Date post: | 12-Jan-2017 |
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Today’s Agenda
© 2016 The Karen Martin Group, Inc. 2
• Components of Lean management• Foundational core values, mindsets &
practices leaders need to adopt to support the Lean journey
• What you can do (or help your leader do) to adopt Lean leadership mindsets and practices
Specific Topics Leaders Commonly Misunderstand or Are Unaware of
1. Three of the core values that underlie Lean management2. Key performance indicators3. Visual management4. Work standardization5. Go and see (Gemba) leadership6. The environmental "don't" that destroys Lean efforts
© 2016 The Karen Martin Group, Inc. 3
Everything rises and falls on leadership. — John C. Maxwell
Effective Leadership:
Nature or Nurture?
© 2016 The Karen Martin Group, Inc. 5
Continuous learning, challenging one’s mindsets, experimentation & practice
The Lean Management Journey to Excellence
© 2016 The Karen Martin Group, Inc. 6
Lean Thinkers
Lean Management
Practices
Lean Leadership
Lean Processes
© 2016 The Karen Martin Group, Inc. 7
Lean Management
Lean Management Components
Core Values / Principles / Philosophy
• Analytical tools• Value stream analysis & mapping• Metrics-based process mapping• Root cause analysis: Five Why’s, Fishbone,
Pareto, Problem tree, FMEA• Waste Countermeasures
• Standard work• Quality at the Source / Error proofing• 5S / Visuals• Pull systems: One-piece flow, FIFO lanes,
Kanban• Cells / co-location• Level loading• Work balancing• Batch size reduction• Setup & changeover reduction• Work segmentation• Autonomation• Cross-training / multi-functional workers
• Strategy deployment (hoshin planning)• Value stream management• Key performance indicators (three levels,
including customer & operational metrics)• Disciplined process management via clear
owners & KPIs• Daily kaizen• PDSA Problem Solving (& A3 management) • Performance dialogues / huddles / standups• Go & see (gemba) management• Humble inquiry• Continuously seeking voice of the customer• Purposeful meetings & reporting• Lean accounting• Consensus management
• Humility• Respect• Curiosity• Transparency• Relentless pursuit for
perfection
• Customer value • Flow / waste elimination• Just in time• Visual management• Work standardization
Lean Management
© 2016 The Karen Martin Group, Inc. 8
Lean Transformation: People Development Needs
• Lean mindsets (humility, respect, curiosity, etc)• Gemba-based leadership• PDSA problem solving• Strategy deployment• Key performance indicators (including customer & operational)
Executives
• Lean mindsets (humility, respect, curiosity, etc)• Gemba-based leadership• PDSA problem solving• Strategy deployment & basic Lean tools • Process management & KPIs
Middle Managers
• PDSA problem solving • Waste identification• Daily kaizen
Front Lines
• All of the above• Advanced Lean analysis tools & countermeasures• All else (disposition, business acumen, psychology, etc.)
Internal Lean Team
© 2016 The Karen Martin Group, Inc. 9
Lean Management Components
Core Values / Principles / Philosophy
• Analytical tools• Value stream mapping• Metrics-based process mapping• Root cause analysis: Five Why’s, Fishbone,
Pareto, Problem tree, FMEA• Waste Countermeasures
• Standard work• Quality at the Source / Error proofing• 5S / Visuals• Pull systems: One-piece flow, FIFO lanes,
Kanban• Cells / co-location• Level loading• Work balancing• Batch size reduction• Setup & changeover reduction• Work segmentation• Autonomation• Cross-training / multi-functional workers
• Strategy deployment (hoshin planning)• Value stream management• Key performance indicators (three levels,
including customer & operational metrics)• Disciplined process management via clear
owners & KPIs• Daily kaizen• PDSA Problem Solving (& A3 management) • Performance dialogues / huddles / standups• Go & see (gemba) management• Humble inquiry• Continuously seeking voice of the customer• Purposeful meetings & reporting• Lean accounting• Consensus management
• Humility• Respect• Curiosity• Transparency• Relentless pursuit for
perfection
• Customer value • Flow / waste elimination• Just in time• Visual management• Work standardization
Lean Management
© 2016 The Karen Martin Group, Inc. 10
© 2016 The Karen Martin Group, Inc. 11
© 2016 The Karen Martin Group, Inc. 12
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The #1 Foundational
“Must”:
NO FEAR
© 2016 The Karen Martin Group, Inc. 14
#8 of Deming’s 14 points in Out of the Crisis
“People aren’t your problem. Your problem is that your
work systems andprocesses don’t
allow people to shine.”
© 2016 The Karen Martin Group, Inc. 15
The People
Who Do the Work are the Experts
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Lean Management Components
Core Values / Principles / Philosophy
• Analytical tools• Value stream mapping• Metrics-based process mapping• Root cause analysis: Five Why’s, Fishbone,
Pareto, Problem tree, FMEA• Waste Countermeasures
• Standard work• Quality at the Source / Error proofing• 5S / Visuals• Pull systems: One-piece flow, FIFO lanes,
Kanban• Cells / co-location• Level loading• Work balancing• Batch size reduction• Setup & changeover reduction• Work segmentation• Autonomation• Cross-training / multi-functional workers
• Strategy deployment (hoshin planning)• Value stream management• Key performance indicators (three levels,
including customer & operational metrics)• Disciplined process management via clear
owners & KPIs• Daily kaizen• PDSA Problem Solving (& A3 management) • Performance dialogues / huddles / standups• Go & see (gemba) management• Humble inquiry• Continuously seeking voice of the customer• Purposeful meetings & reporting• Lean accounting• Consensus management
• Humility• Respect• Curiosity• Transparency• Relentless pursuit for
perfection
• Customer value • Flow / waste elimination• Just in time• Visual management• Work standardization
Lean Management
© 2016 The Karen Martin Group, Inc. 17
Purpose of Visual Management
© 2016 The Karen Martin Group, Inc. 18
1. Communicate work steps: who, what, when, where & how
2. Communicate status3. Communicate performance4. Communicate abnormalities; make
problems visible
In a Lean organization…
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…there’s no guessing about performance…visual management reigns supreme
Most businesses don’t know the true score.20
© 2016 The Karen Martin Group, Inc. 21
Key Performance Indicators (KPIs): Three Levels
Key
Perf
orm
ance
Indi
cato
rsCorporate
Value Stream
Function / Dept
How are we doing?
Key Performance Indicators (KPIs): Corporate Level
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© 2016 The Karen Martin Group, Inc. 23
Key Performance Indicators: Value Stream Level
Key Performance Indicators: Value Stream Level
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In a Lean organization…
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…there’s no guessing about abnormalities
© 2016 The Karen Martin Group, Inc. 27
In a Lean organization…
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…there’s no guessing about who, what, where, when, what, how
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Lean Management Components
Core Values / Principles / Philosophy
• Analytical tools• Value stream mapping• Metrics-based process mapping• Root cause analysis: Five Why’s, Fishbone,
Pareto, Problem tree, FMEA• Waste Countermeasures
• Standard work• Quality at the Source / Error proofing• 5S / Visuals• Pull systems: One-piece flow, FIFO lanes,
Kanban• Cells / co-location• Level loading• Work balancing• Batch size reduction• Setup & changeover reduction• Work segmentation• Autonomation• Cross-training / multi-functional workers
• Strategy deployment (hoshin planning)• Value stream management• Key performance indicators (three levels,
including customer & operational metrics)• Disciplined process management via clear
owners & KPIs• Daily kaizen• PDSA Problem Solving (& A3 management) • Performance dialogues / huddles / standups• Go & see (gemba) management• Humble inquiry• Continuously seeking voice of the customer• Purposeful meetings & reporting• Lean accounting• Consensus management
• Humility• Respect• Curiosity• Transparency• Relentless pursuit for
perfection
• Customer value • Flow / waste elimination• Just in time• Visual management• Work standardization
Lean Management
© 2016 The Karen Martin Group, Inc. 31
In a Lean organization…
© 2016 The Karen Martin Group, Inc. 32
…all work is standardized
Standard Work MUST Be Documented
© 2016 The Karen Martin Group, Inc. 33
• Process steps + job aids• Highly visual step-by-step how to’s• Process maps• Check lists• Cheat sheets / memory joggers• Decision trees (If this, then that…)• Flow charts
• All applicable work standards are included in standard work
© 2016 The Karen Martin Group, Inc. 34
Lean Management Components
Core Values / Principles / Philosophy
• Analytical tools• Value stream mapping• Metrics-based process mapping• Root cause analysis: Five Why’s, Fishbone,
Pareto, Problem tree, FMEA• Waste Countermeasures
• Standard work• Quality at the Source / Error proofing• 5S / Visuals• Pull systems: One-piece flow, FIFO lanes,
Kanban• Cells / co-location• Level loading• Work balancing• Batch size reduction• Setup & changeover reduction• Work segmentation• Autonomation• Cross-training / multi-functional workers
• Strategy deployment (hoshin planning)• Value stream management• Key performance indicators (three levels,
including customer & operational metrics)• Disciplined process management via clear
owners & KPIs• Daily kaizen• PDSA Problem Solving (& A3 management) • Performance dialogues / huddles / standups• Go & see (gemba) management• Humble inquiry• Continuously seeking voice of the customer• Purposeful meetings & reporting• Lean accounting• Consensus management
• Humility• Respect• Curiosity• Transparency• Relentless pursuit for
perfection
• Customer value • Flow / waste elimination• Just in time• Visual management• Work standardization
Lean Management
© 2016 The Karen Martin Group, Inc. 35
Gemba-Based Leadership
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3 Types of Gemba Walks
• Daily management (KPI-based Leader Standard Work)
• Regular cadence• 3 levels: supervisor, manager,
senior leader• Coaching & problem solving
take place “off line”
• Coaching for specific problem solving
• As needed• Reactive
• Understand reality• Understand the whole• Keep “in the know”• Identify improvement
priorities• Being visible• Proactive
Leader Standard Work (LSW): KPI Board Reviews
© 2015 The Karen Martin Group, Inc. 38
Supervisors & Team Leads Middle Managers Senior Leaders
Purpose Share previous day’s results and review that day’s plan
Monitor results; confirm that support functions are meeting commitments to address issues surfaced by frontline staff
Monitor results; obtain real-time, objective information (vs. perception); learn about issues & trends (betterdecision making); provide visibility to frontlines; drive toward rapid problem resolution; identify coaching needs
Frequency
When
Where
Length
Daily
Beginning of each day or shift
Each work area or dept KPI board
10 minutes
Weekly
Regular cadence; consistent day/time
Each work area or dept KPI board
3-5 minutes per board
Monthly
Regular cadence; consistent day/time
Visit each division
10 minutes per board
Who attends Supervisor or Team Lead and frontline staff (max 20 people)
Managers for cross-functional areas 6-8 people All senior leaders, including C-level
Agenda• Yesterday’s performance• Today’s plan (any constraints?)• Issues or trends to be aware of
• Yesterday’s performance• Status on requests for support• Additional support needed
• Performance compared with targets• Quick resolution of problems?• Concerning trends? New developments?
Post MeetingEscalate issues as needed Talk with staff about what surfaced;
assure commitments are keptAdjust business plan? Provide coaching?Consider org needs for transformation
© 2016 The Karen Martin Group, Inc. 39
Leader Standard Work: Gemba Walks
© 2016 The Karen Martin Group, Inc. 40
Additional Gemba Walks: Purpose
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• Understand current reality• Understand what the team is focused on (what their priorities are)• Learn about obstacles to staff success• Surface and correct misunderstandings• Discover the need for additional improvement
• Communicate and reinforce organizational vision, goals & priorities
• Assure alignment of department goals and improvement activities
Your Action Plan
© 2016 The Karen Martin Group, Inc. 42
1. Help your teams develop 2-5 KPIs and create dashboards that show their real-time score.
2. Remove fear from the equation. Problem are gaps. Be matter-of-fact and non-emotional.
3. Institute regular Gemba walks in every area you oversee. Discuss KPIs, improvement activities, and corrective action (e.g., who, what, by when, who else is involved, etc.)
4. Have your teams create written standard work and job aids for all key processes.
© 2016 The Karen Martin Group, Inc. 43
To Learn More…Reading
• The Toyota Way to Lean Leadership (Liker & Convis)• The Simple Leader (Meyer)• The Lean CEO (Stoller)• Out of the Crisis (Deming)• The Effective Executive (Drucker)• The Outstanding Organization (Martin)
Conferences• Association for Manufacturing Excellence• Lean Enterprise Institute• Shingo Institute
Tours – especially outside your industryPractice, practice, and more practice!
Lean Leadership Webinar 2 of 3:Thursday, September 22 – 11:00 am PDT
Register Now: www.ksmartin.com/webinars
Core Values / Principles / Philosophy
• Analytical tools• Value stream mapping• Metrics-based process mapping• Root cause analysis: Five Why’s, Fishbone,
Pareto, Problem tree, FMEA• Waste Countermeasures
• Standard work• Quality at the Source / Error proofing• 5S / Visuals• Pull systems: One-piece flow, FIFO lanes,
Kanban• Cells / co-location• Level loading• Work balancing• Batch size reduction• Setup & changeover reduction• Work segmentation• Autonomation• Cross-training / multi-functional workers
• Strategy deployment (hoshin planning)• Value stream management• Key performance indicators (three levels,
including customer & operational metrics)• Disciplined process management via clear
owners & KPIs• Daily kaizen• PDSA Problem Solving (& A3 management) • Performance dialogues / huddles / standups• Go & see (gemba) management• Humble inquiry• Continuously seeking voice of the customer• Purposeful meetings & reporting• Lean accounting• Consensus management
• Humility• Respect• Curiosity• Transparency• Relentless pursuit for
perfection
• Customer value • Flow / waste elimination• Just in time• Visual management• Work standardization
Lean Management
© 2016 The Karen Martin Group, Inc. 44
Questions or comments?
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Your Questions1. What can lower level leaders within the organization
do to help drive the senior staff to take a more proactive approach to lean leadership?
2. How do you recommend navigating leadership changes/turnover (e.g., current leader support Lean, but is leaving soon; next leader may not want to embrace an initiative seen as tied to the last administration)?
© 2015 Jacob Stoller 46
@karenmartinopexwww.ksmartin.com/subscribe
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