lean value solutions

7/27/2019 lean value solutions

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Lean Value Solutions

Guest was Tom DeForge ofLean Value Solutions International

Business901 PodcastTranscript


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Business901 Product Marketing

Lean MarketingLean Value Solutions

Tom has an extensive background in helping organizations developand implement Lean Manufacturing principles within a variety ofproduction settings. Tom has served in management positions withUnited Technologies, Pratt & Whitney, where he was an operations

Business Unit Manager, and Site Manager responsible forimplementing Lean Manufacturing in both the Supplier base andInternal Business Units.

Over the past 20 years, Tom has been featured in several articles andseminars on the subject of Lean Manufacturing implementation. Tomhas also studied Lean Principles in the United States and Japan withthe originators of the Toyota Production System and has facilitatednumerous Improvement workshops in the United States, SouthAmerica, Europe, Mexico, Middle East, and Central America.

Tom applies the disciplined approach and analysis tools taught to him during his 8 yeartenure by the Shingijutsu consulting group, who are considered 2nd tier consultants tothe father of The Toyota Production System, Taiichi Ohno .

Lean Value Solutions International (LVSI) is the destination fororganizations seeking results-based partnerships that require

rapid results - whether the assignments are strategic or tacticalin nature. Regardless of the size of your organization, thefundamental obstacles to implementing a Lean strategy arefundamentally the same. LVSI provides the expertise andinfrastructure necessary to help you implement strategy andalign culture, processes and execution to achieve a series ofquick results along a roadmap that is focused on achievingsustainable competitive advantage.
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Joe Dager: Thanks everyone for joining us. Participating in the program today is TomDeforge, the President of Lean Value Solutions International. Tom has an extensivebackground in helping organizations develop and implement Lean manufacturingprinciples within a variety of production settings. Tom, could you explain your company tous and your areas of expertise?

Tom DeForge: Good morning, Joe, and thank you. Our company was started about 14years ago as a result of several of us being in a Kaizen promotion office under thetutelage of the Shingijutsu consultant group for about six years. We specialize in Leanimplementation enterprise solutions throughout a global scenario. We've been doing this,again, not only for the 14 years at our company, but also in our previous life for about 10years. So, we do the typical Kaizen stuff and the Lean Six Sigma training and certification.Of course, we're working on our new platform of assessments and monitoring.

Joe: You've been working with the software company for the past two years. Could youexplain that a bit to me? That seems like a big direction, a big thrust for your companyright now.

Tom: One of the things that we've noticed in our approach to Lean is the ability to getdata off the shop floor quickly, cleanly, and with a great degree of accuracy. Back in thedays when the Japanese Sensai would send us to the shop floor, we would go out there,and we'd see several assets. We'd see these assets running across three shifts. Therewere several part numbers there to observe. We were trying to do this, manually. It wasvery static in nature. We'd take these observations, go back to our rooms to analyze itand understanding that 10 minutes later, down on the shop floor, things were changingrapidly. A few years ago, we got approached by a software company that had a very goodidea relative to capturing that data in a real time setting. It kind of intrigued us because itsolved the problem I just discussed.
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So, we entered into two and a half to three year collaboration with them to get the Leantools integrated into this system. As we worked through this, what we noticed is that wewere able to set some parameters with that. Such as the workers, giving us that data offthe shop floor in four seconds or less, being able to help customize that feedback data aswell, relative to what they're doing everyday and have it tied into the financial returns.

So that as we make improvements, it shows throughout the entire organization to adashboard type scenario, exactly how that impacts the financials. It shows how weintegrate the entire organization into that process. Again, its a simple easy-to-hook-up,easy-to-use feedback mechanism. It takes the continuous improvement group to quickerand faster action with more integrity. Quite frankly, it shows us where to go and what todo faster than any manual system thats out there today.

Joe: Theres a lot of software out there nowadays. Who is really your target market forsomething like this?

Tom: Well, we are going after the discreet market, actually, where people are eitherrunning machine tools or doing assembly, those types of things, with the operator. We liketo call it, really, the voice of the operator. You're right, Joe, there are tons of software outthere. The unique thing about our package is that the software is tied to actionable items.So, therefore, when we install it into our client base, we monitor what the employees are

feeding back to the system. Which helps link us to their continuous improvement officeand their executives, and collectively, together, we form a game plan. Then more,importantly, our group will go in, in conjunction with the continuous improvement groupof that company. We execute the events relative to what the employees are telling us iswrong with the process. So, software, in and of itself is, absolutely, nothing unless youhave an executional piece behind it. So, our model really is to collect that data and thenexecute on that data so that the needle, from a performance standpoint, moves forward.


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Joe: Most lean practices and most lean practitioners will come in and say, "You have toget next to the operator. You have to listen to what he has to say." Lean software doesn'tplay that big of a role at the beginning of implementing Lean tools. Do you agree withthat? I mean, do you implement the software in lets say, maybe, stage two?

Tom: Actually, it is implemented in stage two. The first stage is understanding the assetand how to connect into the M codes. Or if its an assembly process, how we're going to,manually, do that. We, truly, believe that the operator input is the king, thats the waywe've been trained. So, therefore, one of our parameters was that the operator getsintricately involved in the process. Not only designing the buttons that they push relativeto the problems that are happening on the floor, but also that feedback of a process.

Because think of it, if I'm not on the shop floor, I have a time observation form, I'mworking with one operator, and there are 65 other machines running. Those operators arelooking at us going, "Well, what about me?" With the implementation of this structure, all65 operators are pushing buttons, giving us feedback relative to their day. Then, that stuffis being fed back up into a dashboard scenario. From that dashboard scenario, we aretaking those problems and those issues, wracking and stacking them to a parade ofprocess, essentially, at a high level. Then, going in there and fixing those problems.

So, therefore, instead of having one person on the floor, you're really integrating theentire company. Using the machine operators feedback, which is where it should comefrom, in a much faster and more precise way. So, yes, we are, heavily, going to agreewith you that operator, their feedback, and that process feedback is huge. That was oneof our parameters when we sat down to help design this system.


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Joe: The person who is observing the software, they are remote from the floor. They'relooking at a dashboard and watch it continuously. Then, an alarm goes off if somethingshappening in the flow. Before it becomes an alarm, is it giving you some on time analysisto correct problems on the fly?

Tom: It will do that. We've instituted some, what we call, "Alerts and Alarms." As thisprocess matures on the shop floor, we bolt on these modules, and one of them happensto be "Alarms and Alerts." So, therefore, you can get real time feedback relative toparameters that you set within the system. For example, if I know I have an asset, and Iknow from an OEE perspective - overall equipment effectiveness - that particular pieceof equipment needs to run at, lets say, 75% OEE. In order to facilitate the flow to theprocess and hits specific financial targets it sets an alarm and a notification option on the

software. If it drops below that, it rings my pager, sends me an email, et cetera. So,therefore, it monitors and gets the voice of the employees back upstream where itbelongs. It also gives those alarms and alerts that helps us go to that floor quickly andexpediently to fix those problems. So, that module is available on that software.

However, we like to make sure that during the implementation piece...because quitefrankly, its a bit of a culture change. We get the operators comfortable; this is not bigbrother watching you. We get the continuous improvement team on board with readingthese specific reports and how we take those reports, and we wrack and stack them andthen go to the floor and fix the problems. Then, as this process matures, we bolt on thealerts and alarms modules and other modules as they get comfortable with the scenario.

Quite frankly, what we're finding is that the operators love it because, again, it ties theentire organization into seeing whats actually going on in the process. Typical GeneralManagers, Presidents, and CEOs, you know, running a company, the phone calls that.


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they get. The financials they've got to handle and other things happen around a typicalGeneral Managers or Presidents day, I know, sometimes they don't have that real closelook at whats going on. This kind of ties it all together, which is why we love it.

Joe: That was really where my question was leading to is how has it been received bythe operators because, normally, that's what makes or breaks any system.

Tom: Right, you're absolutely right. Operators - and of course, I was once on the shopfloor, I was a machinist. Occasionally, you'd raise your hand and say, "Gee, I really havea great idea" or "I really have this problem." In the busyness of a production day, asupervisor - I was one of those, too - I'd say, "Its OK, I'll get back to you" or "Gee, thatsreally important, but I've got to go over here." Suddenly, all that great feedback from

the floor gets lost. Here, in this system, we capture every idea because its got a notesection in it as well. Ideas from the shop floor, from the people doing the work, and wecapture that so its no longer a gone or lost thought. Then LVSI and the continuousimprovement group, we meet up, and we execute against those problems and issues onthe floor. So, its a very good way to not let good ideas go by the wayside. Its also a wayby which we capture exact process problems and issues that happen on the floor.

Joe: Is this software available to people on the open market or how would they obtainit?

Tom: Its interesting that you ask that. We get approached a lot by several softwarecompanies (and we being training by the Japanese and everything has to be written on apiece of paper) where we kind of rejected a lot of them. What intrigued us with thiscompany is that they had, again, a process by which we could tap into the shop floor andthe people who actually do the work, and on occasion, assembly as well.



This is available on the open market, but our model really is a piece of software thatsno good, unless you take action. So when we developed this, the model is that we comealong with the package. This means we do the installation, we do all the tweaking in,and we download all the software. And then we work side by side again with the CI

group to facilitate actually doing something on the shop floor in the guise of doingKaiser Interventions to fix the problems.

So yes, it is available; you could buy it, I guess, as a stand-alone. But again, withouttaking action and not having a group behind it, to take action, it is kind of a risk.

Joe: Thats what I found out in a lot of the different packages of software that I foundon the web - I mean we all have a pile of software sitting behind us, on the shelf. And

some of us have bigger piles than others, me being one of them. It truly is theimplementation of it that is the secret in anything anymore. As much as the Internet hasallowed us to do things and become so proactive and get our hands on so muchinformation, it still is a people thing.

Tom: Absolutely, and anybody who is going after the Six Sigma piece or the Lean pieceor any continuous improvement piece - you know that the people are the key. MisterIwata, who was just a great guy to work with, used to say, "Tom, this isn't more work.The people are the king." They were great at writing things on flip-charts. And Iremember that he wrote a picture of a hospital in there. And hes lecturing me andothers. And he drew patients in a hospital bed.

And he said, "This is your process, this is your shop floor. The people on the shop floorare the patients." And he said, "You in the Kaiser and promotion office and theengineers that are in the room, maintenance and others, you are the doctors. And whenthe patient is sick, the doctors must come or the patient dies."



And I'll never forget that because its so true. We're trying to reverse to that through thisimplementation of technology, and I hate to use the word, software, because you'reright. It has all those implications.

But through the use of this software, its really having the patient tell us whats wrong.And its the organizations job to go down and take action to fix those things. Andthrough this dashboard scenario, it ties everything together, which I think is kind of neat.

It takes away that big black hole or void in between the shop floor and the executive.And it marries them together so that everyone is on the same page fixing the problem.The cool thing is it hooks into financial-store-value calculator.

So it takes away that, "Gees, I've been doing this lean for all these years, and what am Igetting back out of it? Well, in this system we tied into financial, so we know exactlywhat we're getting back out of it. And I think that is a great thing.

Joe: I love to see it when people go through a process such as Lean or Six Sigma, andthey start seeing the measurements. Sometimes, when they realize where the bottleneckor the problem is and the cost of that to be able to free up the entire system isastronomical. They're just amazed because they're sitting there, been fighting thesystems and putting more and more in but not really looking at core issues and coreproblems. Implementing a system allows you to do that, I think.

Tom: I agree, and quite honestly the involvement of the CFO is critical because you wantto do this to make the business healthy. And in order to make it healthy, you've got tohave an impact on the financials. Thats how you invest in people and equipment andthose kinds of things to assist in moving any organization forward.



So its very, very important that we get that process feedback as quickly as possible andwith a high degree of integrity. So over the past couple of years, we made sure thathappened within this package. And again, its taking action against those data sets.

Joe: You were part of the PAS Technologies story, along with Bob Weiner when he tookover out there. And I was just really impressed with what happened. You were there atthe ground floor. Could you explain your role in that turnaround?

Tom: Bob Weiner was hired by PAS Technologies to be the CEO. And when Bob Weinerbecame the CEO, a week later he called me up, and he said, "I'm ready to implement alead enterprise strategy in our company." Because thats the way Bob works and the wayhe thinks. He doesn't wait around to wait or hope for things to happen. So weimmediately launched into a training exercise, getting all the executives together for atraining exercise and Lean enterprise and our approach and strategy; for us to get a feelfor them and the feedback of whats important to them. From there we launched out intothe middle management training. During that training exercise, we like to use the shopfloor to go out and collect information and data, which we did. And then we got astrategy out of that, and then we launched into training of the workers on the floor. Oncethat was completed, everyone on the same page, everyone understands the languageand the lingo, we then came back and began to work with their internal continuousimprovement group executing events on the shop floor. And because of the executive

leadership and commitment, and the middle management commitment, I might add; andalso the enthusiasm out of the employees on the floor, we were able to put some greatcells into place, which had a huge impact on their turnaround time. In an engineoverhaul, turnaround time is the king. Our goal was to be the best in turnaround ofengine components in the world. So, the employees executed in that regard.



Then we brought it across the entire enterprise. We went out to Ohio, we went toIreland, and a couple of other locations that PAS owned and helped them set thefoundation and strategy for lean enterprise and then turned it over to their internal groupto continue the execution process. So, we go in there now as an advisory role. We're

very proud of the things that they've done; what the internal group has been able to doto carry the Lean enterprise situation forward.

So, we were kind of in there to help set the foundation. Our motto is that we're not thereforever. We want to help train, execute, do what we call "technology transfer" to theorganization and then end up in an advisory role because we know that internalizing theprocess is what makes them strong.

Joe: You talk a lot about work cell groups. Is that a real area of expertise for you?

Tom: Yes it is, actually. I can remember when we first started working with this onegroup, and they were talking about "cells" and I'm thinking about a red blood cell. Whatsa cell? We quickly learned this notion of standard work after being called a concrete headabout 52 times and being stuck in the old batch and cue method that I learned growingup through the organization. A cell really is a living and breathing entity. Its not just agroup of machines put into a horseshoe shaped cell. But yet, its a group of machinesputting, or processes, putting into an U-shape configuration. Then you add the people in

there, which gives it the movement, the momentum and also the thinking relative ofgetting things to flow.

So, the purpose of a cell really is a team of people dedicated to maximizing theaffectivity and efficiency of not only the work being done, but the effect and efficiency ofthe people doing the work as well which is, in the Toyota world, called "standard work.



So yes, a cell is really, from a manufacturing standpoint, and a production systemsstandpoint, a living and breathing entity, in my opinion, made up of people and sometype of assets to be the best and the most efficient way of making something certainlybetter than your competition.

Joe: Now, you've been doing this for eleven years as Lean value solutions. Whatchanges have you seen take place in the Lean Six Sigma mode during that time?

Tom: Well certainly, Six Sigma has come up on the radar scope, and as a combination ofLean Sick Sigma out in the world today, which is a good thing because, quite honestly, Ilook at continuous improvement people, whether you're in the Lean world, Sick Sigmaworld - whatever world, that when you are executing, or you're out on the shop floor, oryou're in the middle of some type of process analytics that you need a quiver of tools to

facilitate fixing a problem. These tools can be used at the appropriate times. I see a lotof people misusing tools and using the wrong tools for the wrong thing ormisunderstanding this notion of "standard work," or whatever. I don't see a lot ofchanges. But, I do see something thats probably not new to anyone where companieswill enter into the first one or two years of Lean implementation and then begin to slidebackwards. Thats always a concern of most of us, and I'm sure you've seen that as wellon how you keep your finger on that pulse.

But, relative to the tools, relative to the philosophy I don't see a lot of change in it.Although, if you look at Toyota, they say its the last principal. Its never good enough. Ithink thats a very true statement. But, I still see companies that are very good at this aswell, on the other side of the coin that just continued to say, "Hey, you know. Iunderstand I'm going to take three steps forward and maybe a step backwards. But, its



the right thing to do, and I'm going to continue to push". So hopefully, the energy behindLean and some of the misnomers behind Lean are no longer there. It's not abouteliminating the jobs. Its about- certainly about building, not destroying.

Joe: I've seen more of a push of Lean, not being necessarily a cost cutting type venture,but a way to build quality and build customer base. I look at Lean as being more of aculture type thing in a continuous improvement; Six Sigma being more of a definition ofgoing in and fixing a problem. Do you take a similar approach or is yours a little different?

Tom: Well, I think we- I've had that discussion a lot of times with Six Sigma facilitators, andit's a great discussion that I have because at the end of the day, we're trying to get to thesame place.

I was at a workshop once where someone drew an umbrella on the board and inside theumbrella they said, anyhow, "this is a Lean enterprise and a Lean enterprise consists ofunderstanding the philosophy, understanding the tools, understanding the 14 managementprinciples, and then being able to lead an organization to this culture of change."

And underneath was the Lean tools and happening to be underneath those tools was a SixSigma enterprise. And it kind of made sense to me that if you're up here, and you're tryingto lead an organizational Lean enterprise, obviously those principles and those values are

very, very key and those tools to get you there to build that foundation are key as well.

So I kind of look at it like that. I have a Lean enterprise; I've a series of tools. I'm going tounderstand the philosophy, I'm going to understand the management principles, and thenI'm going to use these tools underneath, at the appropriate times in order to facilitategetting that company to where you quite rightly said, to be the best at speed, cost andquality.



Joe: I think many times people just don't finalize projects. Lot of times, they just wanderon instead of bringing finalities to what they have accomplished. Here is our nextcontinuous improvement step.

Tom: I can give you two examples that a company that spent over a million-and-a-halfdollars; total productive maintenance is all they did. And then, we followed in behindthem, and they did all these TPM on about, I'd say, about at least 80 assets. We went input the cells together and got rid of 50 percent of those assets. There are companies thatfocus on 5S. And thats all they do. They 5S the heck out of everything. It looks beautiful,but from a financial standpoint, a customer satisfaction standpoint, and throughputstandpoint. It didn't have a big, huge impact on them like they could have gotten out of itif they followed that roadmap that says I'm going to have a Lean enterprise in anumbrella, and then follow that roadmap through, by using a combination of all the tools at

the appropriate place and time.

So thats the way I look at that, and again to get that, to me, to get the biggest benefit ofLean, you really got to think about how you're going to approach it, and not just use onetool, but use them all to your advantage.

Joe: Where do you see your company going in the future?

Tom: Well, we really like the model I described earlier, relative to getting that data off thefloor and helping focus more on those Kaizen promotion offices, continuous improvementoffices. We really like the monitoring capability of it because we could move faster andquicker, and certainly be more expedient and be more -- I guess, be more intelligentabout where we go and where we put our resources. So we're reluctant at first, and aftertwo and a half years working through that, we see a great opportunity for us to bring thisnew concept into the workplace. And I think thats going to keep us really busy.


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The good news is that we, in working with our Japanese Senseis, in my previous life,which was five years, seven days a week, pretty much 16 or 17 hours a day, those coreconcepts of the principles of Lean philosophy are stuck with us, so that we see thistechnology piece and this execution piece faster and quicker and cleaner, as they're

being really our future because it could fit into small, medium or large companies. Sowe're pretty excited with that. So that probably be or is going to be our next transition.

Joe: It sounds pretty exciting. You have a real separation from other companies, withthe software available, and more importantly, the understanding of the software. Isthere anything you like to add before we finish up here?

Tom: No, I really appreciate the time and the conversation. I love to talk about thisstuff. People will often say to me, "how during this change process did you ever laugh aslong?" and all that stuff. Its the people that I meet around the globe actually, from alllevels of the organization, to things I get to see on the shop floor. I even, still todaywatch that show, "How Things are Made" and I go, "boy thats like my life." I get to walkto shop floors and meet people and understand some of their ambitions, some of theirgoals, some of their challenges, and to be able to facilitate helping them out eitherthrough tools that we've learned, experiences that we've had, technology that we canpoint them to or other things, as a real benefit to what we do.

And we've been kind of blessed, our entire group really, to be able to spend the timeeven though we were complaining at the time, to be able to spend the time with thesecond tier consultant to Mr. Ono. Again, thats what drives us every day, is because weknow we can bring value to an organization.


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Joe: Where we would someone get a hold of you, Tom?

Tom: Well, we are on the website. Our website is www.lvsillc.com. It may come up towww.lvsionline.com is another way. Our office number is 860-370-9657 and my

extension is 11. My cell phone 860-836-6427, and give us a call, and we'd be happy totalk with you about anything we've discussed today.

Joe: OK. Well, I've certainly enjoyed it. I went through your website, and I noticed inthe pictures that the majority of your pictures, there you are in roll-up sleeves on theshop floor. And looking at this, I thought, "Oh, this guys walking the walk. Thats what isimportant to him. Its not so much of how well I look on the website, the picture here, itswhat I do. I compliment you for including those pictures; I think its very important.


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Joseph T. DagerLean Six Sigma Black Belt

Ph: 260-438-0411 Fax: 260-818-2022

Email:[email protected]

Web/Blog: http://www.business901.com

Twitter: @business901

Business901 Product Marketing Lean Marketing

Joe Dager is President of Business901, a progressive company providing direction in areassuch as Lean Marketing, Product Marketing, Product Launches and Re-Launches. As a LeanSix Sigma Black Belt and a certified coach of the Duct Tape Marketing organization,Business901 provides and implements marketing, project and performance planningmethodologies in small businesses. The simplicity of a single flexible model will createclarity for your staff and as a result better execution. My goal is to allow you spend yourtime on the need versus the plan.

An example of how we may work: Business901 could start with a consulting styleutilizing an individual from your organization or a virtual assistance that is well versed inour principles. We have capabilities to plug virtually any marketing function into yourprocess immediately. As proficiencies develop, Business901 moves into a coachs rolesupporting the process as needed. The goal of implementing a system is that the processeswill become a habit and not an event. Part of your marketing strategy is to learn andimplement these tools.

W h a t o t h e r s s a y :

In the past 20 years, Joe and I have collaborated on many difficult issues. Joe's ability to combine hisexpertise with "out of the box" thinking is unsurpassed. He has always delivered quickly, costeffectively and with ingenuity. A brilliant mind that is always a pleasure to work with." James R.

mailto:[email protected]://www.business901.com/http://twitter.com/business901http://www.business901.com/http://www.productmarketingprocess.com/http://www.marketingwithlean.com/http://www.marketingwithlean.com/http://www.productmarketingprocess.com/http://www.business901.com/http://twitter.com/business901http://www.business901.com/mailto:[email protected]

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