developing lean leaders for high...

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Liker Lean Advisors, LLC Developing Lean Leaders for High Performance Jeffrey K. Liker Professor, Industrial and Operations Engineering The University of Michigan President, Liker Lean Advisors CEO, Liker Leadership Institute Sharpening Your Competitive Edge Saskatchewan Chamber of Commerce December 3, 2013

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Page 1: Developing Lean Leaders for High Performance96bda424cfcc34d9dd1a-0a7f10f87519dba22d2dbc6233a731e5.r41.cf2.… · Developing Lean Leaders for High Performance . Jeffrey K. Liker

Liker Lean Advisors, LLC

Developing Lean Leaders for High Performance

Jeffrey K. Liker Professor, Industrial and Operations Engineering The University of Michigan President, Liker Lean Advisors CEO, Liker Leadership Institute Sharpening Your Competitive Edge Saskatchewan Chamber of Commerce December 3, 2013

Page 2: Developing Lean Leaders for High Performance96bda424cfcc34d9dd1a-0a7f10f87519dba22d2dbc6233a731e5.r41.cf2.… · Developing Lean Leaders for High Performance . Jeffrey K. Liker

Toyota Way True North

“The Toyota Way 2001 is an ideal, a standard and a guiding beacon for the people of the global Toyota organization.”

Page 3: Developing Lean Leaders for High Performance96bda424cfcc34d9dd1a-0a7f10f87519dba22d2dbc6233a731e5.r41.cf2.… · Developing Lean Leaders for High Performance . Jeffrey K. Liker

Liker Lean Advisors, LLC

Lean Leadership Starts with Values

TRUE NORTH VALUES Challenge

Kaizen Mind Go and See Teamwork Respect

Stretch and Develop Us to Creatively Reach the Goal

Systematic Problem Solving that Never Ends

Observe to Understand the Actual Situation

Highly Developed Individuals Working toward a Goal

People are our only appreciating asset

Page 4: Developing Lean Leaders for High Performance96bda424cfcc34d9dd1a-0a7f10f87519dba22d2dbc6233a731e5.r41.cf2.… · Developing Lean Leaders for High Performance . Jeffrey K. Liker

Lean Leadership Development Model

3 Support Daily Kaizen Build local capability throughout for daily Management & Kaizen

2 Coach and Develop Others

4 Create Vision and Align Goals

Create True North vision and align goals vertically and horizontally

1 Commit to Self Development Learn to live True North values through repeated Learning Cycles

TRUE NORTH VALUES Challenge

Kaizen Mind Go and See Teamwork Respect

P D

C A

P D

C A

P D

C A

P D

C A

See and challenge true potential in others though self-development learning cycles

Starts Here

Page 5: Developing Lean Leaders for High Performance96bda424cfcc34d9dd1a-0a7f10f87519dba22d2dbc6233a731e5.r41.cf2.… · Developing Lean Leaders for High Performance . Jeffrey K. Liker

Liker Lean Advisors, LLC

PDCA Problem Solving is the Core of What Leaders should Learn and Coach

From Toyota Way to Continuous Improvement

Page 6: Developing Lean Leaders for High Performance96bda424cfcc34d9dd1a-0a7f10f87519dba22d2dbc6233a731e5.r41.cf2.… · Developing Lean Leaders for High Performance . Jeffrey K. Liker

Liker Lean Advisors, LLC

Lead at the Gemba: The 5 Whys, not 5 Whos

“Observe the production floor without preconceptions and with a blank mind. Repeat “why” five times to every matter.”

Taiichi Ohno

Page 7: Developing Lean Leaders for High Performance96bda424cfcc34d9dd1a-0a7f10f87519dba22d2dbc6233a731e5.r41.cf2.… · Developing Lean Leaders for High Performance . Jeffrey K. Liker

Liker Lean Advisors, LLC

Lean Processes reveal gaps between Current and Target Conditions

Ideal “North Star”

Targets for Improvement

Leader’s Challenge

Creative Tension Problem solving

Current conditions

Page 8: Developing Lean Leaders for High Performance96bda424cfcc34d9dd1a-0a7f10f87519dba22d2dbc6233a731e5.r41.cf2.… · Developing Lean Leaders for High Performance . Jeffrey K. Liker

8

Lean Leaders Do not Command and Control their Functions—They Go to the “place” to Coach and Develop Teamwork and Problem Solving

Is the process visible?

Can we all see the problems?

What do you Think?

Why? Why

Why? Are we ready To raise the

Target?

Page 9: Developing Lean Leaders for High Performance96bda424cfcc34d9dd1a-0a7f10f87519dba22d2dbc6233a731e5.r41.cf2.… · Developing Lean Leaders for High Performance . Jeffrey K. Liker

Leadership takes expertise. Will any of these teachers or students become an expert in a 2-Week Training Course?

Master Chef & Students

Coaches going over plays

Coaching Girl’s Basketball Team Teaching Violin

Key Points: • Break down Skills • Practice Elements • With Coach feedback • Repeat, Repeat, • Repeat! • Move on when • Coach says!

Page 10: Developing Lean Leaders for High Performance96bda424cfcc34d9dd1a-0a7f10f87519dba22d2dbc6233a731e5.r41.cf2.… · Developing Lean Leaders for High Performance . Jeffrey K. Liker

Lean Leadership Development Model

3 Support Daily Kaizen Build local capability throughout for daily Management & Kaizen

2 Coach and Develop Others

4 Create Vision and Align Goals

Create True North vision and align goals vertically and horizontally

1 Commit to Self Development Learn to live True North values through repeated Learning Cycles

TRUE NORTH VALUES Challenge

Kaizen Mind Go and See Teamwork Respect

P D

C A

P D

C A

P D

C A

P D

C A

See and challenge true potential in others though self-development learning cycles

Page 11: Developing Lean Leaders for High Performance96bda424cfcc34d9dd1a-0a7f10f87519dba22d2dbc6233a731e5.r41.cf2.… · Developing Lean Leaders for High Performance . Jeffrey K. Liker

Liker Lean Advisors, LLC

What is Leader Standard Work? • The repetitive activities are

designed to identify abnormal situations such as: – Non-standard work – Non-standard labor – Non-standard inventory – Non-standard output

• This is done where the work takes place, “The GEMBA”

• Organized, Visual Management helps leader see abnormalities

Page 12: Developing Lean Leaders for High Performance96bda424cfcc34d9dd1a-0a7f10f87519dba22d2dbc6233a731e5.r41.cf2.… · Developing Lean Leaders for High Performance . Jeffrey K. Liker

Liker Lean Advisors, LLC

Mai

nt

Shi

ppin

g R

ecei

ving

HR

CSR

Finance

Plant Mgr

Engr

War

ehou

se

Deep Dive

Today

Asset Management

Board

Hiring Plan

TPM Sheets

Kanban

Vendor Support

Std Work Sheet

Process Performance

Board

Example of a daily round for

management

12

Page 13: Developing Lean Leaders for High Performance96bda424cfcc34d9dd1a-0a7f10f87519dba22d2dbc6233a731e5.r41.cf2.… · Developing Lean Leaders for High Performance . Jeffrey K. Liker

Liker Lean Advisors, LLC

Leader Standard Work is a necessary step in the beginning stage until leaders develop so it is “the way they think and act”

13

Page 14: Developing Lean Leaders for High Performance96bda424cfcc34d9dd1a-0a7f10f87519dba22d2dbc6233a731e5.r41.cf2.… · Developing Lean Leaders for High Performance . Jeffrey K. Liker

Liker Lean Advisors, LLC

Einar Gudmundsson, Vice President Customer Service Volvo

2014-01-03 LEAN Knowledge Intensive & Staff Innovative Team Production System, Einar Gudmundsson

14

“When I did my first Leadership learning loop I was coached by our JMAC consultant, Lars Wenström. Coaching as we see it is not linked to position but an earned right to coach based on time at the gemba and hansei (reflection). So we are promoting white collars that develop well and spends a lot of time at gemba to share their experiences as coaches. An earned right.”

Page 15: Developing Lean Leaders for High Performance96bda424cfcc34d9dd1a-0a7f10f87519dba22d2dbc6233a731e5.r41.cf2.… · Developing Lean Leaders for High Performance . Jeffrey K. Liker

Liker Lean Advisors, LLC 2014-01-03 LEAN Knowledge Intensive & Staff Innovative Team Production System, Einar Gudmundsson

15

Value-added = Get off THE ICEBERG and get up on THE HILL. We measure this in our management team board meetings on Fridays. Target Condition is 18 hours per week at the gemba; coaching or doing kaizen work. Current Condition has improved from more or less 0 to plus 10 hours per person per week. Each individual presents hers/his result for the week in a coaching cycle manner.

Page 16: Developing Lean Leaders for High Performance96bda424cfcc34d9dd1a-0a7f10f87519dba22d2dbc6233a731e5.r41.cf2.… · Developing Lean Leaders for High Performance . Jeffrey K. Liker

Lean Leadership Development Model

3 Support Daily Kaizen Build local capability throughout for daily Management & Kaizen

2 Coach and Develop Others

4 Create Vision and Align Goals

Create True North vision and align goals vertically and horizontally

1 Commit to Self Development Learn to live True North values through repeated Learning Cycles

TRUE NORTH VALUES Challenge

Kaizen Mind Go and See Teamwork Respect

P D

C A

P D

C A

P D

C A

P D

C A

See and challenge true potential in others though self-development learning cycles

Page 17: Developing Lean Leaders for High Performance96bda424cfcc34d9dd1a-0a7f10f87519dba22d2dbc6233a731e5.r41.cf2.… · Developing Lean Leaders for High Performance . Jeffrey K. Liker

Liker Lean Advisors, LLC

Ideal TL:TM Ratio= 1:5 Group Leader (GL) = 1st level of management Team Leader (TL) = Alternates working production and leadership roles. Team Member (TL) = Production worker

TM TM TM TM TM

Team Leader

TM TM TM TM TM TM TM TM TM TM TM TM TM TM TM

Notes

Toyota Work Groups at the Heart of Continuous Improvement

Team Leader

Team Leader

Team Leader

Group Leader

Page 18: Developing Lean Leaders for High Performance96bda424cfcc34d9dd1a-0a7f10f87519dba22d2dbc6233a731e5.r41.cf2.… · Developing Lean Leaders for High Performance . Jeffrey K. Liker

Liker Lean Advisors, LLC

Continuous Improvement means a little better every day:

Visual Management Boards for Each Work Group (Toyota, Kentucky)

Page 19: Developing Lean Leaders for High Performance96bda424cfcc34d9dd1a-0a7f10f87519dba22d2dbc6233a731e5.r41.cf2.… · Developing Lean Leaders for High Performance . Jeffrey K. Liker

Liker Lean Advisors, LLC 2014-01-03 19

Volvo Cars Customer Service LEAN Knowledge Intensive & Staff Innovative Team Production System Einar Gudmundsson, Vice President, VCC, Customer Service

VCCS LEAN KISI TPS

“Not quite there yet……but we love our Visual Planning boards. They clarify who delivers what task to whom and when and where.” --Einar

Visual Planning Meeting Room at Volvo Customer Service

Days –> weeks –> Months -> Years

Each Row is a Person

Blue post its = Task to deliver Yellow, green, orange = subtasks X = done right and on time / = late or poor quality

Page 20: Developing Lean Leaders for High Performance96bda424cfcc34d9dd1a-0a7f10f87519dba22d2dbc6233a731e5.r41.cf2.… · Developing Lean Leaders for High Performance . Jeffrey K. Liker

Lean Leadership Development Model

3 Support Daily Kaizen Build local capability throughout for daily Management & Kaizen

2 Coach and Develop Others

4 Create Vision and Align Goals

Create True North vision and align goals vertically and horizontally

1 Commit to Self Development Learn to live True North values through repeated Learning Cycles

TRUE NORTH VALUES Challenge

Kaizen Mind Go and See Teamwork Respect

P D

C A

P D

C A

P D

C A

P D

C A

See and challenge true potential in others though self-development learning cycles

Page 21: Developing Lean Leaders for High Performance96bda424cfcc34d9dd1a-0a7f10f87519dba22d2dbc6233a731e5.r41.cf2.… · Developing Lean Leaders for High Performance . Jeffrey K. Liker

Function Hoshin

Division Hoshin

Department Hoshin

Individual Priority Themes OJD

P/S

Horizontal Alignment

Vertical Alignment

Company Hoshin

Hoshin Kanri Aligns Goals & Develops People Horizontally and Vertically

KEY: Concepts: OJD = On-Job-Development P/S = Problem Solving

Page 22: Developing Lean Leaders for High Performance96bda424cfcc34d9dd1a-0a7f10f87519dba22d2dbc6233a731e5.r41.cf2.… · Developing Lean Leaders for High Performance . Jeffrey K. Liker

Visual Metrics Aligned from Top to Bottom to meet Annual Plan (Hoshin Kanri)

Hoshin Vision

Floor Management Development System: Trim Group 1

Main KPIs

Process KPIs

Sub-KPIs

Safety Quality

Productivity

Cost HR

. . . . .

Trim Shop

Assembly Division I

Plant-Wide

Trim 1 Trim 2 Trim 3 Trim 4

Door Trim Chassis Final

Stamp Body Paint Assembly

. . . . . x x x x x

. . . . . . . . . . X

X X

X

Problem X

. . . . .

Shop KPIs

Page 23: Developing Lean Leaders for High Performance96bda424cfcc34d9dd1a-0a7f10f87519dba22d2dbc6233a731e5.r41.cf2.… · Developing Lean Leaders for High Performance . Jeffrey K. Liker

MBO Seeing the Surface

Hoshin Kanri Climbing the Mountain Together

Page 24: Developing Lean Leaders for High Performance96bda424cfcc34d9dd1a-0a7f10f87519dba22d2dbc6233a731e5.r41.cf2.… · Developing Lean Leaders for High Performance . Jeffrey K. Liker

Liker Lean Advisors, LLC

What is a Lean Leader?

• Manages from the gemba • Coaches and teaches

– Technical skills to do job – PDCA mindset

• Understands each person: strengths and weaknesses

• Breaks down tasks to give people appropriate assignments: achievable and challenging

• Teaches by questioning, not telling • Builds trust • Lives the Values!

We Care! We want you to be

your best!