The Genie in the Bottle Implementing and Sustaining Lean Pg 1 What - - PowerPoint PPT Presentation

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The Genie in the Bottle

Implementing and Sustaining Lean

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What We’ll Cover

1.

Introduction

2.

The Definition of “True North”

3.

Key Philosophies Successful Lean Organizations

4.

Quick review of the Toyota House

5.

Discussion Activity on Why has Toyota been so successful, and what went wrong with Toyota’s Quality?

6.

Why Organizations fail in Lean Implementation

7.

The Four Capabilities

8.

Avoiding the 8th Waste Through Building Trust

9.

Additional Tips for Sustaining your Journey

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What is “True North”?

(1) ON DEMAND, IMMEDIATE

• Pull
• 0 Lead Time

(2) 1 BY 1

• Batch Size of 1
• 0 Changeover Time

(3) DEFECT FREE (4) NO WASTE, LOWEST COST

• 1. Over production
• 2. Inventory
• 3. Defects, rework
• 4. Motion (Non value added)
• 5. Waiting
• 6. Conveyance, material handling
• 7. Processing
• 8. Under Utilization of People

(5) SAFE

• Physical
• Professional (job stability, security)
• Emotional (fear, threats)

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Key Philosophies

• 1. The Customer always comes first (internal and external)
• 2. People truly are the most valuable resource
• 3. Kaizen (Continuous Improvement) is a way of life, not an event
• 4. Focus on the shop floor

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Quick Review- The Toyota House

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• Why has Toyota been so successful in its application of

TPS?

• Despite Toyota’s willingness to share its practices, why

do so many companies fail at Lean/TPS?

• Is there some secret to the Toyota Production System that

Toyota hasn’t shared with others?

• Is their success due to cultural differences between

Japanese and others?

• What caused Toyota’s Quality problems in recent years?

Quick Discussion…

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• Rapid expansion in the 1980’s and 1990’s
• Technological advances in how Cars and Trucks are built.

Reasons for Toyota’s Struggle with Quality

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The Fallen House…

l

If you Google the Term “Muda” you will get 51,400,000 hits. While at the same time, if you Google the term “Jidoka” you

• nly get 130,000 hits!

Just In Time:

• Flow
• Takt Time
• Pull System

Leveling Standardized Work Kaizen

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Why Organizations fail…?

• Copy lean tools only without making the work self diagnostic and

without embracing the Human side of the Lean Journey

• Working around problems even when they are recognized
• Failure to share knowledge gained throughout the Organization
• Lack of training and mentorship to enable their Teams to design

work, improve work, and implement changes based on new knowledge

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Reasons for Toyota’s Success

• Toyota has developed a culture where how work is performed is tightly

coupled with how that work is improved toward True North.

• Additionally, four main capabilities exist in Toyota that have allowed them

to make steady improvements over time leading to their superior performance….

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The Four Capabilities of the Operationally Outstanding.

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Background

• 1990- The Book “The Machine that Changed the World” is
• published. Based on MIT’s 5 year, 14 country study of the Auto

industry, it was the first book to examine Toyota’s Production System.

• In 1999 Steven J. Spear and H. Kent Bowen wrote a Harvard

Business Review Paper Titled: “Decoding the DNA of the Toyota Production System.”

• This paper outlined the “Four Rules” that Toyota used as the

bedrock of its production systems, and explained how these rules are ingrained into every aspect of their organization.

• “The Capabilities of the Operationally Outstanding” Are 4 key

competencies that Spear recognized as being deeply imbedded in Toyota’s culture. These competencies are also present in other Organizations that are successful in their Lean journey.

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• All work is highly specified as to content, sequence,

timing, and outcome.

• Every customer/supplier connection must be direct, and

there must be a crystal clear way to send requests and receive responses.

• The pathway for every product and service must be

specified, simple, and direct.

• Any improvement must be made in accordance with a

scientific method, under guidance of a teacher, at the lowest possible level within the organization.

The Four Rules

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• All work is designed so best practices are captured and

problems are evident immediately.

• Problems are immediately addressed, both to contain

them, and to trigger problem solving activities.

• Knowledge generated locally becomes systemic through

shared problem solving.

• The most senior management has to own the capability

development process.

Characteristics of a Lean Organization

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PRESPECIFICATION AND EMBEDDED TESTS

Making the work self diagnostic

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VIBRATION WHEN GOING OFF THE ROAD

Prespecification Embedded Test

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ROTTEN EGG SMELL OF NATURAL GAS

Prespecification

• No Leaks

Embedded Test

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VISUAL & AUDIBLE LOW ON FUEL

Prespecification Embedded Test

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VISUAL SPEED MONITORING

Prespecification Embedded Test

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VISUAL COLOR CHANGE WITH TEMPERATURE

Prespecification

• Too hot for Baby!

Embedded Test

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AUDIBLE WARNING VEHICLE HEIGHT

Prespecification Embedded Test

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PROCESS DESIGN The Four Levels

(SYSTEMS, PATHWAYS, CONNECTIONS, ACTIVITIES)

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System – Output “Pre-Specification”

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System – Output “Embedded Tests”

Actual output can be color coded as based upon a deviation from the target. Sounds or the visual can alert T/L’s of abnormality. Actual output can be color coded as based upon a deviation from the target. T/L would observe the results x-times per shift for abnormalities.

• Ex. 1 – Electronic PC Board
• Ex. 2 – Manual PC Board

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Pathway – Responsibility “Pre-Specification”

• Ex. 1 - Production Process
• Ex. 2 - Quality Process

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Pathway – Responsibility “Embedded Tests”

• Ex. 2 – Sequence (Order)
• Ex. 1 – Who (Responsibility)

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Connection– Handoff “Pre-Specification”

The customer (prod.) will turn light on when materials are needed. The supplier (materials) will be clear that a request has been made.

• Ex. 1 - Light Signal
• Ex. 2 - Kanban Signal

Request for material is made by placing the empty rack in the pre- specified

• location. The

response is to fill the empty rack with the pre-specified quantity and return to location.

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Note : Further escalation could occur where a team leader is notified of the abnormality via cell, beeper, or other means.

• Ex. 1 – Lights / Sounds
• Ex. 2 – Footprints

Connection– Handoff “Embedded Tests”

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Activity – Method “Pre-Specification”

Example: STANDARDIZED WORK – Quality Inspection

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Activity – Method “Embedded Tests”

• Ex. 1 – Team Leader
• Ex. 2 – Sequence (Order)

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Quiz Time!

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ANDON CALL FOR PRODUCTION PROBLEMS CONNECTION

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SAFETY EXPECTATIONS FOR CELL SYSTEM

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PART TAGGED WITH INFORMATION FOR NEXT STATION

CONNECTION

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DESIGNATION OF WHO IS RESPONSIBLE FOR WHAT ROLE

PATHWAY

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STOCK MATERIAL ORDERING TAG CONNECTION

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OPERATOR TOOLING ORGANIZED FOR CHANGEOVER ACTIVITY

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MAINTENANCE PROCESS PERFORMANCE BOARD SYSTEM

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TAG USED TO ORDER REPLACEMENT MATERIAL CONNECTION

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OPERATOR CLEANING MATERIALS ORGANIZED ACTIVITY

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SHIPPING SCHEDULE CONNECTION

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SYSTEM OUTPUT BOARD WITH RESPONSIBILITIES SHOWN

PATHWAY

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LOCATION DESIGNATION FOR MATERIAL CART 1.Activity 2.Connection

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STANDARD WORK CHART ACTIVITY

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PRODUCTION PROCESS PERFORMANCE BOARD SYSTEM

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COMMUNICATION OF NEXT PRODUCTION JOB CONNECTION

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OPERATOR COLOR CODED CHANGEOVER TOOLING ACTIVITY

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PRODUCTION PROCESS PERFORMANCE BOARD SYSTEM

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SIGNAL THAT CHANGEOVER HAS STARTED CONNECTION

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• 1. MODIFICATION OF WORK FOR Operator # 3 & # 4
• 1. ACTIVITY
• 2. PATHWAY
• 2. REBALANCE OF WORK BETWEEN OPERATERS

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OPERATOR TOOLS ORGANIZED FOR CHANGEOVER ACTIVITY

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Why is it Important to Categorize the Four Levels?

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Problem Solving

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Prevention vs. Detection Preventing a heart attack? Which is better?

• r

Have a heart attack and seek treatment afterwards?

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Detection vs Prevention

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Common Roadblocks to Problem Solving

l

Common Roadblocks

l

Problem not well defined

l

Problem solving effort is untimely

l

Poor team dynamics

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Participants – lack of understanding of problem solving and problem solving techniques

l

Inadequate resources allocated – not enough time

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Root cause not identified

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Management support

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Key Element Number 1- “Go and See”

• When a problem surfaces, go to the actual workplace and see

for yourself what is happening.

• The Actual Product
• The Actual Process
• The Actual Place
• The Actual Person
• In a Timely Manner (rapid response)
• Treat the process or area where the problem is occurring as a

crime scene. (Just like CSI)

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Key Element Number 2- Use a Scientific Method

• Toyota and other Successful Lean Organizations always use a

Scientific Method in their problem solving activities.

1.

Analyze the Problem*

2.

Determine Root Cause (Your Hypothesis)*

3.

Implement a Countermeasure

4.

What is the Expected Outcome?

5.

What is the Actual Outcome?

6.

What did we LEARN? ( Expected vs. Actual) *The complexity of the problem typically determines the best approach for analyzing the problem and determining root cause.

• Basic= 5 Why, Fishbone etc
• Advanced= Six Sigma, Point of Cause

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• 1. Problem Description

Problem Level (SPCA)

• 2. Root Cause
• 3. Countermeasure
• 4. Expected Outcome
• 5. Actual Outcome
• 6. Learning

Operator is not able to complete activity level work within designed cycle time of 43 seconds per standard work.

CURRENT OBSERVED CONDITION

Placement of parts (orientation)

• nto the poke-

yoka fixture is awkward for

• perator

causing additional time as detected by the (embedded test). Switch fixtures left to right for easy installation (natural

• rientation) vs.

reversed as currently done. ACTIVITY LEVEL PROBLEM Installation is comfortable for operator and activity can be done within the designed cycle time of 43 seconds per standard work. Experiments should be conducted with operator to achieve best known location and

• rientation

for future installations. Then documented in standard work.

Run Experiment

CONDITION AFTER EXPERIMENT

Unbolted fixtures, repositioned and ran experiment. Operator was able to load device comfortably and complete all tasks within 41 seconds.

PROBLEM SOLVING USING THE SCIENTIFIC METHOD

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Key Element Number 3- Low Cost, Rapid Trials

• You learn more by conducting fast, cheap experiments
• Hold it >Tape it >Clamp it >Bolt it>Weld it
• We often jump right to welding something in place, making it

permanent before we even know if it is effective or what other effects the countermeasure will have.

• This part of the process is a continuous cycle of the

PDCA>Learning>PDCA Cycle.

• Remember, 40 singles is always better than 4 homeruns

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Key Element Number 4- Always toward True North

• Every new countermeasure should always improve the process

toward “True North” or the IDEAL condition

• 1. On Demand, Zero Lead Time
• 2. Single Piece Flow
• 3. No Defects
• 4. No Waste (Eliminating the 8 Wastes)
• 5. Safe (Physical, Emotional, Professional)
• Always update the Standards with the new knowledge and

repeat the process.

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Sharing Knowledge

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Yokoten

Yokoten is a Japanese term that means “Horizontal Deployment” Successful Lean Organizations expect horizontal peer to peer sharing of new knowledge on what the Kaizen idea was, how it can be improved and implemented in another area. Ways of accomplishing this can be in the form of:

• 5 Minute Team Meetings
• Team Leader / Supervisor Meetings
• Storyboards or Kaizen Boards that display the information.
• A Lessons Learned, or Better Practice Database.
• Field Trip! Go and See!
• Create a “Think Tank”. Experiment and learn what it will

take to sustain Lean in your organization.

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Yokoten Example

Department “A” discovers a solution to a problem through Kaizen activities using the scientific method. Department “A” shares its discovery with Departments “B” and “C” so they can Understand, Adapt, and Apply the new Knowledge.

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Knowing “WHY” is as important as knowing “HOW”

“With know-how, you can operate the system, but you won’t know what to do should you encounter problems under changed

• conditions. With know-why, you can understand why you have to

do what you are doing and hence will be able to cope with changing situations.”

• Shigeo Shingo

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Leaders are Teachers

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The Leadership Structure

Organizations that are successful at Lean have Leaders that are committed to the philosophy from the top down. The people that are more senior in the organization are responsible to develop the skills and abilities of those under them in each of the four Capabilities. This allows for a system that promotes effective lower level process design, process improvement, and knowledge sharing skills in a continuous cycle. By doing this, Leaders help create a true Learning Organization.

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Something to Reflect On.. The needs of those lower in the

• rganization, should determine the work
• f those above them, not the reverse.

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Key Leadership Characteristics

Attention to Detail Humility A sense of urgency and speed to always improve performance towards True North Persistence Natural Teacher, someone who can develop skills in others One who can build trust, emotional safety in their team Possesses a passion for the Shop Floor

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Why Have Team Leaders?

Too many organizations view Team Leaders just as “indirect labor” Companies like Toyota and others that excel in Lean understand the importance of Team Leaders and their critical role in the process and use them extensively in their Operations. Team Leaders are an essential gear in the mechanism of a Lean

• System. They must be present for the system to work properly.

If you are not prepared to have Team Leaders on your shop floor at a low Team Leader to Operator ratio, then don’t pursue a Toyota based system.. Because IT WILL NOT WORK!

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The Golden Triangle

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The Role of the Team Leader

Team Leaders are the front line of defense in a Lean Operating System. Their sole mission is to support the Operator through responding to problems, training, kaizen, and ensuring the Operators are able to perform according to their Standardized Work. The ideal ratio is typically one Team Leader for every 4-5

• Operators. This allows the Team Leaders to respond rapidly to

problems and address them as they are happening.

Nested Organizational Structure

Leader’s Process Design, Problem Solving, and Knowledge Sharing skills must be very high

Department Manager Consequently Therefore True North

• On Demand, Immediate
• 1 x 1
• Defect Free
• No Waste, Lowest Cost
• Safe (Physical., Emotional., Professional)

T/L

Team Leaders Role (for his/her area)

Sustain & improve system KPI’s (SQDCM) (satisfy customer = next area / process) (A) Sustain key metrics by solving problems ( Implement embedded tests) (B) Relentlessly Maintain and improve the current condition toward True North Because Process Design, Problem Solving, and Knowledge Sharing skills require vast practice & OJT, Supervisors and above must teach & develop these skills in subordinates. T/L T/L T/L Supervisor Group Team

Note: Supervisors should improve connections between Team Leaders and ensure they are cross trained.

LEADERS ARE TEACHERS AND PROBLEM SOLVERS

Team Team Team

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Avoiding the Eighth Waste Building Trust With Your Teams

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WARNING!

The remainder of this presentation is rated:

R

Contents may not be suitable for participants who are uncomfortable with hearing or telling the truth, unwilling to change their minds or behaviors, or suspicious of ideas other than their own.

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Why Focus On Trust?

High levels of trust lead to high performance in

• teams. Research shows strong links between the

level of trust in a team and:

• More effective cooperation and collaboration
• Better knowledge transfer between team members
• Increased productivity
• More effective working relationships

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What is Trust?

Different people look for different behaviors in others before they will trust them. These trust behaviors can be classified as: Ten Criteria of Trust Swift Trust

• Competence
• Openness with Information
• Integrity
• Reciprocity

Deeper Trust

• Compatibility
• Benevolence
• Predictability
• Security
• Inclusion
• Accessibility

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Defining Trust

• There are two parts to trust: a feeling part that indicates trust, and a

performance track record that confirms trust.

• An active feeling of trust is confidence: in leadership, in reliability.
• A passive feeling of trust is the absence of worry or suspicion.
• Our most productive relationships are already based on trust,

sometimes unrecognized and frequently taken for granted.

• Trust, then, can be defined as confidence, the absence
• f suspicion, confirmed by a track record and our ability to correct

issues.

• The track record is only a confirmation of well placed trust. If we

define trust only in relation to past events, we often will get bogged down in stubborn unforgiveness.

• It is always more productive to correct mistakes and

miscommunications to re-build trust starting NOW!

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Building Trust for Sustained High Performance

• Trust as a foundation for high performance means

that “Trust Comes First”

• We cannot make the plan before trust issues are

resolved, we end up dealing with symptoms not causes and repeating problems just change names.

• You can order people to do things, but you run the

risk of getting the salute and not the heart, gaining compliance, and not the commitment.

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The Bottom Line of Trust

• Effective Listening is the bottom line of trust!
• If you listen, people will trust you.
• You cannot establish trust if you cannot listen!
• A conversation is a relationship, both speaker and listener play

a part, each influencing the other.

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Ten Actions Leaders Can Take To Build Trust

1. To build mistrust: Talk with others about problems you are having with a peer without doing everything reasonably possible to solve the problem through direct communication with that peer. To build trust: Solve problems through direct communication at the lowest equivalent level: yourself and your peers; yourself and your direct manager; yourself, your manager and their manager. 2. To build mistrust: Take credit for yourself, or allow others to give you credit for an accomplishment that was not all yours. To build trust: Share credit generously. When in doubt, share. 3. To build mistrust: Make a pretended or “soft” commitment, e.g., “I’ll respond later.” To build trust: When in doubt about taking on a commitment, air your concerns with the relevant parties. When engaged on as ongoing commitment, communicate anticipated slippage as soon as you suspect it. 4. To build mistrust: Manage/Supervise from behind your desk only To build trust: Spend “informed” time mingling, asking non-assumptive questions, making only promises you can keep, working through existing lines of authority. 5. To build mistrust: Be unclear or not exactly explicit about what you need or expect. Assume that anyone would knot to do/not to do that. To build trust: Be explicit and direct. If compromise is productive, do it in communication, not in your mind alone.

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Ten Actions Leaders Can Take To Build Trust

6. To build mistrust: Withhold potentially useful information, opinions or action until the drama heightens, thus minimizing your risk of being wrong and maximizing credit to you if you’re right To build trust: Be timely, be willing to be wrong. 7. To build mistrust: Communicate with undue abruptness when others venture new

• pinions or effort.

To build trust: Acknowledge the intent and risk of innovation first, then address the issue with your honest opinion. 8. To build mistrust: Withhold deserved recognition at times when you yourself are feeling under-recognized. To build trust: Extend yourself beyond your own short-term feeling and validate success or new effort. 9. To build mistrust: Hold in your mind another department’s productivity or behavior as a reason for less cooperation. To build trust: Get in direct, tactful communication, airing your problem and seeking win/win resolution. 10. To build mistrust: Have performance evaluation time the only, or primary time for coaching input. To build trust: Schedule regular meetings for input and feedback for those reporting to you; develop systems for floor people to evaluate coordinators, team leaders, and managers.

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Train Your People How To Think!

• You can train people to think quality, think customer service, but

there is a difference whether these efforts come from trust and commitment or just compliance.

• The Concept of trust is simple: build on individual confidence and

eliminate fear as an operating principle. The process is achievable,

• nce we understand the emotions associated with trust and

incorporate them into the following four steps:

1.

Define what we mean by trust

2.

Understand our “blind spots”

3.

Communicate with intention, and,

4.

• Produce. The conversion to a team mentality is difficult because

effective teams must be predicated on trust.

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Results Actions Beliefs Experiences

The Results Pyramid

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 The most important factor  Hardest part of the process  Real respect for all employees  Listen and be a servant leader

Respect For People

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Employees want*:

Empowerment to

Make Decisions

Opportunities for

Growth & Development

Variety Mutual Support

and Respect

Sense of Purpose Desirable Future

Be an Employer of Choice

*BusinessWeek, 2008

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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

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“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

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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

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Tips and Strategies' to Help You Build the Four Capabilities in Your Organization

• Obtain Process Stability, slowly over time
• Use the Model Line concept to learn how this philosophy may

fit in your organization.

• Learn and become better at the Four Capabilities BY DOING!
• No Analysis Paralysis! Don’t think too much, do a lot!
• Get as many people from different functions such as

Production, Quality, Maintenance, Engineering etc.

• Involve all the organizational levels, from the Shop Floor

to the VP

• Design the work with “embedded tests” and add Problem

Solvers (Team Leaders) to respond.

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Some References for Further Learning

• The Toyota Way by Jeffery Liker
• The Toyota Way Field book by Jeffery Liker and
• Toyota Culture by Jeffery Liker and Michael Hoseus
• Toyota Talent by Jeffery Liker and David Meier
• To order Steven Spear’s Harvard Case Studies:
• Go to www.harvardbusinessonline.org
• Click on “Harvard Business School Cases” icon
• Use search engine feature:
• Steven J. Spear – access body of work and to order:
• Decoding DNA of the Toyota Production System

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Questions?