lean culture introduction
Post on 20-Oct-2014
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DESCRIPTION
Introduction into what is Lean, what is a Lean culture, and how do you get a culture change to stick.TRANSCRIPT
Lean Culture Introduction
History of Lean
1910Mass Production/Ford’s Model T
1940’s-1970’sToyota Production System
1980’sJust-In-Time & TQM
1990’sSix Sigma
2000’sLean Manufacturing
What Is Lean?
Respect for People
Start Now
Continuously ImproveFlow
Remove Waste Customer
Respect For People
The most important factor
Hardest part of the process
Real respect for all employees
Listen and be a servant leader
Respect For People
Employees want*:Empowerment to Make DecisionsOpportunities for Growth & DevelopmentVarietyMutual Support and RespectSense of PurposeDesirable Future
Be an Employer of Choice
*BusinessWeek, 2008
Only 21% of employees are willing
to go the extra distance to help
company succeed*
Firms with most engaged employees increase operating income 19% and
earnings per share 28% year to year*
Employees Are Essential
*2007 Towers Perrin survey, 18 countries, 40 companies, 90,000 employees
Respect For People
“First we build people, then we build cars.”
—Fujio Cho, Former Chairman, Toyota
82% say Adopting Significant Culture Change is their #1
Challenge*
Change your Culture – Change your Future
*2006, The Lean Benchmark Report, AberdeenGroup
Respect For People
Employees
Middle Management/Line
Managers
Upper Management
42% say Top Management
Commitment is #1 Challenge*
“Grow Leaders and Teams who thoroughly understand the Work, Live the Philosophy, and Teach it to others.”*
Turn the Company Pyramid Upside-Down
*2006, The Lean Benchmark Report, AberdeenGroup
Respect For People
Only 10% of employees say senior management treats
them as most important part of
organization*
Your Culture is your Cornerstone
*2007 Towers Perrin survey, 18 countries, 40 companies, 90,000 employees
Respect For People
The Seven Wastes
Wait time
Materials Shortages
Un-level Demand
Startup
VendorPredictability
SchedulingConflicts
Transportation
Movement between buildings/sites
Premium freight
DistributionNetwork
Plant Layout
Over Processing
Excessive testing
Install
Reconfiguration
Double handling
Material variability/over design
Inventory
Buffers
Excess WIP & RIP
Supplier inventories for long lead time
Stock
Motion
Poor work design
Ergonomic Design
Travel time
Tool & Material access
Defects
Internal
Rework
Supplier
Final Test
Inspection
Over Production
Material Shortages
Un-level Demand
Build to stock
Economic Lot Sizes
Batching
Operations, Overhead, Materials, Suppliers
(615) 852-LEAN [5326]www.TheLeanWayConsulting.com
Flow
Go from silos to customer based groups
Move from one process to another smoothly
Single piece flow
Start Now
Boyd’s Law of iteration
Experiment100-50 rule
Continuously Improve
Muda = WasteMura = FlowMuri = Respect
for PeopleContinue to
tackle all of these areas to keep your Lean System going
PDCA
Emphasis on productionMake product to forecast‘Push’ production system
Machine utilizationReduce cost and increase efficiencyLeadership by executive command
Specialized employeesPenalize mistakes
Blame peopleReactive
Inspect in QualityComplexity
Functional Management Structure
Emphasis on customer serviceMakes to actual customer demand‘Pull’ production systemEmployee utilizationReduce waste and add valueLeadership by vision and broad participationMulti-functional employeesEducateIdentify and solve process failureProactiveBuilt in QualitySimplicityManage by Value Stream
Som
etim
esFr
eque
ntly
1 2 3 4 5Rating Scale:How does your company rate as a Lean Enterprise?
Never
Rare
ly
Alway
s
Traditional Lean enterprise
(615) 852-LEAN [5326]www.TheLeanWayConsulting.com
Think Like a Lean Culture
1) Leadership2) Visual Controls3) Feedback4) Do What You Say –
Say What You Do5) Stick To The
Process6) Root Cause
Problem Solving7) Continuous
Improvement
LeadershipLeadership
Strategic Alignment
Daily Standard Work
Gemba Walks
Visual Controls
Visuals to help prevent errors
Data about process is easy to see
A 3rd grade level
Feedback
Instantaneous feedback
Corrective action close to instantaneous
Project management done in a visual way
Do What You Say – Say What
You Do
All processes are up-to-date in the paper work
Ask anyone and they will give you the same response
Supposed to = Actual
Stick To The Process
Review production process adherence
Gemba walksAssign owners to
process missesTop 3 issues
Pareto chart
Root Cause Problem Solving
No more band aids and firefighting
Use tools like 5 Y’s, FEMA, fishbone diagrams, and Gemba to solve root cause
Processes reveals problems easily
Continuously Improve
Line leaders responsibility is to improve the line
Improvement lead by line leads and front line
Employee suggestions are used in experiments
All leaders participate in Kaizens
Results
Computer Re-manufacturing Quality - 75% improvement Productivity - 25% improvement Cycle Time - 50% improvement Total Cost - 42% reduction
Computer Manufacturing Quality - 98% improvement Productivity - 12.5% improvement Cycle Time - 50% improvement Total Cost - 31% reduction
Veterinary Clinic – 30% Improvement in Revenue
