aroundWork-in-process
Inaccuracy
Inventory
Fixed
Moving Things
Reliability
Error
SchedulingTYPES
OF SURFACEWASTE
Ownership
StructureDiscipline
Focus
People Process
SLIM-IT SM
Site Structure•Management Champions
•Site Leadership Team
Lean Daily Management
System
•New Things Teams
•Fixing Things Teams
•Weekly Action Review
•Team Charters
•Short-interval Coaching SM
•Intact Work Group “CNN” MeetingsKCG 20 Keys SM
•Primary Visual Displays
•Kaizen Action Sheet System
LEADERSHIPWASTES
InformationAsset
•Improvement Teams
Implementation Specialists
KCG
implementation.com27
SURFACE WASTE REDUCTION TOOLS
• “Brown Paper” analysis • Box and wire diagram
dynamic analysis• Waste checklist• 7 Management Tools• Advanced statistical process
control methods• Blitzes• Asset optimization• DILO analysis • RACI analyses• Kaizen work sheets • The 5 “S”• Kanban• Error proofing• Structured problem solving• Work loading analysis
• Key Goals Visual Focus ChartSM
• 7 Quality Control Tools• Value chain analysis• Workplace organization• Scheduling analyses• Benchmarking analysis• Work leveling studies• Core competency analyses• Skill versatility matrices• Data integrity checklist• Red-yellow-green analysis• Exposition participation• Financial decomposition &
analysis• Visual displays• Unsafe behavior analysis• Autonomation/jidoka
Implementation Specialists
KCG
implementation.com28
Structure
Structure
Mentoring
Metrics
LeanDaily Management System
SLM2T3 = “SLIM-IT”SM
Tools Technology
Teamwork
Implementation Specialists
KCG
implementation.com29
Structure
Structure
Mentoring
Metrics
LeanDaily Management System
WITHOUT SLIM-ITSM
Tools
TeamworkTechnology
Effort 1 Effort 3
Effort 5
Effort 2
Effort 4
TeamworkTechnology
Teamwork Tech
nolog
yTo
ols
Teamwork
Technology
ToolsTeamwork
Technology
Tools
Tools
Effort 6Tools
Teamwork
Technology
Implementation Specialists
KCG
implementation.com30
WHY TRANSFORMATION EFFORTS FAIL
Error #1 Not Establishing A Sufficient Sense Of UrgencyError #2 Not Creating A Powerful Enough Leadership
CoalitionError #3 Not Creating A VisionError #4 Undercommunicating By A Factor Of 10Error #5 Not Removing Obstacles To The VisionError #6 Not Systematically Planning For And Creating
Short-term WinsError #7 Declaring Victory Too SoonError #8 Not Anchoring Changes In The Culture
From “Why Transformation Efforts Fail”, John P. Kotter, Harvard Business Review
Implementation Specialists
KCG
implementation.com31
HOW ARE WE DOING SO FAR?
Sense Of Urgency
Leadership Coalition
Creating A Vision
Over-communicating
Removing Obstacles
Short-term Wins
Victory Too Soon
Anchoring Changes
None Almost A Some Fair A Completelynone little amount Lot
None Almost A Some Fair A Completelynone little amount Lot
None Almost A Some Fair A Completelynone little amount Lot
None Almost A Some Fair A Completelynone little amount Lot
None Almost A Some Fair A Completelynone little amount Lot
None Almost A Some Fair A Completelynone little amount Lot
None Almost A Some Fair A Completelynone little amount Lot
None Almost A Some Fair A Completelynone little amount Lot
Implementation Specialists
KCG
implementation.com32
RESULTS ACROSS ORGANIZATIONS
Non-management employees (3,870)
Middle management/supervisors (1,412)
Upper management & executives (1,433)
None Almost A Some A Fair A CompletelyNone Little Amount Lot
Creating a sense of urgency
Establishing a leadership coalition
Creating A vision
Over-communicating by 10X
Removing obstacles to the vision
Creating short-term wins
Not apt to Declare victory too soon
Anchoring changes in the culture
Implementation Specialists
KCG
implementation.com33
THE THREE STAGES OF CHANGE
This Cycle Is Powered By Environmental Pressure
CHAOSThe Old Processes Don’t Work
In The New Environment;Can’t Predict Exactly What
The New Ones Will Look Like
EQUILIBRIUMThe Rules Work
The System Is Stable
REINTEGRATIONNew Processes That
Work In The NewEnvironment Begin To
Form
ONEWAYONLY
Implementation Specialists
KCG
implementation.com34
EQUILIBRIUM
CHAOS
CHAOS
CHAOS
REINTEGRATION
REINTEGRATION
REINTEGRATION
REINTEGRATION
CHAOS
REINTEGRATION
REINTEGRATIONCHAOS
MANAGING CHAOSPe
rfor
man
ce
TimeNOW FUTURE
Daily Shift Start Up MeetingsKaizen Action Sheet Improvements
20 keys
Dramatic Structural Changes
Safety Feedback
Lean Daily Management System
Appropriate Use Of Work Measurement Sheets
Work Group Visual Displays
Extensive Metrics
Key Goals Visual Focus Sheets
A Vision Everyone Believes
Value People
Kaizen/reengineering BlitzesLean Organization Structures
Executive Steering Committee And Work Streams Structure
EQUILIBRIUM
EQUILIBRIUM
EQUILIBRIUM
EQUILIBRIUM
EQUILIBRIUMEQUILIBRIUM
CHAOS
5 S
Implementation Specialists
KCG
implementation.com35
STRUCTURE ELEMENT OF SLIM-ITSM
Dept. 2
a b z gc d e f
Dept. 1 Dept. 3 Dept. n
y
Intact Work Groups = a, b, c, etc.
PlanningOperations
Administration
Marketing/Sales
Maintaining good changes
EXISTING MANAGEMENT
TEAMSLIM-ITSM
structures& processes
“Normal” pre-SLIM-ITSM
structures, personnel& processes
…The Organization
Lean Daily
ManagementSystem
• KAS
Implementation(Planning,design,
employee involvement, installation, metrics, coaching, training)
Executive Champion
Fixing Things
Kaizen Blitzes
Improvements
New Things
CHANGE TEAMS
Cha
rter
s
PrioritizeGuideDecideDirect
ExecutiveSteering
Committee
Recommend
• DWGM
• SIC• 20 Keys
• PVD
Implementation Specialists
KCG
implementation.com36
KCG ROLE IN SLIM-ITSM IMPLEMENTATION
Dept. 2
a b z gc d e f
Dept. 1 Dept. 3 Dept. n
y
Intact Work Groups = a, b, c, etc.
PlanningOperations
Administration
Marketing/Sales
Maintaining good changes
EXISTING MANAGEMENT
TEAMSLIM-ITSM
structures& processes
“Normal” pre-SLIM-ITSM
structures, personnel& processes
…The Organization
Lean Daily
ManagementSystem
• KAS
Implementation(Planning,design,
employee involvement, installation, metrics, coaching, training)
Executive Champion
Fixing Things
Kaizen Blitzes
Improvements
New Things
CHANGE TEAMS
Cha
rter
s
PrioritizeGuideDecideDirect
ExecutiveSteering
Committee
Recommend
• DWGM
• SIC• 20 Keys
• PVD
KCG Coaching
Implementation Specialists
KCG
implementation.com37
REPRESENTATIVE CHANGE TEAMS
–Changeovers–Process variability–Error Proofing
–P.O processing –Workplace Organization–Design requirements
–Defects in specifications–Missing order numbers–Cust. inquiry feedback
–Incorrect quotes–Order lead time–Poor cycle time
–Upgrade EIS–MRP accuracy–Error Proofing
–Inventory accuracy–Meeting effectiveness–KAS discipline
–Relocate offices–Design a new offering–New safety program
–Tour group logistics–Install a new line–Implement skills versatility
Type of Team
New Things
Improvements
Fixing Things
Blitzes
Typical Topics
Implementation Specialists
KCG
implementation.com38
REPRESENTATIVEWORK STREAM SCHEDULING
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
123456789
101112131415
Weeks From The Start Of The EffortDescription of Activity(taken from list of activities)Work Stream
3
1P S 2P S 3P S 4P S 5P S P 6
Specific, structured implementation activities
On-going maintenance (part of the new culture) Never stops
Stops at the end of the project
P Blitz planning (issues, teams, resources, etc.)
# Sequential, independent, one-week long blitzes
“Sweep” week to close out action items from the previous week(s) blitz(es)S
Executive Steering Committee meeting
Project AdministrationESC ActivitiesPre-shift MeetingsPrimary Visual DisplaysInventory ReductionLine 2 Cycle Time Red.KCG 20 KeysSMEDKaizen BlitzesFuture Initiatives/changes
Specific, urgent problem
?????
Implementation Specialists
KCG
implementation.com39
REPRESENTATIVEWORK STREAM SCHEDULING
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
123456789
101112131415
Weeks From The Start Of The EffortDescription of Activity(taken from list of activities)Work Stream
3
1P S 2P S 3P S 4P S 5P S P 6
Specific, structured implementation activitiesNever stops
Stops at the end of the project
P Blitz planning (issues, teams, resources, etc.)
# Sequential, independent, one-week long blitzes
“Sweep” week to close out kaizen action itemsSExecutive Steering Committee meeting
Specific, urgent problem
ESC MeetingsQuality on RB-12Upgrade EISNew MRPUpgrade RB-3 LineOrganize tours/gift shopSkills versatility in factory 3Plan/run kaizen blitzes 1P S
Implementation Specialists
KCG
implementation.com40
Champion
Change TeamsExecutive Steering
Committee
2 to 4 hours
per weekeach
Change Team2 to 40+ hours per
week each
KCGConsultant
CHANGE TEAM RELATIONSHIPS
Pre-shift MeetingsPrimary Visual
DisplaysInventory Reduction
Line 2 Cycle Time Reduction
Team Leader
Kaizen BlitzesKCG 20 Keys
P.O. Problems
Implementation Specialists
KCG
implementation.com41
Work Stream Teams
KCGConsultant
CHARTER
Champion
Work Group
2
Coach Teach Help Assist Do Guide Facilitate
STREAM TEAMS AND INTACT WORK GROUPS
Supervisor
TeamLeader
Supervisor
Exe
cuti
veS
teer
ing
Co
mm
itte
e
Work Group
1
Work Group
n
Start Date: Estimated End Date: Estimated Duration (Weeks):Team Members
ESC Champion: Team Leader:
Team Members:
Area of Concentration/mission:
Objective(s):
Primary Visual Displays For Work Groups
1. Install Primary Visual Displays (PVD) for all intact workgroups in the plant and offices
2. Develop and implement methods/training to assure thatthe PVD are continuously update and maintained
2/23/00 5/01/00 10 Weeks
Buck Bonzai P. Tommy
John Bigboote’ John YayaSusan Jones Mary Quite-ContraryJohn SmalLberries Rashid Mohammed
Implementation Specialists
KCG
implementation.com42
Start Date: Estimated End Date: Estimated Duration (Weeks):Team Members
ESC Champion: Team Leader:
Team Members:
Area of Concentration/mission:
Objective(s):
SAMPLE CHARTERHeader
Primary Visual Displays For Work Groups
1. Install Primary Visual Displays (PVD) for all intact work groups in both the plant and office areas
2. Develop and implement methods/training to assure that the PVD are continuously updated and maintained
2/23/00 5/01/00 10 Weeks
Buck Bonzai P. Tommy
John Bigboote’ John YayaSusan Jones Mary McQuite-ContraryJohn SmalLberries Rashid Mohammed
Implementation Specialists
KCG
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SAMPLECHARTERCritical Success
FactorsCritical Success Factors (What Has To Go Right To Achieve The Above Objectives)
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
Management support when actions must be takenTime off the job to do team activities and coachingWillingness of the ESC to take out the “concrete heads” Support from plant maintenance for PVD installationFacilitator and effective meeting training for this teamAccess to the ESC when we need itManagement’s willingness to openly walk the talk every
day by visiting the boards and encouraging supervisors and leads to maintain them
Fast management action to approve plant and department metric formats for the boardsFast HR review of attendance and skill versatility issues so that we can get moving
8
9
Implementation Specialists
KCG
implementation.com44
Key Activities
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
SAMPLE CHARTERKey Activities
Agree on our meeting rules and agenda formatsFinalize a meeting schedule with the ESCFinalize our team meeting scheduleReview schedules with our supervisors and ESCDetermine what elements will go on PVD right awayIdentify down-stream PVD adds (e.g., skill-versatil.)Develop mock-ups of discrete parts of the PVDReview mock-ups with the ESC and functional groupsChange/adjust as necessaryObtain approvals and finalize PVD initial contentDevelop PVD mock-upReview (exposition style) with many employee groupsIncorporate builds and changesSelect first implementation areasMeet with leads/supervisors from first areas
Implementation Specialists
KCG
implementation.com45
SAMPLECHARTERActivities Schedule
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
123456789
101112131415
Weeks From The Start Of The EffortDescription of Activity(taken from list of activities)
Meeting rules/agendasESC mtg. schedule Team mtg. scheduleReview sched. w/ super.Determine Sh. term PVD Identify later PVD adds Dev. Discrete mock-ups Review mock-upsChange/adjustObtain approvalsDevelop PVD mock-upReview w/employeesIncorporate changesSelect 1st implemt. areasMtgs. with area leads
Implementation Specialists
KCG
implementation.com46
THE FIVE COMPONENTS OF THE LDMS
1. A Daily Work Group* Shift Start-up (SSU) Meeting
2. A Work Group* Primary Visual Display (PVD)
3. A Kaizen Action Sheet (KAS) Improvement System
4. 20 Keys Assessment And Improvement Plan
5. Short Interval CoachingSM
* An Intact Work Group Works In Close Proximity For Most Of The Time And Has A Process Or Functional Connection That Tends To Pull Them Together Of No More Than Nine People
Each Intact Work Group* Of No More Than Nine People Must Maintain:
Implementation Specialists
KCG
implementation.com47
DAILY WORK GROUPSHIFT START-UP (SSU) MEETINGS
• A Planned Daily Meeting With A Workgroup• Changes Behavior A Little Every Day• A Means Of Expediting The Sharing Of Information• A Disciplined Approach That Mandates/drives Small
Continuous Improvements• A Focal Point For The Team’s “Soul”• The Primary Means Of Building A “Team” Feeling
Daily Project Meetings Are a Forum for CommunicatingAnd Sharing Information
Implementation Specialists
KCG
implementation.com48
BASIC GUIDELINES FOR SSU MEETINGS
• Keep Them Brief And Tightly Focused– 10 Minutes Max– Focus On Day-to-day Activities– No Bitching Or Complaining Allowed
• Held In The Work Area In Front Of The Primary Visual Display
• “Standup” Meetings• Rotate Meeting Facilitators Using Those Who Are Trained
And Willing• No Meeting Minutes• Planning And Discussions Should Be Taken Off-line
Implementation Specialists
KCG
implementation.com49
BASIC SCRIPT FOR SSU MEETINGS• Welcome/announce New Team Members And Introduce
Visitors• Kudos, Rewards, Recognition • Generally Recommended Agenda:
DAILY- Safety Issues- Key Goals Visual Focus
Chart - Prior Day’s And Preceding
Shift’s Quality And Performance Issues
- Successive Checks In Effect- Other Important Metrics- Kaizen Action Sheet
Status/actions- 5’S Reminders- Daily Plant News Update - Other Needed Actions
LESS THAN DAILY- Site, Departmental,
Company Performance- 20 Keys Status And Actions- Key Customer Review- Skills Versatility Status And
Cross-training Plans- Status And Plans For Long-
term Process Improvement Issues
- General Company Initiatives And News
Implementation Specialists
KCG
implementation.com50
SHORT-INTERVAL COACHINGSM
• Every Supervisor/lead “Touches” Every Worker/machine/ Process Twice Per Hour Every Shift In Person
• Data Is Formally Collected/updated At Least Once Per Hour By Workers As To:
– Output Versus Plan– Actions Taken To Resolve Deviations From Plan– Maintenance/parts/tooling Issues/requirements– Safety Issues– Problems That Have Popped Up
• These Actions Quickly Lead To Resolutions Of Problems And Build A Teamwork Bond Among The Work Group
This Is Where The Coaching And Metrics Elements Of SLIM-IT Are Driven To The Micro-process Level
Implementation Specialists
KCG
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FINAL ASSEMBLY CELL 2
RESOLVED
1. A-1 Co. 18%2. B-2, Inc. 12%3. BFG, Ltd. 9%4. Bob, Inc. 8%5. Carol Co. 8%6. Ted, Inc. 7%7. Alice, Ltd. 6%
SUBMITTED WORKING
KAIZEN ACTION SHEETS
DATEEmployeeName 3/5 3/6 3/7 3/8 3/9 3/10 3/11 3/12 3/13 3/14
Ahmjad
Bob
Carmen
Han
Sally
Tyrone
Present Excused Absence/Late
Unexcused Absence
V V PD
PD
VPD V
PD = Personal Day V = Planned Vacation
BLANKS
ATTENDANCE
SKILL VERSATILITY
20 KEYS STATUS
UNITS AGAINST PLAN(Cum. Mo. To date)DEFECTS PER DAY
1 2 3 4 5 6 7 8 9 10 11 12
Make list of cleaning supplies Bob, SallySubmit P.O. for supplies Rashid, JamailConstruct shadow boards Abdullah, PacoDevelop check list Brunhilda, MikhailDevelop procedures Bob, JamailDevelop RACI chart Paco, RashidImplement new system AllEARN POINT(S)!!!! All
WEEKACTIVITY PERSON RESPONSIBLE
ACTIVE 20 KEYS ACTION PLAN
CELL METRICS
PLANT METRICS(mo. to date)
TOP CUSTOMERS
Date: Page ofManager Or Team Leader Area Or Process Name Person Doing This Sheet
Problem Description: Actions Taken/To Be Taken: Results/Expected Results:
Before Kaizen (draw picture): After Kaizen (draw picture):
Outputs Measured/To Be Measured To Determine Impact Of Changes:
KAIZEN ACTION SHEETJohn Bigboote’ John YayaPaper CB Fab
6/25/98
Too much walking Change layout Eliminate most walkingwaste, reduction ofcycle time andimproved efficiency
1 235
4 6
7 8
Kaizen Target Sheet Metrics
12
3
5
31 1
46
1
7
1
11
8
1
Parts Crib
Shipping Dock TransportRestocking
KAIZEN “TO DO” LISTBob Johnson WPC 407 Line
1 O verall Layout Install U-shape dlayout
2 Hard to g rasp bases from bin
Install g ravityfeed bin
3 C e nte r fixture
4 Hard to g rasp parts from bin
Install g ravity fe edbin & change location
T oo l arrangem entlocating/re aching
Rearrange to eliminaterepetitive motions
6 Re aching to stackcartons
Install workplaceorganization
O ff centerfixture
5 Hard to g rasp parts from bin
Install gravity feedbin & change location
7
Item# Problem Corrective Action
Manager Or Team Leader Area Or Process Name5/8/96
Bill Lareau
J. Monta 5/9
L. Ne ll 5/9
B. Johnson 5/9
L. To lsto i 5/9
5/9
5/9
5/9
L. Nell
B. Johnson
J. Monta
Date: Page of
PersonResponsible
DateDue
PercentComplete
25
50
100
7525
50
100
7525
50
100
7525
50
100
7525
50
100
7525
50
100
7525
50
100
7525
50
100
7525
50
100
7525
50
100
75
Person Doing This Sheet
Date: Page ofManager Or Team Leader Area Or Process Name Person Doing This Sheet
Problem Description: Actions Taken/To Be Taken: Results/Expected Results:
Before Kaizen (draw picture): After Kaizen (draw picture):
Outputs Measured/To Be Measured To Determine Impact Of Changes:
KAIZEN ACTION SHEET ERROR-PROOFING ACTION SHEET
Process Element Addressed: Error-Proofing Action To Be Taken: Expected Impact:
Before Error-Proofing (draw picture): After Error-Proofing (draw picture):
Date: 5/10/96 Page 1 of 1 Area Zone INTERVIEWER SIGN-OFFEMPLOYEE SIGN-OFFShift
1
2
Error-ProofingType Code No.:
Primary PartNumber:
Bay
1 2 3 4 5 6 7
Operation Number Seq.No.
1 1 1 0 1 2 1DATE IMPLEMENTED
Improper assembly due tofixture accepting the platein the wrong configuration.Often not noticed untilseveral processesdownstream
Add pin to fixture toprohibit improperplacement
Complete elimination oferror due to improperoreintation of plate. Lessthan one second lost ifimproper assmbly isattempted
5/15/96
C 15 BT-1320 AH-14
Bob Smyth Billy-JoeDuncan
R-B47/A
Special Goals Visual Focus ChartMonth: Supervisor/team LeaderArea/team: Shift:
SPECIFIC GOALTARGETS/OBJECTIVES
Goals A-E Tracked DailyDAILY VISUAL TRACKING
MAIN PROBLEMS(Hurting Green Achievement)
20
1
4
8
12
16 24
28
A.
BD
EC
21 2223
25
2627
2930
31
171918
15
235
14
13
1110
9
76
31
26
30
29
24
28
27
25
23
2221
20
19
17
1518
16
14
1312
11 10
89 7 6
51243
A.
A._____________________
B._____________________
C._____________________
D._____________________
E._____________________
F._____________________ Week
G._____________________ Week 1 2 3 4 5
1 2 3 4 5
Green Goal completely achieved
Goal partially achieved
Goal missed by a lot
Goals F and G Tracked Weekly
Yellow
RedLegend
Definitions and examples or performance levels
A.______________________
B.______________________
C.______________________
D.______________________
E.______________________
F.______________________
G._____________________
E
CB
D
E
CB
D
E
C B
D
B
DE
C
No accidents
RB-47 zero defects
Scrap less than $50 per day
No packing material on floor
Attendance 100%
Unsafe behavior audit < 8
Less than 10% downtown
ANone
>0incident>1incident
BZero
<3
>3
C<$50
<$55
>$55
D <5 pcs
>5pc.
>10 pcs.
E 100%
>0 late>0absent
Too many people notwearing eye protection andfew people reminding eachother; REMIND EACHOTHER!!!!Jams on C41 line notbeing clearly quickly;also need maintenanceto seek long-termsolution
Not caring about co-workers?
Carelessness, lack of house-keeping discipline; REMINDEACH OTHER!!!!
Not monitoring qualityclosely enough to catchfirst defects
Violation of safe practice;not reminding each other;carelessness
Maintaining processcontrols
2/000 Final 3 John Bigboote’ 1
F <8
<10
>10
G <10%
<15%
>15%
Special Goals Visual Focus Chart
Cumulative Daily RB-47 Output
0100200300400500600700800
1 3 5 7 9 11 13 15 17 19 21 23 25 27 29
Day
Out
put
Target
02468
101214
1 4 7 10 13 16 19 22 25 28 31
DAYS
DEF
ECTS
PER
DA
Y TARGET
Date: Page of
Space (sq. ft.)
Work In Process (WIP)
Total Walking Distance (ft.)
Total Parts Travel Distance (ft.)
Lead Time Of Selected Pc. (sec.)
Total Manual Time Per Pc. (sec.)
Crew Size
Shadow Work Required (sec.)
Output Per Person Per MinuteEfficiency [Manual Time/(TotalTime X 100)]Changeover Time (sec.)
PerformanceParameter
Remarks/Notes:
StartingValue Target 1st
Effort2nd
Effort3rd
Effort4th
EffortChange(units)
Change(%)
Department Or Area
ProcessName
RequiredProductionTotal TimeAvailable (sec)
Takt Time (sec)
* *
* Compared To Starting Value
Output Cadence (sec.)
KAIZEN TARGET SHEETFinal Assembly Cell 2
RB-12 1225/day27,000 22
02/14/00 1 1
224 100 197 188 -36 -16% 722 50 610 227 -495 -69% 110 55 77 63 -47 -43% 118 65 88 77 -41 -35%10,920 600 8,322 3,821 -7,099 -65% 621 400 553 523 -98 -16% 37.2 22 35.2 26.4 -11.8 -32% 12.1 5.0 15.2 13.6 +1.5 +12% 3.2 2.0 1.3 -1.9 -59%54.2% 90% 57% 65% +10.8 +20% 12% 100% 21% 23% +11 +93% $820 <$50 $802 $783 -$37 -5%$63.11 <$50 $61.11$60.05 -$3.06 -5%
Scrap per day
All Cell Costs/Unit
11/20/99 1/7/0011/1/99
Percent P.M. Completed
1. Sales (000) 3,3452. Sales to plan (%) 1023. Cost of Labor Hour $34.124. Inventory Turns year 45.14. % shipped on time 98.85. Cycle time (min) 453.46. Machine up time (%) 69.27. % Customer retention 85.28. Stock price 33
KAIZEN ACTION SHEET Date: Page 1 of 1 Manager Or Team Leader Area Or Process Name Person Doing This Sheet
Problem Description: Actions Taken/To Be Taken:Results/Expected Results:
Before Kaizen (draw picture): After Kaizen (draw picture):
Outputs Measured/To Be Measured To Determine Impact Of Changes:
John Yaya Cell 2 John Smallberries
02/05/00
Too much timegrasping baseparts from partsbin. Bin islocated in hard toreach spot
Install gravityfeed bin for thebases
Save at least 1.0seconds perassembly
Springs
Bases(hardto reachanduntangle)
Springs
Bases(easy toreach andgrasp)
Standard work combination sheet time study
Team Member
Larry
Bob
Moe
Sally
Met
rics M
nt .
RB-1 O
p.
%SSU Mtg .
Teac
h RB-
3
1-
point
s
RB-1
PM.
RB-3 S
MED
RB-1 S
MED
96
13
42
56
Task Flexibility
Task Coverage
100
9/9
50 42
2/9
56
3/9
37
4/9
80
2/9
86
6/91/9
62
.... ..
Process Or Task
.. .... .. .. .... .. .. ....
..
..
..
..
..
..
..
..
..
54
32
1
54
32
1
54
32
1
54
32
1
STRAIGHTEN SORT AND ORGANIZE
SANITIZE STANDARDIZE
OUTSTANDING!!!!
Best I’ve seen
in months!
Paper on floor
Grease on floor
NC-3 dirtyNEEDS IMPROVEMENT FAST
SWCS not up to date
Action sheets not current
2 tools out of place onshadow board’otherwise, VERYGOOD!!!
1 Loose connectors (board A-2) 52 Cracks in RB-43 solder joint 43. Scratch on faceplate 24. Washer missing on A-2 15. Missing screw (back of case) 1
QUALITY ISSUES YESTERDAY
SUCCESSIVE CHECKS IN OPERATIONRashid Check flange on B-34 Ends 3/15Sally Watch for missing 0-ring Ends 3/16Carmen Check torque on A24 Ends 3/16
SAFETY AUDITS
0
5
10
15
20
1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31
TARGET
Cle
anin
g
Org
aniz
ing
Team
Act
iviti
es
Met
rics
Proc
ess
Con
trols
Con
tinuo
us P
roce
ss Im
prov
emen
t
Rol
es A
nd R
espo
nsib
ilitie
s
Wor
k Le
velin
g
Wor
k St
anda
rds
Visu
al S
yste
ms
Tim
e C
ontro
l & C
omm
itmen
t
Pre-
Shift
Mee
tings
Safe
ty
Empo
wer
ing
Wor
kers
Skill
Vers
atilit
y
Prod
uctio
n Sc
hedu
ling
Equi
pmen
t Mai
nten
ance
Qua
lity
Assu
ranc
e Ap
proa
ch
Man
agem
ent O
f Obj
ectiv
es
Qui
ck C
hang
eove
r Tec
hnol
ogy
5
4
3
2
1
Perf
orm
ance
Lev
el
W O R L D - C L A S S
C U R R EN T LY I N V I N C I B L E
L E A R N I N G
L E A D I N G
Perf
orm
ance
Lev
el
T R A D I T I O N A L 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
5
4
3
2
1
KCG 20 Keys Of Lean Manufacturing
GoalStart
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
Attained
Over-achieved Missed One
SPECIAL GOALS VISUAL FOCUS CHARTMonth: Supervisor/team LeaderArea/team: Shift:
SPECIFIC GOALTARGETS/OBJECTIVES
Goals A-E Tracked DailyDAILY VISUAL TRACKING
MAIN PROBLEMS(Hurting Green Achievement)
20
1
4
8
12
16 24
28
A.
BD
E
C
21 2223
25
2627
2930
31
171918
15
235
14
13
1110
9
76
31
26
30
29
2428
27
25
23
2221
20
19
17
1518
16
14
1312
11 10
89 7 6
51243
A.
A._____________________
B._____________________
C._____________________
D._____________________
E._____________________
F._____________________ Week
G._____________________ Week 1 2 3 4 5
1 2 3 4 5
Green Goal completely achieved
Goal partially achieved
Goal missed by a lot
Goals F and G Tracked Weekly
Yellow
RedLegend
Definitions and examples or performance levels
A.______________________
B.______________________
C.______________________
D.______________________
E.______________________
F.______________________
G._____________________
E
CB
D
E
CB
D
E
C B
D
B
DE
C
No accidents
RB-47 zero defects
Scrap less than $50 per day
No packing material on floor
Attendance 100%
Unsafe behavior audit < 8
Less than 10% downtown
ANone
>0incident>1incident
BZero
<3
>3
C<$50
<$55
>$55
D <5 pcs
>5pc.
>10 pcs.
E 100%
>0 late>0absent
Too many people not wearing eye protection and few people reminding each other; REMIND EACH OTHER!!!!Jams on C41 line not being clearly quickly; also need maintenance to seek long-term solution
Not caring about co-workers?
Carelessness, lack of house-keeping discipline; REMINDEACH OTHER!!!!
Not monitoring quality closely enough to catch first defects
Violation of safe practice; not reminding each other; carelessness
Maintaining process controls
2/000 Final 3 John Bigboote’ 1
F <8
<10
>10
G <10%
<15%
>15%
SPECIAL GOALS VISUAL FOCUS CHART
Implementation Specialists
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SKILL VERSATILITY VISUAL DISPLAY
Team Member
Larry
Bob
Moe
Sally
Metrics
Mnt.
RB-1 O
p.
%SSU M
tg.
Teac
h RB-
31-
point
s
RB-1 P
M.
RB-3 S
MED
RB-1 S
MED
96
13
42
56
Task Flexibility
Task Coverage
100
9/9
50 42
2/9
56
3/9
37
4/9
80
2/9
86
6/91/9
62
.... ..
Process Or Task
.. .... .. .. .... .. .. ....
..
..
..
..
..
..
..
..
....
Implementation Specialists
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SKILL-VERSATILITY CHECK LIST
Job: CUSTOMER DOCUMENTATIONWrite technical specificationsCreate screens for levels 1 and 2
instructionsInterview customer service reps. for
improvement input
Review prior user feedbackWrite level 2 basic instructionsCreate user feedback cardWrite level 2 troubleshooting
instructionsCreate troubleshooting screensDevelop manual outline
Create package outlineCreate trouble shooting guide
outlineWrite level 3 basic instructionsWrite level 3 troubleshooting
instructionsInput electronic docs to customer
serviceConduct final audit
Write operation guidelinesCreate screens for level 3
instructionsCreate screens for troubleshooting
instructionsWrite level 1 troubleshooting
instructionsWrite level 1 basic instructionsCreate website feedback page
❏
❏
❏
❏
❏
❏
❏
❏
❏
❏
❏
❏
❏
❏
❏
❏
❏
❏
❏
❏
❏
✔✔✔
✔✔✔
✔
✔✔
✔
✔
✔
✔
✔✔
Implementation Specialists
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DATEEmployeeName 3/5 3/6 3/7 3/8 3/9 3/10 3/11 3/12 3/13 3/14
Larry
Bob
Curly
Moe
Sally
Roberta
Present Excused Absence/Late Unexcused Absence
V V PD
PD
VPD V
ATTENDANCE VISUAL DISPLAYTODAY
PD = Personal DayV = Planned Vacation
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THE SECRETS
OF BEHAVIOR
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PEOPLE LIKE TO DO:
• Work that makes their work group look good• Work that is interesting• Work that is fun• Work that is easy• Work that makes them look good• Work that they do best• Work that creates the least conflict• Work that covers up their shortfalls• Work that keeps co-workers happy• Work that they understand the most• Work that gives them a sense of accomplishment• Work that will keep them out of trouble• Work that their bosses likes to see
Implementation Specialists
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PEOPLE D0N’T LIKE TO DO:
• Work that makes their work area look bad• Work that is boring• Work that is unpleasant• Work that is difficult• Work that makes them look bad• Work that they do poorly• Work that creates conflict• Work that exposes their weaknesses• Work that aggravates their co-workers• Work that they understand the least• Work that provides no sense of achievement• Work that forces them to fight the system• Work that their boss does not like
Implementation Specialists
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THE PATTERN OFRESISTANCE TO CHANGE
Res
ista
nce
To C
hang
e Fr
om O
ther
Gro
ups
(Per
cent
Of M
axim
um)
Gro
ups
Acce
ptin
g C
hang
e(P
erce
nt)
TIME
GroupsAccepting
Resistance
START
Zone Of
HappinessAnd
Profit
100
90
80
70
60
50
40
30
20
10
0
100
90
80
70
60
50
40
30
20
10
0
ZoneOf
Danger
Implementation Specialists
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INVOLVEMENT AND COMMITMENT
DON’T LIKETHE CHANGE
High
Low
Low High
INVOLVEMENT
CO
MM
ITM
ENT
• “Liking” The Involvement Is Not An Issue
• People Can’t Help Themselves
• The Closer To The Micro-Processes, The More Commitment Is Generated
LIKE THE CHANGE
THIS DIFFERENCE IS MEANINGLESS!
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THE NATURE OF BEHAVIOR
Thought
• All Occur Together• We Can Only Control
Action• By Choosing Actions,
We Influence The Other Three
• Thoughts Are Hard To Change
• Actions Are Easy To Change
• You Must Mandate, Coach And Structure Small, On-going Behavior Changes Every Hour
EmotionalResponse
PhysiologicalResponse
ACTION
Implementation Specialists
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Power
FreedomFun
Survival/Sex
Belonging/Love
THE FIVE IN-BORN NEEDS OFCONTROL THEORY
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NEEDS CANNOT BE DENIEDA Given Individual’s Basic Need Levels
SURVIVAL BELONGING/LOVE
POWER FUN FREEDOM
Satisfaction That Helps The OrganizationSatisfaction That Is Lost To/or Hurts The Organization
Lost Lost Lost Lost Lost
Helps Helps Helps Helps Helps
Implementation Specialists
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GROUP SIZE AND SUBGROUPFORMATION
GROUP SIZE = 8 GROUP SIZE = 15
AFTER±
BEFOREBEFORE
AFTER
Implementation Specialists
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STATUS AND AUTHORITY
• Minimize Inter-Group Conflict, Saving Energy For Dealing With External Threats
• Create Order And Predictability; Maintain The Status Quo• It Is Part Of Our Basic Human Nature To Pursue Them
For Ourselves• It Is Part Of Our Basic Human Nature To Defer To Those
Who Have More Of Them Than We Do• Every Employee Is Watching Every Leader Every
Second For Cues As To What To Do• They Understand What Signals Are Being Sent
Without Even Being Aware Of Them And Without The Leaders Being Aware Of Sending Them
• Ischeal Tuberosities Tell The Whole Story!
Implementation Specialists
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LOOKS LIKE MANAGEMENT MATERIAL TO ME!
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CONFORMITY
AB
“Which LineIs
Longest?”
1 2 3 4 S
“A”“a” “α ” “A”
? !!
A
Implementation Specialists
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COGNITIVE DISSONANCE
• We Are Designed To Fit All Of Our Cognitions, Data And Theories Into a Consistent System
• When We Cannot, Dissonance Creates Tension And Anxiety. To Cope, We Then:
1. Deny The Truth 2. Distort Our Previous Beliefs Or
The New Data To Render The New Data Safe,
3. Change Our Belief System To Accept The New Data
More LearningHarder
Less AutomaticMore Work
More TensionMore Resistance
To Change
We Arrange Our Reality To Support Our Existing Belief Systems
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DEFAULT VALUES OF TRADITIONAL ORGANIZATIONS
• Don’t Find Fault; A Higher Caste Member Will Tell You If You Have A Problem
• Don’t Fight City Hall• Don't Make Any Mistakes • Act Like Everyone Else• Make Sure Authority
Figures Like You
• Wait For Others To Act• Maintain The Caste
System Of Status• Accept The Status Quo• Decisions Are Made At
The Top• Don’t Make Your Group
Look Bad• Don't Deliver Bad News
These Values Have Tremendous Survival Value IF The External Environment Is NOT Changing
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THE EVOLUTION OF EVERY ORGANIZATION
Panel A Panel B
Panel C
Panel D
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THE FINAL RESTING STATE OF ALL TRADITIONAL ORGANIZATIONS
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THE KCG 20 KEYS
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WHAT ARE THE 20 KEYS?Kobayashi’s 20 KEYS
1. Cleaning and Organizing2. Rationalizing the System/Management of
Objectives3. Improvement Team Activities4. Reducing Inventory (Shortening Lead Time)5. Quick Changeover Technology6. Manufacturing Value Analysis7. Zero Monitor Manufacturing8. Coupled Manufacturing9. Maintaining Equipment
10. Time Control & Commitment11. Quality Assurance System12. Developing Your Suppliers13. Eliminating Waste14. Empowering Workers to Make Improvements15. Skill Versatility and Cross-Training16. Production Scheduling 17. Efficiency Control18. Using Information Systems19. Conserving Energy and Materials20. Leading Technology/Site Technology
• First Developed By IwaoKobayashi
• 20 Keys, 5 Levels Of Each• Get Level 1 (20 Points)
Automatically• 20 Keys Are Not A “Tool” • A Method For Assessing
Overall World-Class Progress
• Encourages Areas, Teams And Functions To Be Self-Directed
• Provides Everybody With The Same Type Of Measurements
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Better(Quality)
Faster
(Mfg. T
ime)Cheaper
(Cost)
20Technology
1Cleaning
andorganizing
2Management
ofobjectives
3Improvement
teamactivities
18Using
informationsystems
17Efficiency
control
8Coupled
mfg.
15Cross-
training
13Eliminating
waste
14Empowering
workers
7Zero
monitormfg.
12Developingsuppliers
16Productionscheduling
5SMED
9Maintainingequipment
6Mfg.value
analysis
4Reducinginventory
19Savingenergy &materials
11Quality
assurancesystem
10Time
control
Kobayashi’sOriginal
20 Keys OfWorkplace
Productivity
Implementation Specialists
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PROBLEMS WITH KOBAYASHI’S KEYS
• One Score for the Entire Plant– Don’t Assess The Basic Building Block Of
Success (the Intact Work Group)– Averages Are Worthless for Focused
Improvements– Don’t Tell You When to Put the Effort
• Heavy On Results (E.G., Percentage Improvements) But Weak On ) Practices
• Doesn’t Build Daily Structural Changes• Doesn’t Focus Work Groups• Doesn’t Build Ownership
Implementation Specialists
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Cle
anin
g
Org
aniz
ing
Team
Act
iviti
es
Met
rics
Proc
ess
Con
trols
Con
tinuo
us P
roce
ss Im
prov
emen
t
Rol
es A
nd R
espo
nsib
ilitie
s
Wor
k Le
velin
g
Wor
k St
anda
rds
Visu
al S
yste
ms
Tim
e C
ontro
l & C
omm
itmen
t
Pre-
Shift
Mee
tings
Safe
ty
Empo
wer
ing
Wor
kers
Skill
Ver
satil
ity
Prod
uctio
n Sc
hedu
ling
Equi
pmen
t Mai
nten
ance
Qua
lity
Assu
ranc
e Ap
proa
ch
Man
agem
ent O
f Obj
ectiv
es
Qui
ck C
hang
eove
r Tec
hnol
ogy
5
4
3
2
1
Perf
orm
ance
Lev
el
W O R L D - C L A S S
C U R R EN T LY I N V I N C I B L E
L E A R N I N G
L E A D I N G
Perf
orm
ance
Lev
el
T R A D I T I O N A L1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
5
4
3
2
1
GoalCurrent
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
KCG 20 Keys Of Lean Manufacturing
Implementation Specialists
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WHAT THE LEVELS MEAN
The Usual Mess, Reactive, Few Or Bad Systems, Many Problems, Most Accepted As “Oh, Well....”
Level
Seamless, Transparent Automatic Excellence
World-class, Outstanding, Not Quite Always Automatic
System Installed; Frequent Glitches, Sometimes Serious
Awareness Established; First Small Steps Taken
5
4
3
2
1
Level Characteristics/Conditions
Implementation Specialists
KCG
implementation.com78
Cle
anin
g
Org
aniz
ing
Team
Act
iviti
es
Met
rics
Proc
ess
Con
trols
Con
tinuo
us P
roce
ss Im
prov
emen
t
Rol
es A
nd R
espo
nsib
ilitie
s
Wor
k Le
velin
g
Wor
k St
anda
rds
Visu
al S
yste
ms
Tim
e C
ontro
l & C
omm
itmen
t
Pre-
Shift
Mee
tings
Safe
ty
Empo
wer
ing
Wor
kers
Skill
Ver
satil
ity
Prod
uctio
n Sc
hedu
ling
Equi
pmen
t Mai
nten
ance
Qua
lity
Assu
ranc
e Ap
proa
ch
Man
agem
ent O
f Obj
ectiv
es
Qui
ck C
hang
eove
r Tec
hnol
ogy
5
4
3
2
1
Perf
orm
ance
Lev
el
W O R L D - C L A S S
C U R R EN T LY I N V I N C I B L E
L E A R N I N G
L E A D I N G
Perf
orm
ance
Lev
el
T R A D I T I O N A L1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
5
4
3
2
1
GoalCurrent
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
Each key and level intersection has a detailed description
Scrap, paper and general debris are found on the floor and work surfaces. Fluid spills are visible and grime and dirt is commonplace
Almost all the root causes of dirt and disorder have been eliminated. The area stays clean without much sweeping or wiping
Equipment, shelves and work surfaces are clean. Debris and spills are promptly (within 15 minutes) cleaned up by area personnel
The floor is generally clean. Debris and/or spills are cleaned up during each shift by the area employees
The area is generally clean and only rarely is a bit of debris, dirt, grease or a spill allowed to remain more than a few minutes
KCG 20 Keys Of Lean Manufacturing
Implementation Specialists
KCG
implementation.com79
ACTION PLAN FOR A SINGLE KEY
1 2 3 4 5 6 7 8 9 10 11 12
Make list of cleaning supplies Bob, SallySubmit P.O. for supplies Rashid, JamailConstruct shadow boards Abdullah, PacoDevelop check list Brunhilda, MikhailDevelop procedures Bob, JamailDevelop RACI chart Paco, RashidImplement new system AllEARN POINT(S)!!!! All
WEEKACTIVITY PERSON RESPONSIBLE
For Key 1: Cleaning. Points 2 and Three (At Once!!!)
Implementation Specialists
KCG
implementation.com80
1. The Work Group Assesses It’s Status
2. Executive Or Site Leader (e.g., Plant Manager) Sets 3 Or 4Year Goal (e.g., 60 to 70 Points)
4. Apply LDMS And Lean Techniques Within Work Groups
5. Conduct On-going Assessments
THE 20 KEYS PLANNING/ACTION CYCLE
3. Work Group Identifies Which Keys And Points It Will Focus On In The Next 12 Months
6. Select New Key And Point Goals And Continue To Apply Lean Methods
Cle
anin
g
Org
aniz
ing
Team
Act
iviti
es
Met
rics
Proc
ess
Con
trols
Con
tinuo
us P
roce
ss Im
prov
emen
t
Rol
es A
nd R
espo
nsib
ilitie
s
Wor
k Le
velin
g
Wor
k St
anda
rds
Visu
al S
yste
ms
Tim
e C
ontro
l & C
omm
itmen
t
Pre-
Shift
Mee
tings
Safe
ty
Empo
wer
ing
Wor
kers
Skill
Ver
satil
ity
Prod
uctio
n Sc
hedu
ling
Equi
pmen
t Mai
nten
ance
Qua
lity
Assu
ranc
e Ap
proa
ch
Man
agem
ent O
f Obj
ectiv
es
Qui
ck C
hang
eove
r Tec
hnol
ogy
5
4
3
2
1
Perf
orm
ance
Lev
el
W O R L D - C L A S S
C U R R EN T LY I N V I N C I B L E
L E A R N I N G
L E A D I N G
Perf
orm
ance
Lev
el
T R A D I T I O N A L 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
5
4
3
2
1
KCG 20 Keys Of Lean Manufacturing
GoalCurrent
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 2030 Points At Present
Cle
anin
g
Org
aniz
ing
Team
Act
iviti
es
Met
rics
Proc
ess
Con
trols
Con
tinuo
us P
roce
ss Im
prov
emen
t
Rol
es A
nd R
espo
nsib
ilitie
s
Wor
k Le
velin
g
Wor
k St
anda
rds
Visu
al S
yste
ms
Tim
e C
ontro
l & C
omm
itmen
t
Pre-
Shift
Mee
tings
Safe
ty
Empo
wer
ing
Wor
kers
Skill
Ver
satil
ity
Prod
uctio
n Sc
hedu
ling
Equi
pmen
t Mai
nten
ance
Qua
lity
Assu
ranc
e Ap
proa
ch
Man
agem
ent O
f Obj
ectiv
es
Qui
ck C
hang
eove
r Tec
hnol
ogy
5
4
3
2
1
Perf
orm
ance
Lev
el
W O R L D - C L A S S
C U R R EN T LY I N V I N C I B L E
L E A R N I N G
L E A D I N GPe
rfor
man
ce L
evel
T R A D I T I O N A L 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
5
4
3
2
1
KCG 20 Keys Of Lean Manufacturing
GoalStart
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
Attained
Over-achieved Missed One
10 Points Gained
Cle
anin
g
Org
aniz
ing
Team
Act
iviti
es
Met
rics
Proc
ess
Con
trols
Con
tinuo
us P
roce
ss Im
prov
emen
t
Rol
es A
nd R
espo
nsib
ilitie
s
Wor
k Le
velin
g
Wor
k St
anda
rds
Visu
al S
yste
ms
Tim
e C
ontro
l & C
omm
itmen
t
Pre-
Shift
Mee
tings
Safe
ty
Empo
wer
ing
Wor
kers
Skill
Vers
atili
ty
Prod
uctio
n Sc
hedu
ling
Equi
pmen
t Mai
nten
ance
Qua
lity
Assu
ranc
e Ap
proa
ch
Man
agem
ent O
f Obj
ectiv
es
Qui
ck C
hang
eove
r Tec
hnol
ogy
5
4
3
2
1
Perf
orm
ance
Lev
el
W O R L D - C L A S S
C U R R EN T LY I N V I N C I B L E
L E A R N I N G
L E A D I N G
Perf
orm
ance
Lev
el
T R A D I T I O N A L 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
5
4
3
2
1
KCG 20 Keys Of Lean Manufacturing
GoalCurrent
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 2010 Points Selected
Implementation Specialists
KCG
implementation.com81
VISION, BENCHMARKS & METRICSIN ONE PACKAGE
VISIONING What To Be,Long-term?
BENCHMARKING What Needs To Get Better?
STRATEGIC PLANNING
OPERATING PLANS
How To Get ThereYear-To-Year?
DAY-TO-DAYWORK
Key Issues To Focus On For The Next
Year?
What To Work On,Day-To-Day?
Get to 70-80 Points
Set AnnualPoint Goals
Select KeysTo Work On
The Keys Themselves
Key Improvement
Plans
Implementation Specialists
KCG
implementation.com82
BRAINSTORM TO PHRASE
Dist.taking the
margin
No realbusinessstrategy
Changingstrategies
Assetcapacity
utilizationpoor
Obsoleteequip. &
processesFacility
toolarge
Dist. needsto sharethe pain
MilitaryDownturn
Breakdown of dist.
channels
Raw mat.turns too
low
Poorsuppliermgmt.
Poorlayout
DistributorIssues
Strategic Planning
FacilityProblems
SupplierManagement
“What Are The Limitations Of Our Current Organization”
Masking tape
Inefficientadminst.process.
Veryhigh
overheadNotenough new
products
No accessto growthmarkets
Weakdomestic
sales force
Poorsales
forecasts
Takebusiness
at any cost
No globalsales
channel
Restrictedmarket
Losingmarketshare
Processquality poor
Deliverylead
time poor
Notresponsive
Highscrap &rework
Highinventory
Mat. flow& thru-put
time too long
HighE&O
Masking tape
Implementation Specialists
KCG
implementation.com83
MOVE INTO CATEGORIES
Dist.taking the
margin
No realbusinessstrategy
Changingstrategies
Assetcapacity
utilizationpoor
Obsoleteequip. &
processes
Facilitytoo
large
Dist. needsto sharethe pain
MilitaryDownturn
Breakdown of dist.
channels
Raw mat.turns too
low
Poorsuppliermgmt.
Poorlayout
DistributorIssues
Strategic Planning
FacilityProblems
SupplierManagement
“What Are The Limitations Of Our Current Organization”
Masking tape
Inefficientadminst.process.
Veryhigh
overhead
Notenough new
products
No accessto growthmarkets
Weakdomestic
sales force
Poorsales
forecasts
Takebusiness
at any cost
No globalsales
channel
Restrictedmarket
Losingmarketshare
Processquality poor
Deliverylead
time poor
Notresponsive
Highscrap &rework
Highinventory
Mat. flow& thru-put
time too long
HighE&O
MarketingIssues
Masking tape
Implementation Specialists
KCG
implementation.com84
NAME CATEGORIES AND ADJUST SORT
Dist.taking the
margin
No realbusinessstrategy
Changingstrategies
Assetcapacity
utilizationpoor
Obsoleteequip. &
processes
Facilitytoo
large
Dist. needsto sharethe pain
MilitaryDownturn
Breakdown of dist.
channels
Raw mat.turns too
low
Poorsuppliermgmt.
Poorlayout
DistributorIssues
Strategic Planning
FacilityProblems
SupplierManagement
“What Are The Limitations Of Our Current Organization”
Category titleswith line drawnaround the edge
Masking tape
Inefficientadminst.process.
Veryhigh
overhead
Notenough new
products
No accessto growthmarkets
Weakdomestic
sales force
Poorsales
forecasts
Takebusiness
at any cost
No globalsales
channel
Restrictedmarket
Losingmarketshare
Processquality poor
Deliverylead
time poor
Notresponsive
Highscrap &rework
Highinventory
Mat. flow& thru-put
time too long
HighE&O
MarketingIssues
ResultantProblems
Masking tape
Implementation Specialists
KCG
implementation.com85
DOT “VOTING”
2827
29
321No real
businessstrategy
Inefficientadminst.process.
Changingstrategies
No globalsales
channel
Highscrap &rework
HighE&O
•••
24
21
19
4
3
1
Total votes (number of dots placed)
Sheets arrangedin top to bottom rank order of number of“dots”
ranking indicated by large number written with highlighting marker so that it can be viewed at a distance