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LEAN Process Innovation & Sustainable Continuous Improvement… Our Most Formidable Competitive Weapons

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Volume 01, Issue 10 June 30, 2014

CONTENT

THE LEAN EXCHANGE: HELP TO ACCELERATE TO YOUR LEADING EDGE

3The ATJ 2014 Summer

Reading List

7Helpful tips

7Building capability

2The power of a

community perspective

You can tell a lot about a company or industry by learning what its

community says about it. It is not uncommon for consultants

building corporate profiles to interview cashiers to hear what

their customers are saying.

Produced by:� Dave HoggTelephone:� 519-741-9732

Email:� dhogg@rogers.com

Thank you to our partner:

The ATJTake…

Communities — a resource to consider? Does your community know you are there? Would it make a difference if they did?

TThe LEAN Enterprise Institute reminds us that LEAN is all about collaboration. It’s the key to the successful transformations.

LEAN Consortia members are way ahead in the game but they comprise less than 5 per cent of industry. Perhaps it’s time to consider accelerating collaboration among companies and the infrastructure that supports them.

ATJ saw signs of such increasing interest at the LEI 2012 LEAN Transformation Summit in Jacksonville where your editor joined panel members from Italy and Iowa who shared their progress in deploying LEAN Consortia. It was agreed that the chances of competing globally starts at home and demands trust-based, seamless collaboration among local peers, supply chains, government, education and our communities.

One cutting-edge example was shared by Joni George in Toronto last October. She’s VP HR & Chief Cultural Officer of Newberg, Ore. based Climax Portable Power Tools. She shared the story of their six year journey to create community collaboration. It

started when Climax decided to stop blaming government and education for the lack of skilled talent and take full responsibility for acquiring the employees needed to produce the precision tools they sell all over the world. In six years they have turned an entire com-munity of 25,000 people into their community campus, which produces an abundance of skilled people who are now able to provide community needs as well. The story here is profound, and we will bring it to you in later issues. But they could not have achieved it without their people, their leadership, the town and the collaborative way it was applied.

Collaboration has always been with us. We just need more of it as competition becomes more intense. As we travel, we see great collaborative synergies in places where things are made that have built the right culture. Places like Athens, Ga., Winnipeg, Ma., Porto Alegre, Brazil, Newberg, Ore., and an artisan village in Italy, not to mention the collabora-tive stirrings in Newfoundland, Saskatchewan and in Canada’s technology triangle.

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Brought to you by:Volume 01, Issue 10

June 30, 2014

THE LEAN EXCHANGE: HELP TO ACCELERATE TO YOUR LEADING EDGE

This month we noted how a 27-year veteran columnist described manufacturing in his world. Since

1987, Martin Cash, now the senior business columnist with the Winnipeg Free Press has watched and reported businesses come and go in his domain. In the June 4 print edition of the Winnipeg Free Press, his column headline was dominant, unmistakable, inclusive and stated without reservation:

“We’re a LEAN, mean manufacturing machine”

Those were his words about his community. One wonders how many newspapers would make such a proclamation. But while that might sound extreme, to those of us who attended the 2012 and 2013 Manufacturing Week Dare to Compete conferences for practitioners in Winnipeg, we know it’s not.

In 2012 the Conference drew nearly 500 manufacturing practitioners to exchange practices and ideas. They came from the UK, US and Canada — with manufacturing consortium leaders from Fargo, N.D. coming for a closer look at the community that has spawned more manufacturing consortia than any other, anywhere.

And Manitoba’s CME team is poised to do it again. It’s now official, CME has partnered with the Illinois–based, Association for Manufacturing Excellence (AME) to deliver deliver the AME/CME 2015 Canadian LEAN Conference June 1st–4th in Winnipeg. It will be the largest LEAN event in the country next year.

The Power of a Community PerspectiveYou can tell a lot about a company or industry by learning what its community says about it. It is not uncommon for consultants building corporate profiles to interview cashiers to hear what their customers are saying

Already, more than 25 manufacturers from both Manitoba and Saskatchewan are planning to inject more capability into their provinces by extracting top value from this year’s 30th annual international AME LEAN Conference in Jacksonville Fla.. And since it does not occur until November, there’s time for each company to sharpen their corporate visions and define what they want and need to know to accelerate their journey.

Hence, by planning ahead, and working with coaches assigned from both LEAN events, there is some expectation that what is learned and applied from Jacksonville this fall will help further accelerate journeys by building on what will be introduced at the AME/CME LEAN conference in Winnipeg in June 2015.

There is a history of LEAN-like Systems Thinking hereSome 14 years ago, the Manitoba division of CME were among the first to implement LEAN self-sustaining manufacturing consortia. They now have four in Winnipeg alone, the highest concentration anywhere. From the beginningapplied LEAN thinking which means that their actions were and are still guided by visioning and Systems Thinking, and the common language of LEAN. When Ron Koslowsky arrived from

Palliser circa 2003, with an abhorrence $ of handouts — he brought a passion for investments that generate solid ROI’s for everyone — and a willingness to partner.

In 2004, the province’s investment produced the Advanced Manufacturing Initiative which was followed by the Virtual Centre of Manufacturing Excellence that put in place a multi-consortia infrastructure including the supporting training and leadership needed. The return? This investment helped blunt the impact of the huge economic downturn in 2008. When the smoke cleared, Manitoba had suffered the second lowest impact of all provinces in Canada.

With this investment now well in place — and the ROI’s visible — on June 4 Minister of Jobs and the Economy Teresa Oswald, announced that Koslowsky and the CME Team will transform into the new CME Centre for Strategic Innovation, with a new investment of more than $1 million uniquely focused on LEAN training, technological innovation, trade and the promotion of youth careers in manufacturing.

This new center includes a strategically important new innovation component from the globally recognized Innovation Engineering program developed by PEI-born Doug Hall, a former Proctor

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THE LEAN EXCHANGE: HELP TO ACCELERATE TO YOUR LEADING EDGE

& Gamble executive emeritus, and founder of the Ohio-based Eureka Ranch. Included in the new investment is support for linking high-school youth with manufacturing opportunities.

This will be built upon the 2004 Centre of Excellence platform whose current competitiveness package consists of support for multiple self-sustaining consortia, including training developed to deliver TWI and yellow, brown and black belt LEAN capabilities — much of which is delivered by the companies themselves.

We are seeking more for youATJ is looking to share inspirational achievement and the leadership that made it happen — from anywhere There can be no boundaries when it comes to sourcing insights, ideas or innovative solutions. If you have staff who do not believe this yet and suffer from not-invented-here short-sightedness, you might help them find other employment while your team scours the world for what will serve your customers best.

With many eyes turning today toward extraction-based wealth

generation, let’s keep reminding folks that there are only three ways to generate wealth; by extracting it; by growing it; or by making it. Manufacturing, once lost, may never return. And no other sector impacts the economy more — for every $1 of manufacturing revenue, there is a $3 injection into the economy. Let ATJ know when you spot excellence. And, if you see a process, practice or installation of excellence that should be at the Winnipeg conference email your discovery to Ian.Marshall@cme-mec.ca.

The ATJ 2014 Summer Reading List What Your Competitors are Reading “Reading is to the mind what exercise is to the body”

Joseph AddisonWe know, because the following LEAN books were bought from OCAPT Business Books since January 1, 2014 by North American practitioners.

Now may be the right time to check out that resource you have not had time for but that could make a difference. Possibly for those time on the deck while the kids are away?

There are many more on the www.ocapt.com website. Take your time and select the right book to nestle with this summer. ATJ is open to ‘book reports’ so don’t hesitate to share your assessment of the books with us.

1. Managing to Learn — Using the A3 management process to solve problems, gain agreement, mentor, or lead — by John Shook

This is a must-have practical publication that continues to stay at the top of the bestseller list. This unique book is written to provide you with your personal Sensei to accelerate understanding. John Shook is the first North American to head up a Toyota production line in Toyota City. He brought the culture to NUMMI. This book reveals the thinking underlying the vital A3 management process at the heart of lean management and lean leadership, and is a must in every lean library.

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THE LEAN EXCHANGE: HELP TO ACCELERATE TO YOUR LEADING EDGE

2. Learning to See — Value Stream Mapping to Add Value and Eliminate MUDA — by Mike Rother, John Shook

This is the one that started it all and it continues to be the reference book practitioners reach for when required to implement Value Stream Mapping. It was the first in a series from the Lean Enterprise Institute. It ignited Value Stream Mapping for everyone and remains one of the mainstays of training as a great place to start the lean journey. As more recognize the power of understanding the Horizontal Value Stream Flow, and what it can mean competitively, this book is a must to get started.

3. Everything I Know About Lean I Learned in First Grade — by Robert Martichenko

It’s a book you can give to so many (including CEO’s) who are on the periphery of applying lean but have little exposure. It is ideal to share with your family to help them know what you do — or to put it to work for their own benefit. Complete workforces have been given this book who could benefit from the basic principles of lean that this book conveys so simply. Even engineers have called it eye-opening when it comes to clarifying the concepts of lean. LEI gave it out to all 600 attendees to the Collaborative Learning Summit.

4. Getting the Right Things Done — A leaders guide to planning and execution — by Pascal Dennis

Consortium members have found this book by Canadian author Pascal Dennis helpful in terms of grasping the ‘big picture’ and accelerating the process of determining the right things to deliver. It demonstrates how strategy deployment can help leaders harness the full power of Lean. It provides readers with a framework for understanding the key components of strategy deployment by using A3 thinking throughout. Consortium members have found it of high value because of the easy-to-read style of this author.

5. Building a Lean Fulfillment Stream — Rethinking your supply chain and logistics to create maximum value at minimum total cost — by Robert Martichenko, Kevin von Grabe

A Shingo Award-winning publication that will change the way you think about your supply chain and logistics networks. It presents a way to use lean principles to transform and continuously improve these two key flows. Lean logistics veterans explain step-by-step a comprehensive, real-life implementation process for optimizing the fulfillment stream from raw materials to customers — including practical insights into two critical concepts: calculating the total cost of fulfillment and collaborating across all functions and firms along the fulfillment stream.

6. On the Mend — Revolutionizing healthcare to save lives and transform the industry — by John Toussaint, Roger Gerard, Emily Adams.

A Shingo Award winner that is part case study, part manifesto. This groundbreaking new book by doctors and a healthcare executive uses real-life anecdotes and the logic of lean thinking to make a convincing argument that a revolutionary new kind of healthcare — lean healthcare — is urgently needed and eminently doable.

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THE LEAN EXCHANGE: HELP TO ACCELERATE TO YOUR LEADING EDGE

7. Beyond Heroes — A lean management system for healthcare — by Kim Barnas

Hospitals have long relied on heroics to save the day — on one brilliant nurse or physician to fix the problem at hand. The result is a lot of people rowing in opposite directions, putting safety and quality at risk while increasing costs. This is the story of an organization breaking that habit. Beyond Heroes shows the reader, step by step, how ThedaCare teams developed their management system, using the stories of its own doctors, nurses and administrators.

8. Lean Manager — a novel of lean transformation — by Michael Ballé, Freddy Ballé

A novel of Lean Transformation, this book describes in conversational and simple terms how to advance beyond just realizing isolated gains from deploying lean tools. It continues to cause leaders at all levels to fundamentally change how they operate, think, and learn. This groundbreaking sequel to The Gold Mine was the hottest new book of 2009.

9. Kaizen Express — Fundamentals for Your Lean Journey — by Narusawa Toshiko, John Shook

What should you do first when starting to implement lean manufacturing? What comes next, then next? With the raft of information now available about lean principles, it’s easy to get confused. Kaizen Express clarifies the process using a rapid, nonstop style to explain the essential elements of the Toyota Production System (TPS) in a logical implementation sequence. This succinct but comprehensive back-to-basics book offers lean novices and veterans alike a comprehensive primer on lean principles and implementation.

10. Making Materials Flow — By Rick Harris, Chris Harris, Earl Wilson

This book explains in plain language how to create such a system by applying the relevant concepts and methods in a step-by-step progression. The workbook reveals the exercises, formulas, standards, and forms that a consultant would use to implement the system in your environment.

11. Lean Product & Process Development, 2nd Ed — by Allen C. Ward, Durward K. Sobek II

This book took the 2008 Shingo Award for Research, Despite attempts to interpret and apply lean product development techniques, companies still struggle with design quality problems, long lead times, and high development costs. To be successful, lean product development must go beyond techniques, technologies, conventional concurrent engineering methods, standardized engineering work, and heavyweight project managers.

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THE LEAN EXCHANGE: HELP TO ACCELERATE TO YOUR LEADING EDGE

12. Toyota Kata — Managing people for improvement, adaptiveness, and superior results — by Mike Rother, Winner of a 2011 Shingo Research and Professional Publication Award

A prescription for any organization in any industry to progress from old-fashioned management by results to a strikingly different and better way. This game-changing book puts you behind the curtain of Toyota with new insight into the TPS, and guidance for leading and developing people in the best use of their brainpower. This book reveals for the first time, the routines — or kata — that power its success with CI and adaptation.

13. Creating a Lean Culture — Tools to sustain lean conversions, 2nd Edition — by David Mann

This Shingo Award winner for Excellence in Manufacturing is the new and revised edition of this modern-day classic. It provides the critical piece that will put in place the platform foundation to enable sustainable lean transformations that deliver continuous dynamic successes. Its focus on Leader Standard Work is still the best resource available and can be a management effectiveness game changer.

14. Creating Continuous Flow — An action guide for managers, engineers & production associates — by Mike Rother & Rick Harris

A Shingo Research Award winner and an Action Guide for Managers, Engineers & Production Associates. This workbook explains in simple, step-by-step terms how to introduce and sustain lean flows of material and information in pacemaker cells and lines. A prerequisite for achieving and sustaining a lean value stream.

15. Gemba Walks Expanded 2nd Edition — The Gemba walking standard — by Jim Womack

Over the past 30 years, Womack has developed a method of going to visit the Gemba at countless companies and keenly observing flow & how people work together to create value. He has shared his thoughts and discoveries from these visits with the lean community through a monthly letter. In this edition he has selected and organized his key eLetters plus an additional 12 new essays. He shares his insights on topics ranging from tool applications to the role of management in sustaining lean.

“The only sure way to avoid making mistakes is to have no new ideas.”Albert Einstein

“One of the great things about books is sometimes there are some fantastic pictures.” George W. Bush

These books are available wherever LEAN books are sold. All are available from www.ocapt.com. OCAPT Business Books is the Canadian distributor for LEI, Productivity Press and more. They are the largest distributor of LEAN books in Canada.

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Brought to you by:Volume 01, Issue 10

June 30, 2014

THE LEAN EXCHANGE: HELP TO ACCELERATE TO YOUR LEADING EDGE

Tip1: Why Not Exploit What Others Have Done?

Tip 2: A leadership tip to help you break through to your leading edge

Winners do this — and are proud! Just like browsing Google Images can get your brain unstuck, so too can carefully selected YouTube videos. Try searching “LEAN Manufacturing.” and see.

Something to consider — YouTube is an awe-some resource that provides you with:•  More than 1 billion unique users

visit YouTube each month? •  Over 6 billion hours of video are

watched each month on YouTube? •  100 hours of video are uploaded

to YouTube every minute •  And, 80 per cent of YouTube traffic

comes from outside the US!

There will always be barriers to overcome. And leadership makes the difference — but it must be the right kind… the kind that’s matched to the culture of the team. In LEAN, Leadership is simply

defined as the Ability to generate followers. And when you get really good — the definition will change to The ability to generate leaders. There are no cookie cutters to generate a one-size-fits-all procedure. But, here is one philosophy that comes very close — even though each leader who succeeds with it will do it differently.

Look closely at this quote, and think about the wisdom contained in these words from nearly 2,700 years ago — and how it applies to your style.

“Go to the People. Live among them, love them, learn from them, start from where they are, work with them, build on what they have. But with the best leaders — when the task is accomplished, the work completed — the people all remark: We have done it ourselves.”

Lao Tsu 700 bc

BUILDING CAPABILITY

Today’s Video:� ........... One of the lesser-known LEAN Toyota transformational jewels is 3P (Production-Preparation-Process) For a 3P Video Click: http://www.youtube.com/watch?v=lQYBVewa5Gs#t=90 to see it in action. This process is being used to build a new hospital. If the tool interests you, click on www.ocapt.com and check out Unleashing the Power of 3P by Dan McDonnell

“You don’t have to burn books to destroy a culture. Just get people to stop reading them.”Ray Bradbury

“Reading is to the mind what exercise is to the body.” Joseph Addison