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Creating a Lean Transformation – 2014 UK Lean Summit - Practical Next Steps
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www.leanuk.org
Creating a Lean Transformation
UK Lean Summit - Lean Transformation:Practical Next Steps
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David Brunt November 17th 2014
www.leanuk.org
Purpose
To provide a framework for Lean Transformation To explore the five areas of the Lean Transformation
Model To develop personal and team action plans
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Creating a Lean Transformation – 2014 UK Lean Summit - Practical Next Steps
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Agenda
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Timing Agenda Approach09.00 – 09.30 Introduction, Expectations & Background Presentation & Discussion
09.30 – 10.00 Introduction to the Lean Transformation Model Presentation & Discussion
10.00 – 10.50 Purpose Presentation, Discussion & Exercise
10.50 – 11.20 Coffee & tea
11.20 – 12.10 What is the work? Presentation, Workshops & Exercise
12.10 – 13.00 Developing capability Presentation, Workshops & Exercise
13.00 – 14.00 Lunch
14.00 – 14.50 Leadership behaviour & management system Presentation, Workshops & Exercise
14.50 – 15.40 Basic thinking Presentation, Workshops & Exercise
15.40 – 16.00 Coffee & tea
16.00 – 17.00 FMEA development Exercise
17.00 – 17.30 Expectations review Discussion
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Introduction & Expectations
Who you are Your role Where you are in your lean journey (how long have you been at it?)
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Justgettingstarted
Somepractice
Practicingfor
some timeThis workshop will have
been a success & made good use of my time if…
Creating a Lean Transformation – 2014 UK Lean Summit - Practical Next Steps
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Ground Rules to make Today a Success
Learning requires openness Sharing requires confidentiality What’s said in this room remains in this room
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Transformation
Definition: A marked change in form, nature, character or appearance A process of profound change that orients the organisation
in a new direction and takes it to an entirely different level of effectiveness
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A Lean Action PlanLean Thinking (1996), Womack & Jones pp.270
Phase Specific Steps Time Frame
Get started Find a change agentGet lean knowledgeFind a leverMap value streamsBegin kaikakuExpand your scope
First 6 months
Create a new organisation Reorganise by product familyCreate a lean functionDevise a policy for excess peopleDevise a growth strategyRemove anchor-draggersInstill a “perfection” mindset
6 months through year 2
Install business systems Introduce lean accountingRelate pay to firm performance Implement transparencyInitiate policy deploymentIntroduce lean learningFind right-sized tools
Years 3 & 4
Complete the transformation Apply these steps to your suppliers/customersDevelop global strategyTransition from top-down to bottom-up improvement
By end of year 5
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Time Compression Requires Quality
Can we apply “Right 1st Time, On Time, Every Time, in Less Time” to Lean Transformation?
If so, how to do it?8
Concept Launch
Order
Compress Time
Delivery
Creating a Lean Transformation – 2014 UK Lean Summit - Practical Next Steps
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John Shook Explains the Lean Transformation Model
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Problem Solving Starts withGrasping the Situation
A “problem” is… the gap between the way things are now & the way they’re supposed to be, or you want them to be, in the future
A manager has a problem when the work assigned fails to produce the expected results (Ref: TWI Training Materials)
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Ideal Situation
Current Situation
Gap = Problem
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Lean Transformation Model
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Situational ApproachValue-driven Purpose:
What problem are we trying to solve?
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Source: http://www.toyota-global.com/company/vision_philosophy/toyota_global_vision_2020.html
Creating a Lean Transformation – 2014 UK Lean Summit - Practical Next Steps
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Defining Purpose: Main Principles
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A Compass to the
organisation’s workers
Aims to Action
Stay inspirational(But beware of “Slogans Trap”)
Practical, Focused, and Short (but not
too short…)
Includes Value to the Customer
(Key words)
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Your Organisation(20 minutes)
What is your organisation’s purpose? What do your customers want that you are not currently
able to provide? What does your organisation need to survive and prosper? What is your current strategy? How are the goals of the organisation deployed?
10 minutes to work up on your own 10 minutes to discuss on your tables
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Creating a Lean Transformation – 2014 UK Lean Summit - Practical Next Steps
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What Problem are YOU Trying to Solve?(10 minutes)
A “problem” is… the gap between the way things are now & the way they’re supposed to be, or you want them to be, in the future
A manager has a problem when the work assigned fails to produce the expected results (Ref: TWI Training Materials)
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Ideal Situation
Current Situation
Gap = Problem
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Focus on the Work
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OperationalImprovement
Situational ApproachValue-driven Purpose:
What problem are we trying to solve?
Creating a Lean Transformation – 2014 UK Lean Summit - Practical Next Steps
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What is the Work?
Understand the difference between value and waste Value Stream Maps of the way the work is done now
Current State
A Future State of how value should flow Detailed understanding of the work
Job breakdown Standardised Work Others?
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Provide the most value from the customers perspective, while consuming the fewest resources and utilising the talents of the people who do the work
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Questioning Mind
What do you actually know? How do you know it?
What do you need to know? How can you learn it?
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Lean is not acting on assumptions or jumping to conclusions
Creating a Lean Transformation – 2014 UK Lean Summit - Practical Next Steps
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Go See…and Listen
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“Data is of course important, but I place greater emphasis on fact -Taiichi Ohno
And where do you find the FACTS of a situation? At the Gemba – the place where the problem is actually happening. Not in a conference room or at a desk.
Grasp the actual condition firsthand
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The Problem with Problem Solving
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Our Natural Human Tendency?
The SOLUTION
Impressions & Assumptions
TheoryFACTS
BLACK HOLE
The Real or Main Problem
Creating a Lean Transformation – 2014 UK Lean Summit - Practical Next Steps
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How We Can Solve Problems More Effectively?
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Ask Questions to Help Ourselves SEE:What is actually happening?What do I actually know?
The Real or Main Problem A SOLUTION
Impressions & Assumptions
Theory
FACTS
FACTS
FACTS
FACTS
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Operational Improvement
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What I Know – the Problem How to Confirm
What I Need to Know How to Learn it
Creating a Lean Transformation – 2014 UK Lean Summit - Practical Next Steps
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Developing the People
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OperationalImprovement
CapabilityDevelopment
Situational ApproachValue-driven Purpose:
What problem are we trying to solve?
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What do we know AboutHow People Learn?
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Conceptual understanding through books, lectures, discussion
Behavioral change through: Experience Mistakes Experimentation and trial & error
Creating a Lean Transformation – 2014 UK Lean Summit - Practical Next Steps
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How to Teach?
Target Condition – To build capability so people “can do & improve” (themselves)
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Levels of ability1. Knowledge
1. Understanding2. Capable3. Do well 4. Can do and improve
Suitable to teaching in aclassroom in “Off-JT” manner
Better taught with actual problems and situations through “OJT” with mentoring from capable superiors. Skill can not be developed in a classroom alone.
Training Matrix: Trainingidentified
Basic awarenessof process
Can carry outtask supervised
Can carry outtask unsupervised
Able to trainothers in task
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Teaching & Learning
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Levels of ability1. Knowledge
2. Understanding3. Capable4. Do well 5. Can do and
improve
Skills best learned through experience, from actual problems and situations
Concepts suitable tosome degree of“classroom teaching”
Off-JTOJT
OJDSource: John Shook
Creating a Lean Transformation – 2014 UK Lean Summit - Practical Next Steps
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What do we know AboutHow People Learn? Conceptual understanding through
books, lectures, discussion
Behavioral change through: Experience Mistakes Experimentation and trial & error
Build structured opportunities for people to learn the way they learnmost naturally
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Job Instruction
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Creating a Lean Transformation – 2014 UK Lean Summit - Practical Next Steps
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Capability Development
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Current State – How are people developed? How to Confirm
Future State – What is the “Target Condition?” How to Learn it
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Leadership & Management System
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Management System
Leadership
OperationalImprovement
CapabilityDevelopment
Situational ApproachValue-driven Purpose:
What problem are we trying to solve?
Creating a Lean Transformation – 2014 UK Lean Summit - Practical Next Steps
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Sales Meeting Video
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The Role of Leadership in Implementing Lean
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Design and support processesthat provide value to customers - value streams
Develop people to take personalresponsibility for solving problems
Set alignment around the vision
Creating a Lean Transformation – 2014 UK Lean Summit - Practical Next Steps
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In other Words:Lean Leaders do Two Things
Get each person to take initiative to solve problems and improve his or her job
Ensure that each persons’ job is aligned to provide value for the customer and prosperity for the company
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Ref: John Shook – Lean Leadership
Get the work done and Develop Your People- at the SAME TIME!
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Three Keys to Lean Leadership
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Ask “Why?”Use the technique daily
Show RespectRespect your people
“Go See”Management must spend timeon the front lines
Creating a Lean Transformation – 2014 UK Lean Summit - Practical Next Steps
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Management System
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Current State – What is the management system? How to Confirm
Future State – What is the “Target Condition?” How to Learn it
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Leadership Behaviours
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Current State – What are the prevalent leadership behaviours? How to Confirm
Future State – What is the “Target Condition?” How to Learn it
Creating a Lean Transformation – 2014 UK Lean Summit - Practical Next Steps
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www.leanuk.org
Lean Transformation Model
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Management System
Leadership
Lean Thinking and PracticeRespect, Challenge, Kaizen, Alignment,
PDCA, Science, Gemba, Problem-Solving
OperationalImprovement
CapabilityDevelopment
Situational ApproachValue-driven Purpose:
What problem are we trying to solve?
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How NUMMI Changed its CultureJohn Shook
Read the article Discuss the insights John had regarding how culture
changed at NUMMI From the previous exercises:
Discuss the ways you want to behave and want each other to behave and discuss what is necessary to reinforce those behaviours
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Creating a Lean Transformation – 2014 UK Lean Summit - Practical Next Steps
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How NUMMI Changed its CultureJohn Shook
Read the article Discuss the insights John had regarding how Edgar Schein
defines culture and the andon example at NUMMI Culture: “The pattern of basic assumptions that a given group has
invented, discovered or developed in learning to cope with its problems of external adaptation and internal integration and that have worked well enough to be considered valid, and, therefore, to be taught to new members as the correct way to perceive, think, and feel in relation to those problems."
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Thinking, Mindsets, Assumptions
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Act your way into a new way of thinking, or think your way into a new way of acting?
Until you take the first step, it will not be possible to see the next step!
Creating a Lean Transformation – 2014 UK Lean Summit - Practical Next Steps
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Lean Transformation Model
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Management System
Leadership
Situational ApproachValue-driven Purpose:
What problem are we trying to solve?
Operational Improvement
Capability Development
Lean Thinking and PracticeRespect, Challenge, Kaizen, Alignment,
PDCA, Science, Gemba, Problem-Solving
What thinking style and tools and
techniques do we need?
Leads to what do we need to
improve to get there
What leadership behaviour
and management systems are required for
this?
How do we develop people who can change
the work correctly?
Leads to target
condition
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An Example at this Summit
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Creating a Lean Transformation – 2014 UK Lean Summit - Practical Next Steps
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Failure Modes Effects Analysis ExampleFMEA Function or
Process StepPotential
Failure Mode
Potential Failure Effects
(A)
Potential Causes
(B)
CurrentProcess Controls
(C)
Actions RecommendedResp.
& targets
After Action Review
Tyre Briefly outline function, step or
item being analyzed
What failures in this dimension may cause failure overall?
What is the potential impact on Quality, Delivery, Cost &Culture (Safety, Morale, CI)?
List every conceivable failure &/or failure mechanism for each failure mode
What are the existing technicalor social systems and processes that prevent the failure mode or its cause?
List Countermeasures to reduce the probability of occurrence of the failure mode of the cause or improving probability of detection (should take action on easy fixes)
What actions were taken, What experiments were run? Did they have the intended result? Why or why not? What was learned?
1. Support weight of car, traction, comfort
Flat tyre Stops car journey, driver and passengers stranded
Puncture, cracked wheel
Tyre checks before journey. While driving, steering pulls to one side, excess noise
Carry spare tyre and appropriate tools to change tyre
Driver, from next trip
Spare tyre and appropriate tools permanently carried in boot
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Current:Calculate Risk Priority Number (RPN) = Severity (of A) x Occurrence (of B) x Detection (of C)Where 1 = LOW, to 10 = HIGH
10 x 2 x 3 = 60Future:Calculate Risk Priority Number (RPN) = Severity (of A) x Occurrence (of B) x Detection (of C)Where 1 = LOW, to 10 = HIGH
4 x 2 x 3 = 24
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Failure Modes Effects AnalysisLean
Transformation FMEA
Transformation Dimension 1-5
Potential Failure Mode
Potential Failure Effects
Potential Causes
CurrentProcess Controls
Actions RecommendedResp.
& targets
After Action Review
Your Organisation
5 Dimensions Questions of the
LTM
What failures in this dimension may cause failure of the Enterprise Transformation?
What is the potential impact on Quality, Delivery, Cost &Culture (Safety, Morale, CI)?
List every conceivable failure &/or failure mechanism for each failure mode
What are the existing technicalor social systems and processes that prevent the failure mode or its cause?
List Countermeasures to reduce the probability of occurrence of the failure mode of the cause or improving probability of detection (should take action on easy fixes)
What actions were taken, What experiments were run? Did they have the intended result? Why or why not? What was learned?
1. Purpose
2. Process Improvement
3. Capability Development
4. Leadership & Management System
5. Philosophy, Basic thinking, Underlying Assumptions
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RPN = Severity x Occurrence x Detection
Creating a Lean Transformation – 2014 UK Lean Summit - Practical Next Steps
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Summary
What problem are we trying to solve? What do we need to improve to get
there? How do we develop the people? What leadership behaviour and
management systems are required to do this?
What thinking style and tools and techniques do we need?
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Creating a Lean Transformation
Expectations Review
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Creating a Lean Transformation – 2014 UK Lean Summit - Practical Next Steps
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Creating a Lean Transformation
UK Lean Summit - Lean Transformation:Practical Next Steps
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David Brunt November 17th 2014