Lean management, lean leadership and leader standard work (AME Webinar)

1. Lean Management, Lean Leadership, and Leader Standard Work A Webinar Hosted by AME 8 April 2016

2. © David Mann 2016 www.dmannlean.com Webinar Topics  Introduction  Nature of lean and difficulty sustaining its gains  Overview: Lean Management System (LMS)  Interdependence of lean’s tools and LMS  Process focus: Leader standard work  Value proposition in LMS  Meaningfully engaging executives in lean  Summary, Q&A

3. © David Mann 2016 www.dmannlean.com What’s the nature of lean? According to Shigeo Shingo*:  Lean is fundamentally about finding waste  Lean thinkers search out problems where none are thought to exist * The sayings of Shigeo Shingo: Key strategies for plant improvement. Translated by Andrew P. Dillon. Productivity Press, 1987. Original publication 1985, The Nikkan Kogyo Shimbun, Ltd 3

4. © David Mann 2016 www.dmannlean.com This seems simple enough...  But highlighting problems can be difficult - and risky – in a conventional organization  Highlighting problems goes against •  Habits •  What conventional bosses expect •  Personal reinforcement contingencies – that is, rewards and punishments 4

5. © David Mann 2016 www.dmannlean.com Because of habit and convention... Lean is harder than it seems!  Many organizations begin the lean journey  Few (~ 5%) see it through to sustained gains  Kaizen and 6 sigma successes equally fail to last  Why? Failure to recognize implications for managers’ practices and behaviors  Lean management addresses behaviors, tools, practices to sustain, extend lean production’s gains 5

6. © David Mann 2016 www.dmannlean.com A lean ecosystem  For sustained lean success, experience suggests the need for a lean ecosystem  The ecosystem has two main sub-systems: 1.  Lean production system: tools to improve process stability and performance 2.  Lean management system: leaders’ behaviors, practices and tools to focus on the process, sustain initial lean gains, drive further improvement 6

7. © David Mann 2016 www.dmannlean.com 1.  Lean tools: Improve stability 2.  Lean Mgt: Sustain gains, capture problems, assign actions 3.  Lean tools: Improve stability 4.  Lean Mgt: Sustai gains, capture problems, assign actions 5.  Lean tools: Improve stability 6.  Lean Mgt: Sustain ... 7.  Lean tools: Improve ... 8.  Continue until perfection! . Process Focus Lean tools Findproblems! Process Focus Lean tools Findproblems! Process Focus Lean tools Start here Findproblems! A lean production + lean management ecosystem: Healthy, sustainable, beneﬁcial 7

8. © David Mann 2016 www.dmannlean.com Lean production and LMS: Interdependent  Well established: •  Gains from lean production are rarely sustained  Less well known but equally true: •  Lean management – without the gains from lean production – is seen as meaningless •  LSW particularly seen as bureaucratic “check the box” exercise, does not produce improvement 8

9. © David Mann 2016 www.dmannlean.com Lean management’s value proposition  For leaders, for front line workers: 1.  Did lean tools eliminate a chronic problem, frustration? 2.  Would you like to see this benefit sustained? 3.  In the past, would you expect the benefit to last? 4.  If it lasted, would it make for a better day at work? 5.  What’s in it for you: LMS sustains the benefit 6.  LMS captures next opportunities for improvement 9

10. © David Mann 2016 www.dmannlean.com Lean management’s focus on process   sustains gains and drives improvement  3. Leader Standard Work 2. Standard (Visual) Accountability (Sustained behavior) (Improvement) (Frequent focus on process health) 1. Visual Controls Process Focus! 10

11. © David Mann 2016 www.dmannlean.com Lean management’s focus on process   sustains gains and drives improvement  3. Leader Standard Work 2. Standard (Visual) Accountability (Sustained behavior) (Improvement) (Frequent focus on process health) 1. Visual Controls Process Focus! 11

12. © David Mann 2016 www.dmannlean.com Visual controls: Key elements What did we expect? What did we actually get? If we didn’t get it, What happened? What are we looking for? 12

13. © David Mann 2016 www.dmannlean.com Visual controls inhigh speed automated processes:  OEE six big losses - Minutes lost & why Hour mtl operat’r min stop maj stop defect speed describe 13 6 7 8 9 10 11 12 1 2 3 etc 17 Forklift down 9 Wrong plate staged Impression cylinder misagaligned27

14. © David Mann 2016 www.dmannlean.com Expected vs actual and description of misses in a takt paced assembly process Supervisor initialed every hour 14

15. © David Mann 2016 www.dmannlean.com Capturing interruptions, delays in variable duration cardiac procedures 15

16. © David Mann 2016 www.dmannlean.com Lean management -‐ A closer look 3. Leader Standard Work 2. Standard (Visual) Accountability (Sustained behavior) (Improvement) 1. Visual controls Process Focus! (Frequent focus on process health) © David Mann Lean Consulting 2010 Reproduced with permission 16

17. © David Mann 2016 www.dmannlean.com Daily accountability process 17 Ø  Brief, timed, stand up, on or near the floor Ø  Standard agenda: •  Yesterday’s visuals for needed follow-up •  Tasks assigned for follow-up – cause or action •  Written as verb, noun – action is the idea! •  Review tasks due today •  Completed? Green •  Not completed? Red, reason why •  Help needed? Expected completion?

18. © David Mann 2016 www.dmannlean.com Daily accountability: Did you complete assigned tasks on time? Names 4/4 4/5 4/6 4/7 4/8 4/9 John Jane George Phan Marie bring donuts verb noun verb noun verb noun verb noun Today 18 verb noun verb noun verb noun verb noun

19. © David Mann 2016 www.dmannlean.com Lean management -‐ A closer look 3. Leader Standard Work 2. Standard (Visual) Accountability (Sustained behavior) (Improvement) 1. Visual controls Process Focus! (Frequent focus on process health) © David Mann Lean Consulting 2010 Reproduced with permission 19

20. © David Mann 2016 www.dmannlean.com 20 Leader standard closes the loop on process focus, and keeps it closed Improvement Lean gains Leader standard work Courtesy Scott Simmons

21. © David Mann 2016 www.dmannlean.com Intent of leader standard work  Guarantee the integrity of the standardized lean production system by consistent focus on the production processes as they cycle •  Being in the production area “grasping reality” •  Observing adherence to standardized work (10 cycles or 10 minutes) each person for team leaders, 1 person per team leader for supervisors, and so on •  Talking with operators about recent changes in standard work, and their thinking on further improvement •  Reinforcing your personal relationships with them

22. © David Mann 2016 www.dmannlean.com Date: Zone Leader Std. Work Zone Leader Std. Work Time TASKS 5:15 Check for call-in Review vacation log 5:30 Hold Daily Start-up Mtg. Review manpower needs Review shortages Review Cross-training and zone training plans Review schedule - mix and daily APS requirements Assign EE to work areas Check for employee issues 5:45 Attend Dept. Zone Leader Mtg. Review manpower needs Review shortages 6:00 Adjust Labor Planning Board Review 3rd shift production log/notes with counterpart Review Cross-training and zone training plans Review schedule/mix for late changes Adjust EE assignments as needed 6:30 Check Kanban Inventories Review Minimum Levels Review Maximum Levels Review 5's organization 8:00 Gemba Walk with Supv. & ZL's Note assignments 9:45 Attend Lean Board Meeting - Daily 10:30 Attend Division Zone Leader mtg - Daily 1:30 Next Day Planning Review vacation log Review Cross-training and zone training plans Review schedule - mix and daily APS requirements Assign EE to work areas 1:45 Set-up night shift priorities Id work centers to be manned Id part numbers & quantities to be ran 2:00 Establish personal plan for next days activities Lean Tasks Employee Training Process Improvement Time TASKS Monitor 40 min. clock (before and after all breaks) 1st break 2nd break Lunch 7:45 9:45 12:00 Zone Walk through (5X per day) 1st 2nd 3rd 4th 5th Verify hourly production tracking, post results, note and act on any flow interupters. 6:30 11:30 7:30 12:30 8:30 1:30 9:30 2:30 10:30 3:30 All Monitor Std. Work the Check for compliance Time Reinforce & correct operator behavior Update Std. Work as needed When Provide Operator Training (as needed) Needed Train & Certify new employees Review Cross-training and zone training plans Keep skill versatility matrix current Front Back

23. © David Mann 2016 www.dmannlean.com Leader Standard Work-VS Manager Task pad coded daily or as recurring Standard weekly or specific-today tasks Emergent items Notes, working diary Note: Outlook and Groupwise both have trifold formats

24. © David Mann 2016 www.dmannlean.com Person dependent or process dependent?  Lean systems seek to be process dependent  In human systems, at some level a person must monitor and reinforce consistent adherence  Leader standard work defines this monitoring and reinforcement  Overlapping content between levels of LSW help guarantee the system’s integrity, but...  Ultimate integrity depends on support by execs  So, what about executive standard work??? 24

25. © David Mann 2016 www.dmannlean.com Problem statement:   Operations VP, precision machining, 2014 “I have hosted hundreds of tours at [our company] since we began to apply the lean management system starting in 2008. The majority of Lean Champions that came through confided in me that "getting their executives on board was very difficult", and that they were concerned that all the hard work of their teams would go to waste if they could not garner support from leadership/ownership of their organizations.” Emphasis added 25

26. © David Mann 2016 www.dmannlean.com Gemba walking execs:   A cautionary tale and a lesson learned ◆ Execs wanted to support lean ◆ But they didn’t know how ◆ We weren’t helping them ◆ They were cancelling the walks ◆ “David, you have a problem!” Why are gembas being cancelled just as we’re having such success? 26

27. © David Mann 2016 www.dmannlean.com Reﬂec3on: Execs are our customers! What do we know about them?  Bright  Quick studies  Competitive  Achievement oriented  Strive to ace every test  Action oriented  Thirsty for hands-on  Expect staff prep work, avoid embarrassment  Want to drive improvement 27

28. © David Mann 2016 www.dmannlean.com Design spec: Improved exec gemba walk process What we were providing 1.  Execs in passive role a.  Yammering sensi-yawn! 2.  Unprepared to participate 3.  Low confidence in lean knowledge 4.  Uncomfortable discussing lean 5.  Felt incompetent in gemba 6.  Not a meaningful exercise: boring, embarassing, wasted of time A better customer value 1.  Exec-driven experience a.  Get the answer, ace the test 2.  Good staff prep, execs ready to participate and lead 3.  Confident observer in gemba 4.  Comfortable coaching lean management in gemba 5.  Competent in lean management system 6.  Valued, fun(!) investment of time 28

29. © David Mann 2016 www.dmannlean.com Gemba worksheets and a new exec gemba design 1.  Process-dependent: Predictable, repeatable 2.  Structure put exec “student” in control 3.  Sufficient preparation (staff work) 4.  Agenda for clear content focus 5.  Test underscored learning, made experience personally meaningful: Ace the test! 29 Worksheets provided value from customer perspective:

30. © David Mann 2016 www.dmannlean.com Lean management system Standardized Lean Processes Supervisor/Manager Director/Value stream leader Executives Proposition: If the lean management system is healthy,   then the lean production system is healthy Team Leader 30

32. © David Mann 2016 www.dmannlean.com Put execs in active role…   Brief prep / gemba worksheet   Questions to ask   Things to look for   Let them drive the bus!   After, compare ratings: •  Exec ”4.5”; Sensei “2.5” •  Teachable moment!! “This 3me, it’s gemba for visual controls. You might want to look for… and ask about…” You, on the way to gemba: Hi, how’s it going today? What’s the process here? 32

33. © David Mann 2016 www.dmannlean.com Summary  Lean production and lean management are interdependent •  Together, they create and sustain a better day at work, sustained and ongoing improvement  Lean’s value proposition depends on timing: Lean gains first, then lean management to sustain them •  Leader standard work keeps the loop closed  Lean’s value proposition for executives is fundamentally different, supporting their unique managerial responsibilities •  Lean management empowers execs to judge first-hand the integrity of the chain of command and the fidelity of execution of their lean strategy 33

35. For more about lean management and leadership, be sure to check out the 2017 AME International Conference in Boston this fall! For more information, visit the #AMEBoston website, www.ame.org/boston.

Lean management, lean leadership and leader standard work (AME Webinar)

Association for Manufacturing Excellence

Lean management, lean leadership and leader standard work (AME Webinar)