Leading Continuous Improvement

For Emerging Technologies

Purpose

 A Reminder of Lean (CI) Principles and Behaviours  A guide to what works and what doesn’t  An introduction to the Foundation Steps  How to Be – so we get what we Need

2

What is Continuous Improvement?

3

Definition:

“Becoming ‘lean’ is a process of eliminating waste with the goal of creating value.”

Note: This stands in contrast to definitions of lean that only focus on eliminating waste, which is too often interpreted as cost cutting – independent of its impact on value delivery

Five Principles of Lean (CI)

1. Define VALUE from the perspective of the final customer

2.  Identify the VALUE STREAM and eliminate waste

3. Make the remaining steps in the value stream FLOW

4. Let the customer PULL products as needed

5. Pursue PERFECTION

4

Core Values

 Respect for People

 Respect for Process

 Go & See

5

Foundation Lean Tools

 8 Wastes

 5S

 Standardisation

 Visual Management

6

The Continuous Improvement Cycle

7

Five Principles of Lean 1.   Define Value from the perspective of the final Customer 2.   Identify the Value Stream and eliminate waste 3.   Make the remaining steps in the value stream, Flow 4.   Let the customer Pull products as needed 5.   Purse Perfection

Core Values 1.   Respect for People 2.   Respect for Process 3.   Go & See

Lean Tools •   8 Wastes •   5S •   Standardised Work •   Visual Management

Continuous Improvement

Lean – The Myth vs The Reality

8

Myth – What Lean is NOT Reality – What Lean IS

A tangible recipe for success A consistent way of thinking

A management project or program A total management philosophy

A set of tools for implementation Focus on total customer satisfaction

A system for shop floor only An environment of teamwork and improvement

Implement-able in a short or mid term period A never-ending search for a better way

Quality built in process

Organised, disciplined workplace

Evolutionary

Benefits of a Lean System

9

Measurable Less Measurable

Reduced Inventory and WIP More Structured and Improved Workplace

Reduced Turn-Around (Lead) Times Improved Morale

Improved Quality Increased Engagement and Empowerment

Improved Productivity and Effectiveness A Culture of “Can-Do” and Momentum

Improved Customer Satisfaction

Building a Lean System

 5S – The Foundation of Lean Thinking  Foundation of identifying and eliminating Waste   Allows us to Manage by Exception

10

Benefits of 5S (Sort, Set, Shine, Standardise, Sustain)

 Improves our ability to “manage at a glance”  Enhances our ability to respond to abnormalities  Establishes a “clean” environment (Visual and Kinaesthetic)  Improves Safety  Improves communication  Improves morale  Less stress and frustration  Easier to train others

11

Visual Management

What it is: The use of visual displays and controls that enable users and observers to immediately recognizes the standard and any deviation from it.

How it Helps:  Visual Management allows anyone to see at a glance

!  What is good and what is bad !  How we are performing towards the target !  If action is required !  What standards we’re working to

12

Visual Management

Visual Management 5S Standardisation

Standardisation

13

What it is: Standardisation means setting a standard as well as bringing a condition into conformance with that standard

How it Helps:  Creates a Common understanding  Avoids confusion and enhances quality  Allows for faster turnaround of work  Building block for kaizen

Lean Leadership – Mindset and Behaviours

 A Mindset that encourages Growth and Contribution  Go and See – Physically take time to observe what is happening  Challenge – Never stop asking why  Kaizen – Constantly look to make small improvements  Respect – Respect everyone’s contribution to the business  Teamwork – Work together

14

Critical Success Factor (Our Mindset)  Lead by example:

•   Don’t expect others to do it if you don’t  Assess everything presented to you:

•   Does this preserve the Core Values? •   Is this Lean Thinking – Are we following the Lean Principles? •   Does this action, document, discussion or suggestion tell me that the

individual understands lean? •   How can I lead / coach / mentor the individual to the correct lean

solution (without just telling them)?

15

Critical Success Factor (Go & See)

 Go, See and Study  If there’s an issue, go there and look at it  Assess what you see against the Principles of Lean  Go with your team members to areas of concern or change  Remove the fear of asking “dumb” questions

16

Critical Success Factor (Challenge)

 Develop a culture where Challenging the Status Quo is OK  If you can’t justify why it is the way it is, don’t accept it  After deciding what you want / believe – pursue it (PDSA)  Encourage Innovative ideas – people should feel free to “Give it

a go”  Move from “If it ain’t broke, don’t fix it” to “It could be better”

17

Critical Success Factor (Kaizen)

 Develop a Culture of “Change for the Better”  Encourage quick, small, simple, cheap improvements  Use team meetings to allow sharing of Continuous

Improvements  Recognise individuals who develop CI opportunities  Remove the blockers to improvement ideas (Toyota benchmark)  Teach the “Improve Standardise” cycle

18

Critical Success Factor (Respect)

 Each individual has a role to play – respect it  Adapt your Leadership Style to suit the individual’s journey:

•   Direct •   Support •   Coach •   Delegate

 Avoid the emotion of change by using structure and facts  SHOUTING DOES NOT WORK (all the time ☺ )  Remove the fear of failure by enhancing “Learning is Doing”

19

Critical Success Factor (Teamwork)

 Understand the individual’s strengths / weaknesses  Train your team – to be Leader Teachers  Encourage rotation  Sponsor common end-to-end projects (across “silos”)  Communicate often and consistently

20

Our Role as Leaders

 Believe in Lean – if you don’t honestly believe it, then it won’t happen

 Implement and act from the “Bottom UP”  But it won’t happen if it’s not Believed, Lived, Managed and

Encouraged from the “Top DOWN”

“Our People walk in our Shadow” - Lewis Booth – Ford Motor Company

21